Poseidon releases June report

Poseidon Nickel has released its June quarter update, after acquiring the Black Swan project from Norilsk for $1.5 million.

The acquisition included a nickel sulphide plant that will reduce capital requirements at its Windarra development by more than $200 million and bring the development forward one year.

The company projects 1.1 million tonnes of ore will be processed through the plant and will be undertaking financial and technical analysis prior to restarting the Black Swan mine.

Evaluation will also be undertaken to relocate the plant from its Kalgoorlie location, to reduce ore transport costs, but in doing so the plant would lose its connection to the power grid and the nearby workforce.

Poseidon also raised $3.7 million through a placement in May, using part of the funding to purchase pumps for mine dewatering.

This raising contributed to the company ending the quarter with cash of $4.3 million.

The company also predicted strong nickel prices in the coming quarter due to a bipartisan export ban in Indonesia, creating a supply deficit.

Poseidon shares increased 7 per cent today to finish at 23 cents each at the close.