The Nickel Mines Ltd (ASX: NIC) share price is belting the S&P/ASX 200 Index (ASX: XJO) today.
At the time of writing, the nickel producerâs shares are up 3.31% to an intraday high of $1.09 apiece.
In comparison, the benchmark ASX 200 index is up 0.65% to 7,007.1 points.
Why are Nickel Mines shares powering ahead?
Investors are bidding up the Nickel Mines share price following the companyâs update of its senior secured notes offering.
According to its release, the company advised it has completed the issuance of its US$225 million senior secured notes. The notes are priced at an interest rate of 10% per annum, payable on a quarterly basis in arrears.
The final maturity date will be on 23 August 2025.
In addition to the companyâs cash reverses, the proceeds from the Notes will be used to finalise the acquisition and ramp-up of the Oracle Nickel Project.
Nickel Mines managing director, Justin Werner commented:
Completion of this issuance has positioned the company to increase its ownership interest in Oracle Nickel to 70% and meet the remaining payment obligations for the acquisition.
The early commissioning of the Oracle Nickel RKEF lines, expected in October, will allow us to significantly bring forward nickel production. Our trusted partner Shanghai Decent continues to deliver operationally with near-term commissioning.
The company will soon have 12 RKEF lines in operation and approximately 100kt of attributable nickel production, placing us comfortably amongst the top-10 global producers.
Also providing a boost is the S&P/ASX 300 Metals and Mining Industry (ASX: XMM). The index is among the best performers today, up 1.21% to 5,548.5 points.
Nickel Mines share price summary
Extreme volatility in 2022 has led the Nickel Mines share price to register a loss of 25%.
However, in the past 12 months, the share is up 5% following strong gains achieved towards the backend of 2021.
Based on todayâs price, Nickel Mines presides a market capitalisation of roughly $3.14 billion.
The post Why is the Nickel Industries share price smashing the ASX 200 today? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Nickel Industries Limited right now?
Before you consider Nickel Industries Limited, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nickel Industries Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
See The 5 Stocks
*Returns as of August 4 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- How have ASX nickel stocks been performing in 2022?
- Here’s why the Nickel Industries share price is climbing on Wednesday
- Why is nickel such a big deal and which ASX shares have exposure?
- Here are the top 10 ASX 200 shares today
- Nickel Industries share price slips on $225 million debt capital raise
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/ky0A2x8
Leave a Reply