The nickel mining space is now gathering pace and this Coffee with Samso Episode 167 with Peter Harold, Managing Director and CEO of Poseidon Nickel Limited (ASX: POS), is all about the changing dynamics.
The Black Swan story stems from a long history of nickel prospecting and mining in the Kalgoorlie - Kambalda district. The company has gone through great lengths to come up with a Bankable Feasibility Study (BFS) which looks good.
Some people may say that the projections are not realistic but I feel that the move to an EV world requires taking quantum leaps in the mineral resource industry. The pricing of copper and nickel, which is principally the building blocks of industrialisation is now primed to move in a positive direction.
There are many commentaries out in the marketplace clearly showing that the appetite for a No Emission world is going to require a magnitude of mining activities. The increase is not going to be something like what we had in the past. This is a step ahead and the first companies that will take advantage, the first companies that will be rewarded, are those closest to mining.
The boom bust cycle of commodity prices will continue but at a different level. Hence, companies like Poseidon are well placed. The BFS is robust and using spot price is an ingenious move as the market perception is that the nickel price is moving.
In today's coffee conversation, Peter tells us all about the ins and outs of the Poseidon story.
Check out the conversation in this Coffee with Samso and, as I always encourage, DYOR.
Chapters:
00:00 Start
00:20 Introduction
01:01 Why did Peter join Poseidon Nickel Limited?
01:56 The geology of the project - Epic Silver Swan Discovery.
03:23 The projects of Poseidon Nickel Limited.
05:17 Infrastructure of the project.
07:06 Lake Johnston - Drilling Program and EIS grant.
10:15 Bankable Feasibility Study.
14:37 What are you going to do with the product? MOU with PBT.
18:44 Global significance of nickel - Government support.
25:37 ESG
27:20 Recent drilling.
30:12 Comments on the share price - MST report.
41:00 Poseidon Mythology - back in the days.
47:14 Final comments.
50:18 Conclusion
PODCAST
About Peter Harold
Managing Director and CEO
Peter Harold (B.AppSc (Chem) AFAICD) is a process engineer with over 30 years corporate experience in the minerals industry, specialising in financing, marketing, business development and general corporate activities.
He was until recently the Managing Director of Panoramic Resources, a company he co-founded as a $3 million IPO in 2001. Peter steered Panoramic through the financing and development of the Savannah Nickel Project in the East Kimberley and the acquisition and re-start of the Lanfranchi Nickel Project near Kambalda with the company reaching a market capitalisation of $1.2 billion in 2007. He was more recently involved in bringing the Savannah Project out of care and maintenance and back into production.
Peter has extensive experience in base metal mining project feasibility studies, financings, developments, operations and marketing.
About Poseidon Nickel Limited (ASX: POS)
Poseidon owns three significant nickel assets with a combined resource of close to 400kt of nickel and processing capacity of up to 3.7Mtpa of ore to produce nickel concentrate. The Company’s business strategy remains focussed on leveraging its existing asset base to grow Poseidon into a significant nickel producer over a period of expected significant growth in nickel demand largely driven by growth in the electric vehicle market.
Poseidon’s strategic pillars are developing a pathway to production, targeted exploration across its nickel asset portfolio and considering proximal business development opportunities. The key enablers for the Company’s strategy to be successfully executed are ensuring key capabilities are resourced and the business is sufficiently funded for growth underpinned by a strong ESG framework.
Poseidon Business Strategy
The Company’s pathway to production was significantly progressed during FY22 with two metallurgical breakthroughs which could significantly improve the economics of the Black Swan project. The first involves incorporating a rougher concentrate regrind into its process flowsheet to significantly improve the quality of the smelter grade concentrate, which is expected to result in improved nickel payability. The second was testwork on a combined serpentinite and talc carbonate ore blend to produce a rougher concentrate which is amenable to both pressure oxidation and high-pressure acid leach to produce a mixed hydroxide precipitate.
With the assistance of Poseidon’s geological consultants, Newexco, the Company completed an exploration targeting report for Lake Johnston during FY22, with follow up reports for Black Swan and Windarra to be delivered in FY23.
The Lake Johnston report identified the Western Ultramafic Unit as a priority, with a program of works approved to undertake 15,000 metres of RC drilling which is planned for FY23.
The Company’s business development efforts over FY22 focused on delivering value from the Windarra/Lancefield gold tailings project. Partnering with Green Gold and determining whether their proprietary gold recovery technology is suitable for Windarra/Lancefield is considered the optimal path to unlocking value from this project.
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer.
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