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AIM: HZM 1.85 GBX
TSX: HZM 0.03 CAD
Developing the next major nickel project in Brazil

Use

Nickel is a US$20+ billion per year industry with over two thirds of the metal going into stainless steel production. Overall there are more than 3,000 nickel-containing alloys in everyday use including batteries. According to Wood Mackenzie, world total nickel consumption is expected to reach 2.26 Mt in 2018 (up 3.6%) and 2.45 Mt in 2020 (+4.1% CAGR).

Nickel use in EV batteries is forecast to grow significantly over the next 10 years from around 70,000 tonnes to close to 220,000 tonnes in 2025 according to Macquarie's research, which is considered a conservative estimate.

Over time EVs are expected to continue to grow as a source of demand for nickel. Research commissioned by Glencore indicates annual global demand for consumption in EVs will reach nearly 1Mt of nickel by 2030.*

Demand

As an alloying element, nickel contributes to the longevity, corrosion resistance and low maintenance of stainless steel goods. Traditional demand for nickel in stainless steel is robust (5-5 % YoY growth over next 3 years) with primary Ni demand in stainless growth estimated at around 9% in 2017.** Demand continues to outstrip supply with 2018 predicted as the third consecutive year of deficit.

Nickel prices were US$7,750/t (US$3.515 per lb), a 13-year low at the start of 2016 but have since rallied, touching US$16,000/t in April 2018. Forecasts for this year and beyond have been raised for various reasons, including - increased infrastructure spending in the US, rising consumer demand in China and growth in demand from the EV space.

Supply

The Company believes there has been under-investment in the sector: Very few large scale nickel projects have been developed over the past 5 years.

Nickel Demand
* https://www.bloombergquint.com/markets/2018/07/24/nickel-is-new-headache-for-automakers-as-cobalt-fears-abate#gs.cBKh=ao

Wood Mackenzie: https://www.ft.com/content/38cb62fc-b8c8-11e7-8c12-5661783e5589
** Glencore: Nickel: State of the market 21/11/2017
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