NEW YORK First Nickel
Inc. has posted a Canadian $36.33-million ($35.81-million) net
loss for 2012, in contrast to net income of C$25.16 million the
previous year, as the company seeks to overcome liquidity
issues and production shortfalls at its Lockerby Mine.
The Toronto-based company posted
2012 revenue of C$36.08 million ($35.56 million). It did not
record revenue prior to achieving commercial production at
Lockerby in July 2012.
Production at Lockerby yielded
5.8 million pounds of payable nickel and 4.5 million pounds of
payable copper in 2012, with the company shipping approximately
199,000 tonnes of ore to Toronto-based Xstrata Canada Corp.,
but fourth-quarter production was hurt by unplanned
rehabilitation work on the main ramp at the Sudbury, Ontario,
amm.com, Feb. 7).
The company incurred a
C$16.8-million ($16.56-million) impairment charge on the
Lockerby Mine and a C$5-million ($4.93-million) impairment
charge on exploration properties last year.
Capital expenditures are
expected to total about C$16.4 million ($16.17 million) this
year, of which C$11.2 million ($11.04 million) will go toward
development programs at the Lockerby Mine.
First Nickel announced a
refinancing plan April 1 to extend its debt maturity and secure
additional financing to strengthen its liquidity position,
acknowledging that the company "is in serious financial
amm.com, April 1).
"This financing underpins our
plans to fully develop the Lockerby Mine and grow the company
to increase shareholder value," president and chief executive
officer Thomas M. Boehlert said in a statement.
Boehlert reiterated the
companys confidence that it achieved full production rate
of 10 million pounds of nickel per year at Lockerby by the end
of the first quarter.