Poseidon Nickel (ASX: POS) is our preferred nickel exposure and its accelerating development of its historic Windarra mine
Poseidon Nickel (ASX: POS) is our preferred nickel exposure and its accelerating development of its historic Windarra mine. Poseidon announced yesterday that it has restarted mine refurbishment activities at the Windarra Mine site and employed new personnel as it accelerates development towards potential production later in 2014. Windarra is an old fashioned sulphide nickel project that comprises previously operational open-pit and underground mines at South Windarra and Mount Windarra respectively, in the heart of Western Australia's nickel belt. Poseidon is in negotiations with third parties that could potentially lead to ore processing and off-take agreements, which will significantly enhance project commercialisation, by reducing capital development costs. Poseidon is confident that one or more of these will ultimately be successful and has therefore taken steps to minimize the lead time to production, aided by rising nickel prices as a result of Indonesian supply restrictions. We see further price upside ahead.
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Gavin has been a senior resources analyst following the mining and energy sectors for the past 25 years, working with Intersuisse and Fat Prophets. He is also the Executive Director, Mining & Metals with Independent Investment Research (IIR).
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