The Battery Show

Recording date: 22nd August 2024

Nickel prices bounced around $16-$16,500 for the last 2 weeks – popped up yesterday to $16,800, and flirted with $17,000.

Ore prices have marched higher and increased each of the last 2 weeks – 1.5% Philippine ore key benchmark has climbed by $6/tonne or 12.5% to $54/tonne – flows right through to the cost floor. This is even with demand not quite as strong as we expected at the start of the year as Chinese economy weakness and lithium weakness slowing restocking in the EV segment (still good 8% y-o-y but not at double-digit rates).

As of June, Indonesia now imports 3% of its global ore supply from the Philippines (some good charts from Macquarie). This underscores the theme that Indonesia doesn’t have an unlimited supply of ore and is facing real ore grade is seen high-grading three ways: nickel grade, Fe/Ni ratio, and slag chemistry. Given that weakness, NPI and stainless prices haven’t followed suit with ore prices. Price compression is still happening as NPI discounts narrowed again and sulphate at a small discount.

A little bit of news, but generally, it is a quiet summer:

Electra Battery Metals - $US20 million from DOD – restarting and expanding existing cobalt refinery. They will be processing material from the Congo into finished cobalt products - which underscores the government’s focus on this stage of processing – one of the key drivers as to why Canada Nickel is setting up a downstream business.

Canada Nickel - We continued with good regional exploration news: Best Reid interval to date – 661m of 0.29% nickel, including 100m of 0.42% nickel and 40m of 0.51% nickel in REI-24-35; all eight holes targeting the Reid central core intersected core lengths greater than 620m, with average grades of 0.21% to 0.29%.

SPC Nickel released more in-fill holes from West Graham, with some good, shallow intervals - Hole WG-24-092 intersected 1.15 per cent nickel and 0.29 per cent copper over 12.0 metres from 15m to 27m. This interval is part of a wider interval that returned 0.75 per cent nickel and 0.24 per cent copper over 34.85 metres from 1.15 to 36.0 metres.

Power Nickel (may be renamed to Power Copper-PGM) last few holes from winter program – some more good copper-PGM intervals N-24-060 returned: 10.39 metres (m) of 0.19 gram per tonne (g/t) gold (Au), 14.17 g/t silver (Ag), 2.12 per cent copper (Cu), 2.08 g/t palladium (Pd), 0.4 g/t platinum (Pt) and 0.14 per cent nickel (Ni); Including 4.05 m of 0.31 g/t Au, 18.64 g/t Ag, 2.75 per cent Cu, 2.81 g/t Pd, 0.75 g/t Pt and 0.14 per cent Ni; With 1.7 m of 0.58 g/t Au, 38.61 g/t Ag, 5.95 per cent Cu, 4.54 g/t Pd, 0.95 g/t Pt and 0.19 per cent Ni; PN-24-050 returned 5.45 m of 0.13 g/t Au, 4.2 g/t Ag, 0.61 per cent Cu, 1.32 g/t Pd, 0.52 g/t Pt and 0.11 per cent Ni; Including 2.6 m of 0.17 g/t Au, 7.3 g/t Ag, 0.81 per cent Cu, 2.38 g/t Pd, 0.72 g/t Pt and 0.05 per cent Ni; And 1.25 m of 0.18 g/t Au, 2.72 g/t Ag, 0.95 per cent Cu, 0.76 g/t Pd, 0.76 g/t Pt and 0.29 per cent Ni.

Premium Nickel initial 43-101 resource (an increase from historic resource) Selebi Main Deposit - Inferred Mineral Resource Estimate of 18.89 million tonnes at 3.51% CuEq or 1.70% NiEq. Contained metal Inferred - 165,000 tonnes nickel and 319,000 tonnes copper. Selebi North Deposit - Indicated Mineral Resource Estimate of 3.00 million tonnes at 2.92% CuEq or 1.42% NiEq. Contained metal Indicated - 29,000 tonnes nickel and 27,000 tonnes copper. Inferred Mineral Resource Estimate of 5.83 million tonnes at 3.11% CuEq or 1.51% NiEq. Contained metal Inferred - 62,000 tonnes nickel and 52,000 tonnes copper. — Learn more: https://cruxinvestor.com/categories/commodities/nickel Sign up for Crux Investor: https://cruxinvestor.com

Recording date: 2nd August 2024

The Nickel Market: A Strategic Investment in the Green Energy Transition

Down 5%, back up 7% - welcome to the nickel world. Nickel back up to $16,500 range ($7.50/lb) after getting all the way down to $15,500 when we last spoke 2 weeks ago

The “Great Compression” continues – NPI discounts continue to narrow- have narrowed by nearly 25% over the last 2 weeks.  Sulphate at a premium.  The increase in nickel price this past week will push back out again, but NPI prices will rise again based on ore tightness in Indonesia.  It also feeds into increases in stainless steel prices and stainless scrap.  Stainless inventories also declined.  We will see how this trend continues, but I think we are forming the bottom here to move back towards $20K year-end forecast for nickel prices.

