Photo by: Bloombeg
PERTH (miningweekly.com) – The decision to mothball its Western Australian mines amid a nickel price slump has resulted in Mincor Resources widening its half-year loss from A$1.89-million in the first half of 2015 to A$34.69-million in the six months to December.
Mincor on Wednesday reported asset impairments of about A$13.9-million, as well as redundancy and inventory write-down costs of A$3.45-million during the period under review.
Revenue for the first-half of 2016 declined to A$16.66-million, from the A$52-million reported in the previous corresponding period, reflecting the lower production for the half year, with only 2 290 t of nickel-in-ore produced, as well as the sharp decline in realised nickel prices.
Mincor previously took the decision to suspend mining operations at its Mariners and Miitel mines, in Western Australia, given the continued fall in the nickel price. Care-and-maintenance programmes at both mines were advanced, and all operations would be secured by mid-March.
MD David Moore said that the care-and-maintenance programme had been implemented swiftly, efficiently and safely, despite the obvious challenges involved.
“While this has been a difficult period, it was vitally important that we acted quickly to preserve the value of our resource base and underlying assets. At the same time, the strength of our balance sheet gives us the flexibility and capability to unlock the value of these assets when the nickel price cycle turns.”
Moore added that Mincor was also gearing up for future growth, with two feasibility studies earmarked for completion during the current quarter, which would, in effect, become start-up studies, providing the trigger price at which Mincor could restart production.
The feasibility studies cover the Durkin North and Miitel/Burnett tenements, with a view to having these ready for rapid development, once conditions improved.
“In the meantime, we are developing an active programme of value creation, using our outstanding asset base, and we will present our strategy for growth before the end of the quarter.”