Insights

Why the Nickel Mines (ASX:NIC) share price is leaping 8% on Friday

The company’s shares are on the move…
The post Why the Nickel Mines (ASX:NIC) share price is leaping 8% on Friday appeared first on The Motley Fool Australia. –

The Nickel Mines Ltd (ASX: NIC) share price is set to end the week on a high note. This comes as the nickel producer is enjoying fresh multi-year highs on the spot price of nickel.

At the time of writing, Nickel Mine shares are up 8.04% to $1.075.

What’s happening with Nickel Mines?

The Nickel Mines share price is surging today following positive investor sentiment in the electric vehicle (EV) battery market.

Nickel is a key component in lithium-ion batteries, which are used in generating power for electric vehicles. Nickel is able to produce a lot more energy into batteries than using cobalt. The latter is considered a more expensive metal and has fewer purposes across industries.

On the back of rising interest in the sector, the price of nickel has accelerated to US$20.23 per kilo. The crucial metal has risen close to 30% in the last 6 months.

In other news, the company released an update yesterday in relation to the issuance of its $150 million senior unsecured notes.

Nickel Mines advised it has completed the issuance at an interest rate of 6.50% per annum, maturing on 1 April 2024.

The new notes are expected to be consolidated with the existing notes to form a US$325 million single series of notes. Funds from the issue of the new notes will be allocated towards working capital and general corporate purposes.

Nickel Mines executive director and chief financial officer Peter Nightingale commented:

While the company’s existing cash reserves and budgeted cash flows meet the US$210 million funding requirement to increase its ownership of the Angel Nickel Project, which will more than double the company’s nameplate nickel production capacity after commissioning in 2022, from 50% already owned to 80%, this tap allows the company to maintain a healthy treasury balance.

About the Nickel Mines share price

Over the last 12 months, Nickel Mines shares have pushed around 60% higher, but are down around 2% year-to-date. The company’s share price slumped in late April following a disappointing quarterly report and has moved sideways ever since.

Nickel Mines commands a market capitalisation of roughly $2.6 billion, with more than 2.5 billion shares on its registry.

The post Why the Nickel Mines (ASX:NIC) share price is leaping 8% on Friday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Nickel Mines right now?

Before you consider Nickel Mines, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nickel Mines wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why Cleanaway, IRESS, Omni Bridgeway, & Polynovo shares are dropping

A look at insider buying among ASX 200 big four bank shares

These ASX 200 dividend shares are about to dish out $40bn to shareholders

Centaurus Metals (ASX:CTM) jumps 12% on Greenfields nickel sulphide discovery
What’s moving the CBA (ASX:CBA) share price this week

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!