Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) will be in a stronger financial position to execute its exploration strategy when the proposed sale of the Lake Johnston Project to Mineral Resources (MinRes) is finalised, enhanced by an ongoing leadership transition process.
After the downsizing of the board and executive team in September 2023, the company will make a further leadership change.
CEO transition
CEO Craig Jones, who has overseen the proposed Lake Johnston sale and implementation of aggregated annual cost savings of more than $6 million, will depart the company to pursue other opportunities.
He will be replaced by current CFO Brendan Shalders who will transition to CEO from April 1, 2024, with the CFO role not to be filled.
Additional headcount reductions have been made across the business since September 2023.
With the company shifting its focus to exploration targeting high-grade nickel sulphide resources and continuing to focus on cost reductions, it has a cash balance of approximately $2 million, excluding the $1 million to be received from MinRes, which sufficiently funds the business beyond the anticipated completion of the proposed Lake Johnston sale.
“Strong foundation”
Chairman Peter Harold said: “With the divestment of Lake Johnston, Black Swan remaining on C&M, the shift back to exploration and the continued focus on cost reduction, Craig Jones who has a strong operational background has decided to seek other opportunities.
"On behalf of the board, we would like to thank Craig for his leadership in delivering the Black Swan Bankable Feasibility Study and in recent times as CEO, the instigation and concluding of the planned sale of Lake Johnston and the implementation of significant cost savings providing a strong foundation as a re-focused exploration company.”
About new CEO
Shalders has been with Poseidon as CFO since September 2019 and has in-depth knowledge of the business and the company’s projects.
He is an experienced mining executive and has worked within or consulted to the mining and mining services industries for more than 20 years.
Prior to joining Poseidon, he was managing director at FTI Consulting, a restructuring and corporate advisory services firm where he assisted mining clients.
"Going forward Brendan brings significant experience and continuity to the CEO role having been the company’s CFO since 2019 and has also been instrumental in the implementation of the company’s strategy, Black Swan Bankable Feasibility Study, the proposed sale of Lake Johnston and in particular restructuring the cost base of the company,” Harold said.
Following the leadership change, the strategy going forward remains focused on targeted exploration and business development opportunities.
The company will continue to utilise highly experienced geological consultants to assist with exploration programs at Windarra and Black Swan.