Poseidon Nickel (POS) has acquired the Lake Johnston nickel operation from Norilsk Nickel for cash (funded from existing cash reserves). Lake Johnston is located in Western Australia, approximately 440km east of Perth and 117km west of Norseman. The Lake Johnston operation consists of the Maggie Hays and Emily Ann underground mines, a 1.5Mtpa processing plant, and associated infrastructure. This is the second company transforming acquisition for POS within a short period and significantly enhances the production and capital cost outlook. POS plans to restart the operation within the next few months. The acquisition lifts our NPV to A$0.67/sh, from A$0.55 (fully diluted). We maintain a BUY.
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