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The rise of the electric vehicle (EV) sector has resulted in an immense need for industrial metals. One of them is nickel. Yet, the ensuing overflow of cheap nickel from Indonesia resulted in the price of the metal dropping precipitously. Now, there are signs of a gradual recovery.

For investors, an opportunity may be emerging as several nickel producers and explorers are trading at multi-year lows.

The price of nickel rebounded to above US$19,000 a ton in April from a low of US$15,700 earlier in the year. While that’s well below the recent high of more than US$48,200 a ton in April 2022, the move indicates the formation of a floor and signals the early makings of an upside formation.

This rebound is happening for two reasons: sustainability and overblown supply claims.

Nickel market activity is being driven by the emergence of sectors such as EVs and long-term energy storage solutions. But more importantly, it’s being driven by the reason these sectors exist in the first place: global sustainability.

Despite the excess nickel available, the market is not fully satisfied. That’s because nickel from Indonesia, while cheap, is also dirty and therefore won’t support climate and net-zero goals. In fact, it’s doing the opposite – and that’s affecting investors’ decision-making.

For corporations to be profitable over the long term, traceability needs to become a key component of nickel mining. The same scenario played out with cobalt. Investors, customers and governments will want and need to be able to trace raw battery materials such as nickel back to their origins, and those producers that can deliver that information quickly will come out on top.

As for supply, Indonesian nickel output pillaged global mining producers last year. Canada’s Deputy Prime Minister Chrystia Freeland and Natural Resources Minister Jonathan Wilkinson have spoken out about the glut of supply from Indonesia – with production mainly from China-based mining companies – and warned of market manipulation making Western mining companies’ operations uneconomical.

But Jim Lennon, a 44-year veteran nickel watcher with Macquarie Bank Ltd., has reported that nickel inventory is far lower than the reported figures, meaning the market could correct faster than many expect.

The International Energy Agency has forecast supply shortages later this decade as demand for green technologies rises, marking the importance of continued mining expansion in the West.

Greg Beischer is chief executive officer, president and director of Anchorage-based Alaska Energy Metals, which mines various metals, including nickel.

Seniors scramble to manage tax impact of higher GIC returns

Investors who stocked up on guaranteed investment certificates (GICs), lured by higher rates not seen in years, are now facing the aftereffects of higher income tax bills. Advisors say retired seniors, many of whom are on a fixed income and have fewer write-offs and deferrals than working Canadians, have been hardest hit this tax season. Some owe a lot more taxes and face a clawback of their Old Age Security benefits because of their GIC investment returns. “Some of my clients who are seniors are shocked by their tax bills this year,” says Debbi-Jo Matias, a chartered professional accountant in Vancouver. Brenda Bouw reports.

How the principal residence exemption can be used to reduce capital gains on vacation homes

Some Canadians who own more than one personal-use property – for example, a home and a cottage – may be considering selling these assets before June 25 to avoid exposure to the higher capital gains inclusion rate proposed in this year’s federal budget. But before they make a rash decision, they should consider how the principal residence exemption (PRE) can be used to eliminate or reduce taxes on the sale of a personal-use property. “[T]he PRE doesn’t only have to be used on the home in which a client sleeps most nights, it can also be used on their vacation home, which they might only inhabit for a short period of time each year,” writes Aaron Hector at CWB Wealth in Calgary. Here’s what clients can do.

How this equity investment specialist is playing the ‘picks and shovels’ of the AI boom

As an equity investment specialist at global financial services firm Capital Group, Kathrin Forrest has a broad range of stocks from which to choose. Artificial intelligence, a potential long-term source of disruption, is a current area of focus. “We’re focused on companies poised to benefit from the capital investment into expanding computing infrastructure – the picks and shovels – and that have stood a bit away from the spotlight,” Ms. Forrest says. Brenda Bouw asks what she’s been buying and selling.

Slow uptake for FHSAs among advisors leads to missed opportunity to connect with the next generation

More than $4-billion flowed into tax-free first home savings accounts last year, but financial advisors and full-service brokerages were responsible for only a small fraction of the new accounts, according to a report from Investor Economics, an ISS Market Intelligence business. Will Stevenson, senior research associate at Investor Economics, says it’s no surprise advisors represented a sliver of the total assets, given the average client for that channel is well into their 50s or 60s. But the new registered accounts offer an opportunity to build relationships with the next generation of clients, he says: “If advisors want to use this to connect with those children, I think this is a great way, and the first new way they’ve had in a while.” Kelsey Rolfe reports.

CRA reassessing charges for late trust filing after issuing penalties in error

What to do when a prospective client asks for a second opinion

What to consider when developing a financial plan for parents with disabled children

How this advisor went from being a broke, single mom to a successful entrepreneur and financial planner

What young people can do when homeownership seems out of reach

There’s room for good financial planning – and for error – before the June 25 capital-gains tax change

The federal budget’s proposed increase to the capital-gains inclusion rate, effective June 25, raises the question of whether investors should sell taxable assets before the new rate kicks in. While it may make sense for some people to sell their taxable assets before June 25, the answer is far from simple. Benjamin Felix explains.

Investment industry regulator plans to use new enforcement tools to return money directly to investors

A rarely used enforcement tool that helped recover US$6-million in losses from an online trading company offers a glimpse into the future of investor restitution, says the head of enforcement of Canada’s newly merged investment regulator. Currently, the Canadian Investment Regulatory Organization doesn’t have the power to return funds directly to harmed investors, even when the regulator orders a company to give up profits it earned because of wrongful conduct. But a recent settlement agreement with Fortrade Canada Ltd. included a compensation fund to return money to harmed investors directly. Clare O’Hara reports.

TD Bank faces mounting calls for executive change

Toronto-Dominion Bank is under escalating pressure to shake up its leadership in response to emerging details about its anti-money-laundering gaps that prompted a probe from U.S. regulatory and law-enforcement agencies. Media reports Thursday revealed that the lengthy investigation is tied to a US$653-million money-laundering and drug-trafficking operation, providing a long-awaited look into the issues that derailed TD’s major acquisition of Tennessee-based First Horizon Corp. last year. The uncertainty around the extent of the blow that the investigation would deal to Canada’s second-largest lender has caused concern among investors and analysts over TD’s growth prospects. Stefanie Marotta reports.

Wealthsimple experiencing massive growth after two quarters of record asset gains

Two years after its growth stalled, bank challenger Wealthsimple Technologies Inc. has rebounded sharply, delivering a surge in assets under management that one of its largest investors describes as ballistic. Wealthsimple has booked back-to-back record quarterly growth in assets, expanding by $6.1-billion in the fourth quarter of 2023, and $7.7-billion in the first quarter of 2024, as investors deposited funds across its savings and investing accounts. Sean Silcoff and Clare O’Hara report.

– Globe Advisor Staff