APNI announces Indonesian Metals Exchange for 2025

The Indonesian Nickel Miners Association (APNI) announced yesterday that it plans to introduce the Indonesia Metals Exchange (IME) in 2025. With this, APNI wants to decouple Indonesia, as the owner of the largest currently known nickel reserves and the world’s most important nickel exporter, from foreign commodity exchanges, which currently determine the benchmark prices. APNI is sometimes a big talker, but it indicates how Indonesia feels about “managing the nickel market.”

Delong – 2nd largest Chinese NPI and stainless producer, declared bankruptcy in the last 2 weeks.  Had been struggling for a while – again, a good indication that these prices are at a bottom and well-supported at these levels

US dollar remains strong – want to emphasize pricing in commodity currency.  See through the gloom – nickel prices in $C are higher (other than recent spike) since 2011 !!!

Market Dynamics and Price Recovery
After a period of price compression, nickel has rebounded by 7%, reaching $16,500 per ton or $7.50 per pound. This recovery suggests that the market may be forming a bottom, potentially setting the stage for further growth. Industry expert Mark Selby points to a phenomenon he calls the "great compression," which has been affecting the nickel market for the past 18-24 months. This situation appears to be resolving, with discounts on intermediate products narrowing and stainless steel inventories declining.

Indonesia's Growing Influence
Indonesia, a major player in the global nickel market, is taking steps to assert greater control over nickel pricing. The country plans to create an Indonesian Metals Exchange by 2025 to decouple local nickel prices from London Metal Exchange fluctuations. This move underscores Indonesia's strategy to maximize revenue from its substantial nickel resources and could lead to more stable pricing in the long term.

Unlike China, which has historically provided cheap raw materials, Indonesia is prioritizing the profitability of its mining and processing operations. This stance has already contributed to the country's shift from trade deficits to surpluses, largely driven by nickel and stainless steel exports.

Currency Effects and Regional Competitiveness
An often overlooked factor is the impact of currency fluctuations on nickel pricing. When viewed in Canadian or Australian dollars, current nickel prices are at their highest levels since 2011, excluding the past two years. This currency effect creates favorable conditions for nickel producers in these countries, potentially stimulating increased supply and investment in these regions.

Key Projects and Technological Advancements
Several nickel mining companies are making significant progress in developing their projects, which could have important implications for future nickel supply:

FPX Nickel is advancing towards a feasibility study, implementing cost reductions and environmental improvements, such as trolley systems, to reduce its carbon footprint.

Lifezone Metals is developing the high-grade Kabanga mine and exploring refinery options, though it faces challenges due to location and processing technology.

Canada Nickel Company is making rapid progress on its Crawford project, achieving high-grade nickel concentrate in tests and showing potential for improved economics.

Environmental Considerations
The nickel industry is increasingly focusing on reducing its environmental footprint, a crucial factor for investors considering the growing emphasis on ESG criteria. Projects incorporating design elements to minimize carbon emissions are likely to become key differentiators in the market, particularly as demand from the electric vehicle and renewable energy sectors continues to grow.

However, investors should remain aware of potential challenges, including geopolitical risks related to Indonesia's growing influence, technological developments in battery chemistry that could impact nickel demand, and the success or failure of new processing technologies.
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Recording date: 18th July 2024

The Battery Show (Copper Bottomed, Episode 16)

The copper market has seen significant action over the past two months, with prices rising to around $5/lb before pulling back to current levels of $4.41/lb. This volatility has been driven by fund flows and aggressive trading by financial institutions, sometimes at odds with on-the-ground market conditions in China. While Chinese copper traders were seeing weakness in housing completions, which typically drive copper demand, prices rose due to strong US demand and bullish sentiment around copper's long-term prospects.

Demand for copper continues to grow from electric vehicles, with global EV sales expected to reach 17 million units this year. The rapid growth of data centers is also driving significant copper demand, with global data center electricity usage now exceeding that of most countries. However, there are some headwinds, including China's state grid shifting to aluminum for some high-voltage transmission lines.

