Photo by: Bloomberg
PERTH (miningweekly.com) – Nickel miner Mincor has swung into profit during the full year ended June, posting net profit of A$1.85-million, compared with a loss of A$22.45-million in the previous financial year.
Earnings before interest, tax, depreciation and amortisation also increased by 259%, to A$31.52-million, during the 12 months, while cash margins increased by 36%, despite the nickel prices only averaging 5.7% above that recorded in 2013.
The miner ascribed its increase in cash margins to its continued operational performance, which saw nickel production from the Kambalda mine, in Western Australia, beating its full-year targets and producing 10 219 t of nickel-in-ore.
The miner’s tight cost control had also enabled it to convert the relatively small increase in nickel prices into profit margins.
MD David Moore said the company’s focus would be on capitalising early exploration success, and to bring the full weight of its resource to bear.
“We have committed a total of A$28.5-million to our Kambalda nickel business in 2015, including capital development, extensional exploration at Mariners and Miitel, and emerging regional discoveries such as Voyce and Cassini.”
He noted that the company’s focus would be on accelerating exploration to discover and develop new mining operations, and to increase its resource and reserve inventory to grow the mine life.
The miner also expected to produce some 295 000 t of ore from the Kambalda operations during 2015, containing between 8 500 t and 9 000 t of nickel-in-ore.