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The Nickel Mines Ltd (ASX: NIC) share price hit an all time high today amid surging nickel prices.
The company's shares are currently trading at $1.577 each, a 4.42% fall. However, in earlier trade, the Nickel Mines share price hit an all time high of $1.77. This represented a 7% increase on the previous closing price of $1.65.
Let's take a look at what is happening with Nickel Mines shares today.
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Nickel prices hit record prices
Nickel Mines shares hit an all time today on the back of record nickel prices on commodity markets. The nickel price shot up 90% to an all-time high on global markets overnight, according to a report on NAB trade.
Supply chain concerns are impacting the nickel price amid the Russian invasion of Ukraine.
Economic sanctions being imposed on Russia are sparking fears of a shortage, given Russia supplies 10% of the world's nickel.
Citi analysts are optimistic about nickel prices in the short term, a report cited by NAB stated. The note said:
Analysts at Citi are bullish on near-term nickel prices, citing supply concerns stemming from heightened Russia-Ukraine conflict; sees miners benefiting from price surge.
The Nickel Mines share price has surged 22% since market close on 22 February alone.
On 23 February, the company's shares gained more than 8%. In its financial results for the full year ended 31 December, Nickel Mines reported a 31% boost in profit from US$165.1 to to US$216.8 million.
Nickel is used in batteries for electric vehicles (EV) and in the production of stainless steel. EV sales are predicted to hit 20 million by 2025 and more than 70 million by 2040.
The company acquired an 80% interest in the Angel Nickel RKEF project during the year. Nickel Mines also recently completed the acquisition of an initial 10% of the Oracle Nickel Project in Indonesia. By 22 December, the company plans to own 70% of the mine.
Nickel Mines share price snapshot
The Nickel Mines share price has soared 25% in the past year and is up 13% year to date.
In the past month, the miner's shares have surged 11% and have gained 6% in the past week alone.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.
