First Quantum Temporarily Halts Ravensthorpe Nickel Mine Operations, Suspends Dividend
Portfolio Pulse from Stjepan Kalinic
First Quantum Minerals has temporarily halted operations at its Ravensthorpe nickel mine in Western Australia due to financial strain and a decline in nickel prices. The company will reduce the mine's workforce by 30% and continue nickel sales from existing stockpiles. Operations will resume once stockpiles are depleted, which may take 18 to 24 months. First Quantum also suspended its dividend and is considering the sale of smaller mines to strengthen its financial position.
January 16, 2024 | 5:36 pm
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First Quantum Minerals has suspended operations at its Ravensthorpe nickel mine, reduced workforce, and suspended dividend payments due to financial challenges and falling nickel prices.
The temporary suspension of operations at Ravensthorpe and the suspension of dividend payments are likely to be viewed negatively by investors, potentially leading to a short-term decline in First Quantum's stock price. The reduction in workforce and sales from stockpiles indicate cost-cutting measures and a focus on liquidity, which could further impact investor sentiment.
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