Ann: AGM Presentation, page-6

Nickel poised to be metal of 2020 as demand-supply fundamentals take hold, say commodity followersNickel won the gold medal at a major metals conference in London this week 1st November 2019 Tim TreadgoldNickel won the gold medal at a major metals conference in London this week but not on the market where the price barely moved, an anomaly which should be corrected next year on the purest of fundamental measures - demand is rising and supply is falling.The muted reaction of nickel to the latest crack-down on exports of unprocessed metal by Indonesia was the biggest surprise on commodity markets, which continue to behave erratically thanks to the ongoing political and economic uncertainties in Europe, the UK and the US.A ban by Indonesia has been well flagged but was not scheduled to start until the New Year. But that changed on Monday when the export door was slammed shut, lifting the nickel price by a modest US10 cents (1.3%) to $US7.63 a pound, which is where it stayed.Investment bank analysts were mystified by the tiny rise, as were delegates to the London Metal Exchange’s big week of seminars, talks and long lunches, an event called Metals Week, which is a magnet for commodity junkies.A poll of delegates to Metals Week by Macquarie Bank saw nickel get the highest rating and a description as the metal “likely to be the standout performer in 2020”. Copper was the second most highly rated of the base metals, which is the primary focus of Metals Week.The Macquarie rankings showed that 43% of delegates rate nickel as their preferred investment over the next 12-months, up from 32% in the same poll at last year’s conference. Copper’s score fell from 45% to 38% - but those two metals were a country mile ahead of the rest.Vanessa Davidson, director of base metals strategy at the highly-regarded commodity research group, CRU, said the timing of the nickel cycle was a little different but cut backs to production meant there was a need for increased investment to meet nickel demand from battery makers.UBS, an investment bank, was more cautious but acknowledged that there was some anxiety in the market about future supplies caused, in part, by a big Chinese stainless-steel maker (Tsingshan) buying large amounts of the metal ahead of a tight market in 2020.
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