Royal Nickel Jumps After Tsingshan Agreement

Royal Nickel Corp. (RNX), the owner of a nickel project in Quebec, gained the most in six months after the company signed a memorandum of understanding with Tsingshan Holding Group Co., a Chinese stainless-steel producer.

Royal Nickel rose 22 percent to 39.5 Canadian cents at 9:57 a.m. in Toronto, where the company is based. The shares earlier gained 23 percent, the most intraday since Aug. 24.

The two companies will consider offtake and partnership agreements after a feasibility study is completed on Royal Nickel’s Dumont project, the company said today in a statement. Tsingshan also expects to build a plant that would use nickel sulphide concentrate, which will be produced at Dumont, to produce stainless steel.

The news is “a positive first step” towards Royal Nickel securing a senior partner for development of the Dumont project, John Hughes, a Toronto-based analyst at Desjardins Securities Inc. said in a note today. Hughes rates the company a buy with a price target of C$1.95.

To contact the reporter on this story: Liezel Hill in Toronto at

To contact the editor responsible for this story: Simon Casey at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.