The long-term outlook for copper remains very bullish due to the difficulty in bringing new supply online. It takes an average of 23 years from discovery to production for new copper mines, and the pipeline of new projects is insufficient to meet projected demand growth. This supply crunch is expected to drive significant price volatility in the coming years.

M&A activity is heating up in the copper space as major miners look to acquire assets rather than develop them from scratch. There are rumors of potential bids for companies like Teck Resources and Filo Mining. Meanwhile, developers like Marimaca Copper and Foran Mining have successfully raised capital to advance their projects.

On the exploration front, several companies reported promising drill results. Highlights include Filo Mining's continued expansion of its high-grade zone, NGX Minerals' bonanza-grade intercepts at its Luna project, and Solaris Resources' restart of drilling at Warintza. Smaller explorers like Atex Resources, Aldebaran Resources, and C3 Metals also reported encouraging results that expand the potential of their respective projects.

For investors, the copper sector offers opportunities across the risk spectrum. Major producers and advanced developers provide more stable exposure to rising copper prices. Exploration-stage companies offer higher risk-reward potential, with the possibility of significant share price appreciation on discovery success. Given the strong long-term fundamentals, a basket approach of copper-focused investments could be an attractive way to gain exposure to the sector.

Key factors for investors to watch include Chinese copper demand trends, particularly in the property sector; the pace of global EV adoption and grid infrastructure buildout; progress on permitting and construction of new mines, especially in challenging jurisdictions; and potential technology breakthroughs in areas like extraction techniques or recycling that could impact the supply-demand balance. Overall, the copper market appears poised for an extended period of tight supply and rising prices, creating a favorable environment for well-positioned companies across the value chain.

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Recording date: 16th July 2024

It has been a big couple of weeks on the nickel market front.

Nickel prices gave up 5% last week driven by the news flow – have seen inventories climb another few thousand tonnes (as expected). Sulphate prices in China have held steady, while stainless has gone a little soft.

The big news since we last talked is BHP's announcement that it will close all of its Western Australian operations later this year until at least 2027. We’ve talked at length in the past about how their February market statement was completely off-base. This has impacted a number of operations that depended on the BHP mill to process their ore - expect another mill to emerge to process ore in the region.

This closure is much more an indictment of Western Australia's cost structure than the nickel market. Nickel prices today still above $16,500 (or $7.50 a pound) - if we can’t generate cash at these levels (we used $7.75 for LT nickel price in 2019 for Dumont project (and we’re comfortable given change in underlying costs structures then the $21,000 we used for Crawford for 40 years starting in 2027), then you have some real operational issues (more of a result of WA labour & energy costs, and lack of investment in new mine production!)

IGO and Wyloo also shelved plans to build a $1 billion precursor plant in Western Australia. In my view, it is stupid for mining companies to look at something like precursors, which are continually evolving products that require specialized refining and technical know-how. Just make the best, cheapest product that battery and alloy consumers can use.

This follows on the heels of Vale Base Metals’ strategy announcement two weeks ago, which effectively just had mines attempting to ramp back up to recent levels with really no new projects and no real North American growth – other than some vague 2030+ potential projects.

Why is this good news for Canada Nickel and other new nickel projects?

Companies need IRA-compliant nickel—hundreds of thousands of tonnes—just add up the battery plants under construction. Companies want to source nickel that’s not Indo-Chinese “blood nickel.” They just lost another big chunk of clean, safe supply, and one of the other major producers isn’t going to expand production anytime soon.

Now for a few market facts that may counter the oversupply narratives ….

INSG just put out their July report (which is YTD May) – The market was in a small DEFICIT over the last 3 months, YTD 2024 demand is up 8% (less than my forecast, but still 7 months to go), but because refined production only up 6% and mine production less than 3%, the market has been in deficit.  Indonesia has limited ore supply growth either by managing quotas or lack of higher grade supply (still importing from the Philippines)

On the EV front:

Plug-in car registrations for May (YOY change): up 23%, BEVs up 17%, hybrids up 37%.  US/Canada up 18%.  YTD May up 25% - thought was collapsing ?!?!?

Onto company news:

Canada Nickel announced a 6-month bridge facility with Auramet – done 3 times previously, all too significant events – the last one was to Samsung SDI financing.  Also announced the creation of ExploreCo taking the existing 80/20 Mann JV with Noble and spinning our Eastern properties into a new subsidiary 80/20 with Noble Minerals, in which we received remaining surface rights and other patents/claims around Crawford, making it easier to begin construction.

