It's true, Carlton123, that nickel is at a low ebb but I would argue that that is
precisely the time, strategically, to be putting the foot to the floor on a fast start-up, low-cost, high-grade project like Quicksilver.
A few facts:
Due to continued strength in the production of stainless steel and increasing EV sales, demand for nickel so far this decade - so the 3 years since 2020 - has actually grown by an impressive 9%+ per annum. This, despite rising interest rates and an underperforming China.
The world's economy looks to be climbing out of those doldrums now and in fact, in the EV market, getting into a more nickel intensive phase as bigger, more power-dense (nickel hungry) North American luxury cars and utilities come to have electric options:
On the supply side, as our newspapers almost daily proclaim (usually one of the better long-term leading indicators to buy!), there's a lot of higher-cost production getting mothballed or going out the door as nickel prices chew into the cost curve.
The much-vaunted Indonesian supply threat could easily falter on mine grade issues, the emergence of Indonesian mining quotas or, I should think, the very genuine ESG concerns of major buyers:
EV and Stainless growth certainly look set to continue, and there's every likelihood the stretched spring will twang on any major supply-chain stock rebuilds.
Current sentiment towards nickel and junior resource companies may be lamentable at present. But I believe there are still plenty of strategic thinkers around.
