Commodity prices have seen drastic increases over the past several months as demand for materials increases in a post-lockdown world. Nickel is amongst many other metals that have seen increases in demand and prices as manufacturing scales up across the globe.
Nickel has traditionally been highly sought after for its use in the production of stainless steel. More recently, nickel has also become an increasingly important element in electric vehicle (EV) production, as the material allows for producers to create lighter, smaller and higher density batteries. And as more and more countries around the world continue to push towards the adoption of EVs, demand for nickel has continued to increase.
Analysts expect this rapidly expanding market to continue growing, with an estimated compound annual growth rate of 26.8 percent by 2031. On Tesla’s (NASDAQ:TSLA) July 2020 earnings call, CEO Elon Musk was quoted as saying, “Please mine more nickel … Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.”
This INNspired article is brought to you by:
Class 1 Nickel & Technologies (, a Canadian resource company focused on the development of its 100 percent-owned Alexo Dundonald project that sits on a 14 km strike-length, folded komatiite unit containing several nickel-copper-cobalt and PGE mineral resources. ,OTCQB: NICLF)Send me an Investor Kit
Because of this, Canada continues to be a favorable location for mining companies looking to capitalize on this growing demand.
Not all nickel is created equal
From an investing standpoint, it is important to know that not all nickel that is extracted and refined is made in the same way. To be usable in electric vehicles, the nickel must be of the highest quality — often referred to as “Class 1.”
This is the type of nickel used in the production of EVs as it comes from sulfide deposits, which have a nickel content of close to 99 percent. Sulfide deposits are generally harder to discover and more expensive to extract because deposits are found deep underground.
In comparison, nickel laterite is cheaper due to the fact that it is found at the surface level and can be open pit mined. This makes mining it far more cost-effective and easier than deeper sulfide deposits.
A brief overview of nickel-mining deposits in Canada
As the sixth largest nickel producer in the world, Canada is home to a number of large scale and junior mining companies that conduct operations located in significant deposits across the country.
In Ontario, the Sudbury Basin is home to a 1.8 billion year old crater impact, which has left a site that is now the second largest nickel deposit in the world. The Sudbury Basin measures roughly 62km long, 32 km wide and 15 km deep. Within the Basin is the Sudbury Igneous Complex, which refers to the dome shaped laccolith formation that contains much of the basin’s nickel deposits. The nickel sulphate mined here is shipped to refineries across Canada. In 2018, production in the Sudbury Basin area was approximately 2.1 million tonnes a year.
Aside from the Sudbury Basin, Canada is also home to several other major deposits. In Manitoba, the Thompson deposit is a major source of nickel sulphide. Several deposits around the Thompson nickel belt area are in various phases of exploration. In total, the Thompson nickel belt area has 18 nickel deposits that have produced over five billion pounds of nickel since 1959. Nickel mining has for years been a major economic driver for Manitoba, with the province producing nearly 40 percent of Canada’s nickel in 2019. At Vale’s Thompson operation alone, over 850 are employed across operations.
Comparing nickel miners in Canada
Vale Canada (NYSE:VALE), the Canadian division of Brazilian miner Vale. The company currently has mining operations in the Sudbury region. Since operations first began over 100 years ago at this site, a total of 40 billion pounds of nickel have been mined. Vale also operates an additional site of significance in Voisey’s Bay, Labrador. The Vosiey’s Bay facility produces over 6,000 tonnes of nickel-cobalt-copper concentrate and copper concentrate per day.
