In the same category
First Nickel Reports Financial and Operating Results for the Year Ended December 31, 2010
Published : March 30, 2011
( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
Keywords :   Canadian Dollar | Cobalt |

TORONTO, ONTARIO--(Marketwire - March 30, 2011) - First Nickel Inc. ("First Nickel" or the "Company") (News - Market indicators) announces that it has filed with the Canadian securities regulatory authorities its audited financial statements, and management's discussion and analysis for the year ended December 31, 2010.

Complete results will also be available on SEDAR and on the Company's website at All dollar amounts are expressed in Canadian currency unless otherwise stated. 

Highlights / Summary
  • A net loss of $9.1 million was recorded in 2010. This compares to a net loss of $7.5 million recorded in 2009
  • At December 31, 2010 the Company had a cash balance of $29.2 million
  • During 2010, major progress was achieved toward becoming fully funded for capital and corporate needs and the Company is on track for first production in Q3 of 2011 and to produce at an annualized rate of 10 million pounds of nickel, and 7 million pounds of copper by mid-2012
  • On September 1, 2010, the Company received a bridge loan of US$5 million from Resource Capital Fund IV L.P.
  • In October 2010, the Company launched its re-commissioning capital program at the Lockerby Mine
  • On November 12, 2010, the Company completed an equity issue for gross proceeds of $28.7 million
  • In March 2011 the Company received the Commitment Letter from two banks for a $30 million secured project debt facility
  • Ramping back to full production is expected to start in Q3 of 2011


Financial Results  
The following table presents a summary of the results of operations for the three and twelve month periods ended December 31, 2010 and 2009:  
  Three months ended
December 31,
  Twelve months ended
December 31,
  2010   2009   2010   2009  
Sales Revenue $ -   $ -   $ -     4,483,662  
Operating costs excluding amortization   -     -     -     4,173,121  
Care and maintenance costs   1,497,567     1,278,683     5,138,684     4,772,855  
Accretion of asset retirement obligations   49,800     48,500     199,200     193,400  
Amort. of mining properties & equipment   -     -     -     719,631  
    1,547,367     1,327,183     5,337,884     9,859,007  
Operating loss from mining operations   (1,547,367 )   (1,327,183 )   (5,337,884 )   (5,375,345 )
General and administrative   891,856     865,651     2,364,192     2,289,477  
Stock-based compensation   169,096     186,524     173,596     538,742  
Foreign exchange gain   (102,227 )   (151,013 )   (394,619 )   (273,222 )
Amortization   4,260     4,359     17,040     17,436  
Interest on convertible loan   235,520     235,520     942,080     413,468  
Interest on bridge loan   132,094     -     198,632     -  
Accretion on convertible loan   136,459     126,462     535,046     218,987  
Interest and other expenses   (2,710 )   1,291     17,718     181,156  
Realized loss on sale of marketable security   -     -     -     21,429  
Interest and other income   (51,688 )   (18,388 )   (78,563 )   (97,787 )
    1,412,660     1,250,406     3,775,122     3,309,686  
Loss before taxes   (2,960,027 )   2,577,589 )   (9,113,006 )   (8,685,031 )
Recovery of income and mining taxes   (16,930 )   (1,166,769 )   (16,930 )   (1,166,769 )
Net loss for the period $ (2,943,097 ) $ (1,410,820 ) $ (9,096,076 ) $ (7,518,262 )
Net loss per share - basic and diluted $ (0.01 ) $ (0.01 ) $ (0.05 ) $ (0.05 )

For the year ended December 31, 2010 the Company recorded a net loss of $9,096,076, or $0.05 per share, compared to a net loss of $7,518,262, or $0.05 per share, recorded for the year ended December 31, 2009. The Company has recorded a full valuation allowance against any income tax assets for the year ended December 31, 2010 and 2009.

No sales revenue was recorded in 2010. The year ended December 31, 2009, includes only one month of sales revenue, as the Lockerby Mine, the only source of revenue for the Company, was placed on a care and maintenance program on October 19, 2008 following the deterioration in metals markets, and therefore only had one month of production available for settlement in 2009.

