Lack of US Debt Deal Creating Good Buying Opportunities

This summary highlights the key points from our latest Battery Metals interview series on th, 2023, featuring Mark Selby, Chairman & CEO of Canada Nickel. Selby has successfully raised over $100 million and brought nickel-cobalt projects to construction-ready stages. His extensive experience includes senior positions at RNC Minerals, where he led the development of the Dumont nickel-cobalt project, the world's second-largest nickel reserve and ninth-largest cobalt reserve. Additionally, Selby held roles at Inco and Purolator Courier, establishing himself as a leading nickel authority since 2001.

Nickel Market Overview

Despite trading below $22,000 ($10), Nickel continues to hover around the $21,000 mark with London Metal Exchange (LME) inventories maintaining low levels. This is a crucial time for the market as the absence of a US debt deal could be a significant factor influencing trends over the next week.

Signs of the Great Convergence

In the midst of this, strong indications of the "great convergence" are surfacing. The previous week saw a 10% decrease in discounts in sulphate for batteries, along with a 15% decrease in Nickel Pig Iron (NPI) discount. As the nickel price continues its decline, we anticipate these discounts to contract even more this week.

Lithium Prices On The Rise

Meanwhile, Lithium prices are showing signs of improvement in China, further confirming that restocking is underway. Goldman Sachs, who previously predicted a bullish outcome for commodities in 2023, is reinforcing this theme of a sharp rise in prices across the commodity complex as restocking accelerates.

Company Performance Review

In the corporate sector, several companies announced good results this week:

Centaurus Metals revealed a new discovery, "Twister", just 5km from their main Jaguar, presenting promising results. [link]

SPC Nickel completed a 27 hole drill program, with Hole WG-23-042 intersecting a new zone of high-grade mineralization. The team also successfully negotiated with Vale to acquire an adjoining property, unlocking the potential of this at-surface deposit.

EV Nickel, also reported favorable outcomes from their met sample holes.

Canada Nickel's exploration activities represent an exciting development as they initiate a sequence of ultramafic targets with potential footprints much larger than Crawford. Canada Nickel's regional properties, such as Mann Northwest, Central, Southeast, and Newmarket, hold immense promise due to their size.

Looking Ahead

In other target regions, there have been encouraging first assay results from Midlothian, with above-average nickel grades across the entire core length. The Sothman property also returned substantial nickel grades in the East Zone. These developments confirm the presence of higher-grade results within a much larger mineralized envelope. We eagerly anticipate releasing our latest results from our Texmont property shortly.

In conclusion, the lack of a US debt deal has opened up buying opportunities in the market. It's pivotal to closely monitor these emerging trends and the performances of companies in the sector to make informed investment decisions.

About Canada Nickel

Leading the charge in the next era of nickel-sulphide projects, Canada Nickel Company Inc. is working diligently to meet the surging demand from the booming electric vehicle and stainless-steel sectors. The company has actively pursued trademarking the phrases NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ across various jurisdictions, underscoring its commitment to developing processes that yield net zero carbon nickel, cobalt, and iron products. By investing in Canada Nickel, shareholders gain exposure to the promising nickel market within the low political risk jurisdictions. The company's endeavors are anchored by its 100% owned flagship, the Crawford Nickel-Cobalt Sulphide Project, strategically located in the thriving Timmins-Cochrane mining region.

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