What’s up everyone, Tesla has just signed a deal to buy nickel for its batteries from
BHP, the world’s largest miner, as it looks to lock up supplies of the metal not controlled
by China.
The deal is the third agreement for nickel that Tesla has signed in the last eight months,
following deals with Vale and the Trafigura-backed Goro mine, since Elon Musk called for supplies
of “sustainable” nickel.
Nickel is a key material for Tesla’s longer-range cars that require more powerful batteries.
And demand for nickel in batteries is set to grow 500 per cent over the next decade,
and electric cars can contain as much as 40kg of nickel in their batteries.
Tesla will buy nickel from BHP’s Nickel West plant in Western Australia, which is
among the lowest-carbon producers of Nickel.
And The deal is estimated to be for 18,000 tonnes annually, which is supply for approximately
450,000 cars, which is just under what Tesla sold in 2020, so very significant.
BHP is now changing hands at $62 per share and has popped by over 6% on the news.
At $177bn market cap and with a 5% dividend, BHP is a commodity giant and would not be
giving explosive growth.
But rest assured the Nickel demand is expected to be explosive with demand from other OEMs
– Ford, GM, Toyota and more.
So in today’s video, I share with you three strong penny stocks, mining sustainable green
nickel and well positioned to supply the other OEMs as the EV adaptation heats up.
I feel EV mining stocks are a must have in every portfolio before the inflection point
when commercial contracts are signed as we are already seeing here with Tesla.
So make sure you don’t miss out on these big bangers by liking the video and turn on
the notification bell to get these hot penny stocks instantly.
And also if you want two free stocks worth over $1800 from Webull and also where you
can buy fractional shares, please hit the link in the top comment or description below.
I would really appreciate it.
Thank you so much.
So let’s get straight into it, with our number 3 nickel penny stock here, which is
Sherritt International Corp (OTC:SHERF TSE: S).
It has a share price sitting at 40cents and market cap of $158m.
This penny stock has been flat over the last 6 months up by just 4.6% but over the last
12months, it is up 148.6%.
So since its highs of 53cents hit in February, it has been very resilient to the recent market
selloff and held onto most of its gains from Q4,2020.
Sherritt is OTC Pink Listed with an average of 11.6k shares traded over a 30day period
and over 397m shares outstanding.
Sherritt is a world leader in the mining and refining of nickel and cobalt -- metals essential
for the growing adoption of electric vehicles.
Its Technologies Group creates innovative, proprietary solutions for oil and mining companies
around the world to improve environmental performance and increase economic value.
Sherritt is also the largest independent energy producer in Cuba.
In their Q1,21 results, Sherritt Reported Strong First Quarter Nickel and Cobalt Production
with their highest EBITDA in almost three years, and improved nickel and cobalt market
conditions.
They commented that they are continuing to engage their Technologies team in the development
of next generation battery-grade nickel and cobalt production from lateritic ores to lower
capital intensity, reduce emissions, and eliminate waste.
Over the longer term, Sherritt is well positioned to create significant value – both economic
and environmental – as it capitalizes on the growing demand for high purity nickel
as the market adoption of electric vehicles accelerates.
Their adjusted EBITDA was $30.2 million, up 602% from 2020.
Sherritt’s share of finished nickel production at the Moa JV was 4,188 tonnes, up 9% from
2020 while their share of finished cobalt production was 477 tonnes, up 19%.
Next up to our number 2 nickel penny stock here, which is Talon Metals (OTC:TLOFF TSE:
TLO) It has a share price sitting at 39cents and market cap of $262m.
This penny stock is one which we have covered on the channel previously and it is down 14%
over the last 6 months but up 126.4% over the last 12months.
Talon Metals is OTC Pink Listed with an average of 298k shares traded over a 30day period
and over 683.4m shares outstanding.
Talon is in a joint venture with Rio Tinto on the high-grade Tamarack Nickel-Copper-Cobalt
Project located in Minnesota, USA, which is comprised of the Tamarack North Project and
the Tamarack South Project.
They have a three pillar strategy and a key highlight is to complete a Prefeasibility
Study and secure an off-take partner for an integrated battery supply chain or produce
a concentrate for the stainless steel supply chain.
They have a huge focus on GREEN NICKEL FROM MINE TO THE FINAL BATTERY and are looking
to leverage on Tesla’s plea for sustainably mined nickel where Tesla promised to give
a giant contract for a long period of time for nickel mined efficiently and in an environmentally
sensitive way.
Their UPCOMING CATALYSTS for 2021 include Expanding the resource up-dip and to the north,
with the goal of reducing timeline to production, establishing a Made in USA Green Nickel supply
chain, and Potential listing on a major U.S. stock exchange.
So really exciting.
They recently announced that 3 RIO TINTO LEADERS have joined TALON METALS TEAM AS THE TAMARACK
NICKEL PROJECT BECOMES CRITICAL TO A DOMESTIC EV BATTERY SUPPLY CHAIN.
Their move to Talon reflects that they are entering a new phase in their journey to become
a leading contributor to the United States electric vehicle (EV) battery supply chain.
Next to our number 1 nickel penny stock here, which is Canada Nickel Company (OTC:CNIKF
CVE:CNC).
Another one we have covered on the channel, called at $2.63 but presently flat with a
share price sitting at $2.73 and market cap of $233m.
This penny stock is up 31% over the last 6 months and over the last 12months, it is up
181.4% and still has a lot more to offer.
Canada Nickel is OTC QB Listed with an average of 33k shares traded over a 30day period and
over 85.1m shares outstanding.
Canada Nickel is advancing the next generation of high quality, high potential nickel-cobalt
projects to deliver the metals needed to power the electric vehicle revolution and feed the
high growth stainless steel market.
The Company possesses industry leading nickel expertise and is focused on low risk well-established
mining jurisdictions.
They launched wholly-owned NetZero Metals Inc. to develop zero-carbon production of
Nickel, Cobalt and Iron and applied for the trademarks NetZero NickelTM, NetZero CobaltTM
and NetZero IronTM across several jurisdictions.
Their main project Crawford, is expected to be among the top 5 nickel sulphide operations
globally and would be the largest single nickel sulphide mine outside Russia.
And what is really interesting is that going by this chart, Tesla has signed contracts
with the third and fourth largest players more recently with BHP’s Nickel West and
Vale’s Sudbury project.
So they could be next in line should Tesla not have secured sufficient quantities.
And Based on their PEA results, Crawford is expected to be one of the largest base metal
mines in Canada.
They have an MOU Signed for Potential Use of Glencore’s Kidd Concentrator & Met Site.
This gives the opportunity to use the excess capacity and existing infrastructure at the
Kidd Met Site which provides the potential to allow a faster, simpler, smaller scale
start-up of Crawford at a vastly lower capital cost while the Company continues to permit
and develop the much larger scale project currently being contemplated.
So a very interesting and mindblowing prospects ahead for these penny stocks but only consider
getting in if the price is right for you and if you fully understand the risks.
This video is not financial advice, a buy or a sell recommendation, but is meant to
bring some new and exciting penny stocks to your attention for you to do your own research..
As always I would love to hear from you, so please let me know your thoughts on these
top penny stocks in the comments section below and what other penny stocks are catching your
eyes lately.
And If you are new to my channel please ensure to subscribe and hit the bell so you are notified
when I upload new videos.
If you would like to see more videos like this, please check out this video right here
or this playlist right here to watch equally insightful content from the channel.
Thank you so much for being here and I look forward to have you in my next video.
Thank you