The following table sets out selected sales information for the periods indicated:
 2009 (i)
Sales by Payable Metal    
  Nickel – pounds - 486,849
  Copper – pounds - 287,827
  Cobalt – pounds - 9,096
Average Price Received – US$/lb    
  Nickel - $5.76
  Copper - $1.58
  Cobalt - $13.83
Average Exchange Rate Realized    
  US $ 1 = Canadian $ - $1.2280
(i) only includes one month of sales

The emphasis in 2010 continued to be of containing site costs while ensuring plant and infrastructure were properly maintained, and complete the feasibility work necessary for securing financing. Care and maintenance costs of $5,138,684 recorded in 2010 include ongoing costs of the staff retained at the Lockerby mine site, energy, taxes, insurance, equipment rentals and materials required to maintain the mine. 

General and administrative expenses recorded in 2010 totaled $2,364,192. This is $74,715 (3%) higher than the $2,289,477 expenditures recorded in 2009. The increase is mostly attributable to higher consulting, legal and transfer agent fees.

Stock-based compensation costs for 2010 amounted to $173,596. In December of 2010, 6,800,000 stock options were granted to directors, officers and employees at an exercise price of $0.12. The fair value of the options granted was estimated at the grant date to be $468,155. Of this amount, $167,596 was expensed in 2010, with the balance amortized over the vesting period of the options. The Company uses the Black-Scholes pricing model in the valuations of the options.

An increase in the value of the Canadian dollar relative to the U.S. dollar during 2010 resulted in a foreign exchange gain of $394,619 being recorded in 2010. Exchange gains or losses arise from the revaluation of the US dollar cash balances, and the US dollar Convertible Loan account.

The interest on the loan facilities with RCF IV for the year ended December 31, 2010 amounted to $1,140,712 ($942,080 on the Convertible Loan and $198,632 on the Bridge Loan). RCF IV notified the Company of its option to receive Common Shares in payment of this interest. A total of 9,751,174 (6,691,693 in 2010 and 3,059,481 in 2011) Common Shares were issued to RCF IV in full satisfaction of this liability. 

Interest and other expenses of $17,718 recorded in 2010 include costs incurred on mineral properties that were previously written off, offset by a refund of interest on the flow-through funds (Part XII.6 tax).

Interest and other income is mostly made up of interest earned on cash balances, and on short term deposits. The lower interest income in 2010, compared to 2009, mainly reflects lower interest rates.

2011 Outlook

The Company is satisfied that it has a robust and well understood capital project at Lockerby, with the people to manage it, and the recent financing initiatives have placed the Company in far superior condition compared to a year ago. There is widespread industry support for the view that the commodities sector will remain strong, and the Company is confident that it is well-positioned to take advantage of this cycle and grow its business and asset base.

Qualified Person

The foregoing scientific and technical information has been prepared or reviewed by Paul C. Davis, P.Geo., Vice-President Exploration of the Company. Mr. Davis is a "qualified person" within the meaning of National Instrument 43-101.

The Company follows rigorous quality control practices and procedures in full compliance of NI 43-101, and these are described on the Company's website and in all technical press releases.

First Nickel is a Canadian mining and exploration Company, whose principal asset is the Lockerby Mine near Sudbury, Ontario. In addition to its Lockerby operation, the Company maintains an active exploration program on projects near the mine around Sudbury, and elsewhere in Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including the cash flows, metal prices, decrease costs, increase output, expected production, and expected exploration expenditures. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating metal prices, lower unit costs and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at Such forward-looking statements are made as at the date of this news release, and the company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

First Nickel Inc.
William Anderson
President & CEO
(416) 362-7050
416) 362-9050 (FAX)

First Nickel Inc.

ISIN : CA33582W1068
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

First Nickel is a nickel exploration company based in Canada.

First Nickel develops nickel, cobalt, copper, gold, palladium, platinum and silver in Canada, and holds various exploration projects in Canada.

