Companies: ALD   

Mineral prospector Albidon is probing finance options for its £34 million Enterprise nickel project after an encouraging bankable feasibility study.

Western Australia-based and AIM-quoted Albidon says the study suggests the Enterprise project at Munali in Zambia could produce up to 9,000 tonnnes of nickel a year for 10 years, with potential for further increases in the life of the project through more exploration. The study estimates direct cash operating costs of $2 a lb, less than a sixth of the current market price and envisages a capital cost of £65 million (£34 million) to bring the project to production.

Albidon, which also has several other mineral prospects, says it is now reviewing financing proposals for Enterprise, which it wants to fund with a combination of debt and equity. Recommended by Growth Company Investor in May for their speculative spice at 37p, the shares have now reached 57.5p, up 1.5p today, valuing the company at £62.4 million, and could outperform some others in the sector.

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