IGO Ltd (IGO) is bidding $3.36 to acquire Western Areas (WSA) but Twiggy Forrest’s Wyloo has increased its stake to 6.29% while WSA shares are edging above the current bid price – in other words the nickel producer is very much “in play”. Wyloo is also fighting on another front trying to buy Canadian nickel explorer Noront Resources ahead of BHP Group (BHP). The simple takeout is quality smart companies / individuals are looking to increase their footprint towards nickel and by definition electric vehicles (EV’s) as the decarbonisation trend continues, we believe this could easily be ongoing for a decade!
Previously we’ve seen investors buy, sell and then buy again lithium stocks, chase exposure to graphite, cobalt and now nickel but MM feels copper is arguably the best value bet towards electrification over the years ahead. On a side note MM still likes nickel play Nickel Mines under $1.30 as we believe the overall theme has much further to play out i.e. this is one area of the market where valuations look set to rise.
MM believes WSA will punch above $3.50 short-term
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