In total, estimates in 2007 pointed to approximately 141 million tonnes of nickel in the deposit. While surface mining began in 2005, Vale is also planning on transitioning towards underground mining on the site, and more than 16,000 person-years of employment will be created throughout the construction process. Upon completion in 2021, 1,700 jobs will be created
NOB) is another Canadian company that has significant operations in the country. The junior mining company owns roughly 80,000 hectares of mineral rights in the Timmins/Cochrane area of Northern Ontario. Through this ownership, the company is looking at joint venture operations to expand exploration and development in the area. In March of 2020, Noble entered into an agreement with Canada Nickel Company (TSXV:CNC) on the Crawford Nickel-Cobalt Sulphide Project near Timmins, Ontario. Through a cash and stock transaction, Canada Nickel acquired options to earn up to an 80% interest on the project.(TSXV:
Aside from this project, Canada Nickel Company is also heavily involved in operations across Canada. Through their 100 percent ownership of the Crawford Nickel Sulphide project, Canada Nickel has gained access to one of the top 10 nickel sulphide operations globally. Through a preliminary economic assessment, Canada Nickel has found that the project has a net present value of approximately $1.2 billion. Further feasibility studies are being conducted that will wrap up in 2022. The project is also highly environmentally sustainable, with an estimated carbon footprint of 2 tonnes of CO2 per tonne of nickel produced. In contrast, methods used in Indonesia, the largest Nickel producer in the world, create up to 88 tonnes of CO2 per tonne of nickel produced.
Another company capitalizing on Ontario’s world-class nickel deposits is Class 1 Nickel & Technologies (. Through its 100 percent owned Alexo Dundonald project, the company has plans to explore two past-producing high-grade nickel and copper mines. This flagship project sits 45 kilometers from Timmins, Ontario, a distinguished mining territory with processing plants available in the area. Historically, the Alexo-Dundonald project has been a high grade production operation. Geographically, the remaining unexplored areas are open along strike and at depth. As production ceased “in mineralisation,” resources of similar grade and composition to that which had been previously mined would logically be expected to extend to unexplored areas. )
The majority of the Alexo Dundonald project remains untested or under-tested by drilling below a depth of 100 meters, and there is very little drilling completed outside the known deposit. If exploration on similar komatiite-associated nickel sulphide systems in other areas of Canada is any indication, there is a high potential for exploration and discovery of continued and/or additional sulphide mineralization along strike or down-plunge within mineralized channelized flows. As demand for nickel sulphide increases in conjunction with demand for EVs, projects such as these should continue to present a strong economic justification.
There is no denying global demand for nickel is rapidly growing and investment in companies mining Class 1 nickel is an investment into the EV market. With all the potential upside of mining within the greater Sudbury area, it’s clear that miners have the perfect storm of conditions to supply this growing demand for nickel.
This INNSpired article is sponsored by Class 1 Nickel & Technologies (. This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by ,OTCQB:NICLF)Class 1 Nickel & Technologies in order to help investors learn more about the company. Class 1 Nickel & Technologies is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Class 1 Nickel & Technologies and seek advice from a qualified investment advisor.
Pegasus Resources Expands Its Uranium Assets In Saskatchewan
Pegasus Resources Inc. (TSXV:PEGA) continues to make its presence in the prolific Athabasca Basin uranium camp with the recently announced
The post Pegasus…
( ) continues to make its presence in the prolific Athabasca Basin uranium camp with the recently announced acquisition of three uranium properties at the northwest edge of the Basin. The 54,026 hectare properties comprising 13 mineral claims contain a cumulative total of 535,718 lbs of uranium, and significantly, includes a historic resource estimate of 202,200 tons at 0.119% U308 at an average width of 4.8 metres.
These new properties add to the previously announced Pine Channel uranium property which consists of six mineral claims covering 6,028 hectares and is located at the northern edge of the Athabasca basin, roughly 40 km west of the town of Stony Rapids. The Athabasca Basin in Northern Saskatchewan is host to several of the world’s largest and highest-grade uranium mines, including Cameco’s () McArthur River Mine and Cigar Lake Mine.
The Wollaston Northeast property is located in the 20A zone within the prolific Wollaston Domain, 45 kilometres northeast of the Eagle Point Uranium Mine. The property has at least eight known base metals showings and five previously documented uranium occurrences, and is considered highly prospective for basement hosted uranium mineralization.
Much of the recent renewed interest in uranium in the region is due to recent discoveries within the Wollaston Domain where the Eagle Point deposits are hosted within its basement rocks. In addition to the Eagle Point Mine, the area also hosts the historic Rabbit Lake Mine and Cameco/Orano Key Lake Mine, the world’s largest high-grade uranium mine.