Chalice announced an MOU that sets out a framework for ongoing collaboration and assistance between Chalice and Mitsubishi concerning the development of the Project. The aim is to explore the possibility of further joint engagement with Chalice, including a potential binding partnership following the completion of the Gonneville Pre-Feasibility Study (“PFS”), which is expected to be completed by mid-CY25.

Centaurus announced good feasibility study results – NPV of $US 700 million, IRR 31% on $US 370 million initial capital and $US 600 million LOM capital.  5:1 strip ratio, 73% nickel recovery, 12% LOM nickel grade concentrate. only considers open pit nickel sulphide ore over an initial 18-year mine life, delivering nickel sulphide feed to a 3.5Mtpa conventional nickel flotation plant to produce approximately 18,700 tonnes of recovered nickel metal per year at a low life-of-mine (LOM) C1 operating cost of US$2.30/lb and AISC of US$3.57/lb, on a contained nickel basis.  Reserves of 63.0Mt @ 0.73% Ni for 459,200t Contained Ni

Good results from Sudbury–Magna and SPC Nickel:

SPC Nickel doing near-surface infill drilling in in-pit areas with some  excellent open-pit results:

Hole WG-24-087 intersected 1.05 per cent Ni and 0.30 per cent Cu over 16.0 metres from 32.0 to 48.0 metres. This interval is part of a wider interval that returned 0.63 per cent Ni and 0.24 per cent Cu over 41.0 metres from 10.0 to 41.0 metres.  Hole WG-24-088 intersected 1.41 per cent Ni and 0.33 per cent Cu over 16.0 metres from 20.0 to 36.0 metres. This interval is part of a wider interval that returned 0.87 per cent Ni and 0.32 per cent Cu over 37.95 metres from 13.0 to 42.0 metres.

Magna Metals also had some good infill results (within 200 metres of surface) from 109FW zone (mostly copper and PGM):  MCR-24-087: 5.0 per cent copper, 0.7 per cent nickel, 12.8 grams per tonne platinum plus palladium plus gold over 15.2 metres Including 11.7 per cent Cu, 1.0 per cent Ni, 5.8 g/t Pt plus Pd plus Au over 5.2 metres; MCB-24-080: 0.6 per cent Cu, 0.2 per cent Ni, 20.2 g/t Pt plus Pd plus Au over 15.1 metres; MCB-24-082: 2.6 per cent Cu, 0.7 per cent Ni, 13.2 g/t Pt plus Pd plus Au over 6.4 metres.

On the financing front:

Talon Metals sold an additional 1.67% royalty to Triple Flag (one of leading royalty Cos) for $US 8 million.

Alaska Energy raised $3.3 million to advance their Nikolai project and made a number of Board changes.

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Recording date: 2nd July 2024

Nickel climbed back up to the $17,500 range. LME inventories are up about 5,000 tonnes (another China/Indonesia refinery had product certified last month) to 93 kt, while SHFE inventories dropped up 2,000 tonnes to 22.5 kt. LME inventories are at 2 years high - this was expected by me – we’re now up about 80kt across both exchanges since the market bottom – while that may sound ominous, please remember some analysts have 200+kt surpluses over the last 2 years. I believe that we had ~100kt last year and are running a small surplus heading to balance this year, so it would make sense that this amount of inventory would work its way onto inventories.

More uncertainty over near-term expectations for EV sales combined with a renewed drop in lithium prices has slowed expected restocking. I still expect to see the overall nickel demand climb by 10% once we get through this uncertainty. INSG reported nickel demand YTD April up over 8% and a balanced market in April (~12kt surplus annualized)

With EV/lithium seeing sulphate prices in China come off and back to a discount (where we expect), stainless prices are holding steady, and inventories in China have come off.

Changes in another commodity will support stainless prices. We saw major incidents at 2 met coal mines in Australia and the US, which are pushing met coal prices higher. Metallurgical coal/coke is a significant cost component for NPI/stainless production in China and Indonesia.

Per last session, after halt, *Western Mines Group* announced $1.5 million investment from Dundee Corp – Canadian merchant investor and have subsequently announced another good drill hole from Mulga Tank – first 600 metres continuously mineralized at 0.29% nickel with intervals of 0.3-0.4% nickel and had one 1 metre sample of 1.5% nickel.

