What's up with the Poseidon Nickel (ASX:POS) share price on Friday?

Poseidon Nickel has released its half-yearly accounts.

| More on:
A man wearing thick rimmed black glasses and a business shirt with red suspenders sits at his desk sorting through the earnings report of Nickel Mines

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Poseidon Nickel shares are rangebound today following the release of the company's half-yearly accounts yesterday 
  • The group printed a loss of $5.87 million for the period, compared to a loss of $6.02 million the year prior
  • In the last 12 months the Poseidon Nickel share price has soared around 40% into the green 

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%.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »

increasing rural asx share price represented by happy looking sheep
Earnings Results

Why is this ASX All Ords stock staying strong as profits crash 76%

How is this company's share price marching higher after mowing down more than three-quarters of its profits compared to a…

Read more »

Two men sit side by side on a couch with video game controls in their hands and expressive looks on their faces as they react to the action in front of them in a home setting.
Earnings Results

Guess which ASX 200 stock is surging 11% on an 'outstanding' result

This ASX gaming giant just posted a 17% jump in profits, and its shareholders are basking in the glory.

Read more »

Agricultural ASX share price on watch represented by farmer in field looking at tablet computer.
Earnings Results

Graincorp share price lifts off as dividend is maintained and debts plunge

ASX 200 investors are bidding up the Graincorp share price today. But why?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Earnings Results

Why is this ASX 200 stock avoiding the market selloff and pushing higher?

Not all shares are falling with the market on Thursday.

Read more »