All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
When stock markets are erratic, many investors turn to investing in commodities. Some of these investors can be looking to invest in nickel mining stocks for the first time.
On 8 March 2022 nickel trading was suspended in London as trading nickel prices had surged 110% in one day. Nickel prices had risen to $100,000 per tonne, due to expected supply problems following the conflict between Russia and Ukraine. Trading resumed on the 16th.
Investing in nickel mining stocks from the UK
Some of the most recognisable nickel mining stocks are listed on global stock exchanges, so if you invest in some global stocks, you can get exposure to them. Remember to account for foreign exchange fees when comparing trading platforms.
How to invest in nickel mining stocks
- Choose a platform. If you’re a beginner, our share-dealing table below can help you choose.
- Open your account. You’ll need your ID, bank details and national insurance number.
- Confirm your payment details. You’ll need to fund your account with a bank transfer, debit card or credit card.
- Search the platform for stock code. You can search its name or ticker.
- Research nickel mining shares. The platform should provide the latest information available.
- Buy your nickel mining shares. It’s that simple.
Here are some of the pros and cons of investing in nickel mining stocks:
Pros
- Low costs as you own the stocks directly.
- You’ll have control over your investment and the timing of buying and selling stocks.
- You can choose stocks that fit with your investing goals or ethics eg. avoiding Russian-mining companies.
Cons
- Less diversified than investing through an ETF as you’ll own fewer companies.
- Stock prices are vulnerable to big market fluctuations.
How to invest in nickel ETFs
ETFs or exchange traded funds can be a good way to diversify your investment by spreading it between several assets. They work a bit like an index fund, investing in stocks on an exchange. Here are some of the main pros and cons of investing in nickel through an ETF:
Pros
- They have low fund fees so are a cheap way to get exposure to commodity investment.
- You can diversify your investment by investing in a range of precious metals.
Cons
- ETFs are made up of a collection of assets so you can’t pick and choose between stocks.
- Limited range of ETFs are focused just on nickel.
Invest in nickel futures
Investing in nickel futures isn’t suitable for nervous investors as it’s extremely risky. You’re agreeing to buy stocks in the future at a set price that you agree now. You might win big if you’re right in predicting stock market movements, but you could lose money if the price moves in the opposite direction to your predictions.
If you want to do futures trading, you’ll need a strong constitution and a good understanding of stock trading.
Pros
- If your predictions are right, you can make big returns.
- Futures give you direct control over your stocks.
Cons
- Futures are risky and if you could potentially lose money.
- They only last for a set time period and will expire if you don’t use them.
Why is nickel suddenly so valuable?
The amazing rise of nickel prices is largely due to the conflict between Russia and Ukraine. The conflict has prompted fears of long term supply problems.
However, the nickel prices have been extremely volatile in the past. Prices rocketed in 2019 after an Indonesian imports ban but collapsed in early 2020 before rising again.
Most nickel is currently used for the manufacture of stainless steel, but it is also an essential part of making car batteries for electric vehicles so it’s likely that demand will increase in the future.
What is nickel used for?
Nickel is an amazing metal and is valued for its anti-corrosion properties as well as being strong and high and low temperatures and special magnetic and electronic properties. It’s mainly used to make stainless steel but it also has other uses. Here are some of the most common uses:
- Stainless steel – this accounts for about 70% of nickel use.
- Lithium batteries for electric vehicles.
- Kitchen equipment
- Medical equipment
- Transport and buildings
- Power generation
- Jewellery
Pros and cons of investing in nickel
Pros
- Potential to benefit from price increases if demand continues to outstrip supply.
- Can be a good way to diversify your portfolio if you don’t currently invest in commodities.
Cons
- Prices are extremely volatile and they may fall back in the future. The price depends to a large extent on the ongoing situation in Ukraine and the ongoing sanctions against Russia.
- The best nickel mining stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time.
