Welcome back everyone. So the race for EV battery metals is hitting up so badly that we are now
seeing the price for Nickel, hitting 10 year highs as electric vehicle production ramps up. So
in this this video I provide you with the latest updates on this big Tesla announcement with this
Nickel penny stock which we have previously covered and another one for your watchlist.
If you’ve ever past on any of our updates on this channel on ev battery metals
then now is the time to pay attention as the race is just getting started
and the only way is up in my view and I explain why I feel so. And so you want to make sure you
watch this video until the very end so you are fully informed on these opportunities,
and you get an idea of which one you want to do further due diligence on,
as my videos are neither financial advice nor a buy or sell recommendation..
The price of nickel which is used in more powerful EV batteries, rose to a 10-year high of $22,745..
And according to the International Energy Agency, the demand for nickel will need to grow
19-fold by 2040, if the world wants to hit the targets of the Paris agreement
on climate change, which is just an exponential growth territory.
With most of the increase in supply this decade expected to come from Indonesia,
a market which is mostly powered by coal-fired electricity and is not environmentally friendly.
So this is where the opportunity comes through for green nickel and rewards on the back of
Elon Musk plea for green nickel and promising giant contracts for a long period for companies
that can mine nickel in a sustainable and environmentally sensitive way.
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That said let’s get on with it with our first stop, which is Talon Metals Corp
(OTC:TLOFF & CVE:TLO) which we have covered multiple times on the channel and
most recently in July at 39cents per share and it is now sitting at 59cents per share
with a market cap of $410m. We said there was a Tesla deal in the pipeline and goodness me,
that deal eventually come through and you can see the market reaction here on how they took to it
resulting to a 41% jump at the market open on the day of the announcement.
So the only way now is up with this one backed by profitable execution of the mining operations.
We call all of our penny stocks here on the channel, based on their outlook and catalysts
and not hype. Some play through through quickly within a few weeks
and some can take months to come through and some may not even play through.
And so we always say patience is always required and you get in on your high conviction stocks
once you’ve done your dd and at the price which works for you. And this is an example where its
taken time to come through and patience was much required. So here’s what’s up with Talon Metals.
Talon Metals has entered into an agreement to supply Tesla
with nickel from their Tamarack Project in central Minnesota. Their CEO Henri van Rooyen,
commented that “This agreement is the start of an innovative partnership between Tesla and Talon for
the responsible production of battery materials directly from the mine to the battery cathode.
Talon is committed to meeting the highest standards of responsible production
that is fully traceable and that has the lowest embedded CO2 footprint in the industry.
The Tesla SVP of Powertrain and Energy Engineering Drew Baglino, responded that “The Talon team has
taken an innovative approach to the discovery, development and production of battery materials.
Responsible sourcing of battery materials has long been a focus for Tesla,
and this project has the promise to accelerate the production of
sustainable energy products in North America. Under the terms set out in the agreement,
Tesla has committed to purchase 75,000 metric tonnes of nickel in concentrate,
representing a portion of the metals projected to be produced from the Tamarack Nickel Project.
Tesla also has a preferential right under the agreement to negotiate the purchase of
additional nickel concentrate over and above the initial 75,000 metric tonne
commitment. The term of the agreement is six (6) years or until a total of 75,000
metric tonnes of nickel in concentrate has been produced and delivered to Tesla.
So as the demand for nickel is expected to jump over the next decade as EVs go mainstream,
Nickel will be a key metal to bolster the energy storage in a battery's cathode,
which in turn extends an EV's range.
And on the back of Elon Musks call in 2020 to the mining industry
to produce more nickel "in an environmentally sensitive way,
this provides a huge opportunity for Talon Metal as Indonesia, the world's largest nickel producer,
uses typically use energy-intensive technology to extract the metal and
deploy controversial waste disposal practices, including dumping waste rock in waterways.
So Talon Metals plans to use technology it hopes will allow it to suck carbon dioxide out of the
atmosphere and chemically bind it - - to rocks found inside its Tamarack project in northern
Minnesota. The process, which is still being tested, would effectively let Talon market nickel
as carbon neutral, which is a huge appeal for Musk and Tesla. All very exciting.
The next stop is Canada Nickel Company Inc (OTC: CNIKF
or CNC on CVE) which is now sitting at $2.84 with a market cap of $250m. Unlike Talon,
Canada Nickel has been relatively flat over the last 6 months but it appears
to equally be responding positively to the Talon news being up 6% in the last 5 days.
Canada Nickel announced that they Continue to Demonstrate Significant Improvements
in Metallurgical Performance at their Crawford Nickel Sulphide Project.
They reported that they achieved 61% nickel recovery and produced 37% nickel concentrate
from lower grade sample of 0.22% nickel and 0.08% sulphur. Their Nickel recovery
was 19 percentage points or 45% higher than the Preliminary Economic Assessment ("PEA") model
and the iron recovery of 63% was 15 percentage points or 31% higher than the PEA model. But what
does this all mean? These metallurgical testing results continue to demonstrate the potential to
deliver improvements in recovery well in excess of what was in feasibility study model. And each
percentage point improvement in nickel recovery would yield a US$92 million
improvement in the value of the 8% NPV of the project, based on the PEA metrics.
So in essence a much better return on investment than they had provisioned for.
Canada Nickel Announced a US$10 Million Loan Facility and Provided a Corporate
Update stating that the company continues to aggressively advance the Crawford Nickel
Sulphide Project and has arranged a US$10 million loan facility from Aurame,t which will ensure the
Company remains well-funded through the first quarter when the Company expects to conclude
its strategic investor process. Canada Nickel has also made significant strides over the past year
by continuing to deliver promising drilling results, delivering a robust Preliminary
Economic Assessment, demonstrating significant improvements to their metallurgical performance.
And they are looking forward to maintaining their momentum into 2022 in a market that
is demonstrating a strong interest in both nickel sulphide assets and low-carbon projects.
So some very 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.
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Thank you so much for being here and I look forward to have you in my next video. Thank you