Nickel Asia Corporation (NIKL) as of June 30, 2020 is sitting on a 10.8 Billion of cash. On top of that are financial assets valued at 4.7 Billion Pesos. NIKL has been resilient amidst the pandemic. In the first half of 2020 it earned 777 Million Pesos. Of that earnings it generated cash from its operations of 1.4 Billion Pesos.
Balance sheet of NIKL seems impregnable with debts of only 2.5 Billion Pesos.
Principal business of NIKL is the mining and exporting of nickel ores. It is said that demand for nickel from electric vehicle batteries will grow 5-fold by 2030 but supply may not keep pace. NIKL is well positioned for this expected boom.
Aside from the existing nickel mines in Palawan, Eastern Samar, Dinagat islands, and Hinatuan Island in Surigao del Norte, NIKL also owns mines that are still in the development stage. This ensures continuity of supply as existing mines get depleted.
NIKL with its cash piling up, is venturing into renewable energy. It has solar power generation projects in Palawan. Aside from solar, NIKL has geothermal projects in Biliran, Eastern Samar and in Oriental Mindoro.
NIKL is positioned for significance in an electrified world.
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Disclaimer and Disclosure: This is an independent analysis for discussion purposes with the aim of giving stock traders and investors an independent viewpoint. Accuretti Systems Inc. in day to day trading may have owned, or is considering buying or disposing, the shares of the companies mentioned in this commentary.