Nickel prices are booming over the last 2 weeks..can anyone give a comment on this..also apparently this joint venture between Halcyon and Minara has the potential to be the largest single nickel discovery outside Kambalda..
And you well remember it ran for years.
They were the good ole days of Sally Malay (now Panoramic Resources) and Murrin Murrin (then Minara and now owned by Glencore) amongst others, like WSA soon to be IGO.
I'm into MCR, PAN and WIN, but nickel is a boom and bust commodity, so it all depends on your confidence in the EV story.
One also has to remember batteries can be made with different materials, so if nickel gets too stupid, manufacturers may look to other materials.
The thing is nickel gives the best energy density, therefore if distance is an issue, nickel is the go to ingredient, but costs have to come into the equation.
The explosive move was triggered by reports that holders of Russian metal physically stored in LME warehouses had relinquished their holdings, causing liquidity to swiftly deteriorate as sellers rushed to the sidelines. This forced investors with short positions to buy back positions, adding to the mood of chaos.
A unit of China Construction Bank, called CCBI Global Markets, missed paying hundreds of millions of dollars of margin calls on Monday amid the frenzy. The LME provided it with additional time to make the payments, meaning it is not formally in default, Bloomberg reported.
Australia makes up 6 to 7 per cent of global nickel supply and, like Russia, has a more pronounced effect on Class 1 supply because of its high exposure to sulphide deposits from which low-cost, high-quality product is derived. On the ASX, Western Areas, IGO, Panoramic Resources and Mincor control sulphide deposits.
You wouldn’t think Ni could continue like that for too long. Must be a pretty sharp fall coming. It would be risky to chase this with FOMO, I reckon. As Dona quoted above, it might be just short term technical issues with how the market is being traded that caused the jump, not longer term fundamentals.