Just two months after announcing the acquisition of the Black Swan mine complex, Poseidon Nickel (ASX:POS) is acquiring another past-producing project which has been placed on care and maintenance. The company is purchasing the Lake Johnston nickel project and concentrator from Norilsk Nickel for an undisclosed amount which will very likely be very reasonable as Poseidon expects to be able to finance it with its existing cash position.
Poseidon seems to be on the consolidation warpath as it now has three past-producing nickel projects which could be brought into production rather quickly and at a very low cost. With this recent acquisition, the company is establishing itself as a go-to destination for Australian nickel investors as its total nickel inventory is now close to 895 million pounds for a total in-situ value of $7.4B. The proof will obviously be in eating the pudding, but it looks like Poseidon Nickel is getting all its ducks in a row.
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Disclosure: The author holds no position in Poseidon Nickel, but is closely watching further developments. Please see our disclaimer for current positions.