Canada Nickel announced a $US15 million bridge facility from Auramet, our long-standing financing partner. We’ve done 3 of these before, having bridged to financing/partners, including Anglo-American and Samsung/Agnico, in the past. We are targeting a bridge to completing the JV/equity financing required for Crawford.

Magna Mining announced results from infill drilling in surface bulk sample area for low Cu-Ni, high PGM, which delivered results showing 5-20 g/t intervals.

Premium Nickel continues to deliver drill results – 10 more holes to be utilized in their upcoming resource (which will come through in “coming weeks”) – saw core lengths and grades consistent with prior holes.

lSPC Nickel announced drilling at the Muskox intrusion in Nunavut, Northern Canada. It is a remote location but a large intrusion that produced some splashy intersections in historical work done in the 1960s/1970s. We should see some interesting news flow through the fall.

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Recording date: 20th June 2024

Nickel — I was wrong on the short-term move. I got the dip below $19K but didn’t see it breaking down all the way to $17,300 (just under $8/lb). It's still 15% off the lows and generally in place where expected. The drop in the lithium price is taking some steam out of restocking, but according to INSG, nickel demand was up 9% in Q1.

With the drop in nickel price, discounts on NPI narrowed further – again, expect to see continued convergence throughout the year. Stories this past week from the Indonesian nickel conference around preserving high grade, high grade running out by 2029 (I don’t think that is the case, but declining grades will continue to happen and is one of the factors most analysts are not factoring into Indonesian production). Other big news from the Indo conference was a discussion of a moratorium on new NPI smelters being considered – the question of whether it will apply to already permitted facilities or just new permits

Big news of the week was the Bloomberg story and video – great insight into labour, environmental and community issues caused by nickel mining.

Story: https://www.bloomberg.com/features/2024-indonesia-sulawesi-nickel-fire/?utm_medium=deeplink&embedded-checkout=true

Video: https://www.youtube.com/watch?v=fBEZzW5LB4M

Plug-in vehicles were up 30% year over year in April, with BEVs up 14% year over year and Plug-in hybrids up 51% year over year. China drove EV sales up 30% year over year, while ROW major markets were up 5%.

Chinese stainless steel production is up 12% YTD May, with 300 series up 15%YTD May.

Bad forecasts – CRU did June quarterly update – surpluses in 2-3% per year, have total demand down to 4-5% by 2027-28 driven by stainless production growth down to 2-3% per year – makes no sense.

Company News

Magna Mining announced the award of advanced exploration mining with a surface bulk sample of approximately 20,000 tonnes from the 109-footwall zone. The mobilization and site preparation are scheduled to begin in June, with drilling and blasting commencing in July, followed by processing at Glencore's Strathcona facility. The initial capital required to commence the surface bulk sample program at Crean Hill is expected to be financed from Magna's existing cash balance.

EV Nickel surface samples - of the 148 samples submitted for analysis, 123 of the samples were from the targeted peridotites and dunites, where 79% of the assay samples graded 0.24% nickel or better, ranging from 0.15% Ni to 0.34% nickel, indicating that the CarLang B area represents another potential zone of similar grade material as the Company's flagship CarLang A Deposit.

In Australia, Western Mines Group halted stock for release by Monday. It will be interesting to see what comes out. The stock had hit some higher grade at contact of the disseminated Mulga Tank orebody.

Earlier in the month, Lunnon Metals put out resources on Baker – at the south end of structures in Kambalda which host Beta Hunt - 1 million tonnes @ 3.3% nickel +Cu, Co.

Some financings - Power Nickel $20 million flowthrough, Premium Nickel’s $15 million first tranche.

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Recording date: 4th June 2024

Nickel is continuing to retrace a big move along with copper. Now trading just over $19,000 – in line with my expectations of seeing some consolidation at these $19-$20K levels. We may see a brief dip below $19K as copper breaks down through $10K (as I expected - copper physical market lousy, inventories in Shanghai highest since 2020)

Nickel should be well-supported at these levels. Interestingly, with the nickel sell-off, sulphate and stainless prices edged higher. Suphate is now at an unsustainable premium, which means nickel prices should rebound or sulphate prices drop - likely the former rather than the latter. This is a good sign of a fundamental demand in the product pipeline, as people are not waiting for intermediate prices to drop before buying. LME and Shanghai inventories both edged lower.

Company News

Canada Nickel Corp released 11 holes from its Deloro project – good long intervals of grades 0.25% nickel just 8km south of Timmins, with 9 metres of overburden.  A footprint of 1.2km x 700 metres multiplied by 300 metres can easily see 500 million tonnes and 1 million tonnes contained nickel. This will be the first of 7 resources expected to be published in the next 12 months.

