First Nickel Inc. announced unaudited earnings and operating results for the third quarter and nine months ended September 30, 2013. For the quarter, the company announced revenue of CAD 12,302,948 compared to CAD 23,860,876.00 for the same period a year ago. Operating loss was CAD 27,563,304 compared to CAD 3,154 for the same period a year ago. Operating loss before taxes was CAD 33,004,871 compared to CAD 1,510,228 for the same period a year ago. Net loss and comprehensive loss was CAD 33,004,871 compared to CAD 1,430,544 for the same period a year ago. Loss per share, basic and diluted was CAD 0.05. Third-quarter revenues are below the prior-year third quarter by almost half, including the impact of lower realized nickel prices (by CAD 0.77 per pound or 11%), partially offset by weaker Canadian-US dollar exchange rates, which lead to higher values for revenues as presented in Canadian dollars. The company made capital expenditures of CAD 2.4 million in the third quarter, mostly representing underground development costs at the Lockerby Mine.

For the nine months, the company announced revenue of CAD 54,063,039 compared to CAD 23,043,241.00 for the same period a year ago. Operating loss was CAD 33,030,265 compared to CAD 820,789 for the same period a year ago. Operating loss before taxes was CAD 50,446,275 compared to CAD 3,763,102 for the same period a year ago. Net loss and comprehensive loss was CAD 50,446,275 compared to CAD 3,805,011 for the same period a year ago. Loss per share, basic and diluted was CAD 0.09 compared to CAD 0.01 for the same period a year ago. The company made capital expenditures of CAD 9.4 million during the nine months ended September 30, 2013, mostly representing underground development costs at the Lockerby Mine.

For the quarter, the company reported ore production was 59,643 tonnes compared to 60,060 tonnes for the same period a year ago. Ore shipped were 59,501 compared to 58,674 tonnes for the same period a year ago. The Lockerby Mine produced 3.1 million pounds of contained nickel and 1.7 million pounds of contained copper during the third quarter of 2013

For the nine months, the company reported ore production was 175,471 tonnes compared to 150,601 tonnes for the same period a year ago. Ore shipped were 174,471 tonnes compared to 149,840 tonnes for the same period a year ago. In the year to date, the Lockerby Mine produced 9.0 million pounds of contained nickel and 5.4 million pounds of contained copper.

The company reaffirmed operating guidance for the second half and full year of fiscal 2013 and capital expenditure guidance for the full year of fiscal 2013. Under the GMV agreement, the company reaffirmed its outlook for 2013. 2013 production expected between 12.1 million pounds to 13.5 million pounds of contained nickel, which is consistent with previously-released guidance of 9.0 million pounds to 10.0 million pounds of payable nickel. For the full year, the company expected to report: Contained nickel of 12.1 million of pounds to 13.5 million of pounds; contained copper of 7.2 million of pounds to 7.9 million of pounds. Capital expenditures for 2013 are anticipated to be between CAD 13 million and CAD 16 million, the vast majority of which relates to underground development at the Lockerby Mine.

For the second half, the company expected to report: Contained nickel of 6.1 million of pounds to 6.7 million of pounds; contained copper of 4.2 million of pounds to 4.4 million of pounds; net GVM nickel of 3.0 million of pounds to 3.4 million of pounds; and net GVM copper of 2.1 million of pounds to 2.2 million of pounds.

For the third quarter ended September 30, 2013, the company announced impairment of tangible assets of CAD 23,352,776 and impairment of mineral properties of CAD 4,427,529.