Poseidon well-funded to drive focus on exploration targeting high-grade nickel sulphide resources
Opportunity to reduce costs further with leadership transition
Annualised cost savings over $6m realised so far
Special Report: Poseidon Nickel is continuing strategic moves to better position itself for an uptick in the nickel price, with leadership changes set to further benefit the balance sheet.
Poseidon Nickel (ASX:POS) has identified an opportunity to further reduce costs via a leadership transition.
With the successful negotiation for the $15m sale of Lake Johnston to Mineral Resources (ASX:MIN) and Black Swan remaining on care and maintenance, CEO Craig Jones will depart to pursue other opportunities and CFO Brendan Shalders will step into the top job.
Once Poseidon receives the $1m deposit from MinRes for the sale of Lake Johnston, the company will have around $3m in the bank, sufficiently funding the company beyond the anticipated completion of the proposed sale.
Poseidon’s cash position will be boosted further with a $6.5m cash payment from MinRes on completion of a formal sale agreement and the remaining $7.5m to be paid 12 months after completion.
“With the divestment of Lake Johnston, Black Swan remaining on C&M, the shift back to exploration and the continued focus on cost reduction, Craig Jones who has a strong operational background has decided to seek other opportunities,” chairman Peter Harold said.
“On behalf of the Board, we would like to thank Craig for his leadership in delivering the Black Swan bankable feasibility study and in recent times as CEO, the instigation and concluding of the planned sale of Lake Johnston and the implementation of significant cost savings providing a strong foundation as a re-focused exploration company.
“Going forward Brendan brings significant experience and continuity to the CEO role having been the company’s CFO since 2019 and has also been instrumental in the implementation of the company’s strategy, Black Swan bankable feasibility study, the proposed sale of Lake Johnston and in particular restructuring the cost base of the company.”
Additional headcount reductions have been made across the business since September 2023, Poseidon said.
Initiatives implemented to date have delivered over $6m in combined annualised cost savings.
The anticipated completion of the Windarra Tailings and Water supply agreement with Genesis Minerals (ASX:GMD) will contribute a further $500,000 to the coffers.
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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