Investment Highlights

• Kenbridge property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper
• 17.5 (21.8 fully diluted) percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property

Kenbridge Ni Project (ON, Canada)

• Advanced  stage  deposit  remains open  in  three  directions,  is  equipped with a 623m  deep  shaft  and  has  never  been  mined. 
• Preliminary  Economic Assessment completed and updated returned robust project 
  economics and operating costs including  a  NPV  of  C$253M  and  cash costs of US$3.47/lb of nickel net of  copper credits.
• Plans for Kenbridge include updating PEA, advancing the project through to feasibility and exploring the open mineralization at depth

FULL DISCLOSURE: Tartisan Nickel Corp. is an advertising client of AGORA Internet Relations Corp.

SPONSOR: Tartisan Nickel (TN:CSE)  Kenbridge Property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has interests in Peru, including a 20 percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property. Click her for more information

Batteries Juicing the Nickel Market: LME Nickel Sulfate Contracts in 2019?

• Recently announced LME nickel sulfate contracts under consideration are a strong indication that the nickel sulfate market and upstream nickel sulfide market are facing considerable growth
• Price of nickel has climbed nearly 60 percent since mid-2015 on an improved nickel demand forecast, mainly from the steel sector

Annual sales of electric vehicles are expected to climb from 1.1 million in 2017 to 30 million by 2030. Each one requiring a battery chock full of base metals, especially lithium, cobalt and nickel sulfate. The price of nickel has climbed nearly 60 percent since mid-2015 on an improved nickel demand forecast, mainly from the steel sector. The surging demand for electric vehicles (EVs) and in turn base metals such as nickel is expected to push those prices up further.

The impressive growth outlook for battery materials has prompted the London Metals Exchange (LME) to consider offering a suite of battery materials futures contracts in 2019 — including lithium, cobalt and nickel sulfate — to better take advantage of the booming EV market. The fact that the LME is exploring the launch of a nickel sulfate premium contract along with two of the other most prominent battery materials bodes well for this market and for the miners who produce the metal, as well as valuation for miners with compliant nickel resources in the ground.

Electric vehicle demand and nickel prices

Nickel’s strength and non-corrosive properties make it the ideal alloying metal in the manufacturing of stainless steel used in a broad range of industries including automotive, construction, household appliances and machinery. This sector accounts for nearly 70 percent of global nickel demand and stainless steel is expected to be a US$133.8 billion market by 2025, according Grand View Research.

Nickel is also an excellent conductor of electricity and the metal has long been a critical component in batteries of small electronic devices. Presently, the increasing electrification of the auto industry represents an emerging growth market for nickel. While much of the fervor around the EV batteries materials market has revolved around lithium and cobalt, the base metal turned energy metal is now the primary metal by weight in the cathode of many of today’s EV battery types including Lithium Nickel Cobalt Aluminum Oxide (NCA); Lithium Nickel Cobalt Manganese Oxide (NMC); and Lithium Manganese Oxide (LMO). For example, the Panasonic lithium-ion batteries Tesla uses in their vehicles reportedly have a cathode composition of 85 percent nickel, 10 percent cobalt and 5 percent aluminum.

“Nickel is an interesting one, and a question we are getting more and more at Benchmark,” Caspar Rawles, Benchmark Mineral Intelligence analyst, told Investing News Network in an email. Near-term nickel demand from the battery sector has been a small percentage of the total market and hasn’t had a significant impact on current pricing. In fact, out of 2.2 million tonnes of total demand in 2017, only 60,000 tonnes came from the battery sector. However, Rawles notes that “as the uptake of electric vehicles intensifies the numbers start to get quite staggering, aided by the move to high nickel low cobalt cathodes (NCM 811 primarily). We see demand exceeding 500,000 tonnes by 2026 and moving to over 1,000,000 by 2029-2030.”