Power Nickel's next set of holes is filling out its discovery -5-17 metres with 2-5 metres of very high-grade Cu + PGMs.  Again – next level will require stepping out beyond discovery (good graphics in release outlining current size) or finding another parallel one:

- PN-24-059 returned: 17.25 m of 0.66 g/t gold (Au), 27.20 g/t silver (Ag), 3.33 per cent copper (Cu), 2.04 g/t palladium (Pd), 1.49 g/t platinum (Pt) and 0.18 per cent nickel (Ni), including: 5.59 m of 1.91 g/t Au, 73.48 g/t Ag, 9.88 per cent Cu, 6.23 g/t Pd, 4.56 g/t Pt and 0.49 per cent Ni, with: 3.01 m of 0.86 g/t Au, 110.5 g/t Ag, 13.92 per cent Cu, 8.55 g/t Pd, 7.69 g/t Pt and 0.48 per cent Ni.
- PN-24-058 returned: 8.27 m of 0.19 g/t Au, 7.12 g/t Ag, 0.64 per cent Cu, 3.43 g/t Pd, 0.84 g/t Pt and 0.25 per cent Ni, including: 5.20 m of 0.15 g/t Au, 10.18 g/t Ag, 0.90 per cent Cu, 4.84 g/t Pd, 1.17 g/t Pt and 0.38 per cent Ni, with: 2.20 m of 0.16 g/t Au, 22.43 g/t Ag, 1.87 per cent Cu, 7.53 g/t Pd, 1.15 g/t Pt and 0.83 per cent Ni.

- PN-24-057 returned: 5.20 m of 0.37 g/t Au, 36.23 g/t Ag, 2.57 per cent Cu, 5.72 g/t Pd, 2.45 g/t Pt and 0.19 per cent Ni, including: 2.17 m of 0.57 g/t Au, 78.62 g/t Ag, 5.53 per cent Cu, 12.42 g/t Pd, 5.62 g/t Pt and 0.24 per cent Ni.

- PN-24-056 returned 4.60 m of 0.72 g/t Au, 5.38 g/t Ag, 0.88 per cent Cu, 2.67 g/t Pd, 1.42 g/t Pt and 0.12 per cent Ni, including 2.45 m of 1.33 g/t Au, 9.66 g/t Ag, 1.58 per cent Cu, 4.25 g/t Pd, 0.66 g/t Pt and 0.15 per cent Ni.

Magna Metals announced a toll milling agreement for a bulk sample with Glencore. It's good to see that they can use other processing in the region rather than Vale.

Talon Metals extends nickel-copper mineralization in the Raptor Zone from 250 meters of strike to over 350 meters (see Figure 2) with a new hole with ~ 2 metres of massive sulphide. Talon intends to continue exploration in the Raptor Zone, as the mineralization is open in all directions.

SPC Nickel reports high-grade channel sampling results  at the West Graham Project, including 0.94% NI and 0.44% CU OVER 17.0 METRES

Fathom Nickel announced results from their Gochager property in Saskatchewan

GL24016: 7.39 m of 1.43 per cent Ni, 0.38 per cent Cu, 0.11 per cent Co (1.80 per cent NiEq) from 182.05m downhole;  including:2.94 m of 2.43 per cent Ni, 0.55 per cent Cu, 0.19 per cent Co (3.00 per cent NiEq) from 186.50m downhole; within:48.54 m of 0.64 per cent Ni, 0.19 per cent Cu, 0.05 per cent Co (0.82 per cent NiEq) from 172.00m downhole; within:185.49 m of 0.31 per cent Ni, 0.09 per cent Cu, 0.03 per cent Co (0.40 per cent NiEq) from 101.70m downhole.
GL24013: 3.96 m of 2.28 per cent Ni, 0.51 per cent Cu, 0.18 per cent Co (2.82 per cent NiEq) from 354.77m downhole; within:21.31 m of 0.64 per cent Ni, 0.20 per cent Cu, 0.05 per cent Co (0.76 per cent NiEq) from 349.09m downhole.
GL24012: 4.32 m of 1.15 per cent Ni, 0.16 per cent Cu, 0.10 per cent Co (1.38 per cent NiEq) from 417.91m downhole.