13 nickel mining stocks to watch
We round up a selection of stocks in or related to the nickel mining industry, weighting the list more heavily towards popular mid- and large-cap US stocks.
- Sibanye Stillwater (SBSW)
- Materion (MTRN)
- Nickel Mines (NIC)
- Norilsk Nickel (GMKN)
- Canada Nickel Company (CNC)
- Poseidon Nickel (POS)
- WisdomTree Nickel (NICK)
- Vale (VALE)
- Jinchuan Group International Resources (2362)
- Glencore (GLEN)
- BHP Group (BHP)
- Red Rock Resources (RRR)
- Tesla (TSLA)
Take a deeper dive into nickel mining stocks
If you're interested in investing in the nickel mining industry, take a closer look at what companies in this industry do and how the stocks have historically performed. Keep in mind that positive past performance doesn't guarantee that a stock will continue to rise in the future.
Sibanye Gold Ltd ADR (SBSW)
Sibanye Stillwater Limited, together with its subsidiaries, operates as a precious metals mining company in South Africa, the United States, Europe, and Australia. The company produces gold; platinum group metals (PGMs), including palladium, platinum, rhodium, iridium, and ruthenium; chrome; nickel; and silver, cobalt, and copper. Sibanye Stillwater Limited was founded in 2013 and is headquartered in Weltevreden Park, South Africa.
Sibanye Gold Ltd ADR is listed on the NYSE and has a trailing 12-month revenue of around 112.1 billion.
- Market capitalization: $3,167,225,344
Capital at risk
Materion (MTRN)
Materion Corporation, together with its subsidiaries, produces advanced engineered materials in the United States, Asia, Europe, and internationally. The company operates in four segments: Performance Materials, Electronic Materials, Precision Optics, and Other. It provides beryllium and non-beryllium containing alloy systems and custom engineered metal solutions in strip, bulk, rod, plate, bar, tube, and other customized shapes; engineering and product development services; alloyed metals, beryllium products, and beryllium hydroxide; precision strip, rod, wire, and engineered strip metal products; ToughMet alloys; and SupremEX aluminum silicon carbide metal matrix composite formulation products.
Materion Corporation is listed on the NYSE, has a trailing 12-month revenue of around $1.7 billion and employs 3,037 staff.
- Market capitalization: $1,537,760,384
- P/E ratio: 263.8571
- PEG ratio: 2.35
Capital at risk
GMK Norilskiy Nikel PAO (GMKN)
Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel, together with its subsidiaries, operates as a metals and mining company in Russia, Europe, Asia, North and South America, and CIS countries. The company operates through GMK Group, South Cluster, Kola Division, GRK Bystrinskoye, Other Mining, and Other Non-Metallurgical segments. It explores for, extracts, and refines ore and nonmetallic minerals; and sale of base and precious metals produced from ore.
GMK Norilskiy Nikel PAO is listed on the MCX and has a trailing 12-month revenue of around $17.9 billion.
- Market capitalization: $2,613,658,000,000
- P/E ratio: 6.3649
Capital at risk
Canada Nickel Company (CNC)
Canada Nickel Company Inc. , together with its subsidiaries, engages in the exploration, discovery, and development of nickel sulphide assets for electric vehicle, green energy, and stainless steel markets in Canada. The company's flagship project is the Crawford Nickel project located in northern Ontario, Canada. It also develops zero-carbon production of nickel, cobalt, and iron. Canada Nickel Company Inc. was incorporated in 2019 and is headquartered in Toronto, Canada.
Canada Nickel Company is listed on the V.
- Market capitalization: $180,806,064
Capital at risk
WisdomTree Nickel (NICK)
N/A. .
WisdomTree Nickel is listed on the London Stock Exchange (LSE), has a trailing 12-month revenue of around N/A and employs 0 staff.
Capital at risk
Vale SA ADR (VALE)
Vale S. A. , together with its subsidiaries, produces and sells iron ore, iron ore pellets, nickel, and copper in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, and other ferrous products; and provides related logistic services. The Energy Transition Materials segment produces and extracts nickel; and its by-products, such as gold, silver, cobalt, precious metals, and others, as well as copper used in the construction sector to produce pipes and electrical wires.
Vale SA ADR is listed on the NYSE, has a trailing 12-month revenue of around $206 billion and employs 64,616 staff.
- Market capitalization: $41,334,067,200
- P/E ratio: 6.3056
- PEG ratio: 10.6376
Capital at risk
Jinchuan Group International Resources Co (2362)
Jinchuan Group International Resources Co. Ltd, an investment holding company, engages in mining operations. The company explores for copper, cobalt, and copper concentrates. It also operates Ruashi mine, a copper and cobalt mine located in Lubumbashi, the Democratic Republic of Congo; Kinsenda mine, a copper mine situated in Haut-Katanga Province, the Democratic Republic of Congo; Chibuluma south mine, a copper mine in Zambia; and the Musonoi and Lubembe projects in the Democratic Republic of Congo.
Jinchuan Group International Resources Co is listed on the HK, has a trailing 12-month revenue of around $594.8 million and employs 1,676 staff.
- Market capitalization: $8,404,543,488
- P/E ratio: 64
- PEG ratio: 0.1006
Capital at risk
Glencore (GLEN)
Glencore plc engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates in two segments, Marketing Activities and Industrial Activities. The company engages in the production and marketing of copper, cobalt, lead, nickel, zinc, chrome ore, ferrochrome, vanadium, aluminum, alumina, and iron ore; and coal, crude oil, refined products, and natural gas, as well as oil exploration/production and refining/distribution.
Glencore is listed on the London Stock Exchange (LSE), has a trailing 12-month revenue of around HK$227.5 billion and employs 84,146 staff.
- Market capitalization: $47,236,816,896
- PEG ratio: 33.7038
Capital at risk
BHP Group (BHP)
BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It engages in the mining of copper, uranium, gold, zinc, lead, molybdenum, silver, iron ore, cobalt, and metallurgical and energy coal. The company is also involved in the mining, smelting, and refining of nickel, as well as potash development activities.
BHP Group is listed on the London Stock Exchange (LSE), has a trailing 12-month revenue of around £54 billion and employs 38,962 staff.
- Market capitalization: $92,030,918,656
- P/E ratio: 10.3092
Capital at risk
Red Rock Resources (RRR)
Red Rock Resources Plc engages in the production and exploration of mineral resources in Kenya, Australia, Ivory Coast, Democratic Republic of Congo, and Africa. It explores for gold, copper, cobalt, and lithium deposits, as well as oil and gas properties. Red Rock Resources Plc was incorporated in 2004 and is headquartered in London, the United Kingdom.
Red Rock Resources is listed on the London Stock Exchange (LSE) and employs 10 staff.
- Market capitalization: $1,793,940
Capital at risk
Tesla (TSLA)
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive; and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services.
Tesla is listed on the NASDAQ, has a trailing 12-month revenue of around £97.7 billion and employs 125,665 staff.
- Market capitalization: $859,711,471,616
- P/E ratio: 131.0196
- PEG ratio: 3.4355
Capital at risk
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Read the full methodologyBottom line
In times of stock market volatility, investors tend to see commodities, including nickel, as a safe investment. However the commodities market is currently subject to extremely unpredictable forces. Metal and commodity prices are likely to continue fluctuating significantly in the near future.
If you do decide to invest in nickel, then hold onto your hat. You could be in for a bumpy ride.
Finder survey: Would Brits consider investing in nickel stocks?
42% of people we surveyed said they already invest in nickel stocks or would consider investing in nickel stocks.
Response | |
|---|---|
| I would consider it | 37.82% |
| Not sure | 34.32% |
| I wouldn't consider it | 23.25% |
| I already invest in this | 4.61% |
Source: Finder survey by Censuswide of Brits, December 2023
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