The Nickel Mines Ltd (ASX: NIC) share price is set to end the week on a high note. This comes as the nickel producer is enjoying fresh multi-year highs on the spot price of nickel.
At the time of writing, Nickel Mine shares are up 8.04% to $1.075.
Image source: Getty Images
What's happening with Nickel Mines?
The Nickel Mines share price is surging today following positive investor sentiment in the electric vehicle (EV) battery market.
Nickel is a key component in lithium-ion batteries, which are used in generating power for electric vehicles. Nickel is able to produce a lot more energy into batteries than using cobalt. The latter is considered a more expensive metal and has fewer purposes across industries.
On the back of rising interest in the sector, the price of nickel has accelerated to US$20.23 per kilo. The crucial metal has risen close to 30% in the last 6 months.
In other news, the company released an update yesterday in relation to the issuance of its $150 million senior unsecured notes.
Nickel Mines advised it has completed the issuance at an interest rate of 6.50% per annum, maturing on 1 April 2024.
The new notes are expected to be consolidated with the existing notes to form a US$325 million single series of notes. Funds from the issue of the new notes will be allocated towards working capital and general corporate purposes.
Nickel Mines executive director and chief financial officer Peter Nightingale commented:
While the company's existing cash reserves and budgeted cash flows meet the US$210 million funding requirement to increase its ownership of the Angel Nickel Project, which will more than double the company's nameplate nickel production capacity after commissioning in 2022, from 50% already owned to 80%, this tap allows the company to maintain a healthy treasury balance.
About the Nickel Mines share price
Over the last 12 months, Nickel Mines shares have pushed around 60% higher, but are down around 2% year-to-date. The company's share price slumped in late April following a disappointing quarterly report and has moved sideways ever since.
Nickel Mines commands a market capitalisation of roughly $2.6 billion, with more than 2.5 billion shares on its registry.
