Poseidon’s (ASX:POS) shares on trading halt; here’s why

Australian nickel sulphide explorer Poseidon Nickel Limited’s (ASX:POS) shares have been put on a trading halt from 29 November 2022 for two business days with an immediate effect.

The company had requested ASX to freeze all its listed securities as it readies for an announcement regarding a capital raise. Before the market opening on 1 December 2022, Poseidon anticipates making this announcement at any point in the upcoming two days. Once the capital raising update is made public, Poseidon’s shares will be commenced of normal trading on the same day.

At the time of the trading halt, one share of Poseidon was valued at AU$0.041.

How did Poseidon's shares fare over a year?

In the last five trading sessions, Poseidon’s share value has dropped by 8.89% while increasing by 2.52% in a month. The nickel miner’s shares witnessed a fall of 41.43% over the previous six months of trading, followed by a startling 65.83% decline on a year-to-date (YTD) basis. In addition to this, the share price of Poseidon has shed its value by 54.44% over the course of a year (as of 4:10 PM AEDT, 28 November).

What else has happened at Poseidon?

The biggest milestone for Poseidon during 2022 was to complete the bankable feasibility study (BFS) for its Black Swan nickel project, according to the company’s annual general meeting (AGM) presentation released on 24 November 2022. With the help of the Black Swan project, Poseidon aims to advance toward being a sustainable nickel producer with more than 15ktpa capacity.

Poseidon’s AGM presentation showcased key achievements of the last 12 months as the following:

• Black Swan project has a net present value (NPV) of AU$248 million with an internal rate of return (IRR) of 103% at the current spot nickel price, indicated in Black Swan’s BFS.
• During 2022, Poseidon converted the Black Swan project’s mineral resources growth into the company’s reserve, taking Poseidon’s total mineral reserves to 3.5Mt.
• With the aid of the regrind circuit and the inclusion of the Silver Swan tailings, Poseidon was able to achieve metallurgical advances in 2022.
• Poseidon’s Windarra Gold project entered a partnership with Green Gold projects in 2022. Through this partnership, the company expects acceleration in the development and implementation of tailing projects.