PERTH (miningweekly.com) – Nickel miner Western Areas has reported a A$13.3-million increase in the post-tax earnings for 2017, on the back of discontinuing to equity account its investment in Bluejay Mining.
The company told shareholders that it had ceased to equity account its investment in Bluejay with the company’s ownership and voting interest reducing to below 20% following finalisation of all merger conditions and accumulated dilution since the merger between FinnAust Mining and Bluejay was announced in 2016.
Western Areas now holds a 19% interest in Bluejay, which is currently valued at A$33.8-million, based on that company’s closing price on May 23.
The expected A$13.3-million noncash gain is based on the revaluation of the investment to market value, using the quoted trading price of Bluejay shares on the Aim at the time of ceasing to equity account. It also remains subject to finalisation of the independent audit of the company’s full year financial statements.