What caught our attention to Power Nickel Inc. (TSXV: PNPN) originally had nothing to do with nickel but was the fact they drilled one hole in this entirely new Lion Discovery area and discovered high-grade platinum. We consider platinum to be the world's most undervalued commodity. Discovering high-grade platinum in North America is extremely rare.
The high frequency traders had their algorithms programmed to naked short countless millions of PNPN shares, because the price of nickel was going straight down, down, down throughout all of 2023, but PNPN was holding up very strongly relative to the price of nickel and other nickel stocks. Almost every nickel stock was down more than the price of nickel except for PNPN, so they kept naked shorting more and more shares of PNPN all year long.
What caused the short squeeze had nothing to do with platinum but was the discovery of high-grade copper.
The naked shorts had no clue that PNPN would discover 8.17% copper, 8.44 g/t platinum, 6.25 g/t palladium, 0.58% nickel, 0.59 g/t gold, and 69.14 g/t silver over 14.42 meters in drill hole PN-24-047.
Polymetallic deposits with high-grade copper in strong jurisdictions like Quebec are as rare as rare can be. A decade from now they won't exist anymore at all, because we desperately need as much copper as possible for electricity infrastructure upgrades otherwise Nvidia GPU usage will bring down electricity grids across North America.
After 14 straight up days, PNPN has the longest winning streak of up days on any North American exchange, but the short squeeze could continue for many more weeks. Polymetallic deposits containing high-grade copper in a strong jurisdiction like Quebec is the best thing any company can possibly hope to discover!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from PNPN of US$50,000 cash for a six-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.
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