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POS - Poseidon Nickel

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Lucky_Country said:
Announcement out POS hits mass sulphide deposit !
Twiggys starting to focus on POS now FMG is almost there news to come thick and fast.
Click to expand...

Jeez, the intersection disclosed are fantastic..... but how about ALL of the drill holes?????????????

In the end, I think that if anyone can get the old Poseidon mine back up, it's Twiggy. But at a 100 Mil market cap with a swag of very dilutive options on issue to Twiggy's "Charity", there will be a cap under this one for quite some time IMO....

Cheers
 
Reece,

I'm not too clued up on options, but I'm guessing that as the price increases more options will be exercised and as that happens more dilution. That is what make out of your capped comment. Am I right
 
Just a cursory glance, but they don't actually look that good to me.

High grade, but just 60cm - 1.56m, and at 743m depth!

I am no Ni aficionado so I may be incorrect, but wouldn't you need some better widths to warrant even the inkling of consideration for an underground mine?
 
Looks like someone liked the announcement up 15% atm maybe the start of a good run on sustained buying.
Twiigy knows how too make money for sure
 
Personally in comparing POS too other NI companies I feel POS are very undervalued.
Depending on where you think the nickel price is heading there must be some good upside potential here with a great management team and Twiggy about too shift focus from FMG too POS
 
IJH,

Can you please explain why you feel they are undervalued?

IE - give some actual figures for your comparisons.

Thanks

Prawn
 
POS had a break out of 14 cents today on notice of the commencement of exploration at Menzies. 20% in one day! Who knows something the average shareholder does'nt? Interesting days ahead.:confused:
 
A good few days with strong finishes.
Twiggy wants a nickel refinery as part of the project design.
He loves a challange and is the right man to get things moving especially with the financial backing.
This could become a huge project and yet another landmark in the resource boom era.
POS can rival any Ni stock and surpass them.
A long road ahead but could be a good ride !
 
Welcome home Twiggy !
Harbinger funding, Twiggy gifted some FMG shares to his charity so they can execute options on POS and look at that shareprice respond.
Like the statement where they reckon POS can be another FMG.
 
From the "Business spectator"

11:53 AM, 26 Jun 2008 Giles Parkinson
Poseidon rekindled


US hedge fund investor Phil Falcone is so enamoured with the success of his investment in Fortescue Metals that he has decided to tip $US50 million to fund Andrew Forrest’s new Poseidon adventure.

Poseidon Nickel, which Forrest chairs, announced today that Falcone’s Harbinger Capital would buy $US50 billion in convertible notes – convertible at a 25 per cent premium to its last closing price – to help it fast track the development of Windarra nickel project.

Windarra is the same resource that sparked the extraordinary share price gains in the original Poseidon Nickel in the early 1970s. The modern Poseidon, formerly known as Niagara Nickel, bought the decommissioned mine from the former WMC.

Falcone has been a long time supporter of Forrest, and was a key noteholder in Forrest’s failed nickel venture, Anaconda, although Harbinger is thought to have emerged with little more damage than a write-down on missed interest payments and may have even exited with a profit after on-selling some of its notes.

Fortescue has been an altogether different story. Falcone stumped up $US50 million in corporate notes in February 2005. Those notes had a conversion rate of a 50 per cent premium to the prevailing market price, but are now worth an estimated $1.2 billion.

He has since bought more shares on market, mostly below 80c each, and his 16 per cent stake – bought at a total cost of around $400 million – is now worth some $5.5 billion.

The investment in Poseidon will give Harbinger a fully diluted 25 per cent stake in Poseidon, and according to the statement today, he sees similar opportunities, even if the nickel price has proved weak in recent months.

Forrest held a 30 per cent stake in Poseidon but transferred that interest into the Australian Children’s Trust, a benevolent trust created to help Aboriginal children.

Poseidon shares gained 16 per cent in early Thursday trade.

Going for it is our "twiggy"
My old man told me about this company in the early 70's
 
POS on fire today going against the poor lead from Wall Street.
A flow of good news will push POS to all time highs Twiggy has signalled his intentions and the instos are following.
 
Any current thoughts on POS. There has been a large drop in sp recently. Could this be a good time to top up?
 
