Why the Nickel Mines (ASX:NIC) share price is leaping 8% on Friday

The company's shares are on the move…

Man in a business suit leaps off a boulder in front of a blue sky.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Nickel Mines Ltd (ASX: NIC) share price is set to end the week on a high note. This comes as the nickel producer is enjoying fresh multi-year highs on the spot price of nickel.

At the time of writing, Nickel Mine shares are up 8.04% to $1.075.

What's happening with Nickel Mines?

The Nickel Mines share price is surging today following positive investor sentiment in the electric vehicle (EV) battery market.

Nickel is a key component in lithium-ion batteries, which are used in generating power for electric vehicles. Nickel is able to produce a lot more energy into batteries than using cobalt. The latter is considered a more expensive metal and has fewer purposes across industries.

On the back of rising interest in the sector, the price of nickel has accelerated to US$20.23 per kilo. The crucial metal has risen close to 30% in the last 6 months.

In other news, the company released an update yesterday in relation to the issuance of its $150 million senior unsecured notes.

Nickel Mines advised it has completed the issuance at an interest rate of 6.50% per annum, maturing on 1 April 2024.

The new notes are expected to be consolidated with the existing notes to form a US$325 million single series of notes. Funds from the issue of the new notes will be allocated towards working capital and general corporate purposes.

Nickel Mines executive director and chief financial officer Peter Nightingale commented:

While the company's existing cash reserves and budgeted cash flows meet the US$210 million funding requirement to increase its ownership of the Angel Nickel Project, which will more than double the company's nameplate nickel production capacity after commissioning in 2022, from 50% already owned to 80%, this tap allows the company to maintain a healthy treasury balance.

About the Nickel Mines share price

Over the last 12 months, Nickel Mines shares have pushed around 60% higher, but are down around 2% year-to-date. The company's share price slumped in late April following a disappointing quarterly report and has moved sideways ever since.

Nickel Mines commands a market capitalisation of roughly $2.6 billion, with more than 2.5 billion shares on its registry.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

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 Bruce Jackson.

More on Share Market News

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough trading day for ASX stocks this Monday.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Broker Notes

Bell Potter names more of the best ASX 200 stocks to buy in May

These stocks could be best buys this month according to the broker.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

ASX 200 energy shares plunge on shock OPEC move

ASX 200 energy shares like Woodside and Santos are tumbling on Monday. Let’s find out why.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why 4DMedical, Gold Road, Syrah, and Tyro shares are racing higher today

These shares are starting the week strongly. But why?

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

2 ASX gold stocks racing higher in Monday's sinking market

Investors are sending these ASX gold stocks flying higher on Monday. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Brainchip, Helia Group, Reliance Worldwide, and Westpac shares are dropping today

These shares are starting the week in the red. But why?

Read more »

Man looking upwards contemplating which shares to buy
Broker Notes

CSL shares have climbed 10% since 11 April. Is it too late to buy?

What are analysts saying about this biotech giant after its recent rally? Let's find out.

Read more »