Poseidon Nickel (ASX:POS) has continued its consolidation strategy with the restructuring of its executive management team.
Chairman Peter Harold says with the divestment of Lake Johnston, Black Swan remaining on care and maintenance, the shift back to exploration, and the continued focus on cost reduction, Craig Jones has decided to seek other opportunities.
Poseidon says Jones has been instrumental in delivering the Black Swan Bankable Feasibility Study (BFS) and in recent times as CEO, while instigating and concluding the planned sale of Lake Johnston and the implementation of significant cost savings providing a strong foundation as a re-focused exploration company.
Effective 1 April 2024, Jones will depart and the current CFO Brendan Shalders,will transition to CEO. The CFO role will not be replaced. Additional headcount reductions have been made across the business since September 2023.
The current cost reduction focus of the company has allowed it to significantly reduce expenditures and have a cash balance of approximately $2 million as of 18 March 2024. This is following ongoing care and maintenance and exploration activities throughout the quarter.
Post receipt of the Mineral Resources deposit for the proposed sale of Lake Johnston, the company is expecting to have a cash balance of some $3 million, which it says will provide sufficient funding to continue with its strategic activities.
The Windarra Tailings and Water supply agreement with Genesis is ongoing and the ministerial consent process is coming to a close, following which a further $500,000 is expected to be paid to the company.
Write to Adam Orlando at Mining.com.au
Images: Poseidon
