NIKL trading 12.49% below 52-week high despite net income up 43.5%

Nickel Asia Corporation (NIKL) registered a net income of 5.5 billion Pesos for the year 2020. That net income is 43.5% higher than the 2019 net income of 3.8 billion Pesos.

Cash balance of NIKL stood at 11.8 billion Pesos as of end of 2020. That excludes financial assets of 6.5 billion Pesos. Cash and cash equivalents plus financial assets total to 37.4% of the total assets of NIKL as of 31 December 2020.

The cash and financial assets hoard are more likely to grow as NIKL generates massive cash from operations. In 2020, it generated 8.8 billion Pesos.

Demand for nickel is more likely to increase further as the use of batteries for motor vehicle and energy storage becomes mainstream. Increase in demand could translate to increase in prices. Nickel mine development may not be able to catch up with demand. Nickel price is still down from its peak.

Despite the best position that NIKL is into, NIKL is trading at 12.49% below its 52-week high of 6.24.

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