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    • Top 7 Canadian Nickel Mining Companies and Stocks to Watch in 2023

    In 2023, the demand for nickel is soaring due to its critical role in batteries and materials like stainless steel. As the sixth-largest producer of nickel globally, Canada is a prominent player in the nickel mining industry. This article will introduce you to the top 7 Canadian nickel stocks to consider for your investment portfolio in September 2023.

    What Are Nickel Stocks?

    Nickel stocks are companies engaged in the exploration, mining, and production of nickel. Nickel, abundant on Earth, is highly sought after for its resistance to corrosion and is utilized in various industrial applications. Here are the top Canadian nickel mining companies and stocks to watch:

    1. First Quantum Minerals (Ticker: FM.TO)

    • Market Cap: $19.66 billion
    • 52-Week Trading Range: $18.68 – $39.27
    • Dividend Yield: 0.97%
    • 5-Year Performance: +39.96%
    First Quantum Minerals is one of Canada’s largest nickel companies, mining various metals, including gold and copper. It operates nickel projects in Ravensthorpe, Australia, and Enterprise, Zambia, with an estimated 28-38kt of nickel production in 2023. Its diversification positions it well for the future of EV batteries.

    2. Lundin Mining (Ticker: LUN.TO)

    • Market Cap: $7.32 billion
    • 52-Week Trading Range: $6.24 – $11.49
    • Dividend Yield: 3.63%
    • 5-Year Performance: +17.16%
    Lundin Mining, a well-known Canadian mining company, produces nickel, copper, gold, and zinc. The Eagle Mine in Michigan, under Lundin’s control, is expected to produce 13-16kt of nickel in 2023. It also operates in various other countries, with copper as a primary revenue source.

    3. Sherritt International (Ticker: S.TO)

    • Market Cap: $196 million
    • 52-Week Trading Range: $0.31 – $0.65
    • Dividend Yield: N/A
    • 5-Year Performance: -58.05%
    Sherritt International, based in Toronto, focuses on cobalt and nickel, essential components for battery production. The company owns a stake in the Moa nickel mine in Peru, with a 2023 production estimate of 30,000 – 32,000 tonnes of nickel.

    4. Nickel 28 Capital (Ticker: NKL.V)

    • Market Cap: $127 million
    • 52-Week Trading Range: $0.74 – $1.71
    • Dividend Yield: N/A
    • 5-Year Performance: +256.41%
    Nickel 28 Capital, headquartered in Toronto, specializes in nickel and cobalt royalties. While not a nickel miner itself, it owns stakes in multiple nickel mines worldwide, with its largest stake in the Ramu nickel mine in Papua New Guinea.

    5. FPX Nickel Corp (Ticker: FPX.V)

    • Market Cap: $117 million
    • 52-Week Trading Range: $0.35 – $1.71
    • Dividend Yield: N/A
    • 5-Year Performance: +242.86%
    FPX Nickel Corp, a Vancouver-based company, owns the Baptiste project in Northern BC, potentially one of the world’s top ten nickel mines. The company prides itself on being environmentally friendly with low carbon emissions and non-acid generating host rock.

    6. BHP Group Limited (Ticker: NYSE: BHP)

    • Market Cap: $200 billion
    • 52-Week Trading Range: $46.92 – $71.52
    • Dividend Yield: 9.49%
    • 5-Year Performance: +22.52%
    For a global perspective on mining stocks, consider BHP Group, one of the world’s largest miners. BHP operates nickel sites in Australia and supplies over 85% of its nickel to battery manufacturers, including an exclusive deal with Tesla. It offers an impressive dividend yield of 9.49%.

    7. Vale SA (Ticker: NYSE: VALE)

    • Market Cap: $56 billion
    • 52-Week Trading Range: $11.72 – $19.31
    • Dividend Yield: 5.23%
    • 5-Year Performance: -9.62%
    Vale SA, a Brazilian mining giant, claims to be the world’s largest nickel miner, with a 2023 production forecast of over 160kt. It has partnerships with battery suppliers, General Motors, and Tesla. Vale is planning to spin off its base metals segment from its iron ore operations to capitalize on the EV battery demand.

    How to Invest in Nickel Stocks in Canada in 2023

    Investing in nickel stocks in Canada can be done through various brokerage platforms, including discount brokers like Wealth simple and Ques trade, which offer lower commission fees compared to traditional banks.

    How to Choose Nickel Stocks for Your Portfolio

    When selecting nickel stocks, consider the number of projects a company operates and its development pipeline to ensure sustained revenue and profit margin growth. Partnerships with major brands like Tesla indicate consistent product demand. Keep in mind the cyclical nature of the nickel industry and its reliance on EV battery demand.

    Conclusion

    In 2023, the demand for nickel remains strong, driven by its essential role in batteries and industrial applications. Investing in Canadian nickel stocks provides exposure to this growing market. Careful consideration of a company’s operations, partnerships, and growth projections is crucial when building a nickel-focused investment portfolio.
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