POS has been fluctuating very widely like more than a bubble.

One thing I however failed to understand. When the share price is hovering at around 76 cents why should a director buy the share at $1.96 and Andrew Forrest another director will buy it at a deemed price of 95 cents and both of them transacted on 17th July/

Attached the documents and would appreciate to know some expertise

Regards
 

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Hi Miner,

Not much action on this thread lately.

Looks like POS has just completed a classic backtest on low volume (looks like the sellers are exhausted)...

General Chart: Bit of an agressive entry point here, but most indicators look set for action stations
 

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ectoplasm said:
Hi Miner,

Not much action on this thread lately.

Looks like POS has just completed a classic backtest on low volume (looks like the sellers are exhausted)...

General Chart: Bit of an agressive entry point here, but most indicators look set for action stations
Click to expand...

Finally looks like POS has decided to particitate in the base metals rally, by breaking out of the consolidation zone (shown below).
 

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ectoplasm said:
Finally looks like POS has decided to particitate in the base metals rally, by breaking out of the consolidation zone (shown below).
Click to expand...

Good stuff Ectoplasm

Sorry I was in overseas to spend some holiday time with family and deliberately put me out of Internet :) and hence could not interact with your mail of 4 Jan.

Regards
 
TYhe fact Twiggy has thrown his money behind this thing excites me as well.....but one needs to at least be aware of the past of this area....

Its a different story at todays nickel prices, but they need to stay there as traditionally its low grade/density Nikel

From Wikipedia
Poseidon bubble
From Wikipedia, the free encyclopedia
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The Poseidon bubble was a stock market bubble in which the price of Australian mining shares soared in late 1969, then crashed in early 1970. It was triggered by the Poseidon NL company's discovery of a promising site for nickel mining in September 1969.

In the late 1960s, nickel was in high demand due to the Vietnam War, but there was a shortage of supply due to industrial action against the major Canadian supplier Inco. These factors pushed the price of nickel to record levels, peaking at around £7,000/ton on the London market early in November 1969 [1]. In September 1969, the mining company Poseidon NL made a major nickel discovery at Windarra in the Shire of Laverton, Western Australia. In early September their shares had been trading at $0.80, but as information about the discovery was released, the price rose until it was trading at $12.30 on October 1. After this, very little further information came to light, but the price continued to climb due to speculation; at one point, a UK broker suggested a value of up to $382 a share.

The price of Poseidon shares quickly became too high for many investors, so some investors turned to other nickel stocks, stocks in other mines near Windarra, and eventually other mining stocks in general. As the price of mining shares grew, numerous new companies were listed by promoters looking to cash in. Some of these new listings did not even have any mining leases, let alone viable mines. Many investors lost money on these shady listings, and this attracted substantial negative press. Thus the image of mining stocks was tainted, and the prices began to fall. Mining stocks peaked in January 1970, then immediately crashed. Poseidon shares peaked at an intraday high of $280 in February 1970, and fell rapidly thereafter.

By the time Poseidon actually started producing nickel, the price of nickel had fallen. Also, the nickel ore was of a lower grade than originally thought, so extraction costs were higher. Profits from the mine were not sufficient to keep Poseidon afloat, and in 1976 it delisted. Western Mining then took over the mine, operating it until 1991.
Click to expand...

One has to think though that Twiggy has a far better idea then most Wikipedia contributors....

There plan for 100,000 tonnes per annum seems a long way off with a lot of hurdles, but if it comes good this thing will absolutely sky rocket...
 
From what I remember Western Mining took what nickel they could from the old Poseidon NL area and then gave up on it as the nickel price collapsed and that was that around 1989.
Poseidon Nickel, if you go by the front page of their website, they are looking for Poseidon boom number 2 (after 42 years that's a big hope).
Still, market cap is around $35 million and if we believe Poseidon Nickel's board they are in for one of Australia's biggest nickel resources.
Needs a lot of looking at to see if the stock is as mega cheap as they'd have us believe; maybe it is, or, on the other-hand ...
 
May have hit the bottom and bargin hunters are now moving in.

If Ni Miners are excluded from the RSPT this would be a big advantage for POS
 
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