By itself, this volume of demand paints compelling picture for future nickel pricing. But, there are price positive indicators on the supply side as well. “The battery industry can only use class 1 nickel (the most pure form with around 1 million tonnes produced each year, which is deliverable to the LME) means increasing supply will be difficult due to the lack of sulfide deposits globally,” add Rawles.

A tale of two nickels

The level of demand for nickel from the battery industry stands in the shadow of the much larger stainless steel market, however EV batteries may pose a greater supply challenge to the global nickel industry. The majority of the world’s nickel production is in the type preferred by the steel manufacturing industry: ferronickel, also known as nickel pig iron (NPI), which is not suitable for making EV battery cathodes. For that, manufacturers need battery-grade nickel sulfate, a nickel product derived from high-grade nickel sulfide deposits. Only about 10 percent of global nickel production is nickel sulfate. While it is possible to convert NPI to battery-grade nickel, the process is not at all economically viable.

Nickel sulfate supply strained under increased demand

Further complicating the supply picture is the scarcity of nickel sulfide projects either in production or development following the depressed price environment in the first half of this decade, and new discoveries have proven hard to come by.

“The problem for the nickel industry is it’s not a macro issue; it’s not an issue where we’re going to run out of nickel, but the specific nickel that’s required,”  Jon Hykawy, president of Stormcrow Capital, told INN at the 6th International Nickel Conference. “The specific chemistry and the specific purity that’s required for batteries is likely going to put a strain on the supply chain.”

A market in divergence

Supply and demand levels are already beginning to diverge, which is bound to translate to more upward pressure on nickel prices. This imbalance has also been tied to a divergence in prices for NPI and nickel sulfate, leading to the opportunity held in the proposed LME nickel sulfate contracts.

LME nickel sulfate contracts: No longer a niche product

The LME does have an existing nickel futures contract, the price of which remains linked to the NPI market because up until fairly recently, nickel sulfate has remained a niche market. “Electric vehicles are clearly the growth story for our industry,” said LME CEO Matthew Chamberlain, who believes separate LME nickel sulfate contracts will keep prices relevant to both the stainless steel and battery sectors. Along with other battery market metals lithium and cobalt, the nickel sulfate contract would be cash-settled against a third-party price index. “It would mark a change in tack for the LME, which has traditionally focused on commodity-grade refined products,” noted Bloomberg.

Impact on nickel miners and nickel investors

The underinvestment in nickel sulfide projects and the growing demand for battery metals are creating an ideal market environment for nickel sulfide miners. So, what would LME nickel sulfate contracts mean for investors in the nickel mining sector?

“As nickel sulfate is the ideal precursor for key elements of lithium ion battery cathodes, the creation of a future LME nickel sulfate contracts will provide investors with stable futures pricing for all manner of nickel sulfate applications,” Mark Appleby, President and CEO of Tartisan Nickel (CSE:TN) told Investing News Network. “This will allow the nickel sulfide resources held by companies like Tartisan Nickel to be fairly valued as an upstream supplier to principal battery metals applications with the best demand growth potential based on the EV revolution.”

Tartisan owns a nickel sulfide-copper-cobalt property in Ontario, Canada. The Kenbridge property, near Kenora, has a measured and indicated resource of 7.139 million tonnes at 0.62 percent nickel and 0.33 percent copper. The company is looking to advance the project through feasibility.

The surging growth in demand for battery-grade nickel and the divergence between ferronickel and nickel sulfate prices will no doubt have an impact on reshaping the nickel mining industry toward nickel sulfide projects. Even the major global miners are seeing the opportunity. BHP Billiton Ltd., one of the world’s top nickel producers, is switching output at its Nickel West project in Australia from briquettes to sulfate in order to gain more exposure to the EV battery industry.

Looking forward

Nickel has one of the highest-growth demand outlooks in the metals sector, a trend which analysts expect to continue well into the next decade. Both rising prices and a shifting demand landscape are creating a new growth market for investors looking to capitalize on the opportunities presented by the emerging market for battery materials.

