The Canadian nickel stocks we’ve picked stand to continue to benefit from recent investor interest in the base metal
SmallCapPower | July 4, 2019: Nickel has been the strongest performer amid base metals traded on the London Metal Exchange this year. The LME three-month nickel price is up more than 14% since the beginning of January. For comparison, zinc, which has the second-best, year-to-date performance, is up only 5%. Nickel is going against the general macroeconomic concerns weighing on other industrial metals. What has likely given investors a bullish outlook on nickel is the metal’s use as a key raw material in the electric vehicle revolution. Today we have dug up four Canadian nickel stocks that stand to benefit from the growing demand for this base metal.
*Share prices as at close July 2, 2019, data obtained from S&P Capital IQ
Garibaldi Resources Corp. (TSXV:GGI) – $1.16
Metals and Mining
Garibaldi Resources is an active Canada-based junior exploration company focused on British Columbia. The Company first began mining nickel from its Nickle Mountain site in British Columbia in 2017. Nickel Mountain is the Golden Triangle’s first magmatic nickel-copper-rich massive sulphide system. The Company has 12 properties in the exploration and drilling stage.
- Market Cap: $127.1 Million
- 30 YTD Return: 20.8%
- 90-Day Average Daily Volume (1,000s): 110
- 30-Day Average Daily Volume (1,000s): 137
Altius Minerals Corporation (TSX:ALS) – $13.11
Metals and Mining
Altius Minerals’ diversified royalties and streams earn revenue from 15 operating mines. The Company has 14 mines in Canada and one mine in Brazil that produce copper, zinc, cobalt, potash, iron ore, thermal and metallurgical coal. The Company also has development-stage royalties in copper and renewable energy. Additionally, Altius has a vast portfolio of exploration-stage projects, which it has produced for deal making with industry partners that results in newly-created royalties and equity and minority interests. In 2018, the Company announced plans to expand its Voisey’s Bay underground mine. The expansion is expected to increase the Company’s nickel and copper royalty revenue. Altius currently has 57 projects and, as of March 31, 2019, has a project generation portfolio value of $61M.
- Market Cap: $561.9 Million
- 30 YTD Return: 7.6%
- 90-Day Average Daily Volume (1,000s): 41
- 30-Day Average Daily Volume (1,000s): 48
Royal Nickel Corporation (TSX:RNX) – $0.59
Metals and Mining
Royal Nickel is a Canada-based mining company that operates in Canada and Australia. The Company owns a 28% interest in a nickel joint venture that owns the Dumont Nickel-Cobalt Project based in the Abitibi region of Quebec. This project contains the second-largest nickel reserve and the ninth-largest cobalt reserve in the world. The Company also has 100% interest in the producing Beta Hunt gold mine in Western Australia. Additionally, Royal Nickel has a 27% interest in Orford Mining Corporation, a mineral explorer that works in the unexplored areas of northern Quebec.
- Market Cap: $325.8 Million
- 30 YTD Return: 35.6%
- 90-Day Average Daily Volume (1,000s): 2,695
- 30-Day Average Daily Volume (1,000s): 5,206
Sherritt International Corporation (TSX:S) – $0.21
Metals and Mining
Sherritt International is a Canada-based producer of nickel and cobalt. The Company has operations in Canada, Cuba, and Madagascar. The Company has a 50/50 partnership with General Nickel Company S.A. of Cuba., a mineral producer company based in Cuba, which is referred to as the Moa Joint Venture. The Moa Joint Venture mines, processes and refines nickel and cobalt for sale worldwide, with the exception of the United States.
- Market Cap: $83.4 Million
- 30 YTD Return: 7.5%
- 90-Day Average Daily Volume (1,000s): 1,990
- 30-Day Average Daily Volume (1,000s): 838
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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