Disclosure: The following represents my opinions only. I am not receiving any compensation for writing this article, nor does Hydra Capital have any business relationship with companies mentioned in this post. I am long CNC.V, FPX.V, and TLO.TO
Nickel Alert!
On Tesla’s recent earnings call, here’s a doozy of a quote from Elon Musk if you follow the nickel market:
“…well, I’d just like to re-emphasize, any mining companies out there, please mine more nickel. Okay. Wherever you are in the world, please mine more nickel and don’t wait for nickel to go back to some long — some high point that you experienced some five years ago, whatever. Go for efficiency, obviously environmentally friendly nickel mining at high volume. Tesla will give you a giant contract for a long period of time, if you mine nickel efficiently and in an environmentally sensitive way. So hopefully this message goes out to all mining companies. Please get nickel.”
And just like that, all the nickel stocks popped. Most people don’t even know what a nickel company is these days, never mind what their names/tickers are and whether or not their projects are of interest. As for more nickel coming without a big price spike… I’m sorry Elon, but that’s not how the metals markets work. Mining is a boom and bust industry driven by price moves that result from years of chronic underinvestment. Those price moves incentivize new production. Yin and yang.
Because I’m such a nice guy, and am already long a basket of nickel stocks (because I think that one day all of the battery production will whip nickel prices higher), I thought I may as well flag a few names that pretty much define the Canadian nickel space as I know it, which might save some people a lot of time and effort if they care to play this theme. Personally, with chatter of a Tesla “Terafactory” out there, I think that the battery metals space may be set to heat up a little, so I have exposure through lithium and nickel. Here’s my nickel list with a few sentences on each one: