Nickel Mines’ December quarter showed a record 11.5kt nickel production, ahead of Credit Suisse’s 10kt estimate for 2020. Margins expanded by 46% led by rising nickel and nickel pig iron prices.
Credit Suisse is pleased with the strong result and record production levels. No formal production or operating expense guidance was given for 2021 but the broker expects nickel pig iron production to be similar to 2020 levels.
Outperform. Target rises to $1.50 from $1.35.
Target price is $1.50.Current Price is $1.30. Difference: $0.20 – (brackets indicate current price is over target). If NIC meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).