Here's why the Poseidon Nickel (ASX:POS) share price is on ice today

The company's shares are frozen today pending an announcement.

| More on:
A dollar sign embedded in ice, indicating a share price freeze or trading halt

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

sdf

Key points

  • Poseidon Nickel shares are in a trading halt from this morning, requested by the company before the market open
  • Before being halted, the company's shares closed at 8.7 cents on Wednesday
  • Poseidon Nickel shares are expected to resume trading on or before Friday 18 March

The Poseidon Nickel Ltd (ASX: POS) share price won't be going anywhere on Wednesday.

This comes as the company requested that its shares be placed in a trading halt.

At such, the nickel producer's share price is frozen at 8.7 cents.

Why is the Poseidon Nickel share price halted?

Prior to the market opening, the company requested the Poseidon Nickel share price be halted while it prepares an announcement.

In its release, the company advised it planned to make an announcement regarding a "significant funding development" with the Pure Battery Technologies Kalgoorlie battery metals refinery.

Poseidon Nickel has asked that the trading halt remain in place until Friday 18 March or following the release of the announcement, whichever comes first.

More on Pure Battery Technologies

Pure Battery Technologies announced plans in October last year to build a $460 million battery material refinery in Western Australia.

The hub will process nickel, manganese and cobalt to initially produce 50,000tpa of precursor cathode active material (pCAM) per year. This will be enough to create up to one million lithium-ion EV batteries in an effort to meet global demand.

Pure Battery Technologies managing director and CEO Bjorn Zikarsky said previously:

The Kalgoorlie pCAM hub is ground-breaking in terms of the green technology it will use and its role in the future of domestic and overseas EV markets.

Both Pure Battery Technologies and development partner Poseidon Nickel have been working together to get the project off the ground.

Poseidon Nickel managing director and CEO Peter Harold commented earlier this month:

We are currently advancing the bankable feasibility study for Black Swan, which includes evaluating a number of offtake options to deliver long term value for the project. These options include traditional nickel smelters, existing leaching plants and proposed plants (ie. PBT's Kalgoorlie pCAM hub).

About the Poseidon Nickel share price

From March 2021 to July 2021, Poseidon Nickel shares surged from 5.5 cents to an all-time high of 16 cents.

However, this was short-lived with the company's share price tumbling 60% to around 10 cents in August 2021.

Since then, Poseidon Nickel shares have moved in circles despite the spot price of nickel rocketing 200% in a year.

Based on valuation grounds, the company has a market capitalisation of roughly $266.56 million, with approximately 3.06 billion shares outstanding.

Motley Fool contributor Aaron Teboneras 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

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Is the Fortescue share price a buy for passive income?

Let’s dig into the potential of this mining giant.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Major miners fall as iron ore prices continue to sink

Waning Chinese demand and oversupply concerns push iron ore prices lower.   

Read more »

A mining worker clenches his fists celebrating success at sunset in the mine.
Resources Shares

Would I buy Pilbara Minerals shares?

Are investors missing an opportunity with this lithium stock?

Read more »

Three miners looking at a tablet.
Resources Shares

Here's the earnings forecast out to 2029 for BHP shares

Let’s dig into the predictions.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.
Broker Notes

Why Macquarie expects this ASX All Ords copper stock to soar 48% in a year

Macquarie forecasts another big year of gains ahead for this ASX All Ords copper stock. But why?

Read more »

Female miner standing smiling in a mine.
Broker Notes

Why Macquarie predicts Pilbara Minerals shares could surge 71%

Macquarie forecasts a big rebound ahead for Pilbara Minerals shares. Let’s find out why.

Read more »

Two mining workers in orange high vis vests walk and talk at a mining site.
Resources Shares

ASX All Ords mining stock sinks on US silver acquisitions

Investors are bidding down the ASX All Ords miner on US acquisition news. But why?

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

How these 2 tailwinds could boost the BHP share price into 2026

A leading expert forecasts that BHP shares are set to recover. But why?

Read more »