Australian Nickel Explorer, Sirius Resources Hopes for More From Find

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Will we see a quick recovery for the price of nickel? Sirius Resources hopes not.

“Sirius chief executive, Mark Bennett, figures it will be 2017 before the outback discovery he made in 2012 will begin producing the first of the 28,000 tonnes of nickel it plans to produce annually,” reports Reuters.

“By then, according to Bennett, many established producers would be forced to curtail or abandon operations, eliminating a global supply glut and enabling nickel prices to turn up.”

“‘We are in a unique bubble given the state of the market,’ Bennett said in an interview.
Sirius’s stock had been mostly flat lining along at 5 Australian cents a share for two years before soaring to a high of A$5 in early 2013 as the company released more details of its discovery.”

“The Nova find so resembled the giant discoveries in Canada controlled by sector majors Glencore Xstrata and Vale that investors rushed in, pushing Sirius as high as $5 by March 2013. Sirius was the best performing stock on the benchmark S&P/ASX 200 index in 2013.”

In metal price news for stainless steel and nickel…

On Thursday, February 6, the day’s biggest mover was the nickel 3-month price, which saw a 0.3 percent decline on the LME to $13,900 per metric ton. The Indian nickel cash price weakened by 0.2 percent. Following two days of rising prices, the spot price of nickel dropped 0.1 percent on the LME to $13,835 per metric ton.

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Chinese stainless steel prices closed flat for the day. The price of Chinese ferro-chrome held steady. For the fifth day in a row, the price of Chinese ferro-moly remained essentially flat.

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For the fifth consecutive day, the price of Chinese 316 stainless coil held flat. The price of Chinese 304 stainless coil saw essentially no change for the fifth day in a row. For the fifth consecutive day, the price of Chinese 316 stainless steel scrap held flat. The price of Chinese 304 stainless steel scrap was unchanged. The price of Chinese primary nickel saw little movement.