Western Areas posts big jump in half-year profit
PERTH (miningweekly.com) – The higher nickel price achieved in the first half of Western Areas’ 2015 financial year has helped the miner report a massive 782% increase in interim profit to A$23.6-million.
Western Areas said on Thursday that continued positive operating cost outcomes driven by productivity and efficiency improvements also helped to boost its profit.
During the interim period ended December 2014, Western Areas delivered 12 945 t of nickel, compared with the 13 020 t delivered in the previous corresponding period, and at an average realised nickel price of A$8.12/lb, generated a sales revenue of A$164.9-million, compared with the A$143.4-million achieved in the first half of 2014.
MD Dan Lougher pointed out that the company also reported its lowest costs in three years during the December quarter, following the implementation of productivity and efficiency initiatives.
“These initiatives, combined with a higher realised nickel price versus the first half of 2014, resulted in a net profit after tax increase of A$20.9-million.”
Earnings before interest, taxes, depreciation and amortisation also increased from A$65.4-million in the first half of 2014, to A$74.9-million in the 2015 interim period.
Meanwhile, Lougher said Western Areas would produce between 25 000 t and 27 000 t of nickel during the full year, with nickel-in-concentrate production expected to reach between 24 500 t and 25 500 t.
Unit cash costs for the remainder of the year were also expected to drop from between A$2.70/lb and A$2.80/lb, to between A$2.40/lb and A$2.50/lb.
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