Recording date: 21st November 2019

Interview with Industry Commentator Mark Selby, CEO of Canada Nickel Company

This Nickel series can now be found at cruxinvestor.com

Nickel is the new gasoline.

Selby shines a light on the key drivers for Nickel investment. And interestingly we discuss financing HPal operations and how to pick winners in the Nickel juniors miners.

After touching on his soon-to-be public project, Canada Nickel Company, Selby delves into the nitty-gritty details of the nickel market.

During his nearly 20-year tenure as a nickel market commentator, he has seen a few Super Cycles in the Nickel market. We ask about some of the lessons that investors can learn from. Nickel is a particularly volatile commodity in comparison to other base metals that moves in sweeping super-cycles. Traditionally, this volatility comes from the pricing model of stainless steel, the historical primary driver of nickel use.

Selby discusses issues pertaining to over-supply from low-quality Chinese pig-iron courtesy of rising nickel prices earlier this year. He predicted last month that this year and half of next year would be a tale of two halves. Prices are likely to fall further while the scrap inventory comes into the market, but once it is out of the way, restocking will occur and nickel should rise again.

Selby also touches on the specific geological conditions that nickel necessitates and how Indonesia's recent halt on exports has affected the market.

He then moves into exploring the exponential nickel potential of the inevitable EV revolution and talks us through the specific structural components a junior nickel company needs to survive in a world of large Nickel producers.

Lastly, Selby moves into the field of mineralogy and gives us an insight into nickel types and classes.

Interview timestamps:

00:00​ - Introduction

1:00​ - Overview of Canada Nickel Company

1:41​ - Understanding the Nickel Market: Before and Now

3:09​, 23:08​ - What are Super Cycles? Where are We Now and What to Expect From Prices

4:12​ - What Drives Volatility?

6:05​ - Stainless Steel & OPEC Affecting Nickel Prices

10:00​, 26:51​ - Geopolitics of Nickel: On Indonesia and China

17:58​, 44:36​ - HPLC Projects: Who Can Actually Put Them Together?

18:41​ - Influencers of Supply to the Nickel Market

20:39​ - Demand: Now and in the Past

28:49​, 35:41​, 46:00​ - Junior Companies: Have They Got Any Chance of Surviving? What Experience do They Need? What Defines a Winner?

31:33​ - Nickel Types and Classes: How They Differ and What Investors Should Know

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