The 12,397 hectare Bentley Lake Uranium Property consisting of three mineral claims, and is located 35 kilometres northeast of the edge of the Athabasca Basin, within a transition zone between the Wollaston and Mudjatic Domains. This trend is host to several major uranium deposits, including Cigar Lake, Roughrider, McArthur River and Midwest. It is located at the transition zone between the Wollaston and Mudjatik geological domains.
The third property is located approximately 40 kilometres northeast of the edge of the Athabasca Basin and within the Charlebois-Higginson Lake Uranium District. The 6,908 hectare Mozzie Lake Uranium Property consists of three mineral claims and has a historical resource estimate of 204,200 tons at 0.119% U308, with an average width of 4.8 metres, and containing 535,718 lbs of uranium. What makes the Mozzie Lake Property particularly compelling, aside from the historical resource estimate that Pegasus’s exploration efforts may be able to increase significantly, are the pegmatite deposits of the Charlebois-Higginson Lake Uranium District.
Since being initially explored from the 1940’s through to the 1960’s, there has been virtually no exploration on the property. Previous work in the region, as well as on the Pinkham Lake property at Mozzie Lake, indicated that the pegmatite deposits may also host mineralization which contains rare-earth-element bearing minerals. Rare earth minerals are in high demand today due to the needs of the various technology, consumer electronics, and electric vehicle manufacturing industries. PEGA plans to examine the property’s rare earth potential as part of its uranium exploration program at Mozzie Lake.
Pegasus will next review the historical data on the properties to determine an exploration strategy and work programs, and will provide shareholders with updates in the near future. The company’s recent announcements of the uranium assets have certainly rekindled interest in PEGA shares, and its market capitalization has increased by almost 50% to $7.98 million in recent weeks, signifying that investors are enthused about the direction management has taken.
PEGA last traded at $0.095 on the TSX Venture exchange.
FULL DISCLOSURE: Pegasus Resources is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Pegasus Resources on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
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The Ethical Investor: ESG moves, lessons from the energy crisis and JP Equities’ stock tips
The Ethical Investor is Stockhead’s weekly look at ESG moves on the ASX. This week’s special guest is JP Equity … Read More
The post The Ethical…
The Ethical Investor is Stockhead’s weekly look at ESG moves on the ASX. This week’s special guest is JP Equity Partners’ director and partner, Nic Brownbill.
The world is in the grip of an ongoing global power crisis that has seen energy prices soaring by thousands of percentage points.
From China to Europe and now India, the cost of energy is surging drastically. The price of natural gas has even quadrupled in some parts of the world.
But economists are now warning this might be just the first of many power crunches the world will see as we transition into the new economy.
According to a research paper by CommBank’s analyst Vivek Dhar, there are two main root causes that led to the crisis — a strong demand recovery from the pandemic, and an acute shortage of two key power-producing fuels – natural gas and thermal coal.
As economies reopen, there is a sudden pent up demand from consumers which meant that factories were forced to switch on their production capacity at short notice. This was exacerbated by a colder than usual European autumn, as the continent potentially faces a more-freezing-than-usual winter season.
In China, the crisis mainly stemmed from an undersupply in local production of coals, according to Dhar, adding that coal supply has been hampered in China because of the government’s own environmental protection regulations.
So what can we learn from all this?
Dhar reckons that we are transitioning into the new economy too fast, too soon.
“What the recent energy crisis has shown is that the energy transition needs to be planned carefully,” Dhar wrote.
“This will mean significant investment in renewable generation, batteries, electricity grids and hydrogen.”
But he thinks the roll-out of a decarbonised grid and role of gas need to be clearly defined too.
“Under-investing in gas infrastructure relative to its role in coming years will only serve to make Europe’s energy market more vulnerable to prolonged gas shortages, and increase dependence on Russia.”
Like Europe, China’s decarbonisation ambition will need to be planned as well, Dhar said.
“If coal mines and coal power plants are closed before a renewable replacement is in place, power shortages in China could be an ongoing concern.”
What’s happening in Australia
Australians have chosen climate change as the top ESG priority, according to the latest survey conducted by global ESG consultant, SEC Newgate.
And more than half of the 1,000 Aussies surveyed said they were happy with the direction the government is taking on the environment.
These results should provide food for thought for PM Scott Morrison, who’s currently caught in a political wrangle with the Nationals in setting our 2050 climate goals.
