First Quantum’s Ravensthorpe May be in Jeopardy

ABC News reported that business commentator Tim Treadgold believes that falling nickel prices are putting pressure on First Quantum Minerals Ltd.’s (TSX:FM,LSE:FQM) Ravensthorpe nickel mine, located in Australia.

As quoted in the market news:

But, nickel miners are facing increasing pressure from the price, which has dropped from over US $8 per pound in February to just above 6.

Mr Treadgold says the price is putting the South Coast mine’s sustainability in serious doubt, just months after Galaxy Resources suspended the local lithium mine.

‘They were for a while below the cost of production,’ he said.

‘Whether they were making a profit is a different question, they may have just been paying their way but $6 is an extremely damaging price for Ravensthorpe.’

Click here to read the full ABC News report.