Nickel Industries Limited

ASX:NIC

Nickel Industries Limited

ASX:NIC
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$0.950 (0%)
Last close price
#188
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4
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12
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Forum Topics NIC NIC What am I missing?
Solvetheriddle
2 years ago

Guys there is a half decent story on this on Zero Hedge

https://www.zerohedge.com/commodities/jpmorgan-bails-out-chinese-nickel-giant-facing-billions-losses-record-margin-call?utm_source=&utm_medium=email&utm_campaign=532

11
Rick
2 years ago

Thanks for sharing @Solvetheriddle . That’s a great summary of the Big Short on Nickel to date. The only update is the LME market is closed until further notice!

8
Rick
2 years ago

@CQFocus is spot on! See the AFR article ‘Chinese tycoon behind nickel short faces billions in losses’ here:

here https://www.afr.com/companies/mining/chinese-tycoon-behind-nickel-short-faces-billions-in-losses-20220309-p5a2zd

An extract:

”Singapore | A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after this week’s unprecedented price spike, according to people familiar with the matter.

Xiang Guangda, who controls the world’s largest nickel producer, Tsingshan Holding, and is known as “Big Shot” in Chinese commodity circles, has closed out part of his company’s short position and is considering whether to exit the wager altogether, the people said. Nickel rocketed to a record high above $US100,000 ($137,000) a tonne on Tuesday, driven in part by Tsingshan and its brokers’ activity, before trading was suspended.”

It looks like “Big Shot” is panic selling NIC shares to pay his margin call.

See AFR for full article.

8
Solvetheriddle
2 years ago

Rick NIC hedge book could be a problem, if they are short its no good obviously

see what they say

9
Rick
2 years ago

Nickel climbs to an all time high, up 100% in two days to over US$100,000, as another short squeeze plays out, with Russia a key producer of Nickel.

0c9f20e63e24cd7c98761280bf2c5229202bef.png


The LME is not expected to recommence Nickel trading until Friday while it sorts out a probable default on a large margin call by a Chinese bank.

Nickel Mines (NIC) is dropping like a stone, currently down 33% from a high of $1.79 to $1.20 this morning after the LME suspended nickel trading due to an unprecedented spike in the price of Nickel.

WTF is going on????

8
Rick
2 years ago

Add to that….Nickel Mines just requested a pause in trading!

6
Rick
2 years ago

@CQFocus. Have the fundamentals of the business changed? I don’t think so. If anything the nickel price is likely to rise more quickly if sanctions impact Russian nickel sales. Like rare earths, the western world will be aiming to be less dependant in Russian Nickel going forward and I see this as potential strong tailwinds for NIC. After “Big Shot” covers his margin call I think NIC will stabilise and recover value. What we need is for BHP to step in and make a takeover offer while “Big Shot” is covering his margins. BHP have heaps of cash and aiming to increase exposure to future facing commodities.

cheers

Rick

11
Rick
2 years ago

I do not know if it means a lot, but pre open bids for NIC are looking strong:

20250e81d69af00577cad91c8ccf2debb40ced.png

7
Rick
2 years ago

OK, the sell off on NIC continues, down over 13% to $1.202 today. The market didn’t buy the NIC share price query response yesterday.

I’m reasonably confident the business and fundamentals have not changed. I’m not sure what is driving the sell off, anxious investors, institutions or “Big Shot” quietly offloading some shares to cover margins (even though is not supposed to be happening). The contrarian in me just took a $10k nibble at $1.21.

8
Rick
2 years ago

Hot off the press!

J.P. Morgan Extends Loan Packages to Rescue Tsingshan

“Chinese nickel giant Tsingshan Holdings has reportedly secured loan packages from various lenders – including J.P. Morgan – preventing the immediate realization of losses that total billions of dollars.

Tsingshan Holdings has secured loan packages from various lenders, according to a «Bloomberg» report citing unnamed sources, following a record short squeeze that saw nickel prices more than double in hours earlier this week. 

The creditors involved include both local and intentional banks, including J.P. Morgan and China Construction Bank (CCB) – the latter lender’s international global markets unit acted as one of Tsingshan’s brokers which reportedly failed to pay hundreds of millions in a margin call on Monday before settling the London Metal Exchange (LME) gave it more time to settle the payment on Tuesday.”

10