I can only echo Rewop in that you’ve probably gotten in at a good time so to you and any others welcome aboard, hope it works out for you & all the best for this new year. It’s done well for me thanks to the spin offs & of course the Corona crash which combined allowed me to buy more here.
To the notes which are piling up: Sumitomo supplies Panasonic. Panasonic supplies Tesla. Here is a recent note from Panasonic-
The pertinent part is actually in the headline- a plan to quadruple production and halve its carbon footprint.
That means it will need more supplies from Sumitomo etc & to lower its carbon footprint will need to look at all parts of the supply chain. For us that means from mine to battery factory/steel mill. WA ( Western Au ), is as much as 5,000 kilometres closer to Asia than Sudbury in Canada which is where most Canadian nickel is mined.
Typically it’s 10-12,000 kilometres for shipping from Sudbury to Seoul ( my guess at a fair estimate as Seoul is in between Japan and China ), while it’s only 6,500 kilometres from Fremantle to Seoul- an immediate emissions saving of at least 35%
ARL plans to utilise energy produced from its own operations to power its processing plant. There’s another emissions saving.
A tick there.
Why mention Canada? It is closest to the U.S. which is demanding ever ‘cleaner’ minerals & one of the biggest nickel miners in the world sees enough demand on the horizon to keep investing in Canada-
Another tick for ARL when we consider the notes about Panasonic’s plans above in that hey- if Canada is worth investing in then WA is too & in my mind even more so as most industrial activity is in Asia nowadays.
A fact which will not change over the course of 2024-2040. Devil’s advocate asks ‘what about India?!’ Good question. India is even closer to WA than Sudbury ( making ARL even more attractive), & a lot of industrial output leaving China hasn’t made it to India- stopping in Vietnam etc instead ( even Japan is building more factories again ), so the Asian note still stands the test.
Thanks to these trying times ( nickel price ), I’ve actually become more confident in ARL thanks to refreshing my research, thereby finding those bits and pieces such as in this post but also the others recently shared.
As others fade we are holding quite well & that is a good indicator- being able to navigate the tough times often means a great outcome moving forward so again, all the best.
ARL Price at posting:
45.0¢ Sentiment: Buy Disclosure: Held
(20min delay)