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Recording date: 23rd May 2024

Nickel – lots of excitement over the past week since we saw each other in London last week to end up back at the same spot.  Trading just over $20K per tonne, after climbing up to a high $21K level (nearly $10/lb) before falling back along with copper (which also hit all-time highs on LME of nearly $11K or $5/lb.  LME inventories ticked up a couple of thousand tonnes during the week. After the fireworks of the last few weeks, expect nickel prices to settle into a range of $19-$20K (remember, $20K was the year-end forecast)

In China, a big surge in nickel prices didn’t translate into higher stainless or sulphate prices, so we saw discounts widen. We will see where we end up this week.

Geopolitically, there is still unrest in *New Caledonia*; French President Macron will visit to try to calm things down.  Also, the Aussie resources minister does not sound too sympathetic to BHP – blaming their lack of investment as a primary driver of cost structure increase (remember BHP asking for help for their business) –

INSG bulletin came out – reporting March 2024 numbers – monthly deficit – only 2nd time in 2 years.  YTD demand up 9%, YTD production up 7%

In company news - Tale of Three High-Grade Intervals:

Exciting results from Talon Metals and what they’re calling as CGO East Waterfall – analogous to something they found on West side  Intercepts 4.81 meters at 4.89% Ni, 4.10% Cu, 0,06% Co, with notably high Platinum Group Elements ("PGEs"), averaging 17.45 g/t Pd+Pt+Au (9.26% NiEq);as well had  second intercept of 79.22 meters at 0.80% NiEq;
For massive sulphide, we need traps for higher-grade stuff to “settle out”, it looks like it has a structure which has done that – it will be interesting to see what the scale looks like
On the Other hand:

NiCan released more results from Wine deposit drilling. Diamond drill hole Wine 24-4 intersected 20.3m, averaging 2.88% Cu and 2.14% Ni (2.85% NiEq), 0.09% Co, and 1.19g/t PGMs. I would be cautious about this one—all drilling looks in a less than 50x50 metre area—it's starting to look like a “Garibaldi.” We need to be able to start stepping out or finding analogues rather than drilling the same spot at different angles.

Power Nickel had another good CU-PGM with some nickel intersection PN-24-055 returned 15.40 m of 0.44 g/t Au, 22.04 g/t Ag, 5.06% Cu, 13.12 g/t Pd, 3.35 g/t Pt and .015% Ni including 5.05 m of 0.61 g/t Au, 50.29 g/t Ag, 13.27% Cu, 24.62 g/t Pd, 6.73 g/t Pt, and 0.33% Ni with 3.35 m of 0.70 g/t Au, 60.36 g/t Ag, 17.26% Cu, 25.02 g/t Pd, 3.61 g/t Pt and 0.37% Ni. Great results – now they need to define the extent of this lens to see how big it will be.
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Recording date: 16th May 2024

*Nickel's Electrifying Ascent: Riding the Wave of EV Demand to $20,000 and Beyond*

In a world rapidly embracing electric vehicles (EVs), nickel has emerged as the metal of the moment. With prices surging past $20,000 per ton, savvy investors are asking: is this just the beginning of nickel's electrifying ascent?

According to industry experts like Mark Selby, CEO of Canada Nickel, the answer is a resounding yes. As governments and automakers worldwide commit to phasing out gasoline-powered vehicles in favor of EVs, the demand for nickel—a crucial component in EV batteries—is set to skyrocket. Experts predict that this demand will only continue to swell in the coming years.

But as investors know, demand is only half the equation. The other half is supply – and that's where the excitement really builds. While nickel demand is poised for explosive growth, supply struggles to keep pace. Indonesia, the world's largest nickel producer, is grappling with rapidly depleting high-grade ore reserves. Other major producers, like the Philippines and Russia, face challenges. It's a classic supply crunch scenario that has historically been a recipe for soaring prices.

So, where should investors look to ride the nickel wave? One company that stands out is Canada Nickel. With its flagship Crawford project boasting the second-largest nickel resource in the world, and its Reid project shaping up to be potentially even larger, Canada Nickel is sitting on a veritable treasure trove of this critical metal.

But it's not just the size of these projects that's turning heads – it's the speed at which they're advancing. Canada Nickel is fast-tracking development, applying its proven extraction techniques across multiple projects simultaneously. The goal? To bring seven world-class nickel resources to the market in record time.

This aggressive strategy has caught the attention of some of the industry's biggest players. Mining giants like Glencore and Anglo American have already forged strategic partnerships with Canada Nickel, a powerful vote of confidence in the company's projects and management team.
For investors, the implications are clear. As the EV revolution kicks into high gear and nickel demand soars, companies like Canada Nickel positioned to rapidly scale up production could be poised for a truly electrifying ride.

