Nickel Mines’ run continues: second kiln delivers first pig iron
Nickel Mines Limited (ASX:NIC) has advised that the second kiln at the company’s 60% owned Hengjaya Nickel Project has been commissioned and has produced its first nickel pig iron (NPI).
Operation of the first kiln is said to be progressing well and is expected to reach at least 80% of nameplate capacity by early April 2019, while the second kiln is anticipated to reach at least 80% of capacity in early May 2019. Ramp-up to full scale production will be achieved shortly thereafter.
In the commissioning period from the first NPI production (31 January 2019 to 10 March 2019) the first kiln produced 3280 tonnes of NPI, at an average grade of 12.65% for a total of 415 tonnes of nickel.
This commissioning process and ramp-up is consistent with that previously implemented across the 20 existing RKEF lines currently in operation within the Indonesia Morowali Industrial Park.
As announced on 1 February 2019, construction of the company’s 17% owned Ranger Nickel Project has been expedited and commissioning of the first kiln is expected near the end of April 2019 with the second kiln to commence about 45 days later — well ahead of previous guidance of the September 2019 quarter.
Commenting on the commissioning of the second Hengjaya Nickel kiln, Managing Director Justin Werner said, “We are extremely pleased to announce production from the second kiln. Commissioning of both kilns will continue over the coming weeks and we look forward to providing further updates as we progress towards full scale production.
“Progress on the Ranger Nickel project also continues well ahead of schedule and brings Nickel Mines closer to its ambition to become a globally significant low cost nickel producer in partnership with our largest shareholder Shanghai Decent.”
The small cap, which is on the cusp of emerging as a significant player in the global nickel space, is having a good run, now up 78% since its January lows to close at $0.40 today.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.