Poseidon makes corporate waves amid Black Swan restart

Nickel sulphide explorer Poseidon Nickel (ASX:POS) has made internal changes to its corporate structure as part of the restart of the Black Swan operations. 

The company says these changes have been made to scale back corporate overheads and Black Swan operating costs. 

Proactive initiatives that will be implemented include company Managing Director and Chief Executive Officer (CEO) Peter Harold transitioning to Non-Executive Chair, and General Manager of Mining Craig Jones transitioning to CEO.

However, both Derek La Ferla and Dean Hildebrand will retire from the board. 

At Black Swan, the company has identified an opportunity to reduce the current care and maintenance expenditure by changing the pumping and ventilation regime in the Silver Swan decline, from the current continuous operation to a more sustainable periodic operating model. 

A smaller workforce, lowering power consumption for ventilation and pumping and reducing various other onsite expenses are expected to occur at Black Swan. 

Poseidon reports these changes at corporate and at site will save the company about $3 million annually. 

The company’s work going forward will focus on Lake Johnston along the Western Ultramafic Unit, however the Black Swan restart remains a key strategic initiative. 

Restart will occur until all outstanding items are resolved and the nickel price environment and equity markets improve.     

Speaking on the leadership transition, Harold says: “While we have made significant progress on project financing, concentrate quality and offtake, approvals and planning in relation to the Black Swan restart as previously advised we are not in a position to make the final investment decision for a number of reasons including the current weaker than anticipated nickel price, the short-term outlook for commodity prices and the need to complete additional metallurgical testwork. 

Our aim is to ensure costs are reduced while at the same time putting Poseidon in the best position for the restart

Since the decision was made, in mid-July 2023, to defer the restart, the board and executive team has been looking at ways to reduce costs in the business both at the corporate and asset levels. Our aim is to ensure costs are reduced while at the same time putting Poseidon in the best position for the restart.

I would like to take this opportunity to thank Derek and Dean for their efforts and dedication since they joined the company. I would also like to thank Craig for his commitment to the company and for stepping up into the CEO role.

I am passionate about Poseidon, its assets and its people and will transition from my current role to NonExecutive Chair. I look forward to assisting Craig and the executive team over this transition period. Our primary focus remains to restart Black Swan in the right nickel price environment.”

Poseidon Nickel is an ASX-listed explorer and developer with 3 projects located within a radius of 300km from Kalgoorlie in the Goldfields region of Western Australia. 

The company had $5.7 million cash at hand as of 30 June 2023, though Poseidon announced a $6 million placement in August this year.

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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.