Sunday, June 16, 2024

An Eye-catching Small Cap Mining Stock Up Nearly Double in 2023


Alaska Energy Metals  (TSX-V: AEMC, OTCQB: AKEMF) announced the first independent National Instrument 43-101 Standards of Disclosure for Mineral Deposits (“N.I. 43-101”) mineral resource estimate (“MRE” or “2023 Resource”) for its 100% owned Nikolai Ni-Cu-Co-PGE-Au Project (“Nikolai Project”) in Alaska, USA. The chart shows a 52-week low of CDN0.17 and a high of CDN0.67, close to where the shares are trading.

The Key Take Away

Electric vehicle battery demand now accounts for 5 percent of overall nickel production. A typical 60-kilowatt-hour E.V. battery contains 40 to 50 kilograms of nickel. According to the U.S. Bureau of Labour Statistics, E.V.s will make up between 40 percent and 50 percent of new vehicle sales in 2030.

 About 68% of world Nickel production is used in stainless steel. A further 10% is used for nickel-based and copper-based alloys, 9% for plating, 7% for alloy steels, 3% for foundries, and 4% for other applications such as rechargeable batteries, including those in electric vehicles (E.V.s).

What is the demand for nickel in 2023?

Demand in China, which used 59.2% of the world’s primary nickel in 2022, is forecast to increase by almost +10% in 2023, driven by the battery sector in both years and by the stainless steel (STS) sector in 2023.

Eureka Zone East: 88.6 million tonnes grading 0.35% NiEq% containing:

471 million pounds of nickel

165 million pounds of copper

34 million pounds of cobalt

548,700 ounces of platinum, palladium, and gold

Eureka Zone West: 182.8 million tonnes grading 0.28% NiEq% containing:

1,080 million pounds of nickel

208 million pounds of copper

81 million pounds of cobalt

Seven hundred ninety-two thousand four hundred ounces of platinum, palladium, and gold.

Alaska Energy Metals President & CEO Gregory Beischer commented:

 “The two areas in which we were able to calculate an inferred mineral resource, based only on historical drill holes, are approximately two kilometers apart… The drilling we recently conducted in Summer 2023 will go part way towards joining the deposits together and is likely to further 

Eureka is quickly evolving into one of the larger nickel resources on the continent.”

Grades and inferred amounts

As I have said, only some mining concerns have shown this type of advance. It is a combination of management and outstanding properties. Looking at the chart, AEMC seems to be catching the attention of investors. Average daily volumes have been rising as interest grows, Not to mention the share price.

Have a serious look.

Bob Beaty
+ posts

For over 30 years, Bob Beaty has been explaining concepts and companies to the global investment community. One of the original writers for Jim Cramer’s, he also wrote for AOL (Can/US), the Globe and Mail, and the Huffington Post. Over that period, he illuminated small-cap companies to investors with wit and pith but mostly opinion and facts. Investing should be fun. Pedantic, staid content is no fun.

Before embarking on his writing career, Bob had a successful international journey in the finance industry. He served as a broker, derivatives product manager, and a Director of London's Credit Suisse subsidiary. His career spanned across major financial hubs including Toronto, Vancouver, and the UK, giving him a unique global perspective. (He is still fondly remembering those English client lunches.)

Other than everything Groucho Marx and George Carlin ever said, Bob lives by a simple credo;

‘Never do anything the person standing in front of you can't understand.’ Hunter S. Thompson.

Let’s go.


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