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https://thewest.com.au/business/min...gher-as-the-metal-hits-10-year-peak-c-5292568

Nickel stocks race higher as the metal hits 10-year peak

Sean SmithThe West Australian
Thu, 13 January 2022 12:55PM
Sean Smith


IGO's Nova nickel mine, east of Norseman. Credit: Robert Garvey

Nickel stocks are on a tear as a proposed Indonesian tax helps fuel the metal’s rally, sending prices to a 10-year high.

Fast growing IGO, which has dramatically expanded its presence in battery metals over the past year, and Nickel Mines hit record highs on Thursday as other nickel stocks also extended gains.

Nickel was trading at around $US22,064 a tonne on the London Metal Exchange late on Thursday and is up 10 per cent for the week after receiving a boost from Tesla’s deal with US-focused Talon Metals to secure more supplies for the batteries powering its electric vehicles.

Demand has also been enhanced by Indonesia’s announcement it is considering a tax on nickel exports, a move which is seen raising costs for overseas refiners and possibly pushing prices higher.

The gains have been recorded against a backdrop of pandemic-triggered production and supply chain disruptions that have triggered new concerns about shortages of key metals.

Bloomberg noted Goldman Sachs is tipping deficits across all refined metals, raising its 12-month targets for aluminium, copper and zinc.
“A much tighter starting point for the market alongside strong EV trends,” plus a continuation of the supply shortage, would support higher nickel prices, the bank’s analysts said.
With Goldman Sachs not expecting fresh supplies to meet demand in 2022, it has widened its forecast deficit to 30,000 tonnes from 13,000 tonnes earlier but left its price tip for nickel unchanged at $US24,000/t.

Shares in IGO, which struck a $1.1 billion agreed takeover of nickel miner Western Areas last month, hit a record $12.64 before closing nearly 4 per cent, or 38¢, better at $12.45.

Sydney-based Nickel Mines added 5 per cent, also closing at a record $1.63. Mincor, which stacked on more than 5 per cent on Wednesday, rose half a cent to $1.87, having also hit a 14½-year peak of $1.935 earlier.

The mood spilled over into explorers. St George Mining rose nearly 4 per cent to 8.1¢.