Analysts cautious on Nickel Mines on counterparty risk from top shareholder

Pacific Nickel Mines

10/03/2022 01:25

** Analysts see heightened counterparty risk to Nickel Mines
 NIC.AX  from majority stakeholder Tsingshan Holding Group Co
due to its short positions on nickel 
    ** The pure-play nickel producer slumps as much as 14.4% to
the bottom of ASX 200  .AXJO 
    ** NIC clarified a price query by ASX on Wednesday that its
operations remained unaffected by the developments in nickel
market
    ** The Chinese nickel giant holds a 18% stake in NIC through
Shanghai Decent and also has representatives on the co's board,
according to Citi
    ** Jefferies cuts PT to A$0.80 from A$1.65 and cuts rating
to "underperform" from "hold", says "not possible to be
definitive but there are several possible impacts on Nickel
Mines from the situation unfolding"
    ** "There is a possibility that the sell-off in NIC is a
market overreaction" - Jefferies
    ** Citi rates stock "high risk" and retains "buy" and said
it sees minimal risk to NIC’s operations
    ** Nickel trading on the London Metal Exchange (LME) was
halted after prices of the metal spiked due to U.S sanctions on
Russia  urn:newsml:reuters.com:*:nL2N2VB0L9
    ** Shares of NIC dropped nearly 23% before trading was
paused on Wednesday

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.mishra@thomsonreuters.com))