Canada is a great place to start if you’re looking to invest in the nickel industry. Canada has become a key player in the global nickel market, with abundant nickel resources and a strong mining industry.
But with so many options, knowing where to invest your money can be overwhelming. That’s why we’ve compiled a list of the best nickel stocks and companies in Canada for you to consider.
In this article, we’ll take a closer look at the top nickel companies in Canada and what sets them apart from the competition. Whether you’re a seasoned investor or just starting, this guide will help you make informed decisions about your investments in the nickel industry.
Why Invest in Nickel?
There are several reasons why an investor may consider investing in nickel:
- Growing demand: Nickel is an essential industrial metal with many uses, including stainless steel production, batteries, and electric vehicles. With the increasing adoption of electric vehicles and the growth of renewable energy, the demand for nickel is expected to increase.
- Limited supply: While nickel is relatively abundant in the Earth’s crust, producing high-quality nickel is concentrated in a few countries, including Indonesia, the Philippines, and Russia. As a result, disruptions in the supply chain can lead to price volatility.
- Diversification: Investing in nickel can diversify a portfolio, as the performance of the nickel market is not necessarily correlated with other asset classes.
- Long-term growth potential: With the growing demand for nickel and the limited supply, some investors believe that nickel prices could increase over the long term, providing an opportunity for capital appreciation.
- Inflation hedge: Some investors view commodities, including nickel, as a hedge against inflation. In times of high inflation, the prices of commodities tend to increase, providing a potential hedge against the erosion of purchasing power.
The Best Nickel Stocks in Canada
First Quantum Minerals Ltd. (FM.TO)
First Quantum Minerals is a global mining company with operations in Canada, Africa, Australia, Europe, and South America. The company’s Canadian operations focus on developing and operating the Ravensthorpe nickel mine in Western Australia.
In Zambia, First Quantum Minerals operates the Kansanshi copper-gold mine, one of the largest copper mines in Africa. The company also operates the Sentinel copper mine and the Enterprise nickel mine in Zambia. In Mauritania, First Quantum Minerals operates the Guelb Moghrein copper-gold mine. In Europe, the company operates the Pyhäsalmi copper-zinc mine in Finland and the Las Cruces copper mine in Spain.
Sherritt International Corporation (S.TO)
Sherritt International Corporation (S.TO) is a Canadian mining and energy company primarily producing nickel and cobalt. The company’s operations focus on Cuba, which has been operating for over 25 years.
Sherritt International operates the Moa joint venture, a nickel and cobalt mine and processing facility in eastern Cuba. The Moa mine has one of the world’s largest known nickel and cobalt reserves; the joint venture is owned 50% by Sherritt and 50% by the Cuban government.
Sherritt International is a diversified natural resource company with operations in Canada, Cuba, and Madagascar. The company’s Canadian operations include the mining, processing, and refining of nickel and cobalt in Fort Saskatchewan, Alberta.
Canada Nickel Company Inc. (CNC.V)
Canada Nickel Company Inc. (CNC.V) is a Canadian mining company focused on exploring and developing nickel, cobalt, and palladium deposits in Ontario, Canada. The company’s flagship project is the Crawford Nickel-Cobalt Sulphide project in the Timmins-Cochrane mining district in northeastern Ontario.
The Crawford project is a large-scale, open-pit nickel and cobalt mine expected to produce high-quality nickel and cobalt concentrates. The project has significant potential, with estimated resources of over 600 million tonnes of nickel and cobalt mineralization.
In addition to the Crawford project, Canada Nickel Company has several other exploration projects in Ontario, including the MacDiarmid and Nesbitt properties, which have shown promising results in initial drilling programs.
Lundin Mining Corporation (LUN.TO)
Lundin Mining Corporation (LUN.TO) is a Canadian-based mining company primarily engaged in producing copper, zinc, nickel, and gold. The company operates in Chile, the United States, Portugal, and Sweden.
In Chile, Lundin Mining operates the Candelaria copper-gold-silver mine, one of the country’s largest copper mines. The company also operates the Ojos del Salado zinc mine in Chile. In the United States, Lundin Mining operates the Eagle Nickel-copper mine in Michigan. In Europe, the company operates the Neves-Corvo copper-zinc mine in Portugal and the Zinkgruvan zinc-copper-lead-silver mine in Sweden.
His management team has worked in more than 35 countries and has a wide range of experience in the mining industry. The company’s critical project is the Knaften, which has high-grade gold, copper and nickel targets. The Company also holds two nickel, copper and cobalt deposits, Lappvattnet and Rormyrberget, east of the project.
Royal Nickel Corporation (RNX.TO)
Royal Nickel Corporation (RNX.TO), also known as RNC Minerals, is a Canadian mining company primarily engaged in the exploration, development, and production of gold and base metals, including nickel, copper, and cobalt.
