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First Nickel sees blue skies ahead

Sudbury ’s First Nickel is feeling optimistic about recent nickel price increases and improved price forecasts.

Sudbury’s First Nickel is feeling optimistic about recent nickel price increases and improved price forecasts.

At the recent Prospectors and Developers Association of Canada conference held in Toronto, an analyst presented an assessment on nickel that included an increase in the long term price of nickel based on an upcoming supply shortfall.

Nickel has increased in value by 12 per cent from US $6.32 per pound on Dec. 31 to US $7.07 per pound on March 11.

"Improving nickel market dynamics are positive for First Nickel,” said Thomas Boehlert, company president and CEO in a March 12 release. “Higher prices result in higher revenue and an improved price outlook allows the company to consider options to extend mine life at Lockerby.”

First Nickel operates the Lockerby Mine in Sudbury, which reached full production in 2013 and is expected to produce 14 million pounds of contained nickel and 7 million pounds of contained copper in 2014.

“The company continues to focus on its key objectives which include maximizing the value of the Lockerby mine, protecting balance sheet liquidity, and building the asset base through acquisitions of base metal assets with the support of our major shareholders, Resource Capital Funds and West Face Capital."