Poseidon Nickel Limited (ASX:POS) - A Nickel Mining Story - Update with Peter Harold

The path to production is now gathering pace and this Rooster Talk Episode 70 with Peter Harold, Managing Director and CEO of Poseidon Nickel Limited (ASX: POS).

 

Samso’s Conclusions (Tony’s Take)

 

We believe POS is about to embark on that final, exciting phase of a mining company’s journey – commencing production. The long term outlook for nickel is excellent and Poseidon is virtually unique, globally, amongst all those prospective and near term producers. It has multiple existing nickel assets from average to high to super high grade ores and strong drilling exploration targets - and it has infrastructure valued conservatively at over $600 million replacement value.

 

The share price on the other hand, has waxed and waned at a relatively low level for more than a decade of trading, suffering from historical nickel price setbacks and this has induced a level of scepticism that, frankly, is unwarranted. Mr. Market values their shares at a paltry 3.6 cents, with a market cap of circa $120 million.

 

The experienced management team in place led by Peter Harold has been diligently working through all the necessary precursors to production and during that process they have unlocked enormous economic potential.It is our firm belief that Poseidon will be substantially re-rated this year and, therefore, there is a great opportunity to get in early ahead of key announcements regarding the FID and Project Funding and Offtake Agreements.

 

 

 

Chapters:

00:00 Introduction

01:17 Recap of March 6 Announcement; Black Swan Project progress leading to Final Invest Decision (FID) and Project Funding/Offtake Agreement.

05:12 Market perception and assay results implications.

07:50 The Expansion Project: investigating and modelling increasing the existing plant throughput from 1.1 mt/pa to 2.2 mt/pa. The production of two different grades and forms of nickel concentrate.

14:48 Cost implications of production expansion (per unit and capex).

16:03 Life of Mine comments.

19:05 Holistic mining scenarios, incorporating Lake Johnson with Black Swan and Windarra assets (all geographically separated sites).

25:23 Cascading effect of multiple assets becoming mined over time.

26:39 Refurbishment of Black Swan processing plant – time to complete and get into production.

27:26 Confidence in achieving the milestone of FID and Project Funding/Offtake Agreement.

32:15 Concluding comments from Tony.