Albidon (ASX:ALB, AIM:ALD) is has hit its target of generating quick cashflow at its Munali Nickel project in Zambia by rapidly getting the project into production and delivering first nickel concentrate this month.
The company's CEO, Dale Rogers, recently told Mineweb the company's focus has always been to get sizeable production at Munali in a short space of three years as rapid cashflow was in all stakeholders' interest.
Albidon is ramping up production at Munali over the second half of this year to full production of between 10,000 to 10,500 tonnes of nickel in ni-cu-co-pgm concentrate annually by the start of next year.
This comes after the company completed a feasibility study on the project in mid-2006 and started building the mine in September that year.
Rogers said the company had an offtake agreement with the Jinchuan Group at gate point, which meant Albidon was not responsible for freight and logistics outside its property, minimising risk for shareholders.
The company expected very strong margins of between 350-400% from the low cost project, he said.
Albidon will continue drilling in areas around the existing project, while it has already found indications of nickel sulphide here. Rogers indicated that the cashflow that will start coming through next month will enable the company to accelerate drilling work.
The CEO said Albidon was focused on adding value for shareholders and growing its business during the current cashflow stage. In the next stage, the company would turn its head around corporate action to add projects to its pipeline. Albidon was largely looking at nickel resources in Africa as the unexplored continent still held much potential.
Rogers said Albidon was the only new nickel sulphide producer coming online in this part of the year and one of few companies in the world with a new nickel sulphide development.
The company started producing nickel ore from the Enterprise ore body at Munali in January this year and has stockpiled sufficient ore for three months of processing.
Albidon has stated its objective as building an African metal mining and exploration company with an emphasis on nickel.
Beyond the Munali Nickel project, the company has the Njame Uranium deposit in southern Zambia in a joint venture with African Energy Resources, uranium prospects in Zambia, extensive nickel exploration properties in Botswana and Tanzania, including a joint venture with BHP Billiton and zinc exploration programmes in Tunisia.