Savvy investors are starting to notice nickel companies!
Listen, a revolution in a $2.7 trillion industry is happening right now – and if it works out right, it could be one of the largest, most tremendous opportunities of the century…
Right up there with the explosion of online shopping stocks like Amazon…
Tech stocks like Apple and Facebook...
And even, the rise of cryptocurrencies like Bitcoin.
I’m talking about the electrification of the world’s automotive fleet.
And as I’m about to explain, the worldwide phenomenon could generate big wins for companies that are keenly positioned – companies like Fathom Nickel (FNICF:OTC, FNI:CSE).1
Fossil-fuel powered cars are moving towards extinction.
In the coming decades, almost all new cars will be powered by clean technologies. And that means we need batteries.
But before the electrification of the world’s auto fleet goes full steam, two major hurdles need to be overcome:
To solve these problems batteries need to last longer and cost less.
And the companies that help conquer them could see tremendous growth.
And that’s where Fathom Nickel (FNICF:OTC, FNI:CSE) aims to come in...
You see, Fathom is exploring for the secret weapon that could cure both range anxiety and high costs – a metal that Elon Musk is practically begging for more of...
It’s not cobalt. And it’s not lithium.
And companies exploring for this crucial resource – especially those in safe, western jurisdictions – are positioning to capitalize on the new energy economy.
"Nickel Is The Critical Metal That Will Drive the Electric Vehicle Revolution."15
"Nickel is set to be one of the major beneficiaries of the energy storage revolution."16
"Demand for nickel is expected to soar..."17
When charging, lithium ions move from the cathode – which contains nickel – to the anode. When discharging, the anode releases lithium ions to the cathode generating electricity.
Historically, cathodes contained 33% cobalt, 33% manganese and 33% nickel.
So, as you increase nickel content, you increase the amount of lithium that can be cycled in and out. This increases the battery’s capacity translating into a longer range.
It also allows battery packs to be smaller and lighter – again, adding to the drive range.
But more power isn’t the only reason a major shift to high-nickel batteries is underway…
Nickel is also currently highly cost effective.
Cobalt costs over $50,000USD per tonne19. It’s one of the most expensive metals found in an electric vehicle.
As a result, the more cobalt in the battery pack, the more expensive it will be.
Today, nickel is less than half the price of cobalt – providing a dramatic cost savings. 20
In fact, adding more nickel, while reducing cobalt, could potentially shave thousands of dollars off the price tag of new cars.
And as new battery technologies are developed, nearly all of them have one thing in common: more nickel.
Car makers are trying to cram as much nickel as possible in their the next-generation batteries…
With that in mind, it should come as no surprise that Elon Musk is begging mining companies to produce more nickel...
Indeed, the timing could be perfect for companies like Fathom Nickel (FNICF:OTC, FNI:CSE) which are advancing the next generation of nickel projects...
Consulting firm Deloitte estimates that by 2030, over 31 million electric vehicles will be sold annually – a ten-fold increase from 2020.27
Meanwhile, Ford thinks 40% of global vehicle volume could be fully electric by 2030. 28
And investment banking firm UBS projects electric vehicles could account for upwards of 50% of all global new cars sales in the next nine years.29
This rapid growth is setting the stage for a massive increase in nickel consumption.
In fact, Sherritt International estimates that electric vehicle production of 15 million units will add up to 900,000 tonnes per year of incremental nickel demand.
That’s more than 30% of the total global mined nickel production in 2019.30
Or put another way, it’s the entire output of the top 6 producers – Norilsk, Vale, Jinchuan, Sumitomo, Glencore, BHP, and then some.
And that’s just the tip of the iceberg...
Elon Musk and his electric vehicle giant Tesla is planning for 3 terawatt-hours of battery-making capacity to supply its vehicles by 2030.31
That’s an increase of more than 50-times today’s available supply.32
To put that in perspective, listen to this…
The Hoover Dam is one of the most famous power plants in the world.33
If it was running at maximum capacity for one whole year it would produce the equivalent of approximately 4 terawatt-hours of electricity.34
And that’s just Tesla...
Car makers across the board will be ramping up their battery needs as they go “all electric”:
This will translate into tens of millions more battery-powered vehicles being manufactured – all of which will need large quantities of nickel.
The moves bode extremely well for companies searching for the next big nickel deposit – especially if they’re after high-grade projects like the one Fathom Nickel is targeting.
In fact, Fathom’s formerly producing Rottenstone mine produced historic grades above 3% nickel – which could be considered “bonanza-grade” relative to other discoveries.
For example, Vale’s Voisey Bay – considered a high-grade deposit – is only 1.63% nickel while Norilsk’s mine is 1.77% nickel.39
Fathom Nickel’s exciting Albert Lake property was a premier asset that boasted some of the highest-grade nickel ever mined in Canada.
It consists of 90,127 hectares of drill ready exploration lands located in Saskatchewan, Canada with over 80,000 Ha. currently unexplored.
It’s also host to the historic Rottenstone Mine.
The Rotternstone mine was a high-grade, open pit Nickel Sulphide operation which was in production from 1965 to 1969. It produced nickel at an eye-popping average grade of 3.23% Ni – which is several times higher than most producing operations.
In fact, the project is located in the Trans Hudson corridor which is host to numerous world-class Nickel mining camps including:
Management believes Albert Lake will become a premier asset for high quality, Class 1 nickel with tremendous potential for upside.
In fact, they think it may have similarities to the famous Raglan Mine which is also located within the Trans Hudson corridor.
