HIG like many base metal producers has had a thump on the back...

HIG like many base metal producers has had a thump on the back of the head as recent US tariff tit for tat has created bad sentiment and caused a temporary dip in metals prices.

So, what does this mean for the outlook of prices for Nickel and Cobalt all produced in record quantities or copper which is held in massive resources by HIG?

The experts are saying the following:

Copper:

Lets look at the red bell weather metal first as HIG cash-flow will not be affected by the current tariff argy bargy at all.

HIG will not be affected by the current tariff woes as the development of its copper (plus Gold) reserves is years away. Outlook is for a slight excess in reserves and slight easing in prices temporarily but underlying demand will remain, however tariff woes have hit the price hard recently. So, no current problems and long-term demand for copper will remain strong as demand creeps up and global grades of copper ores drops as the higher grades are being mined first.  

HIG is sitting on a massive reserve of copper and gold just waiting to be developed at the best time in history to do so when EV demand will have skyrocketed , over the next ten years. Copper is essential in all of the electrical componentry in EV vehicles. Research is underway to try to reduce copper use but the current generation of EV vehicles requires large amounts if the red stuff in wiring, motors, etc.

Nickel:

HIG has plenty of this and making record amounts at RMAU.

Prices for Nickel have had a stellar price rise over the past 12 months and recently taken a small temporary hit as tariff uncertainty has dented confidence but more importantly has not changed rising global demand.

Global demand for Nickel remains upbeat and increased demand for stainless steel and EV battteries will continue to drive pricing upward pressure. Intense research to reduce Cobalt usage in EV batteries is underway but is reported as a few years away due to safety concerns. Most current EV batteries require large amounts of Nickel in the cells combined with a combination of Lithium, Cobalt and other chelating metals to create the current storing matrix.

So, pricing outlook  for Nickel continues to be upbeat.

Cobalt:

Cobalt prices have run up to record levels due to tightening supply fears and supply outlook which is very cloudy indeed due to political and regulatory uncertainty in the DRC where much of the global production occurs.  

Cobalt prices have eased along short-term with most metals prices which have all suffered from the trade woes but the upward price pressure will continue once tariff tit for tat plays out. The global demand for Cobalt combined with supply issues will continue to underpin upward price pressure.

So, the experts are saying currently we are in a period of price volatility the underlying fundamentals remain robust and the outlook positive.

HIG long-term outlook is unbelievably bright so long as you are patient. They are about to become debt free and greatly increase in value substantially from the streaming deal with Cobalt27.

The chart shows clearly a Trump Thump drop in price just before the eve of the Cobalt27 financial close which will transform HIG from a poor second cousin to a seasoned global player on the world metals stage.

The price dip from 13 to 11 cents this week is a tempting opportunity prior to a run up to 33 cents over the next 12 months.

I see a great metals play in the making.

GLTAH