Recording date: 25th September 2023

The latest in the world of Nickel with Mark Selby, CEO of Canada Nickel. 

Nickel prices have dropped below $20,000/tonne recently, which has been predicted for months. Prices are expected to bottom out around $17,500-18,000/tonne over the next 2-3 months before starting to recover in early 2023. 

The recent price drop is seen as positive to "shake out" bears and set a new base before rising again on increased EV demand. Prices could return to $20,000/tonne levels by spring 2023. Despite economic uncertainty, strategic players like BHP and Wyloo are still aggressively trying to secure future nickel supply by acquiring deposits. Mining companies are expected to become more interested in battery metals once EV demand growth is more established. 

FPX Nickel signed an MOU with Toyota on potential mine development and downstream supply chain involvement, underscoring Toyota's desire to secure future nickel supply. Giga Metals released a PFS showing an 11% IRR on their Canadian nickel-cobalt project, aided by Canadian tax credits. The multi-decade mine life provides options if nickel demand rises more than expected. Canada Nickel is close to releasing a feasibility study that will double initial production plans, aiming to be among the world's largest nickel mines. They expect significant recovery improvements in nickel, iron, and chrome. 

Selby explains how nickel sulfates will likely trade at a discount to metal prices long-term, similar to what has happened with cobalt sulfates. Maximizing value involves delivering a product close to LME pricing. 

There is a long-term upside for nickel versus cobalt pricing, given the greater relative demand growth for nickel in EVs. New capacity could push cobalt prices quite low. 

Officials are meeting UK and French officials about critical minerals supply from Canada, as governments are keen to secure "safe supply" from jurisdictions like Canada.

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