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Highlights:
- Global annual production of nickel is likely to touch 3.4 million tonnes in 2024, as per the Resources and Energy Quarterly September 2022.
- Nickel has been gaining traction in the EV battery space, owing to its ability to deliver higher energy density and greater storage capacity at a lower cost
- Many ASX nickel stocks have delivered impressive returns in 2022.
The role of nickel is increasing in electric vehicle batteries with innovations. The global target of reducing carbon emissions has led to a spike in the demand for nickel, owing to its application in the EV battery space. Nickel aids in deliver higher energy density and greater storage capacity at a lower cost.
At present, nickel futures are trading at US$29431.50 per tonne.
Indonesia has increased its nickel production, and the liquidity in London Metal Exchange (LME) has also improved. The nickel export earnings of Australia are estimated to reach AU$4.6 billion in 2023-24, as per the Resources and Energy Quarterly September 2022. While the global annual production of nickel is likely to hit 3.4 million tonnes in 2024, highlights the report
With this backdrop, let us discuss how the below ASX-listed nickel stocks performed in the last one year, as of 22 December 2022.
Data: ASX as on 22 December 2022
Galileo Mining Ltd (ASX:GAL)
Western Australia-based mineral exploration and development company Galileo Mining Ltd has interests in palladium, nickel, copper, and cobalt resources. The Company has highly prospective deposits of palladium-copper-nickel sulphide near Norseman. GAL and Creasy Group have joint ventures for nickel-copper sulphide prospects in the Fraser Range.
The total Indicated and Inferred JORC Mineral Resource Estimate for the Norseman Project stands at 25.1 million tonnes with 0.11% cobalt and 0.49% nickel; consisting of 26,600 tonnes of cobalt and 122,500 tonnes of nickel.
Galileo Mining recently announced assay results of diamond core and reverse circulation drilling at the Callisto prospect within the Norseman project. The latest results revealed highest grades of nickel and copper till date from disseminated sulphides with 1.58% nickel, 0.93% copper and 3.32 g/tonne 3E (palladium+platinum+gold).
The company indicates that the source of mineralisation may be found going further eastwards. Currently diamond drilling is targeting eastern zone and reverse circulation is targeting shallow sulphide zone to the west. Galileo Mining is expecting the assay results of more than 20 reverse circulation and diamond drill holes by January 2023.
Moreover, rhodium concentration was observed to increase with depth within high-grade seams of palladium-platinum at the Callisto prospect. Rhodium grades up to 0.13 g/t were found with palladium grade of 3.82 g/t over one metre.
Nico Resources Limited (ASX:NC1)
Australia-based exploration company Nico Resources is focused on developing nickel projects in Australia. The Company has strategy to deliver a long-life, low-cost production of nickel with low carbon emissions. The Central Musgrave Project has Wingellina, Claude Hill and Mt Davies as three major tenements. The project is spread across 1,469 sq. kilometres within Western Australia and Surveyor Generals Corner.
The latest pre-feasibility study (PFS) has confirmed the flagship Wingellina Nickel-Cobalt Project as a globally significant Tier 1 asset. The company says that the project will produce green nickel and cobalt for at least 42 years, once operational. The study highlights AU$60-80 billion of revenue generation over the current 42-year reserve.
Owing to the favourable PFS outcomes, the Company plans to move to a definitive feasibility study in 2023.
Lunnon Metals Limited (ASX:LM8)
Mineral exploration company Lunnon Metals is inclined to develop nickel projects. The Company owns nickel and gold projects in the region of the Kambalda Nickel District. Lunnon wishes to emerge as a vital player contributing to the resurgence of nickel sector in Western Australia.
Lunnon Metals has recorded excellent widths of high-grade nickel sulphide mineralization at two best holes to date in its down-plunge program. in WRN22DD_008W5, the company has hit 7.48m @ 4.46% nickel.
The campaign is focused on the Warren channel, which is a part of the Foster nickel mine at its Kambalda Nickel Project.
After receiving all assays, the company plans to undertake mineral resource estimate (MRE) update. It expects to report the MRE update in the first quarter of 2023.