The company’s flagship project is the Beta Hunt Mine in Western Australia. The mine is a low-cost gold and nickel operation producing copper and cobalt. In addition, Royal Nickel has a 28% interest in the joint venture that owns the Dumont Nickel Project, one of the largest undeveloped nickel reserves in the world, located in Quebec, Canada.
Royal Nickel is also focused on advancing its exploration projects in Canada, Australia, and Papua New Guinea. In addition, the company strongly focuses on exploring and discovering new mineral resources to build a pipeline of future projects.
The company’s principal asset in Canada is the Dumont Nickel-Cobalt Project in the Abitibi region of Quebec.
Balmoral Resources Ltd. (BAR.TO)
Balmoral Resources Ltd. (BAR.TO) is a Canadian exploration and development company focused on acquiring and exploring high-grade gold and base metal projects in Canada. The company focuses primarily on its flagship Fenelon gold project in Quebec, Canada.
The Fenelon gold project is a high-grade gold deposit with significant exploration potential. The project has a mineral resource estimate of 96,000 ounces of gold at an average grade of 9.75 grams per tonne, with substantial additional mineralization identified in recent drilling programs.
In addition to the Fenelon gold project, Balmoral Resources has several other exploration projects in Quebec and Ontario, including the Martiniere gold project and the Detour Trend project.
Giga Metals Corporation (GIGA.V)
Giga Metals Corporation (GIGA.V) is a Canadian mining company focused on the exploration and development of high-quality, environmentally responsible nickel and cobalt deposits in British Columbia, Canada. The company’s flagship project is the Turnagain Nickel Project in northern British Columbia.
The Turnagain Nickel Project is one of the largest undeveloped nickel deposits in the world, with a measured and indicated resource estimate of 5.2 million tonnes of nickel and 312,000 tonnes of cobalt. The project has the potential to produce high-quality nickel and cobalt for use in the electric vehicle battery market, as well as other industrial applications. You can also get direct exposure to EV battery stocks in Canada with GIGA.
Vale Canada Limited (Vale S.A)
Vale Canada Limited is the Canadian subsidiary of Vale S.A., a Brazilian multinational mining company and one of the largest nickel producers in the world. Vale Canada is primarily engaged in the exploration, development, and production of nickel, copper, and cobalt in Canada.
The company operates the Sudbury and Voisey’s Bay mining operations in Canada, which are among the world’s largest and most productive mining operations. The Copper Cliff Mine Sudbury operation in Ontario produces nickel, copper, cobalt, platinum, and palladium, making it one of the Best Palladium Stocks. The Voisey’s Bay operation is located in Labrador and produces nickel and copper concentrate.
BHP Group Limited (NYSE:BHP)
BHP Group Limited (NYSE:BHP) is an Anglo-Australian multinational mining company with operations in several countries worldwide, including Canada. The company explores, develops, and produces a range of commodities, including copper, iron ore, nickel, and oil and gas.
In Canada, BHP’s primary operations are exploring and developing nickel deposits in Quebec through its subsidiary BHP Canada Inc. The company’s flagship project in Canada is the high-grade, underground Nickel West project in the Rouyn-Noranda region of Quebec.
Western Areas Limited (ASX:WSA)
Western Areas Limited is an Australian-based nickel mining company operating in Australia and Canada. The company’s Canadian operations include the Dumont Nickel Project in the Abitibi region of Quebec.
What is nickel used for?
Nickel is a versatile metal with a wide range of uses. Some of the most common uses of nickel include:
- Stainless steel production: Nickel is a crucial ingredient in stainless steel, which is used in various applications, including cutlery, kitchen appliances, and construction materials.
- Batteries: Nickel is used in rechargeable batteries, including nickel-cadmium (NiCd) and nickel-metal hydride (NiMH) batteries.
- Alloy production: Nickel produces various alloys, including Inconel, Monel, and Hastelloy, used in the aerospace, chemical, and petroleum industries.
- Electronics: Nickel is used in various electronic components, including capacitors, transistors, and magnetic cores.
- Plating: Nickel is used in electroplating to provide a durable and corrosion-resistant coating on metals, including steel and brass.
- Catalysts: Nickel is used as a catalyst in a variety of chemical reactions, including the production of hydrogen and the refining of crude oil.
- Coins: Nickel is used in producing coins in many countries, including Canada, the United States, and Australia.
- Medical applications: Nickel is used in medical equipment, including prosthetic devices and dental braces.
Who Is The Largest Producer Of Nickel In Canada?
Vale Canada Limited is the largest producer of nickel in Canada. Vale is a subsidiary of Vale S.A., a Brazilian mining company headquartered in Toronto, Ontario.
Vale’s Canadian operations include several nickel mines, including the Copper Cliff Mine in Sudbury, Ontario, and the Voisey’s Bay Mine in Labrador. In 2020, Vale’s Canadian operations produced approximately 60,000 metric tons of nickel, making it the largest nickel producer in the country.
Also Read: Quebec Nickel Corp. (QNI.CN) Analysis