Its main assets in development are LOCKERBY MINE and PREMIERE RIDGE in Canada and its main exploration properties are RAGLAN HILLS, LANDORE/ WEST GRAHAM, MORGAN-LUMSDEN, BELMONT PROJECT, WEST GRAHAM, FOY MOUTH, KAMISKOTIA and DUNDONALD in Canada.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
Financings of First Nickel Inc.
3/12/2015Completes Debt Refinancing
3/11/2015FNI Announces Approval by Shareholders of Debt Refinancing a...
4/8/2013Completes Refinancing
9/12/2011Hires New President & CEO and Announces $500,000 Private Pla...
3/2/2011Secures Commitments for C$30 Million Senior Secured Project ...
Nominations of First Nickel Inc.
10/3/2013Names Alfred Colas as Chief Financial Officer
2/4/2013Announces Changes to the Board of Directors With the Appoint...
7/3/2012Appoints David Comba as New Chairman
4/29/2008Gerry Bilodeau Appointed as Vice President Operations
Financials of First Nickel Inc.
3/26/2015Reports Financial and Operating Results for the Year Ended D...
8/12/2013Reports Three and Six Months Financial and Operating Results...
5/15/2013Reports First Quarter 2013 Financial and Operating Results
11/13/2012Reports Third Quarter 2012 Financial and Operating Results
8/14/2012Reports Second Quarter 2012 Financial and Operating Results
5/16/2012Reports First Quarter 2012 Financial and Operating Results
8/11/2011Reports Financial and Operating Results for the Period Ended...
5/30/2011Reports Financial and Operating Results for the Period Ended...
3/30/2011Reports Financial and Operating Results for the Year Ended D...
11/11/2008Reports Financial And Operating Results For The Three And Ni...
5/14/2008Reports Financial and Operating Results for the Three Month ...
3/27/2008 Reports Financial And Operating Results For The Year Ended ...
11/14/2007 Reports Third Quarter 2007 Results
Project news of First Nickel Inc.
5/6/2014First Nickel says two workers dead at Sudbury mine
1/3/2013Reports Lockerby 2012 Nickel Production is Expected to Be Ap...
8/3/2012(Lockerby Mine)Files Optimized Lockerby Mine Plan with SEDAR
6/18/2012(Lockerby Mine)Optimizes Lockerby Mine Plan, Resulting in an $87 Million NP...
11/7/2008(West Graham)Provides an Exploration Update on Lockerby and West Graham P...
7/3/2008(Lockerby Mine)Announces the Results of the NI 43-101 Reserve Estimate and ...
6/30/2008(Premiere Ridge)Announcement Re Premiere Ridge
3/25/2008(West Graham) Intersects 86.70 Metres of 0.55% Ni and 0.43% Cu on West Gr...
1/16/2008(Lockerby Mine) Reports 289% Increase in Indicated Resources at the Lockerb...
12/11/2007(Raglan Hills)Sign Joint Venture on Raglan Hills Project
11/1/2007(Lockerby Mine)Nickel Production Increasing Additional Promising Lockerby D...
7/23/2007(Lockerby Mine)Intersects 53.30 Metres of 1.82% Ni and 1.39% Cu at Lockerby...
Corporate news of First Nickel Inc.
8/27/2015TSX Delisting Review - First Nickel Inc. (Symbol: FNI)
8/20/2015First Nickel Announces Appointment of Receiver
8/20/2015TSX Delisting Review - First Nickel Inc. (Symbol: FNI)
8/20/2015First Nickel Announces Application for Appointment of Receiv...
8/20/2015IIROC Trading Halt - FNI
8/20/2015First Nickel Reports Financial and Operating Results for the...
8/14/2015First Nickel Reports Financial and Operating Results for the...
8/4/2015First Nickel Reports Incident at Lockerby Mine
8/3/2015First Nickel Reports Incident at Lockerby Mine
7/20/2015First Nickel Announces Change to Board of Directors
7/17/2015First Nickel Announces Change to Board of Directors
6/22/2015Results of the FNI Annual General Meeting of Shareholders
3/26/2015FNI Reports Financial and Operating Results for the Year End...
3/26/2015First Nickel Reports Financial and Operating Results for the...
