공시 • Oct 02
Poseidon Nickel Limited, Annual General Meeting, Nov 20, 2024 Poseidon Nickel Limited, Annual General Meeting, Nov 20, 2024. New Risk • Sep 05
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 13% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (27% average weekly change). Earnings have declined by 23% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (AU$12.5m market cap, or US$8.44m). Minor Risk Shareholders have been diluted in the past year (13% increase in shares outstanding). New Risk • Jun 25
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: AU$14.9m (US$9.89m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$18m free cash flow). Share price has been highly volatile over the past 3 months (20% average weekly change). Revenue is less than US$1m. Market cap is less than US$10m (AU$14.9m market cap, or US$9.89m). Minor Risk Shareholders have been diluted in the past year (9.1% increase in shares outstanding). New Risk • May 16
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: AU$14.9m (US$9.92m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$18m free cash flow). Share price has been highly volatile over the past 3 months (18% average weekly change). Revenue is less than US$1m. Market cap is less than US$10m (AU$14.9m market cap, or US$9.92m). Minor Risk Shareholders have been diluted in the past year (9.1% increase in shares outstanding). 공시 • Mar 20
Mineral Resources Limited (ASX:MIN) entered into binding heads of agreement to acquire Lake Johnston Project from Poseidon Nickel Limited (ASX:POS) for AUD 15 million. Mineral Resources Limited (ASX:MIN) entered into binding heads of agreement to acquire Lake Johnston Project from Poseidon Nickel Limited (ASX:POS) for AUD 15 million on March 18, 2024. Consideration comprises of AUD 1 million non-refundable cash payment, AUD 6.5 million payable on completion of a formal sale and purchase agreement and AUD 7.5 million deferred payment (payable 12 months after completion). The transaction is conditional upon completion of legal due diligence on the sale assets to the reasonable satisfaction of Mineral Resources, the Parties entering into an assignment deed with the relevant parties in respect of the Ngadju Native Title Agreement on terms acceptable to Poseidon Nickel and the consent of the Minister for Mines and Petroleum being obtained under the Mining Act for the transfer of all the rights and obligations in respect of the tenements. The transaction will provide Poseidon with the funding to execute Mineral Resources' strategy which includes an exploration focus targeting high-grade nickel discoveries, continuing with reduced care and maintenance activities at Black Swan (to conserve funds) and pursuing new opportunities. The transaction is expected to close within thirty days of execution of the binding heads of agreement. New Risk • Feb 22
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Australian stocks, typically moving 17% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$17m free cash flow). Share price has been highly volatile over the past 3 months (17% average weekly change). Revenue is less than US$1m. Minor Risks Shareholders have been diluted in the past year (9.1% increase in shares outstanding). Market cap is less than US$100m (AU$22.3m market cap, or US$14.7m). 공시 • Oct 05
Poseidon Nickel Limited, Annual General Meeting, Nov 22, 2023 Poseidon Nickel Limited, Annual General Meeting, Nov 22, 2023. Breakeven Date Change • Mar 15 The analyst covering Poseidon Nickel previously expected the company to break even in 2025. New forecast suggests the company will make a profit of AU$60.1m in 2025. Average annual earnings growth of 1.1% is required to achieve expected profit on schedule.
Board Change • Jan 24
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. 2 independent directors (3 non-independent directors). Independent Non-Executive Chairman Derek La Ferla is the most experienced director on the board, commencing their role in 2019. Independent Non-Executive Director Peter Muccilli was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Breakeven Date Change • Nov 29
Forecast breakeven date pushed back to 2025 The analyst covering Poseidon Nickel previously expected the company to break even in 2023. New forecast suggests the company will make a profit of AU$60.0m in 2025. Average annual earnings growth of 89% is required to achieve expected profit on schedule. Board Change • Nov 16
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. No experienced directors. No highly experienced directors. Independent Non-Executive Chairman Derek La Ferla is the most experienced director on the board, commencing their role in 2019. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Board Change • Apr 27
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. No experienced directors. No highly experienced directors. Independent Non-Executive Chairman Derek La Ferla is the most experienced director on the board, commencing their role in 2019. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model.