How these ASX nickel stocks have been performing in 2022

Highlights:

• Nickel has recently drawn investor interest as the metal is used in the production of batteries for electric vehicles
• Nickel prices have surged by approximately 47.06% in the past one year
• Demand prospects for Nickel are expected to improve as COVID-19 pandemic-related restrictions have eased in China.

Nickel is a silvery-white metal, which is majorly used in producing stainless steel. Recently, Nickel has gained significant limelight as it is employed in manufacturing batteries for electric vehicles (EVs).  

Prices of Nickel have surged significantly in the past few years because of its newfound application in lithium-ion batteries. In the past one year, nickel prices have increased by 47.06%, and in the last month, they have surged by 12.99% (as of 9 December 2022).   

Indonesia, the Philippines, New Caledonia, Russia, and Australia are the largest nickel producers, and China is the biggest consumer. With the ease of COVID-19 pandemic-related restrictions in China, Nickel’s demand prospects look bright.

In the age of technology, Nickel is evolving as an important metal. In line with this, let’s have a look at some ASX nickel stocks. The stocks discussed in this write-up are Nickel Industries Limited, Mincor Resources Limited, Poseidon Nickel Limited, Blackstone Minerals Limited, and Caspin Resources Limited.

For context, the S&P/ASX 200 was down 0.50% to 7,177.20 points at 12:34 PM AEDT. Meanwhile, the ASX 200 Materials (INDEXASX:XMJ) was down 1.18% to 18,192.60 points. On a year-to-date basis, the index has gained 6.36%.

Nickel Industries Limited (ASX:NIC)

Formerly known as Nickel Mines Limited, Nickel Industries began its journey in Indonesia in 2009 by acquiring an 80% interest in the Hengjaya Mine. It is a saprolite deposit.

Currently, the company has an 80% interest in the Ranger Nickel and Hengjaya Nickel projects. Both projects produce nickel pig iron within the Indonesia Morowali Industrial Park (IMIP). In 2021, the company acquired an 80% interest in the Angel Nickel project.

In December 2021, the company advised that it had inked a definitive agreement with Shanghai Decent to buy a 70% interest in the Oracle Nickel project. According to the company’s official website, the project's nameplate capacity is 36,000 tonnes of Nickel annually.

 In February 2022, the company completed the initial acquisition of a 10% interest in Oracle Industry, and in May 2022, a 20% interest was acquired.

At 12:14 PM AEDT, Nickel Industries’ shares were trading 1.96% lower at 12:21 PM AEDT. On a year-to-date basis, the share price has fallen by 31.85%.

Mincor Resources Limited (ASX:MCR)

A mineral exploration company, Mincor, focuses on nickel production in the Kambalda district of Western Australia. Initially, the project comprised the Cassini Nickel mine and the Northern operations. According to the company’s official website, the Cassini mine is expected to initially contribute 56% of nickel-in-concentrate production initially.

Image source: © Jjumawan | Megapixl.com

On 9 December 2022, the company made the headlines as it announced an AU$60-million capital raise via a fully underwritten placement of AU$55 million and a share purchase plan to raise around AU$5 million. Mincor said that the proceeds from the capital raise would be employed to speed up underground drilling at Cassini and access development into the Golden Mile ore reserves at the northern operations. Also, the funds will be employed to strengthen the balance sheet and accelerate activities over the remaining financial year 2023.

The company also manages gold projects, mineral resources, and ore reserves.

Mincor’s shares last traded at AU$1.58 apiece. On a year-to-date basis, the share price has decreased by 10.96%.

Poseidon Nickel Limited (ASX:POS)

Poseidon is a nickel sulphide development and exploration company that manages three projects located in Western Australia. These three projects, the Lake Johnston Nickel, Black Swan, and Windarra projects, are within a radius of around 300km.

Mining and processing at the Black Swan project are seen as the first step in helping the group grow to a 15ktpa-plus Nickel producer in the next 5 to 10 years.

The business strategy is to leverage its existing asset base to grow the company into a substantial Nickel producer. The strategic pillars of the company are business development, targeted exploration, and a pathway to production.

At 12:26 PM AEDT, Poseidon shares were trading at a flat AU$0.037 per share. On a year-to-date basis, the share price has tumbled by 69.17%.

Blackstone Minerals Limited (ASX:BSX)

A mineral exploration and development company, Blackstone Minerals, has 90% ownership in the Ta Khoa nickel project, which is located in Vietnam. This project includes a nickel mine built as per Australian standards, which the company employs to process nickel ore. The ore is delivered by an underground bulk sample program.

In Vietnam, the company also manages a Ta Khoa refinery. The company said it had completed a pre-feasibility study for developing the refinery.

The company also manages a gold and cobalt project in Canada, namely the Gold Bridge project.

Blackstone shares were trading at a flat AU$0.16 apiece at 12:22 PM AEDT, and on a year-to-date basis, the share price has dropped by 72.81%.

Caspin Resources Limited (ASX:CPN)

An Australian materials company, Caspin Resources, is actively exploring the Yarawindah Brook Project in Australia. According to the company’s official website, the group is advancing exploration on multiple fronts by employing Airborne EM and soil geochemistry to search for PGE-Ni-Cu sulphide deposits.

As reported, the company has found a 50km structural corridor with substantial gold mineralisation at the Mount Squires project. The project is 100% owned by Caspin Resources.

Caspin Resources’ share price gained 2.24% at 10:42 AM AEDT to trade at AU$0.68 apiece. On a year-to-date basis, the share price has decreased by 42.44%.