2.5 billion NPV8 and 100% IRR, page-64

This S.m.a.l.l.caps.com report, of 6.10.22, by T. Treadgold states the LME is considering banning all new Russian nickel supplies in its warehouses, which will very likely ( if ban implemented) cause Ni prices to rise- & CTM's valuable Ni sulphides (cf Ni "dirty" laterites) are mentioned.

This ban would bode very well for CTM.' & its shareholders.

"...A pointer to nickel getting ready for its next price break-out event is its status as the only base metal to be selling today for a higher price than 12-months ago.

Copper, zinc and aluminium, other members of the base metal family, have all declined since last October...

Russian metal bans in pipeline

Today, nickel is again facing a Russian challenge, along with another metal in which the country is a major producer, aluminium, and once again it is the LME which is at the centre of what’s brewing.

Last week, the LME confirmed that it had prepared a discussion paper for its members about how to deal with Russian metal what can still be freely traded despite multiple bans on other Russian raw material exports.

Proposals being debated inside the LME include a ban on new Russian metal while allowing material already in LME warehouses to be traded, down to a do nothing option

The problem with the do nothing option is that it would expose the LME to an accusation of favouring Russian metal producers such as Norilsk Nickel and Rusal, a big aluminium producer, because the exchange itself is owned by Hong Kong Exchange and Clearing which falls under the ultimate control of China, Russia’s best friend.

...If the LME does ban new deliveries of Russian aluminium and nickel it will not prevent the metal from reaching the world market with shipments redirected to China and India in the same way Russian oil and gas is being rerouted.

Western world shortage as supplies flow into China

But a ban would set up conditions similar to those seen in March with a potential western world supply shortage even as metal flows into China. Despite some of the material likely to be re-exported a layer of complication would be introduced into an already complex market.

Reliability of supply is important for battery makers at a time of strong and growing demand for electric vehicles, which is one of the reasons why nickel traders are closely watching developments at the LME as it decides what to do with Russian metal.

Nickel quality is the second issue worrying battery makers because while Indonesia has emerged as the world’s biggest producer of the metal it does so using an energy intensive process based on the burning of low-grade but expensive coal.

That mix of metal for batteries designed to cut the pollution caused by burning fossil fuels, with nickel which needs a fossil fuel in its production process is starting to become a significant issue for EV battery makers.

Macquarie Bank raised the problem of higher prices for the pulverised coal (known a PCI) used in Indonesia’s nickel processing industry in a report last week which described the coal issue as a “headwind” for Nickel Industries (NIC) Australia’s major player in the Indonesian nickel industry.

High-grade nickel sulphides most desired

The combination of the two nickel issues, Russian reliability and Indonesia quality, opens the door for Australia’s producers of high-grade nickel sulphide, which is what by battery makers want.

Companies such as ... ...Centaurus Metals (ASX: CTM),are either producing nickel sulphide ore, exploring for it or, in the case of Centaurus, planning to upgrade its nickel sulphide to battery grade nickel sulphate".


https://*********.com.au/nickel-primed-another-price-bounce-amid-fears-russian-nickel-ban/