URU Metals Ltd (LON:URU) has told investors that it is expecting the recovery in nickel prices to continue into the New Year.
The spot nickel price had been on a downward trend since the end of 2014 but, like other metals, it has rallied so far in 2016 to stand at around US$4,850/lb.
The metals explorer’s main asset is the Zebediela nickel project in South Africa.
“URU continues to believe that the long-term fundamentals of the base minerals industries remain positive,” said chairman David Subotic.
“The company maintains its core strategy to develop its nickel assets, as the board anticipates growing demand and price appreciation for nickel in the short to medium term.”
The outlook came as part of URU’s interim results. The firm narrowed its comprehensive loss to US$201,000 for the six months to end September.
At the end of the period it had US$368,000 in the bank and no borrowings.
On the Zebediela project, URU noted that it hadn’t made any significant progress at the project during the six months.
Subotic added that the recent fundraise of US$920,000 will be used to progress the work program at the project, which is slated to started in January.