Editor’s note: This story has been updated to clarify the Alaska Energy Metals CEO’s comments on automotive companies.
Nickel prices are tanking and that’s hurting companies’ exploration efforts, according to Alaska Energy Metals (OTC:AKEMF) CEO Greg Beischer.
“It makes it harder to raise capital because the commodity is out of favor in investors’ eyes,” Beischer told Benzinga.
With a low stock price, he added, “if we sell shares, that’s expensive capital. It dilutes our shareholders.”
The world’s nickel mines are divided into two types of deposits—sulfide and laterite. Sulfide deposits offer easier extraction while laterite deposits require more energy and chemicals.
Because of a lack of exploration in recent years, high-grade sulfide deposits are becoming depleted. Low-grade sulfide deposits offer an alternative to the more-polluting laterite deposits in Indonesia.
‘Low Nickel Prices Drive Mines Out Of Business’
Prices for nickel—a key material in stainless steel production and electric vehicle (EV) batteries—are down around 30% over the past year because of oversupply from Indonesian nickel mines. Tempered growth forecasts for electric vehicles (EVs) have also helped pressure prices.
But with the tanking nickel …
