MM thoughts on Nickel
Hi James and Team, Would appreciate your thoughts on the Nickel price and in particular Nickel Mines . Cheers Craig
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Answer
Hi Craig,
MM remains bullish the “reflation trade” and hence by definition nickel and other metals but they have run hard post COVID and a deeper pullback wouldn’t surprise. With regard to NIC we believe below $1 its slipping into an excellent accumulation area but we prefer IGO Ltd (IGO) within the nickel Sector, albeit at lower levels.
Nickel Mines produce a low grade nickel called Nickel Pig Iron (NPI) which feeds in to steel production. The pig iron price has recently de-linked away from the nickel sulphate (battery grade) price which presents it’s own issues, hence our preference for IGO which are clearly hitching their cart to the EV theme via Nickel and more recently lithium.
