Shares in Poseidon Nickel Ltd (ASX: POS) are rangebound today and down 1.11% to 8.9 cents.
ASX investors are showing a muted reaction to the company's half-yearly results to 31 December 2021.
Yesterday's release was labelled non-price sensitive when posted on the ASX late last night. But it's worth a look nevertheless to see what the company got up to during this time.
Poseidon Nickel share price unmoved by half-yearly report
Key points in the report included:
- Incurred a loss of $5.87 million for the period, compared to 2020 loss of $6.02 million
- Net working capital surplus of $17.17 million, compared to $2.44 million at 30 June 2021
- Net cash outflow from operating activities of $5.75 million, up marginally from $5.73 million year on year
- Cash and cash equivalents of $21.94 million at 31 December 2021
- In August 2021, the company raised $22 million (before costs).
What else happened this half for Poseidon Nickel?
During the period, the company announced its 'Fill the Mill' strategy of restarting operations at its Black Swan site.
Specifically, Poseidon says the Fill the Mill strategy is based on feeding the mill with a combination of "low-grade open pit ore, high-grade underground ore and Silver Swan tailings to improve concentrate quality".
Poseidon also says the results of site studies now provide a clearer picture of how to move forward.
"The results of an engineering study undertaken by GR Engineering Limited (GRES) concluded that the costs to refurbish the 1.1Mtpa processing plant would cost approximately $22 million", it said.
Aside from that, the group printed a loss of $5.87 million compared to a loss of $6.02 million the year prior. This flowed through to net working capital of $17 million, boosted by a capital raise in August.
Poseidon says the working capital surplus includes "a provision for environmental rehabilitation of $3,500,000 that is cash-backed (non-current asset)".
During the half, the Poseidon Nickel share price increased by 22%.
Management commentary
Speaking on the company's results, Poseidon Nickel's CEO, Peter Harold said:
The nickel price continued to remain strong during the period, peaking at just under US$9.60/lb in late November 2021 and post period end continuing its upward movement.
During first half FY2022 the Company adopted its new "Fill the Mill" strategy which focuses on restarting the Black Swan operations with high and low grade ore feed sources.
Progressing this strategy the Company released the Golden Swan Maiden Resource and the Silver Swan Tailings Maiden Resource during the period, and continued drilling Tundra Mute within the Silver Swan Channel and the Black Swan disseminated mineralised system.
Poseidon Nickel share price snapshot
In the last 12 months, the Poseidon Nickel share price has soared around 40% into the green. However, this year to date it is down 19%.
