Talon (TSX: TLO) & CNC: Is it time to buy Canadian nickel stocks?

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Talon (TSX: TLO) & CNC: Is it time to buy Canadian nickel stocks?

Talon (TSX: TLO) & CNC: Is it time to buy Canadian nickel stocks?
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Highlights

  • Nickel stocks have created an interest among traders ever since the metal’s prices skyrocketed as high as 250 per cent earlier this month.
  • The London Metal Exchange (LME) saw its operations get suspended for about a week after nickel prices took off. It is now set to resume nickel trading on Wednesday, March 16.
  • Stocks of Talon Metals galloped by over 21 per cent in the past three months.
  • Canada Nickel scrip gained over 13 per cent in six months.

Nickel stocks have created an interest among traders ever since the metal’s prices skyrocketed as high as 250 per cent earlier this month. The London Metal Exchange (LME) saw its operations get suspended for about a week after nickel prices took off. It is now set to resume nickel trading on Wednesday, March 16.

This update from the LME came as Tsingshan Holding Group Co, a Chinese nickel and stainless-steel company, said that it has arranged an agreement with its lenders to maintain its short-selling position.

With nickel prices in the spotlight, let us look at two Canadian nickel stocks.

Talon Metals Corp (TSX: TLO)

Talon Metals, which agreed to supply nickel concentrate to electric vehicle giant Tesla Inc from the Tamarack Nickel site in Minnesota earlier this year, has seen its stock price gallop by over 21 per cent in the past three months.

The 513-million market cap firm, however, incurred a net loss of C$ 1.48 million in Q3 FY2021 compared to C$ 0.49 million a year ago.

Talon Metals (TLO) Q3 FY2021 results

 The nickel stock closed at C$ 0.68 apiece on Monday, down by nearly 12 per cent with a trading volume of 1.3 million.

Also read: Why is Turquoise Hill (TSX: TRQ) stock surging?

 Canada Nickel Company Inc (TSXV: CNC)

Canada Nickel reported a net loss of C$ 0.49 million in Q4 FY2021 compared to C$ 0.93 million a year ago.

CNC stock closed lower at C$ 2.99 per share, down by almost five per cent on Monday. However, Canada Nickel scrip gained over 13 per cent in the last six months.

Bottomline

Rising nickel prices has been driving uncertainty in the global metal industry. This price spike could also affect other related sectors like steel and electric vehicles, where nickel is a key raw material. Hence, this is one market investors should ideally keep a watch on.

Also read: Ag Growth (AFN) and Ceres (CRP): 2 TSX agricultural stocks to see

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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