Equityma, If you read anyone of their presentations or annual report you will have your answers. But for entertainments sake;
What's the future of NPI demand? Over 70% of world nickel demand is for stainless steal, NPI is the most cost effective option for stainless production (as they get the iron ingots for free). EV's/Storage account for ~13% and the majority of future growth/price pressure on nickel however NPI is indexed against nickel price so price appreciation still benefits NPI. Europe had just rised a tariff last week to curb the cheap NPI from Indonesia following an import quotas last year. Thats fine as all NIC's NPI goes into chinese stainless steel. How should NIC be able to compete with China NPI producers? Very well, One risk of NIC is its sole customer who is also a significant shareholder - feel free to google them but hint hint their chinese. CN had successfully controlled the market and They had suppressed the Ni price longer for lower. How long NIC has to run at a lost when its low grade nickel ore was not marketable and the company must use the lower grade ores in its HPAL plant. This statement makes no sense - NIC is one of the lowest cost producers and has a fixed sales agreement with its key customer - the largest chinese steel manufacturer in the world. NPI is simply not suitable for EV so what is the purpose to become a bigger player when the RKEF was not designed to produce nickel sulphate for use in EV batteries. If you want a EV play then invest in Novonix, NIC is not here to support the EV industry, it's here to produce NPI for stainless steel. Its expansion is a lucrative proposition, strongly EPS accreditive and management deserve a commendation when they pull it off.
Please Equityma, reading their presentation would have taken less time than writing your response on HC!
NIC Price at posting:
95.5¢ Sentiment: Buy Disclosure: Held
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