Recording date: 3rd October 2023

As expected when seeing a clear break of a very long support line, the nickel price move lower was pretty aggressive down nearly $1,500 to the mid-$18K range where we were in mid-2021. I believe we’ll see a further move lower down to the $17,500 level before we begin to move higher once again into year-end.

“Great Convergence” continued on as sulphate prices ticked up while nickel prices moved lower – sulphate and NPI discounts continued to be reduced. China is generally quiet heading into the week-long October holiday – will see what happens when get back afterwards – but not expecting anything too exciting.

Canada Nickel - FS call on 12th October 2023.

Horizonte Minerals - unfortunately, took a stumble 2 quarters before the goal line started pushing out the start date to quarters and increasing total capex by a further 35%. They hired an ops director 2 months ago and wonder if he is driving it – I DON’T KNOW the exact reasons but based on some words in the release I wonder if is water management - something investors don’t pay much attention to, but critical from a reliable operability perspective which required some re-work of site civils. Where it lands will depend on how greedy their partners – Orion and Glencore will be in providing additional funding. Think it looks cheap at these levels, but may want to wait to see what the re-financing package looks like before jumping in.

Glencore will halt funding the Koniambo project in New Caledonia – the total $$ destroyed on the island between Goro and Koniambo must be approaching $20 billion. Neither plant ever reached design capacity and had some technical flaws (both were new processes) in conjunction with trying to operate in a highly difficult jurisdiction. Will be interesting to see what happens – a Chinese company puts in RKEF or just exports ore. Another example of grade not being the most important thing – Koniambo was the highest grade undeveloped laterite deposit in the world!

Atlas Materials raised privately $27 million on a $115 post-money valuation for the saprolite hydro-met process. It’s going to solve 2 major problems!!

Both of its founding premises are false:
“Increasing the amount of nickel ore available to make batteries by 50% Before the Atlas Process, saprolite ore, which accounts for approximately one-third of the world’s current nickel resources, was not economically viable for battery grade applications”. Matte from saprolite works!

Hydro-met guys say, “Producing battery nickel with almost zero CO2, no waste or other emissions. All existing processes to refine nickel are costly and harmful to the environment due to their process emissions and waste dumps.” However, it can be done with the right pollution control and limited environmental equipment.

Attended INSG meetings – big surpluses, but no one can say where the surpluses are sitting!

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