Raglan contains 20.8Mt of high-grade nickel averaging 3.26%. It ranks as one of the world’s top producers, churning out over 39,000 tonnes of nickel last year. And it’s also one of the world’s lowest-cost nickel producers.47 48
The Albert Lake Property is hoped to have the same multi, variable size, high-grade Ni deposits as at Raglan.
If Fathom Nickel (FNICF:OTC, FNI:CSE) is sitting on the next Raglan, it could quickly cement it as one of the next important nickel companies.
And that’s exactly what management is busy trying to do. In fact, this year’s exploration program has already seen success...
In addition, the program provided greater geological understanding and confirmed the historic Rottenstone Mine is only one of potentially multiple mineralized bodies on the Albert Lake property.
More than 15,000 feet of drill holes are planned for the rest of this year – meaning Fathom has a chance to make a significant discovery.
Here are highlights from the recent exploration program:
Fathom is also cashed-up and fully funded to carry out its exploration and drilling programs for the remainder of 2021 and 2022.
In fact, there was so much desire from investors, the company had to “upsize” its funding round to $11.15 million.
The timing for a high-grade discovery couldn’t be better…
Analysts across the globe are predicting a major nickel shortage, one that could hit in as little as two years from now.
Making matters worse, risky countries like China and Indonesia control the majority of the world’s nickel market.
Indonesia – with the largest nickel reserves in the world with at 21M tonnes – produced 760,000 tonnes of nickel last year… more than the next two countries (Philippines and Russia) combined.
But last year, Indonesia banned the export of unprocessed nickel ore, putting an even greater pinch on the markets.
There’s a real concern China may do the same...
China is the world’s largest refiner of nickel products. If they cut off supply, it would have a severe impact on the nickel market.
More unsettling is that through its investments in Indonesia, China could soon control 60% of nickel supply, and a big portion of new nickel supply growth through guaranteed offtake agreements.43
Gavin Montgomery, Research Director, Wood Mackenzie says, “China’s grip on the supply chain of these metals is a concern”.
The US Government agrees.
In a recent executive order, the White House stated, “it is reasonable to expect that China could restrict exports of any or all of the battery supply chain materials it produces, due to trade tensions with the United States.”44
The same report also elevates Class 1, battery-grade nickel to ‘critical’ status and details the need to secure nickel supply from allies.
And what better place than from its neighbor to the north.
Canada is an up-and-coming nickel powerhouse.
It has 28-times the nickel reserves as the US. But more importantly, it’s host to some of the best nickel sulphide deposits in the world.45
Nickel sulphide deposits are key to satisfying the demand for high-quality nickel in batteries.
That’s because nickel sulphide deposits are usually higher grade and cheaper to process than other deposits. This means they are more likely to be used to produce the sought-after Class 1 quality nickel that’s required for batteries.
Canada also currently accounts for 6% of world nickel production.46
What’s more, three of its mines are included in the world’s top ten producers – making it an ideal place for companies like Fathom to hunt for elephant deposits.
And in fact, we think Fathom has one the of most promising nickel exploration opportunities in the region…
Fathom has secured what we think is one of the top nickel prospects in the world.
Nations across the globe are banning gas-powered cars.
Nickel could prove to be the secret weapon to increasing driving range and lowering costs of electric vehicles.
Nickel demand could be about to increase dramatically.
In fact, the International Energy Agency estimates the demand for nickel in electric cars and batteries will increase a whopping 4,028% in the next 20 years... jumping from 81M tonnes per year to 3,344 M tonnes by 2040 – more than the entire amount of nickel mined worldwide in 2019. 53
A nickel supply shortage could hit as early as 2023.
Risky countries like China and Indonesia control the majority of the world’s nickel market.
Car manufacturers like Tesla are practically begging for more nickel supply from safe nations like Canada where Fathom Nickel is located.
In fact, Elon Musk has gone on the record and offered “a giant contract for a long period of time for companies that mine nickel efficiently and in an environmentally sensitive way."6
Bidding wars for small nickel companies are starting to erupt as majors eagerly try to buy high quality projects.
Noront owns 100% of the Eagle’s Nest project. Eagle's Nest is the largest high-grade nickel discovery in Canada since Voisey’s Bay.
In order to secure the buyout, BHP made a bid so rich it offered shareholders a 129% premium – MORE THAN DOUBLE – to where the stock was trading.
This could be a sign of things to come.
With nickel demand increasing and supply tightening, we could see big juicy buyouts of smaller nickel companies become the norm as majors race to lock-up high-quality nickel projects.
Fathom Nickel is sitting on what we think could be one of the most-promising early-stage nickel prospects in the world – a former producing mine that hosted some of the highest-grade deposits ever mined in Canada.
Get more information on Fathom and the emerging opportunity in nickel. Download an investor kit here...
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This article contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this article include that demand for nickel will increase in future as currently expected; Fathom Nickel’s business and plans, including with respect to undertaking further acquisitions, complying with the terms of the claims acquisition and carrying out exploration activities in respect of its mineral projects; that the nickel deposits located at Fathom’s property can be high grade and produced at lower than average cost. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that the Company may not be able to finance its intended drilling programs, aspects or all of the property’s development may not be successful, their methods of mining of the nickel may not be cost effective; the risks that the Company may not be able to carry out its business plans as expected; changing costs for mining and processing; permits may not be granted for the mining projects; increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on historical or even current data that may change with more detailed information or testing; potential mineral recoveries assumptions based on limited test work with further test work may not be viable; competitors may offer cheaper nickel; more production of nickel could reduce its price, or the price may drop for other reasons; alternatives could be found for nickel in battery technology; the availability of labour, equipment and markets for the products produced; and despite the current expected viability of its projects, that the minerals cannot be economically mined on its properties. The forward-looking information contained herein is given as of the date hereof and the writer assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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