The PM has told Liberal colleagues that he wants to bring a binding 2050 net zero commitment to the COP26 Summit in Glasgow next month, without having to upgrade Australia’s 2030 commitments.
Nationals Leader and also Deputy PM, Barnaby Joyce, said however that he was willing to back the 2050 targets only if funding for regional producers and farmers were made as part of the deal.
Special guest JP Equities’ Nic Brownbill shares his views and ESG stocks
Nic Brownbill, a partner at JP Equity, told Stockhead that decarbonisation is a mega global investment opportunity, one that JP Equity wants to be all in on.
How big is the potential for ESG investing?
“We see the whole decarbonisation theme as the next mega global investment opportunity. An estimated $41 trillion is required to decarbonise the planet. It’s going to be a bigger opportunity than the crypto market, because unlike cryptos, the carbon market is going to be mandated by governments, major asset managers and pension funds.”
Which segment of the ESG market do you see outperforming?
“Some companies will fall short in trying to make their carbon targets, so the balance will need to be met with carbon credits. I think carbon emissions will eventually be metricated, and the carbon offset market is going to be a way for major companies to offset their emissions.”
Would that investment opportunity catch on in Australia?
“I believe the Australian market hasn’t really caught on to the opportunity of this yet. But I think something will really start to emerge from the COP26 conference in November, where you’ll see a sustained mega theme starting to unfold in this country.
“I think we will start to see a complete emergence of Australian companies in the carbon space over the next few months and beyond.”
What are the ASX stocks that JP Equity likes in the carbon credit space?
One ASX stock that we’ve been watching very closely is Fertoz (ASX:FTZ). They’re a leading North American fertiliser manufacturer that produces a unique low-emission rock phosphate product that increases crop yield by 15%.
“Importantly, it can generate significantly lower CO2 emissions in manufacturing compared with other commercial fertilisers.
“This presents a really significant opportunity because agriculture as a sector accounts for 24% of all human generated greenhouse emissions. Fertoz is one of the first movers in the carbon credit market, and since May this year has been issuing carbon offset credit certificates.
“It’s not a matter of if, but when disclosure of carbon emissions will become metricated. And as a result, Fertoz is getting some strong enquiries from other companies looking to offset their footprints by buying carbon credits.”
Any other ASX stocks you like in the ESG space?
“We’re also bullish on Mpower (ASX:MPR). The company is Australia’s leading specialist in renewable energy, battery storage and micro-grid business. It has a focus on five megawatt solar farms, and is in the process of creating an initial portfolio of 20 sites across Australia in the coming years.
“That gives them an aggregate capacity of around 100 megawatts, and an estimated value of more than $150 million. It’s now down to what the team can deliver in some of those projects to build up the portfolio.”
Notable ASX ESG-related news during the week
The energy giant announced that it was targeting a 50% reduction in Scope 1 and 2 emissions by 2030, and a 15% reduction by 2025 from a 2018 baseline of 32.6Mt.
Around $7.5 billion in direct capital expenditure will be spent on decarbonising Rio Tinto’s assets from 2022 to 2030, including $0.5 billion per year from 2022 to 2024.
The company released its Sustainability Report for 2021, outlining its commitment to the United Nations Sustainable Development Goals (UNSDGs).
STA said it’s focused on managing development risks at its Coburn project in WA to safeguard workers and ensure environmental compliance.
The company has appointed global consulting firm Deloitte to ensure a robust ESG program at its Maricunga project in Chile.
Deloitte has been tasked to imbed sustainable protocols in LPI’s lithium extraction operations, and to establish ambitious standards for LPI to become a carbon neutral producer, while keeping high standards on the social aspects.
The company also said it has completed its maiden Sustainability Plan, with strategies aligned to the UNSDGs.
The views, information, or opinions expressed in the interview in this article are solely those of the interviewee and do not represent the views of Stockhead.
Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.
The post The Ethical Investor: ESG moves, lessons from the energy crisis and JP Equities’ stock tips appeared first on Stockhead.
