Nickel, with a chemical symbol of ‘Ni’ is a silvery white, lustrous, malleable metal with a golden tinge. Approximately 65% of world nickel output is consumed in the manufacture of stainless and heat-resistant steel. Other uses of nickel are in the manufacture of non-ferrous alloys and electroplating. In 2020, nickel used for battery precursors will constitute 5–8% of nickel demand. The outlook for base metal commodity markets, including nickel, is optimistic for an economic recovery following the COVID-19 pandemic. Nickel prices are stable, underpinning growing consumer and government environmental concerns. This has created demand for battery technology and its use in the electric vehicle market. Nickel prices have been bolstered by an emerging market preference towards using nickel in lithium-ion battery cathodes due to its lower cost and longer life cycle capabilities compared to other cathode metals. Emerging market concerns about nickel supply are also supporting nickel prices.
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What are Nickel Stocks ASX?
Nickel stocks ASX are the Australian listed company’s trade in Australian securities exchange. Nickel is a very important silvery white metal. It is maximum useful in the production of stainless steel industry.
There are many Nickel projects are operating in the exploration and extraction process in Australia. The Nickel price is stable and poised to go up due to strong demand of electrical vehicles is growing fast.
Wilconi Nickel Cobalt project is situated in Western Australian having large source of Nickel and a well-known Nickel project.
Investing in ASX Nickel Shares
Investing in good ASX nickel shares could benefit traders and investors with a better yield. There are nickel-producing companies such as Rio Tinto Limited (ASX: RIO), BHP Group Limited (ASX: BHP), and IGO Limited (ASX: IGO) that could provide an attractive investment opportunity in the long run.
Pros and Cons of Investing in ASX Nickel Shares
It is absolutely worth understanding that commodity prices fluctuate because of their cyclical nature. When expected high demand builds with a better outlook, nickel companies take a big leap in a short while, and vice versa.
There is a good nickel company like Meteoric Resources NL (ASX: MEI), which has performed exponentially (+1765%) in 1 year's return (year to date as of 8/08/2023), while Conico Limited (ASX: CNJ), has fallen by 82% in 1 year (year to date as of 8/08/2023).
Top Nickel Stocks & Shares on the ASX: Biggest Companies in 2023
Meteoric Resources NL (ASX: MEI)
Meteoric Resources NL (ASX: MEI) is an exploration company with unique assets and well-positioned compared to its peers.
The company has been well capitalized, with fundamentally strong balance sheets.
Meteoric Resource Limited has engaged the world-renown ANSTO to help with the process flowsheet development and build on historical test work that produced outstanding results utilizing ore samples from the Capo de Mel deposit.
Meteoric Resources NL reported that results obtained from 27 diamond drill holes where assays have now been received these results highlight the first new sampling of the project by Meteoric.
AZURE Minerals Limited (ASX: AZS)
AZURE Minerals Limited (ASX: AZS) a mineral exploration company is highly engaged for Lithium and Nickel assets.
Mineral resources estimate that the company has high source of Nickel resources in its Andover deposit and The Ridgeline Deposit. The Project is located in a well-resourced based district, with the Carlow Castle gold-copper-cobalt deposit 3 kilometers to the west.
Azure had a joint venture with Creasy, having a substantial ownership interest, with Creasy’s 40% interest free taken to a decision to mine.
BHP Group Limited (ASX: BHP)
BHP Group Limited (ASX: BHP) is biggest natural resources company producing commodities along with oil and gas. BHP Group Limited’s main businesses are mineral exploration and production, as well as petroleum exploration, production and refining. The portfolio comprises of assets, are separated into copper, iron ore, nickel, metallurgical coal and potash.
Nickel West production increased by 4% to 80 kt in FY2023, due to an increased proportion of concentrate and matte products and inventory drawdowns.
Nickel Production is expected to be between in the range of 77 and 87 kt for the FY2024, weighted to the second half of the year due to refinery maintenance in the first half.
Rio Tinto Limited (ASX: RIO)
Rio Tinto Limited (ASX: RIO) is a mineral and metal exploration, developing company. On 26 July 2023, reported strong financial results and continued progress in its half-yearly results for 2023.
