“Poseidon is in a strong position to implement its strategy in a rising nickel market.”
Resulting from the successful completion in August/September 2018 of the placement and rights issue, Poseidon raised approximately $70.6 million (net of fund raising costs). The success of this raising has put Poseidon in a strong position in a rising nickel market, to implement its strategy to bring operations back to commercial production, commencing with the Black Swan operations.
I would like to put on record our thanks and gratitude to our former chairman Chris Indermaur and director and former CEO David Singleton, both of whom retired as from 1 October 2018. Chris and David had been a key part of the Poseidon team since its inception in 2007 and provided the foresight and guidance to bring the company to the position it is now in. During the past ten years their leadership and strategic guidance enabled Poseidon to add the key assets of Lake Johnston and Black Swan to its current portfolio, assets which now provide a transformational platform for future growth.
Resulting from the placements and rights issue we have welcomed a new substantial shareholder to our register, our largest shareholder Black Mountain Metals Pty Ltd.
We welcome to the Board our two new members Karl Paganin and Felicity Gooding representing as nominees of our two major shareholders Black Mountain Metal Pty Ltd and Squadron Resources Pty Ltd respectively.
We have also recently reappointed Rob Dennis to the position of CEO. Rob, we believe is eminently qualified to lead the Company through the strategic path to production.
Notwithstanding recent setbacks, the nickel market is widely predicted to improve during the year with reported nickel stocks falling. The move towards electric vehicles is further driving demand for our nickel sulphide. Going forward, we have a pipeline of investment opportunities to utilise the revenue flow from Black Swan production, including restarting the Lake Johnston and Windarra sites.
To complement the Black Swan production strategy, we separately have a highly prospective drilling campaign underway at Lake Johnston. Additionally we are in discussion with a number of surrounding miners who are interested in using our surplus processing capacity to treat their ore.
We take this opportunity to thank our loyal shareholders and wish you all a very prosperous outcome in the coming nickel market.