Citi upbeat on Australia's Nickel Mines over Indonesia project stake buy, sees production rise

Val-dOr Mining

24/11/2020 20:57

** Citi says Australia's Nickel Mines's  NIC.AX  acquisition
of 70% stake in Angel Nickel Project expected to lift
attributable NIC production to about 60ktpa of nickel pig iron
(NPI) by 2023
    ** NIC on Tuesday executed agreement with Shanghai Decent
Investment (Group) Co to buy 70% stake in Angel Nickel Project
in Indonesia  urn:newsml:reuters.com:*:nASXc97wN
    ** Acquisition positions "NIC as the largest nickel-pure
play globally" - Citi
    ** Says NIC has large exposure to NPI production with
potential for growth; is well positioned, given its low cash
costs
    ** Sees NIC's FY20 sales at $502.6 mln, and at $526.7 mln in
FY21, compared with $64.9 mln reported in FY19
    ** Brokerage rates NIC stock "buy" with a price target of
A$1.05
    ** Stock has risen 66% this year, as of last close,
outpacing the ASX All Ordinary index  .AORD , which is up 0.8%

 (Reporting by Sameer Manekar in Bengaluru; editing by Jonathan
Oatis)
 ((Sameer.Manekar@thomsonreuters.com;))