Here’s why the Poseidon (ASX:POS) share price is sliding today

Investors appeared to have been chasing more out of Poseidon’s camp today.
The post Here’s why the Poseidon (ASX:POS) share price is sliding today appeared first on The Motley Fool Australia. –

The Poseidon Nickel Ltd (ASX: POS) share price is dropping in early trade today after the company released a key announcement on its Black Swan site.

At the time of writing, shares in the nickel mining company are changing hands at 10 cents each which is around a 5% loss from the open.

That’s a significant drop this morning after Poseidon shares started the day in the green before the jitteriness from investors crept in.

Here’s what we know from Poseidon’s camp today.

Poseidon Nickel share price slumps after exploration update

Poseidon outlined several takeaways regarding exploration and drilling progress at its Black Swan site.

It revealed two underground rigs are testing the “potential down plunge Silver Swan extensions and infilling existing inferred resources” at its Silver Swan resource drilling program.

The existing Silver Swan resources contain a total of “16kt Ni (Nickel) averaging 9.5% Ni spread over three resources”.

These are the Tundra-Mute, Peking Duck, and Fledgling-Canard resources that are each covered in detail throughout Poseidon’s update.

In addition, after Poseidon’s downhole EM program completed an up plunge of its Golden Swan site, it explained there was “no significant anomalism detected”.

Yet, it maintains that “prospectivity remains in untested areas of the Southern Terrace”.

In respect to the Golden Swan resource, there’s a delay in the finalisation of the maiden resource due to “unforeseen circumstances”.

Investors can expect results of the maiden resource at this site to be released in the last week of October, according to the company’s update.

Lastly, regarding its “Fill the Mill Strategy”, work is continuing on its Bankable Feasibility Study on a 1.1Mtpa processing plant.

The ‘base feed’ for the study is “a combination of Black Swan open pit ore and Silver Swan Tailings” to be complemented with “high grade ore from both Golden Swan and Silver Swan”.

Notably, Poseidon needs to first record a resource at its Golden Swan site to include in the base feed for the study.

What did management say?

Regarding the Fill the Mill Strategy, Poseidon Nickel managing director and CEO Peter Harold said:

The Fill the Mill Strategy for the Black Swan restart requires good confidence in our high-grade resources at both Silver Swan and Golden Swan so the mining studies can maximise the mining inventory and generate accurate mining schedules to assist in de-risking the restart.

Also touching on mineralisation finds at the project, Harold added:

New DHEM platforms have been established down plunge of the Silver Swan mineralisation and these are awaiting a geophysical crew to undertake the survey. The results of the survey could provide targets for extensional drilling. In the meantime, we have identified a good zone of mineralisation below the Black Swan open pit from previous RC drilling, undertaken in 2019, which could present an opportunity to increase the size of the pit and extend the proposed open pit mine-life. We can drill this zone from underground and will redeploy one of the underground rigs to undertake that drilling.

Poseidon Nickel share price snapshot

The Poseidon Nickel share price has delivered an outsized return of 54% since January 1, extending its gains in the last 12 months to 19%.

That’s roughly in line with the S&P/ASX 200 Index (ASX: XJO)’s return of about 21% in that time.

The post Here’s why the Poseidon (ASX:POS) share price is sliding today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Poseidon Nickel right now?

Before you consider Poseidon Nickel, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Poseidon Nickel wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Here’s why the Poseidon (ASX:POS) share price is up 5% on Wednesday

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!