- Poseidon Nickel (POS) decides to defer the restart of its Black Swan project due to operational factors and external market conditions
- Black Swan’s restart decision is deferred due to project-related factors, local labor market issues, and market volatility
- Negotiations remain underway for offtake and project debt financing agreements with international players
- Technical review reveals lower non-sulphide nickel content in recent test work samples
- Poseidon Nickel closed down 21.43 per cent on Monday, trading at 3.3 cents
Poseidon Nickel (POS) has decided to delay the restart activities for its Black Swan project. This decision comes following a detailed review of technical data surrounding the play, as well as macroeconomic market conditions.
The company remains in negotiation with two international groups to secure separate offtake and project debt financing agreements.
Poseidon Nickel has received draft agreements from both groups and has consulted with experts in concentrate marketing and legal matters to review the terms and conditions.
Regardless, project-related factors – including ongoing challenges in the Western Australian labor market, and the unavailability of FIFO (Fly-In Fly-Out) accommodation in Kalgoorlie – as well as increased volatility in global commodity and equity markets have informed the decision to defer the Black Swan project restart.
The company anticipates that the global market volatility will subside by 2024, creating a more favourable environment for project development.
“We remain dedicated to restarting Black Swan as soon as it is feasible to do so,” Managing Director and CEO of Poseidon Nickel Peter Harold said.
On the other hand, results from locked-cycle flotation test work conducted on the disseminated serpentinite ore, which formed the basis of the Black Swan Bankable Feasibility Study (BFS) in November 2022, indicated a nickel recovery rate consistent with the production data from the project’s previous operation in 2008/09.
However, upon careful examination of the most recent Disseminated Mineral Resource Block Model, updated in June 2023, the technical team identified lower non-sulphide nickel content and a higher sulphur to nickel (S:Ni) ratio in the samples used for the testwork program.
Poseidon Nickel will continue to assess market conditions and make informed decisions in order to position itself for the optimal restart of the Black Swan project, contributing to the growth of the nickel industry in Australia.
Poseidon Nickel closed down 21.43 per cent on Monday, trading at 3.3 cents.