4 Canadian Nickel Stocks Worth a Second Look

The TSX and TSXV-listed Canadian nickel stocks we’ve picked have continued to move higher on investor interest

SmallCapPower | September 10, 2019: Nickel has been the hottest performer amidst base metals this year. The price of nickel is up ~45% over the past three months. For comparison, lead, which has had the second-best performance over the past three months, is up only 8%, while other base metals, such as copper, aluminum, and zinc, are down or flat. 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 rechargeable batteries used in everything from smart phones, laptops, and electric vehicles, as well it is a key ingredient in stainless steel. Today we have unearthed four Canadian nickel stocks that stand to continue to benefit from the growing demand for this base metal.

*Share prices as at September 6, 2019, data obtained from S&P Capital IQ

Sherritt International Corporation (TSX: S) – $0.32
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 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. On July 31, 2019, Sherritt reported Q2/19 financial results, highlighted by revenue of $46.5M and the Company also announced that a NI 43-101 technical report was filed, which confirmed the Moa JV’s current mineral resources and outlined potential for increased resources that would extend Moa’s mine life.

  • Market Cap: $127.1M
  • 30-Day Return: 20.4%
  • 90-Day Return: 80.6%
  • 90-Day Average Trading Volume: 395,000

Garibaldi Resources (TSXV: GGI) – $1.76
Metals and Mining

Garibaldi Resources is a Canada-based exploration company that explores for gold, silver, and base metals deposits in Canada and northern parts of Mexico’s prolific Sierra Madre mountains. 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. On August 9, 2019, Garibaldi announced preliminary drill results from its 2019 drilling program, highlighted by drill hole EL-19-47, which intersected 6.1% nickel and 2.8% copper (plus cobalt, platinum, palladium, gold and silver) over 9.32 meters within a broader near-surface interval of 50.57 meters (estimated true width is 40.45 meters) containing 1.50% nickel and 0.94% copper.

  • Market Cap: $197.8M
  • 30-Day Return: -2.9%
  • 90-Day Return: 65.0%
  • 90-Day Average Trading Volume: 249,000

Talon Metals Corp. (TSX: TLO) – $0.18
Metals and Mining

Talon is a Canada-listed company focused on producing nickel responsibly for the electric vehicles industry. The Company’s main focus is the exploration and development of the Tamarack Project, which contains nickel-copper-platinum group elements (PGE) and is located in Minnesota. The Company also holds 100% interest in the Trairão Iron Project, located in Pará State, Brazil, which hosts an Indicated resource of approximately 1.4B tonnes at an average grade of 34.27% Iron (using a 25% Iron cut-off), and an Inferred resource of an additional 1.2B tonnes at an average grade of 29.48% Fe (using a 25% Iron cut-off).

  • Market Cap: $89.0M
  • 30-Day Return: -11.9%
  • 90-Day Return: -2.6%
  • 90-Day Average Trading Volume: 95,000

Giga Metals Corp. (TSXV: GIGA) – $0.37
Metals and Mining

Giga Metals is TSXV-listed company that explores for nickel and cobalt, metals critical to modern rechargeable batteries, including those used in electric vehicles and industrial energy storage. The Company’s Turnagain Project, a massive nickel and cobalt resource located in northern British Columbia, is its flagship project with 100% ownership. Data from 204 drill holes was used to establish a 43-101 compliant resource, which shows a Measured & Indicated resource of 865M tonnes with 0.21% Ni & 0.013% Co, (~4B lbs/Ni and 250M lbs/Co), as well as an Inferred resource of 976M tonnes with 0.2% Ni & 0.013% Co, (4B lbs/Ni & 280M lbs/Co).

  • Market Cap: $19.9M
  • 30-Day Return: 65.9%
  • 90-Day Return: 58.7%
  • 90-Day Average Trading Volume: 111,000

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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