TORONTO (miningweekly.com) – Canadian nickel-miner Crowflight Minerals does not expect to meet its 2010 guidance for production and costs, and will provide updated forecasts later in the year after reviewing its operating plans, the firm said late on Monday.

Crowflight said in February it expected to produce 8,6-million pounds of payable nickel this year from its Bucko Lake mine, in Manitoba. Costs were forecast at between $5,70 and $5,90 a pound of payable nickel.

The Bucko Lake operation declared commercial production in June last year, but was suspended in November after the company had trouble ramping up to full production.

During the quarter ended March 31, the mine produced 141 970 lb of nickel, and Crowflight sold 117 600 lb of the metal.

Revenue for the quarter was C$1,2-million, and operating cash flow amounted to a negative C$8,94-million.

The company posted a loss of C$6,2-million for the quarter. A year earlier, Crowflight had not yet achieved commercial production at Bucko Lake, but recorded a C$1,5-million net profit, thanks to a gain on derivative instruments.

The firm realised an average nickel price of $9,77/lb on sales during the quarter ended March 31, 2010, compared with preproduction nickel sales in the first quarter of 2009 which were realised at an average price of $4,46/lb.

Crowflight is the subject of a takeover offer from China's Jinchuan Group, for C$150-million in cash.

The firm had received an earlier expression of interest to buy the Bucko Lake asset from shareholder Pala Investment Holdings, which broke off talks after the Jinchuan offer was announced.

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