Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Royal Nickel Jumps After Tsingshan Agreement

March 12 (Bloomberg) -- Royal Nickel Corp., the owner of a nickel project in Quebec, gained the most in almost five months after the company signed a memorandum of understanding with Tsingshan Holding Group Co., a Chinese stainless-steel producer.

Royal Nickel rose 11 percent to 36 Canadian cents at 4:12 p.m. in Toronto, where the company is based, the biggest one-day gain since Oct. 18.

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 lhill30@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.