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Developing the next major nickel project in Brazil
Slide 1

Nickel FAQ

Nickel Use

Nickel Use

66% of nickel goes into stainless steel. Overall there are over 3,000 nickel-containing alloys in everyday use. Nickel is a S$30 billion per year industry with demand expected to increase for use in lithium-ion batteries.

Nickel Prices

In the first quarter of 2016, nickel hit a 13 year low of US$7,750 on LME. Prices have since increased to US$10,500 but remain at multiyear lows. In 2007 nickel reached an intraday record of US$51,800

Nickel Demand

Future demand looks robust with predicted growth running between 2% and 4% this year and demand is anticipated to outpace supply, ensuring that Araguaia is a compelling project to generate value for shareholders.

Nickel Supply

The Macquarie Group estimates a global nickel shortage of ~100,000 tons in 2016, followed by another deficit in 2017. Macquarie Bank stated that “better demand has led us to revise up our projected deficits for 2016 and 2017, even without factoring in any government-enforced closures in the Philippines," (July 2016).

Nickel Cost Profile

Nickel industry C1 cost demonstrates 50% of operations produce at US$9,873/tonne (US$4.48/Ib) around 40 to 50% of operations sub-economic today

Nickel Growth To Date

Highest rate of demand (particularly China) of any of the base metals in 2016 (grew 8% YoY) with supply waning driven by large closures of supply in 2015/16 due to low Ni prices and forced closure of mines in Philippines.