PERTH (miningweekly.com) – The declining nickel price has resulted in miner Mincor Resources widening its after-tax net loss to A$1.89-million during the first half of 2015, compared with the A$300 000 loss reported in the previous corresponding period.
Mincor noted that the loss included a tax charge of A$430 000 arising from the reversal of a deferred tax asset and a nickel price adjustment of A$700 000.
Despite the loss, Mincor has reported a solid interim period, with the miner producing 162 216 t of ore, grading 3.07% nickel for 4 986 t of nickel-in-ore.
Earnings before interest, taxes, depreciation and amortisation reached A$14.87-million during the half-year, which was on par with the A$14.36-million achieved in the previous corresponding period, on the back of a sales revenue of A$52.1-million, compared with the A$52.9-million reported in the first half of 2013.
“Our operating team has again delivered a solid production performance at very competitive costs, with the small half-year loss including some fairly significant non-cash items. This was against the backdrop of a nickel price which, through the half-year, probably did not live up to earlier expectations,” said Mincor MD David Moore.
Looking ahead, Moore expected Mincor to see the full benefit of its new equipment flow through during the second half of the year.
“At this point, we are tracking towards the top-end of our production guidance and out-performing our cost guidance. We are also seeing something of a rebound in nickel prices at present, which is greatly assisted by the lower Australian dollar.”
For the full year, Mincor expects to produce between 8 000 t and 9 000 t of nickel-in-ore, at a cash cost of around A$5.30/lb.