Look at your pots and pans, this is probably stamped on them. It is the percentage of chrome/nickel that is in the steel. There are other combinations of percentages but this is representative. So, there is more chrome required in steel making than nickel but 90% of chrome minede is used in steel whereas only 65% of nickel mined is destined for steel. There are 1.5 million tonnes of nickel metal produced each year and about 3 million tonnes of chrome metal. There was some discussion here that chrome was an abundant commodity. Simple research shows that there are global reserves of 3500 million tonnes of reserves of chrome metal compared to 200 million tonnes of nickel metal. Quite the difference. Nickel metal today sells for $8.20 per lb and chrome at $1.05 per lb. The chromite grades in the ROF are good compared to other mines. The nickel grades in the ROF compared to other mines are excellent compared to other mines.
This information leads me to believe that Noronts nickel has been overshadowed and undervalued by the competion for chrome. Cliffs is entering a market that is controlled by a few and is a very abundant commodity. We shall see how their new acquisition plays out in the global scheme of things. The nickel however seems to be a much more understood commodity that is not abundant. Despite all the superficial bantering about what happened to ARU, Noront has the potential of discovering a world class nickel deposit in terms of grade and reserves. Again, we shall see, but I have hung on to this stock for a while now and see no reason to exit at this point.
