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Highlights
- In 2020, Glencore’s total nickel sales through its marketing business were recorded at 149 kt.
- BHP’s 85% of nickel is sold to global battery material suppliers.
- Rio Tinto announced an ordinary dividend of US 376.0 cents per share in H1 2021 and a special dividend of US 185.0 cents per share to shareholders.
Nickel prices on the London Metal Exchange (LME) hit a seven-year record high of $20,225 per tonne on Thursday. Earlier in February 2021, prices collapsed on account of China-based steel company Tsingshan’s announcement that the nickel operations based in Indonesia would supply matte - a form of nickel used exclusively in the production of stainless steel - to battery manufacturers. Consequently, nickel performed poorly on the LME base metal pack until June 2021. Currently, high global demand for nickel is driving up the prices of the commodity.
(Data source: EODHD/Others)
Here we take a look at three FTSE listed nickel stocks and explore the investment prospect in them.
Glencore Plc (LON: GLEN)
Glencore is an international commodity trading and mining company. The company is one of the leading producers and marketers of nickel, with nickel assets in Canada, Europe, and Australia. In 2020, the company’s total nickel sales through its marketing business were recorded at 149 kt.
Glencore’s adjusted EBITDA from nickel assets for 2020 stood at $591 million. The company’s overall revenue for H1 2021 stood at £93,805 million, up by 32% year-on-year compared to £70,961 million in H1 2020.
The shares of Glencore closed at GBX 332.15, down slightly by 0.61% at the close of trade on 9 September 2021 and has returned 90.52% in the last one year. The market cap stood at £44,471.46 million.
BHP Group Plc (LON: BHP)
BHP Group’s Nickel West is an integrated mine-to-market business focused across locations in Western Australia. About 85% of the company’s nickel is sold to global battery material suppliers.
BHP Group recorded an underlying EBITDA of US$37.4 billion for the year ended 30 June 2021, representing a year-on-year increase of 69%.
BHP announced a final dividend payout of US 200 cents per share to shareholders for the year ended 30 June 2021.
The shares of BHP Group closed at GBX 2,049.50 on 9 September 2021 and has returned 19.18% in the last one year. The market cap of the company stood at £44,015.58 million.
Rio Tinto Plc (LON: RIO)
Rio Tinto is a leading mining company engaged in the exploration, mining and processing the minerals. For the H1 2021 ended 30 June 2021, the company’s sales revenue was US$33,083 million, representing an increase of 71% year-on-year compared to £19,362 million in H1 2020. Its underlying EBITDA increased by 118% year-on-year to US$21,037 million in H1 2021 compared to £9,640 million in H1 2020.
Rio Tinto announced an ordinary dividend of US 376.0 cents per share in H1 2021 and a special dividend of US 185.0 cents per share to shareholders.
The shares of Rio Tinto closed at GBX 5,613.00 on 9 September 2021 and has given a return of 7.79% in the last one year to the shareholders. The market cap of the company stood at £64,428.39 million.
