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Care and Maintenance in the Cards for First Nickel's Lockerby Mine
Aug. 17, 2015 01:54PM PST
Base Metals Investing First Nickel Inc. (TSX:FNI) released its results for H1 and Q2 2015, reporting a net loss of $31.1 million for Q2, and revenues of $12.9 million. In Q2 2014, the company had a net loss of just $874,273 and saw revenues of $21.5 million.
First Nickel Inc. (TSX:FNI) released its results for H1 and Q2 2015, reporting a net loss of $31.1 million for Q2, and revenues of $12.9 million. In Q2 2014, the company had a net loss of just $874,273 and saw revenues of $21.5 million.
In terms of production, First Nickel’s Lockerby mine put out 2.6 million pounds of contained nickel and 1.5 million pounds of contained copper for the quarter. That’s down from 3.1 million pounds of contained nickel and 1.7 pounds of contained copper in the year-ago period.
First Nickel recently discontinued ramp development at Lockerby, meaning that it will run out of accessible economic ore this quarter. After that happens, the company plans to either put Lockerby on care and maintenance or close it entirely. First Nickel has also decided not to move forward with planned exploration drilling and has retracted its previously issued guidance.
Other key details are as follows:
- Total cash production costs1: Total cash production costs were $5.9 million and $14.7 million for the three and six months ended June 30, 2015, or $4.31 (US$3.51) and $5.87 (US$4.75) per gross-metal-value (“GMV”)-net pound of nickel shipped, respectively.
- 1 For additional information, see section “Non-GAAP and Additional GAAP Financial Measures”. For a reconciliation of total cash production costs see the “Cash production costs” section.
- Development: During the three months ended June 30, 2015, ramp and lateral development totaled 131 metres and 71 metres, respectively (244 metres and 218 metres respectively, in the first half of 2015). Ramp development was stopped effective June 8, 2015, principally as a result of low nickel market prices.
- The Company recorded an impairment charge of $26.7 million in the three months ended June 30, 2015, for the impact of a shortened mine life and lower production now expected from the Lockerby Mine.
- Net loss: The Company had a net loss of $31.1 million and $48.1 million for the three and six months ended June 30, 2015, respectively.
- At June 30, 2015, the Company’s unrestricted cash balance was $2.6 million.
Click here to read the full First Nickel Inc. (TSX:FNI) press release.