Source: https://investingnews.com/innspired/lme-nickel-sulfate-contracts-2019/

SPONSOR: Tartisan Nickel (TN:CSE)  Kenbridge Property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has interests in Peru, including a 20 percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property. Click her for more information

Most base metals tread water, while nickel remains buoyant

• Nickel sold off to $16,895 per tonne on Tuesday, before running up to close near the days’ highs at $17,365.

By: William Adams

Weak manufacturing purchasing managers’ index (PMI) data out across major economies on Tuesday October 2 dampened the tone across most markets, with money rotating into havens.  That said, the situation in the United States is still looking mixed – the IHS Markit manufacturing PMI edged up to 51.1, from 51, so still shows expansion, while the ISM reading fell to 47.8, from 49.1.

In addition, US total vehicle sales rose to an annualised 17.2 million units in September, up from 17 million units in August. Year to date, vehicle sales are running at a rate of 17 million units, compared with 17.1 over the same period last year.

• With China on holiday volume on the LME has been light with 2,030 lots traded as of 06:48 am London time, compared with a more normal level of around 6,000 lots
• Asian equities are weaker this morning, led by a 1.5% fall in Australia’s ASX 200

Base metals
Apart from three-month LME tin prices that are down 1.1% at $16,220 per tonne, the base metals complex is little changed this morning, with copper up 0.2% at $5,698.50 per tonne and with nickel unchanged at $17,370 per tonne. Nickel sold off to $16,895 per tonne on Tuesday, before running up to close near the days’ highs at $17,365.

With China closed and with option declaration this morning, trading could remain quite volatile – it seems odd that yesterday’s generally poor PMI data did not have more of a negative impact on base metal prices, especially as equities fell and haven assets rallied.

Precious metals
The spot gold price, having broken lower on Monday to set a low at $1,459.18 per oz on Tuesday, ended the day at $1,478.65 as concerns over the state of the global economy intensified. Silver continues to follow, as has platinum and even palladium has turned back from record highs and was last at $1,649.30 per oz.

Wider markets
Spot Brent crude oil prices are consolidating above Tuesday’s low at $58.38 per barrel and were recently quoted at $59.39 per barrel.

In line with the pick-up in haven demand the yield on benchmark US 10-year treasuries has weakened – it was recently quoted at 1.6529%, compared with 1.7031% at a similar time on Tuesday. The German 10-year bund yield has also eased and was recently quoted at -0.5500%, compared with -0.5440% on Tuesday.

Asian equities were weaker on Wednesday: The Nikkei was down 0.49%, the Hang Seng down -0.19%, the ASX 200 -1.53% lower and the Kospi fell1.95%.

This follows a stronger performance in Western markets on Tuesday, where in the US, the Dow Jones Industrial Average closed down by 1.28% at 26,573.04; in Europe, the Euro Stoxx50 closed down by 1.43% at 3,518.25.

Currencies
The dollar index is consolidating around 99.24, after its push up to fresh multi-year highs at 99.67 on Tuesday – it was last this high in May 2017 and the peak in 2017 was 103.82.

The Australian dollar (0.6704) and sterling (1.2265) remain on a back footing, while the yen (107.76) is consolidating and the euro (1.0924) is off recent lows.

Key data
Wednesday’s economic data includes data on Japan’s consumer confidence that dipped to 35.6 in September, from 37.1 in August. In Europe Spanish unemployment change climbed 13,900 in September, which was better than the 37,600 expected, and later there is data on UK construction, US ADP non-farm employment change and crude oil inventories.

In addition, Federal Open Market Committee John Williams is speaking.

Today’s key themes and views
Against the backdrop of weak economic data it is hard to be bullish for the base metals – for those metals that have been range bound, we expect more sideways trading, but those that have been more directional on the upside, notably nickel and lead, may struggle to hold on to their gains – this is especially so for nickel given Indonesia is likely to ramp up exports ahead of the ban in nickel ore exports that starts in 2020. For the base metals as a whole, we think the overall direction will be driven by how the next round of US/China trade talks go – until then economic data is likely to set the tone.