The company’s production (CuEq) was up by 5% to 2,317 kt in H12023. Due to the significant movement in commodity prices, underlying EBITDA was reported at $11.7 billion, with an underlying margin of 42% and underlying earnings of $5.7 billion, leading to an interim dividend of $2.9 billion, a 50% payout, in line with the company’s dividend policy.
SOUTH32 Ltd (ASX: S32)
SOUTH32 Ltd (ASX: S32). is well-focused to reshape the portfolio and invest in Nickel as well, progressing in development and Greenfield exploration options to further enhance exposure to commodities that are critical to a low-carbon future. The company maintained momentum for its investment of US$256 million of growth capex at the Hermosa project in FY2023, achieving significant milestones. The company developed the path for a feasibility study for the Taylor zinc-lead-silver deposit and confirmed the potential to produce battery-grade manganese from the Clark deposit. Hermosa was confirmed by the US Federal Permitting Improvement Steering Council as the first mining project to be covered by the FAST-41 process, indicating its position as the only advanced project in the United States with the potential to supply federally designated critical minerals.
IGO Ltd (ASX: IGO)
IGO Limited (ASX: IGO) is a mineral exploration company focusing on exploring, developing, and delivering products critical to clean energy. Nickel business has strongly recovered from NOVA following the fire. Land allocation at Kwinana by IGO reflects an important milestone for downstream nickel strategy. The average nickel price was reduced by 6% Q-o-Q to $32,969 per t.
In FY2023 outlook, Nickel production and cost guidance remain unchanged, and FY2023 capex guidance is reduced to $8 million–$10 million due to the deferral of various capital items to FY2024.
Nickel in concentrate was reported at 5,547/t in 3Q2023, up by 31% Q-O-Q (2Q2023: 4,229/t) in NOVA. Nickel production is growing to take advantage on rising nickel demand.
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Frequently Asked Questions (FAQ)
What are the best nickel stocks to buy?
Meteoric Resources NL (ASX: MEI)
Rio Tinto Limited (ASX: RIO)
BHP Group Limited (ASX: BHP)
IGO Limited (ASX: IGO)
SOUTH32 Limited (ASX: S32)
OZ Minerals Limited (ASX: OZL)
Nickel Industries Limited (ASX: NIC)
Nickel prices have gone up significantly from 2019 to 2021. Because of the growing demand for battery technology and electric vehicles, investors' perceptions of ASX nickel shares in Australia have improved. The long-term fundamentals for nickel shares remain strong, with the support of the government for environmental concerns. There are very few undervalued and potential nickel shares that offer attractive buying opportunities. Yet good nickel companies are offering better future prospects and with a good buying opportunity.
Who is the biggest nickel producer in Australia?
BHP Group Limited (ASX: BHP)
Australia hosts the biggest nickel production; BHP Group Limited’s Nickel West operation and Glencore Plc’s Murrin Murrin project rank in the best position. Australia's nickel production is dominated by magmatic nickel sulphides from komatiite deposits 82%, which are associated with Archean greenstone sequences.
Who is the largest nickel miner on ASX?
IGO Limited (ASX: IGO)
IGO Limited is ASX listed company aims at creating a better planet for future generations by exploring, developing, and delivering products critical to clean energy. IGO engages with the Nova nickel-copper-cobalt operation, the Forrestania Nickel operation and the Cosmos Nickel operation in Western Australia.
Should I buy nickel shares?
There are ASX Nickel shares are engaged in nickel exploration and production in Australia. Nickel is considered an important base metal because it has better future prospects. Someone might take the opportunity to invest in the well-established nickel share for long-term investing purposes. IGO Limited (ASX: IGO) is one of the good nickel shares to look at.
Will nickel prices go up in 2023?
After an exponential movement from the year 2020 until 2022, the base metal is in a correction phase right now. Currently, nickel (Ni) is trading at $21,459 USD/t, and considering it is an important base metal and future demand for it is key in the industry, the nickel price is expected to go up in the medium term.
Why is nickel falling /dropping?
The world's central banks are headed to contain the inflationary pressure by increasing aggressive rate hikes from March 2022 until now, which is in turn causing industry demand to slow. This led to commodity prices softening and going into correction mode after a massive rise in base metal prices in FY2020. Currently, the nickel price is trading stable.
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