Morgans revises its base case and assumes Poseidon Nickel refurbishes the 150,000tpa process plant to produce nickel in concentrate before moving to re-start the 1.1mtpa plant.
The company has now completed a $22m placement and an oversubscribed $6m share purchase plan to existing investors.
Final assays have now been received from Golden Swan with further high-grade intercepts noted. Morgans assesses the stock is fundamentally an exploration play and an option on the nickel price and retains a Hold rating. Target is raised to $0.13 from $0.076.
Sector: Materials.
Target price is $0.13.Current Price is $0.12. Difference: $0.01 – (brackets indicate current price is over target). If POS meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
