• Poseidon has identified around $3m in cost savings annually
  • The initiatives position the company for the Black Swan nickel project restart
  • A revised operating model is expected to materially reduce care and maintenance costs

 

Poseidon Nickel has implemented a cost savings strategy aimed at putting itself in the best position possible for the restart of the Black Swan nickel mine in the right nickel price environment.

Poseidon Nickel (ASX:POS) has identified around $3m in cost savings annually and is continuing to pursue its strategy that focuses on the pathway to production, targeted exploration and business development.

Managing director and CEO Peter Harold said that since the decision was made, in mid-July 2023, to defer the restart, the board and executive team had looked at ways to reduce costs in the business both at the corporate and asset levels.

“To that end some major personnel changes will be made, including myself, to significantly reduce the corporate overhead while preserving the knowledge base of the company,” he said.

“In addition, we have revised the care and maintenance operating model at Black Swan which will result in a material reduction in annual operating costs without impacting the restart timetable for the mine and processing plant when a decision to restart is made”.

“Our aim is to ensure costs are reduced while at the same time putting Poseidon in the best position for the restart. Combined cost reductions from these initiatives total approximately $3 million on an annualised basis.”

 

Targeted strategy

Poseidon has made significant progress towards the restart of the Black Swan operations, with the confirmation of the metallurgical recoveries the main item outstanding.

While a financial investment decision remains on hold for the time being, Poseidon has implemented some proactive initiatives at the corporate and project levels.

Peter Harold will transition from managing director and CEO to non-executive chair, Craig Jones – Poseidon’s current general manager mining – will transition to CEO, and Derek La Ferla and Dean Hildebrand will retire from the board.

“I am passionate about Poseidon, its assets and its people and will transition from my current role to non-executive chair. I look forward to assisting Craig and the executive team over this transition period,” Harold said.

Poseidon has also implemented a revised operating model to materially reduce care and maintenance costs whilst still maintaining the ability to access the infrastructure in readiness for a future decision to restart.

“Our primary focus remains to restart Black Swan in the right nickel price environment,” Harold said.

“Our immediate priorities are to confirm the metallurgical recoveries for the smelter grade concentrate project, complete the Expansion Project prefeasibility study, continue exploration activities at Lake Johnston along the highly prospective Western Ultramafic Unit and keep reviewing our assets and costs and make further adjustments were necessary.”

 

 

This article was developed in collaboration with Poseidon Nickel, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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