- Nickel prices surged to 10-year high levels on the back of strong demand and tight supplies.
- The prices are expected to remain buoyed in the future due to its high demand in the manufacturing of lithium-ion batteries.
- Various ASX-listed nickel stocks outperformed in 2021 and are expected to remain on the hit list of investors in 2022.
On Wednesday, nickel prices on the London Metal Exchange (LME) surged to over 10-year highs. Skyrocketing demand and the tight supply of the mineral drove the prices of nickel to above US$22,000 per tonne, the highest since August 2011.
Nickel stocks at the Shanghai Future Exchange warehouses slumped to the lowest levels in over 5 months. At the same time, nickel stocks at the London Metal Exchange-approved warehouses tumbled nearly halved in the past five months, the lowest since December 2019.
Nickel has emerged as the top performer among industrial metals on the back of robust economic growth in China, the largest metal consumer in the world. The prices are expected to remain buoyed in the future due to rising demand for lithium-ion batteries.
On this backdrop, let’s have a look at the four ASX-listed nickel stocks that outperformed indices in 2021 and are expected to remain on the hit list of investors in 2022.t854
In December, IGO Limited (ASX:IGO) announced its plan to acquire Western Areas (ASX:WSA). The company has entered into a Scheme Implementation Deed pursuant to which, it will acquire 100% interest in WSA at a consideration of AU$3.36 per share.
Mincor Resources (ASX:MCR) has extracted the first nickel ore from two development headings at the Kambalda’s Northern Operations in mid-December. Face sampling at the location also confirmed high-grade massive sulphides to return grades up to 11.5% nickel.
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Poseidon Nickel (ASX:POS) has shared an update relating to the resumption of the Black Swan project. Drilling and mining studies at the project location were going as planned. The project's Final Investment Decision (FID) is expected to be made in July 2022, with the commissioning scheduled in the March 2023 quarter.
Nickel Mines (ASX:NIC) has entered into a binding Definitive Agreement with Shanghai Decent Investment (Group) Co., Ltd, to acquire a 70% equity interest in the Oracle Nickel Project in Indonesia. Additionally, the company has also inked a deal to acquire the Tablasufa Nickel Project, another Indonesian project, for AU$11.9 million.
The demand for nickel has increased significantly in the past few years on the back of rising demand from energy storage sectors. The robust demand scenario has guided metal prices to multi-year highs.