The Poseidon Nickel Ltd (ASX: POS) share price has been struggling the past month.
The company’s share price has fallen 24% from 8.9 cents at market open on 19 April to its current share price of 6.75 cents. In today’s trade, the Poseidon Nickel share price is rallying 3.5%.
Let’s take a look at what is happening at Poseidon Nickel.
Why is the Poseidon Nickel share price falling?
Nickel prices could be impacting the company’s share price. Nickel prices have plunged 20% in a month, Trading Economics data shows.
Poseidon is exploring the Windarra, Black Swan, and Lake Johnson nickel projects in Western Australia.
The company reported its quarterly results on 29 April. On that day, the company’s share price climbed 1.2% from 8.3 to 8.4 cents. The company reported cash of $16.8 million as of 31 March 2022. Commenting on the results, managing director and CEO Peter Harold said:
The company continues to make solid progress on our ‘Fill the Mill’ strategy. The Black Swan Disseminated resource drilling program, Silver Swan decline rehabilitation and pit dewatering studies were important milestones achieved in the March quarter.
Earlier, on 27 April, Poseidon provided a resource update from the Silver Swan deposit at Black Swan. The company reported an increase in high-grade resource base at the project.
For context, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen more than 12% in the past month.
Share price snapshot
The Poseidon Nickel share price has climbed more than 6% in the past year but it has shed 38% in the year to date.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 1% in the past year.
Poseidon Nickel has a a market capitalisation of about $208 million based on today’s share price.