The Poseidon (ASX:POS) share price is rocketing 15% today

The future of Poseidon's Windarra Project looks golden.

| More on:
Close-up of a smiling man holding a jar containing nuggets of gold.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Poseidon Nickel Ltd (ASX: POS) share price is soaring after the company released the Definitive Feasibility Study (DFS) for its Windarra Gold Tailings Project.

The company expects the project's gold tailings to provide a cash flow it can invest into its nickel production.

Right now, the Poseidon Nickel share price is 13 cents, 15.45% higher than its previous closing price.

Let's take a closer look at today's news from the Western Australia-based nickel producer.

Poseidon's Windarra DFS

Windarra has been found to have an ore reserve of between 5.54 and 5.73 megatons, with a grading of 0.84 grams of gold per tonne and 2.1 grams of silver per tonne.

This equals around 150,000 ounces of gold and 375,000 ounces of silver.

Depending on the mining method used, Windarra could produce between approximately 53,500 and 55,200 ounces of gold over a 45-month period.

The company says the project's DFS has found it to be profitable. Poseidon is now looking for a partner to help them bring Windarra into production.

The DFS found both hydraulic mining and amphibious dredging to be viable mining methods for the project.

Windarra will likely cost between $25.8 million and $29.5 million to develop. It has an expected net operating cash flow of $30.6 million and an all-in sustaining cost of $1,393 per ounce.

Therefore, the company believes it would take between 27 and 28 months from the start of construction to pay back the cost of the project's development.

Windarra has received ministerial approval. It also has environmental approval, conditional upon its mining proposal being approved within 6 months.

Poseidon Nickel share price snapshot

The Poseidon Nickel share price has been performing well on the ASX lately.

It has gained 81% in 2021. It is also 323% higher than it was this time last year.

The company has a market capitalisation of about $365 million, with approximately 2.8 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Middle age caucasian man smiling confident drinking coffee at home.
Resources Shares

Should you buy Rio Tinto stock or Woodside stock today?

Which of these giants is best? Here's what Goldman thinks.

Read more »

Miner looking at a tablet.
Resources Shares

What does Trump's win mean for iron ore shares like Fortescue?

The controversy on tariffs has already started.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Own BHP shares? Directors of the mining giant have been busy with stock transactions

It can be worrying when directors sell.

Read more »

Buy, hold and sell ratings written on signs on a wooden pole.
Resources Shares

Are Lynas shares a buy, sell, or hold for 2025?

Much depends on the outlook for rare earths.

Read more »

a tired and sad looking bulldog sits at an office desk with a pen an paper on it and a cup of coffee with his head resting on the desk as he gives a mournful look to the camera.
Resources Shares

After crashing 50%, could this ASX All Ords stock rebound?

Such low starting valuations could help.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Why did the Fortescue share price fall 7% in October?

Let's review what happened with the ASX 200 mining giant in October.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Resources Shares

Why did the BHP share price get hammered in October?

ASX 200 investors sent BHP shares sharply lower in October. But why?

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Gina Rinehart's empire raked in another $5.6 billion. Here's how

Resources and mining continue to dominate the Australian market.

Read more »