Emerita Sees Continued Success In Spain
Emerita Resources Corp (TSXV:EMO) continues to report excellent results from the Infanta drill program at its Iberia Belt West Project
The post Emerita…
Corp ( ) continues to report excellent results from the Infanta drill program at its Iberia Belt West Project in Spain, which hosts three previously identified high-grade deposits: La Infanta, Romanera and El Cura. These are all open for expansion along strike and at depth.
On October 22, the company announced assays for the first step-out drill hole from the Infanta drill program and also the final in-fill drill holes. The significance of the in-fill program was to verify the historical drill results. They will now enable a proper 3D modelling of the deposit and will also provide additional data to be used for future metallurgical testing.
At Infanta, the step-out was conducted to expand the outer perimeter of the deposit, and the in-fill drilling was intended to confirm historical drill data within Infanta’s known mineralization zone. Step-out drill hole IN018 was drilled 40 metres to the west of the historical limits of the deposit and intersected 8.2 metres with a grade of 2.5% copper, 8.7% lead, 17.3% zinc, 223.5 g/t silver and 0.5 g/t gold. A second step-out hole was drilled 50 metres to the west of hole IN018 and intersected two zones of massive sulfide but assays have not been returned yet.
In-fill drill hole IN014 intersected 5.7 metres of 2.4% copper, 7.3 %lead, 13.4% zinc, 225 g/t silver and 0.6 g/t gold. The ongoing geophysical survey, which was suspended along with other exploration activities for the region’s hunting season, is expected to resume by the end of October.
Emerita plans to have five drill rigs operating by the end of 2021 and will include the Romanera deposit, El Cura, and other targets identified by previous geophysics work. The two drills currently on site will now focus on step-out drilling to increase the size of the deposit.
Emerita also recently provided investors with an update on the legal proceedings for the Aznalcóllar Project and the company is expecting a ruling by the Administrative Court of Andalucia in Emerita’s favour in the near future.
The Aznalcóllar Zinc Project is located in the prolific Iberian Pyrite Belt in the Andalusia region of southern Spain and is considered to be one of the world’s largest and most productive volcanogenic massive sulfide (VMS) structures. It has been mined for over a thousand years and has produced over 2000 million tons of ore.
Aznalcóllar is considered to be one of the world’s top undeveloped zinc deposits, and the project is essentially a world-class pre-production development asset. Here, the main deposit is referred to as Los Frailes, which contains a historical open pit mineral resource. Two other deposits exist on the property as well, which require further development. The Los Frailes mine operated during the 1990s until it closed due to a combination of tailings-related environmental failure and low metal prices.
After the Aznalcóllar site was rehabilitated, the government initiated a public tender process for the rights to the project and it was initially awarded to another major mining company, however Emerita believed that their bid was superior. It subsequently requested an investigation into the tender process for the property and filed a lawsuit in 2015.
In early 2021, the Spanish court concluded that the process was fraught with corruption, fraud and other malfeasance and rescinded the rights that were awarded and criminal charges were sought for the perpetrators and their enablers. In July 2021, a Spanish judge issued additional criminal indictments against the mining company and government officials who participated in undermining the public tender process for the project.
Under Spanish law, if a crime was committed during the tender process, the rights are then awarded to the next best qualified competing bid, which in this case was Emerita. Subsequently, Emerita has been waiting for the Administrative Court to conclude the process to formally award the rights to the Aznalcóllar Project to the company, which brings us to present day.
The company is planning to develop the deposit into an underground mining operation focused on mining the high-grade zones, which are estimated to contain 20 million tonnes at a grade of 6.65% zinc, 3.87% lead, 0.29% copper and 84 ppm silver. As a requirement of the project’s public tender process, Emerita submitted comprehensive. engineering, environmental and water management studies to the government, and now the company is expecting to be given the green light to proceed developing the Aznalcóllar project into an eventual producer.
Emerita is well financed, having completed a $20 million bought deal private placement in July 2021. Emerita has 182.42 million shares outstanding and due to the recent increase in the Company’s share price, a market capitalization now of $556.38 million. Even so, barring any unforeseen negative developments regarding the legal issues,Corp still appears to be potentially undervalued relative to the potential value of the world-class assets it is developing.
Shares ofCorp last traded at $3.05.
FULL DISCLOSURE:is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
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