TORONTO (miningweekly.com) – Slower-than-planned development and unplanned rehabilitation work on the main ramp of Toronto-listed miner First Nickel’s flagship Lockerby nickel mine impacted fourth-quarter production and delayed the ramp-up to full production to the first quarter of this year.
The company on Thursday said it produced about 5.8-million pounds of payable nickel and 4.6-million pounds of payable copper in 2012.
However, CEO Thomas Boehlert in December told Mining Weekly Online there was no reason to believe the mine would not achieve full production during the fourth quarter and not meet production guidance of between 6.3-million and 7.4-million pounds of nickel for 2012. Copper production was at the lower end of the 2012 guidance.
The company shipped about 205 000 t of Lockerby ore to offtake partner Xstrata in 2012.
“Challenges presented themselves in the fourth quarter of 2012, resulting in a reduced production rate, which delayed full production to the first quarter of 2013 and impacted the company's working capital and liquidity positions,” he said in a statement on Thursday.
The company in January arranged a $5-million shareholder loan and said it was reviewing potential sources of additional financing for about $15-million required to complete the Lockerby depth-development programme.
Capital expenditures for 2013 are expected to be about $16.4-million, of which $11.2-million relates to development programmes.
General and administrative expenses for 2013 were estimated to be about $4.3-million, not including stock-based compensation, and financing costs were estimated to be about $1.1-million and exploration costs about $2.7-million.
The company’s stock rose by 9% on Thursday to close at 6 Canadian cents apiece on the Toronto Stock Exchange.