Sherritt needs nickel hike

Article Excerpt

SHERRITT INTERNATIONAL $0.54 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704-6698; www.sherritt.com; Shares o/s: 397.3 million; Market cap: $214.5 million; No divds.) is now focused on nickel/cobalt production, with operations in Cuba and Canada. Nickel prices are under pressure due to global trade/growth concerns. However, a proposal by Chinese stainless steel producer Tsingshan Group to build a big high-pressure acid-leach (HPAL) nickel plant in Indonesia has also held back prices. Such a plant’s nickel output could be converted into nickel sulphate for use in electric vehicle (EV) batteries. If successful, that supply could undercut nickel prices in the expanding EV battery market. Still, many HPAL nickel projects have faced major operating issues. That could make Tsingshan Group’s project less of a threat to longer-term nickel prices. Sherritt is a buy for aggressive investors. investors…

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