The Insatiable Need for Nickel
Did you know that 65% of used nickel in the United States is to make stainless steel? We use stainless steel in a wide variety of ways that permeates our existence. Nickel mines are doing very well due to the demand for the metal and all its uses. Here is a quick rundown of what it is and how we use it in our everyday lives.
What is nickel?
Nickel is a naturally occurring metal found in almost all soils around the world. It can be mixed with other elements to form compounds that are easily dissolved in water. These nickel compounds also have a wide range of uses.
What are the industrial uses of nickel?
Nickel is used in almost everything you will find on an industrial level. These include:
- Stainless steel in building structures
- Batteries of every size
- Medical equipment
- Power generators
The demand for nickel:
The demand for nickel has risen substantially over the years. As equipment has been redeveloped and uses more nickel to be environmentally friendly, the demand has risen.
Tesla (and Elon Musk) has had a huge impact on nickel production due to its usage of the metal in its electric vehicles. Now, more and more automobile manufacturers are jumping on board with electronic vehicles and driving needs are even higher.
The Top 5 Nickel Mining Companies to Watch Closely
With investing, comes risk. We highly recommend that you consider several factors before you make a decision to invest your money. Once you feel comfortable, you can keep an eye on several companies to make the right decision based on your needs.
Ready to explore? Here are five nickel mining companies we suggest you watch closely:
- BHP Group (NYSE: BHP)
- Vale (NYSE: VALE)
- Glencore (OTCMKTS: GLNCY)
- Canada Nickel Company (OTCMKTS: CNIKF)
- Rio Tinto (NYSE: RIO)
This Canadian company is a dual-listed company that works as one entity. They are headquartered in Melbourne, Australia, and sales are led through their offices in Houston and Singapore. The group is made up of several subsidiaries:
- BHP Billiton Nickel West
- BHP Marine & General Insurances
- BHP Billiton Petroleum International
- BHP Minerals Europe Limited.
BHP Group acknowledges its role in climate change and the importance of its leadership in caring for the land. Part of what makes them an attractive investment option is the choice that leadership has made to reverse the damage to the land and find ways to return the earth to an appropriate temperature.
The stock has done pretty well over the last year. Growth has been nearly 40% with few downward trends. However, they are on a downward slope at the time of publication. As long as they follow the same pattern, they will bounce back, and we may be able to see its stocks continue to rise.
At the time of publication, its market cap is sitting just over $160 billion.
Vale S.A. has focused its large-scale mining efforts on iron ore, nickel, copper, and coal. Currently, it ranks among the largest miners in the world.
The company headquarters is located in Rio De Janeiro, and mining operations are located in 30 countries. Plenty of mines run at a deficit and can be a highly risky investment. Vale S.A., however, has created a sustainable business while also meeting societal demands to be more socially aware and transparent about their practices.
In recent news, Vale is also now mining for nickel in Indonesia. However, the nickel cannot be exported because Indonesia wants to extract and produce the nickel for its own efforts in building electric vehicles.
Stocks for Vale have done incredibly well over the last year. Stocks have risen by 105% at the time of publication. There has been some “rollercoaster” action, but the company has not dropped far enough to lose momentum. Furthermore, when they bounce back, it’s at a higher rate.
Glencore is a name that stands among the mining giants.
It was founded in the 70s as a trading company and has grown into a major producer in the commodities field. As of 2020, they had 150 sites in 35 countries, and distributions reached $1.6 billion. It’s headquartered in Baar, Switzerland, and carries with it the care and concern of Swiss citizens.
Currently, they are working hard to help eliminate child labor in countries that still use inhumane practices.
The most attractive aspect of this company is its devotion to turning into a net-zero emissions corporation by 2050. They have been primarily mining for coal, oil, copper, cobalt, and zinc. As we all know, there are emissions with that sort of mining, so the commitment will open up new doors for the company. A company willing to evolve can be hopeful that it’ll succeed as technology advances.
Currently, stocks are growing at a steady pace. At the time of publication, the year brought about a 99% increase in stock value. Glencore is not traded on the NASDAQ but rather on OTC markets. This means the volatility of the stock is higher than that in traditional markets.
The Canada Nickel Company is devoted to mining nickel-sulfide for the electric vehicle industry and contributes to making stainless steel. The company is headquartered in Toronto, and mining takes place at the Timmins-Cochrane mining camp of Northeast Ontario.
It is important to know that Canada Nickel Company is traded on the OTC markets. If you are not familiar with OTC, then you need to know that it’s not the same as the markets on Wall Street. OTC markets are not regulated by any authoritarian system. Trades occur directly between a seller and buyer without a broker. Prices can fluctuate drastically between a buyer and seller because they are not required to disclose the price of their stock. There are prices listed on the ticker, but that doesn’t necessarily reflect the price of the transactions.
The ticker does show incredible growth over the past year. Stocks have grown nearly 290% at the time of publication. There has been a slight downward trend recently, but we anticipate another rise. This is because of the company’s dedication to nickel-cobalt production and responsible mining.
It also recently launched a new company, NetZero Metals, Inc., developing production of zinc, iron, cobalt, and nickel without carbon. A recent press release also indicated that their Crawford mine had the lowest carbon emission in the industry. It stated the mine emitted 93% less CO2 than its competitors.
The assessment was a joint venture with Skarn Associates, a research company focused on metals and mining. This is exciting news for the industry and investors looking to support conscientious companies.
In other news, the company also announced they had improved metallurgical testing results at the Crawford nickel-cobalt sulfide project. They have experienced a 20% rise in grind size that ended with no change to materials in recovery. The company certainly is working on cutting-edge technology to be beneficial to the world and its profits!
Rio Tinto is a company that should not be on this list because they are technically not a nickel producer. However, they do produce other metals necessary for our day-to-day lives while working at being a responsible developer.
Headquartered in Melbourne, Australia, the company operates in over 35 locations worldwide. This includes the United States, Madagascar, Australia, New Zealand, and Brazil.
It is an attractive company to invest in because of several factors aside from the goods it produces. It is fighting back against modern-day slavery in several countries that encourage it. The company also reports annually about its goals to be environmentally friendly and how it has reached those goals. This also includes working with indigenous communities to lessen its impact on the local environment.
Stocks on the stock market have been doing fairly well over the last year. It went up 24 pts, and the stock price saw a 44% rise at the time of publication. There has been a slight downward trend in recent weeks, but we expect to see it rise as more parts of the world open up and the economy improves.
Stay Updated on Nickel Mining Stocks with WALLSTNOW
Nickel production is an important resource to maintain our lives today and prepare for the future. It has an impact on so many aspects of our lives.
From the latest biotech development to battling aggressive cancers to even battery metals in our smartwatches, we need nickel.
These companies are important to keep an eye on because of the value of their success and commitment to preserving and developing such sustainable practices. Nickel prices are slated to continue rising in the long-term, so getting in now may be perfect timing.
We know that keeping up with nickel stocks can be labor-intensive, so let us help you.
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Disclaimer: All investments involve the risk of loss. Nothing on this website should be misconstrued as investment advice. Any reference to an investment’s historical or projected performance is not a recommendation or guarantee of profit or desired outcome.