Of course, no investment is without risk. But in the case of nickel, the potential rewards are simply too compelling to ignore. With prices already surging and demand set to explode, the question for investors isn't whether to get involved – it's how quickly they can jump on board.

In Mark Selby's words, "We're going to see double-digit demand growth... the wave is coming." For investors ready to ride that wave, companies like Canada Nickel offer an exciting opportunity to tap into the immense potential of this essential metal and potentially reap the rewards of nickel's electrifying ascent.

As the world charges towards an EV future, nickel's star is undeniably on the rise. With surging demand, constrained supply, and companies like Canada Nickel rapidly advancing world-class projects, the stage is set for a historic bull run. For investors with the foresight to seize this opportunity, the potential returns could be nothing short of electric.
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Recording date: 9th May 2024

The global economy's accelerating transition towards clean energy and electrification has positioned copper as one of the most critical metals of the 21st century. Copper's unparalleled thermal and electrical conductivity properties make it an essential material across industries, with demand surging due to its crucial role in electric vehicles, renewable energy infrastructure, and emerging technologies like AI. However, a significant supply crunch looms as the pipeline of new copper projects remains constrained, presenting a compelling opportunity for investors to gain exposure to the red metal.

Copper prices have embarked on a strong upward trajectory, recently hitting $4.59/lb ($10,000/t), reflecting the market's recognition of the metal's crucial role in the future economy and the increasing tightness in supply. Despite this upward move, analysis shows copper prices still remain below their long-term inflation-adjusted average, suggesting room for further appreciation.
The copper industry faces a structural supply deficit in the coming years, with current production heavily reliant on a few aging mega-mines, many of which are seeing declining ore grades and depleting reserves. Even the world's largest miners have underinvested in new copper supply, electing to acquire existing mines rather than build new ones. The reluctance to develop new supply stems from the risks of cost overruns and delays, as showcased by Teck's challenges with the QB2 expansion project.

On the demand side, copper consumption is poised for substantial growth, driven by the global transition to clean energy and electrification. Electric vehicles, renewable energy, infrastructure investments, decarbonization efforts, and emerging demand drivers like AI and data centers are all expected to contribute to the growing demand for copper.

With the major miners underinvesting in copper exploration and development, junior exploration companies will be critical in discovering the new copper deposits the world needs. Juniors are taking risks to explore in prospective geologies and find the projects that will help alleviate the supply deficit in the years ahead. For investors, juniors provide direct exposure to the potential value creation from new copper discoveries.

Recent exploration results from several junior copper explorers showcase promising projects on the horizon. C3 Metals, and Metallic Minerals have all reported positive drill results, indicating the potential for meaningful new discoveries. Other companies like Imperial Metals, Aldebaran Resources, Western Copper & Gold, Nine Mile Metals, Atico Mining, BeMetals, Camino Minerals, and Arizona Metals are also advancing prospective copper projects, providing investors with a range of opportunities across jurisdictions and development stages.

Looking ahead, copper's role in enabling the technologies and infrastructure needed to support a more sustainable global economy will only become more essential. The resulting supply-demand imbalance is expected to be a strong tailwind for copper prices in the years ahead, presenting a compelling opportunity for investors positioned in copper equities.

Investors can consider a diversified approach across producers and explorers to gain exposure to the copper thesis. Major producers like Teck Resources offer exposure to large-scale, long-life assets, while mid-tier operators provide a balance of production and growth. Junior explorers offer potential for outsized returns on new discoveries, but with higher risk. Investors should monitor ongoing exploration and development results, which could be key catalysts for copper equities going forward.

In conclusion, the combination of surging copper demand and constrained supply growth is expected to generate a widening market deficit through the end of the decade, putting upward pressure on prices. This structural shift presents a compelling opportunity for investors to gain exposure to copper through a diversified portfolio of producers and explorers. As the world transitions to a cleaner, more electrified future, copper's critical role will only become more evident, positioning the metal and the companies that produce it for a bright future.

00:00 - Introduction and Rise in Copper Prices
05:07 - Challenges in Building New Copper Projects
10:02 - Importance of Copper in Modern Life
12:48 - Review of Recent Copper Exploration Results
34:27 - Challenges with Share Price
37:52 - Small Scale Mining Prospects
41:31 - Busy Exploration Programs
48:45 - Abitibi Metals' Improved Accessibility
53:30 - Exciting Prospects for Arizona Metals Corp

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