We have viewed gold as being vulnerable in the short term because it was looking toppy on the charts, but it was interesting that despite breaking lower on Monday, prices did not stay down for long. That said, they are still looking vulnerable. There are still many global issues to be settled and until they are, demand for havens is likely to remain high but the market may now be in limbo until the trade talks start to set the direction again.

Source: https://www.metalbulletin.com/Article/3896910/MORNING-VIEW-Most-base-metals-tread-water-while-nickel-remains-buoyant.html

SPONSOR: Tartisan Nickel (TN:CSE)  Kenbridge Property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has interests in Peru, including a 20 percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property. Click her for more information

Nickel climbs as stainless steel producers prepare for Indonesia ban

• Nickel prices climbed on Friday as stainless steel producers bought supplies ahead of a Chinese holiday and an Indonesian nickel ore export ban that could create shortages.
• Top supplier Indonesia’s plan to ban exports of nickel ore has been brought forward by two years to Jan. 1, 2020, and the Philippines, the world’s second-biggest ore producer, could suspend five mining companies at the end of this year.

By: Eric Onstad

LONDON — Nickel prices climbed on Friday as stainless steel producers bought supplies ahead of a Chinese holiday and an Indonesian nickel ore export ban that could create shortages.

Top supplier Indonesia’s plan to ban exports of nickel ore has been brought forward by two years to Jan. 1, 2020, and the Philippines, the world’s second-biggest ore producer, could suspend five mining companies at the end of this year.

“There have been some anecdotes of stainless mills restocking nickel and that has been positive,” said analyst Nicholas Snowdon at Deutsche Bank in London.

Nickel is mostly used as an alloy in the production of stainless steel.

“Across most sectors, in the week before the Golden Week holiday, you’ll invariably see a bit of raw material restocking, so we have elements of that in nickel alongside the broader potential restocking as we head into the (Indonesia) ban application.”

China celebrates its National Day Golden Week holiday in early October.

Benchmark nickel on the London Metal Exchange gained 2.6% to $17,725 a tonne in official open-outcry trading, on track for its biggest one-day gain in three weeks.

* CHINA RATE CUT: Base metals also gained support from China cutting its one-year benchmark lending rate for the second month in a row on Friday.

* NICKEL INVENTORIES: Nickel stocks in warehouses monitored by the Shanghai Futures Exchange slid 13.6%, weekly data showed on Friday.

* NICKEL SPREAD: The premium of LME cash nickel over the three-month contract climbed to $150 a tonne, near the recent decade high of $163, indicating near-term tightness.

* MARKET DEFICIT: The global nickel market deficit widened to 6,700 tonnes in July from a revised 2,700 tonnes in the previous month, the International Nickel Study Group (INSG) said on Thursday.

* ALUMINIUM OUTPUT: LME aluminum, untraded in official rings, was bid down 0.6% at $1,790 a tonne after data showed that global primary aluminum output rose to 5.407 million tonnes in August from a revised 5.404 million tonnes in July.

* COPPER DEMAND: Fitch Solutions cut its average price forecast for copper to $5,900 a tonne this year and $5,700 in 2020, from previous views of $6,300 a tonne and $6,600 a tonne respectively.

“A drop in Chinese demand has loosened the global (copper) market, while sentiment continues to worsen,” Fitch said in a note.

LME copper was bid up 0.3% at $5,804 a tonne but remained on course for a 2.6% drop over the week, which would mark its steepest weekly fall since the week ended Aug. 2.

* PRICES: LME three-month zinc was bid down 0.2% in official activity at $2,308 a tonne, lead gained 0.9% to trade at $2,114 and tin slipped 0.3% to trade at $16,400.

* For the top stories in metals and other news, click or (Additional reporting by Tom Daly in Beijing; editing by David Goodman and Jason Neely)

Source: https://business.financialpost.com/pmn/business-pmn/nickel-climbs-as-stainless-steel-producers-prepare-for-indonesia-ban