Nickel Mines (NIC) We see several important companyspecific...

Nickel Mines (NIC) We see several important companyspecific catalysts for NIC in 1HCY19 which, combined with a compelling value proposition from the current share price, make it one of our top picks. Construction of the four Rotary Kiln Electric Furnace (RKEF) lines in which it has an interest with Tsingshan Group, the world’s largest stainless steel producer, is well advanced. Commissioning is scheduled for the end of the June 2019 quarter but we see the potential for this to come in ahead of schedule and for NIC to make the transition from developer to Nickel Pig Iron (NPI) producer by early 2HCY19. The recent announcements of qualification for material tax relief benefits over the first nine years of production and the securing of fixed price production growth (the third and fourth RKEF lines) we believe are yet to be factored in by the market. As production approaches we think these will be incorporated into NIC’s valuation and drive a material share price re-rating. Speculative Buy, TP $0.65/sh