3/12/2015FNI Completes Debt Refinancing
3/11/2015FNI Announces Approval by Shareholders of Debt Refinancing a...
3/2/2015Leading Independent Advisory Firms ISS and Glass Lewis Recom...
3/2/2015Leading Independent Advisory Firms ISS and Glass Lewis Recom...
2/9/2015IIROC Trade Resumption - FNI
2/9/2015First Nickel Announces Debt Refinancing
2/9/2015IIROC Trading Halt - FNI
1/27/2015First Nickel Provides Preliminary 2014 Production Results an...
1/12/2015First Nickel Restructures the Lockerby Mine, Reducing Costs ...
1/12/2015First Nickel Restructures the Lockerby Mine, Reducing Costs ...
11/11/2014FNI Reports FInancial and Operating Results for the Three an...
11/10/2014First Nickel Reports Financial and Operating Results for the...
8/11/2014First Nickel Reports Financial and Operating Results for the...
6/11/2014Results of the FNI Annual General Meeting of Shareholders
5/12/2014First Nickel Reports Financial and Operating Results for the...
5/8/2014First Nickel Reports the Lockerby Mine Will Resume Operation...
5/6/2014First Nickel Provides Update on Lockerby Accident
5/6/2014First Nickel Reports Two Fatalities at the Lockerby Mine
5/6/2014IIROC Trade Resumption - FNI
5/6/2014First Nickel Reports Incident at the Lockerby Mine
5/6/2014IIROC Trading Halt - FNI
3/21/2014FNI Reports Financial and Operating Results for the Year End...
3/21/2014First Nickel Reports Financial and Operating Results for the...
3/19/2014FNI Positioned to Benefit from Higher Nickel Prices
9/27/2013FNI Amends Lockerby Ore Processing Agreement
7/10/2013Reports 4 Year Contract Ratified with Mine Mill 598/CAW
6/12/2013Results of the FNI Annual General Meeting of Shareholders
4/18/2013(Lockerby Mine)FNI Achieves Full Production at Lockerby Mine
4/1/2013Announces Restructuring of Indebtedness
1/16/2013FNI Arranges US$5.0 Million Loan Facility
10/19/2012Reports Lockerby Nickel Production at 80% of Full Production...
4/24/2012Provides Comment on Ministry of Labour Order
3/23/2012Announces Increase to 2012 Exploration Program
1/25/2012Announces Continued Progress at Lockerby in Q4-2011 and Prov...
12/14/2011Announces Organizational Changes
12/5/2011Hires New Head of Corporate Development
7/20/2011Completes $5 Million Private Placement
7/5/2011Enters Into C$30 Million Project Loan Facility
5/18/2011Announces $2 Million Flow-Through Private Placement
4/25/2011Provides Update on Lockerby Restart
5/6/2008Establishes Shareholder Rights Plan
4/30/2008Market Update Announcement
2/12/2008Provides 2008 Guidance
9/6/20072007 Update
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 0.005
09/25 15:47 -
Prev close Open
0.005 0.005
Low High
0.005 0.005
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  0.005 -50.00%
Volume 1 month var.
90,000 -50.00%
24hGold TrendPower© : -2
Develops Cobalt - Copper - Gold - Nickel - Palladium - Platinum - Silver
Explores for Cobalt - Copper - Gold - Lead - Nickel - Platinum - Silver - Uranium - Zinc
Interactive chart Add to compare
Print Compare Export
Last updated on : 12/4/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 7.05-0.84%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 7.04-1.81%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.70-2.91%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.08-21.05%Trend Power :
Closes Bridge Loan Financing
CA$ 1.97+4.79%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 9.41+2.84%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.18-5.41%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.32+3.23%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.30+0.88%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 62.20+1.58%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.03+12.00%Trend Power :