Australian Mines LTD (AMSLF)

[GetRich902902]

A Perfect Storm Is Brewing For Nickel

Years of underinvestment, long lead times for mine development and a coming surge of electric vehicle demand are all bullish factors for nickel, said Michael Beck, managing director at Regent Advisors.

Beck spoke to Kitco News at Palisade Global's Hard Asset Conference in Georgia on Jekyll Island held mid-May.

Nickel is a key component of lithium-ion batteries, and Beck said Tesla's next generation of lithium-ion batteries uses more of the element. "The ramp-up of demand is just beginning," said Beck.

"Electric vehicles are going to impose a new demand source on nickel that never really existed before. It takes seven to 10 years to bring on new nickel projects. So you have the makings I think, at least this is our thesis, of a perfect storm. You have a baked in structural deficit for the next 12 years. You have seven to ten years lead time to bring in new capacity, and all of a sudden you have inventories in the next 18 months going down to almost zero. You also have this new demand source that never existed for nickel. So that gets us rather interested as prospective investors. And in the universe of metals it's our favorite. We think in the next two to three years you're going to see a major up-tick of nickel price, and that's as shortages emerge and that's what's going to be required to get new investment in the sector."

So get on this Australian Mines LTD (AMSLF) train. It's about to take off. All Aboard!!!

https://www.kitco.com/news/2019-06-02/A-Perfect-Storm-Is-Brewing-For-Nickel-Michael-Beck.html