PERTH (miningweekly.com) – Nickel miner Western Areas has reported an after-tax net loss of A$94.1-million for the 2013 financial year, compared with a net profit of A$40.1-million in the previous financial year.

The net loss was attributed to impairment charges of some A$99.7-million, which the company said was predominantly related to historical exploration.

Earnings before interest, tax, depreciation and amortisation reached A$125.8-million for the full year, compared with the A$186.6-million achieved in 2012, while underlying net profit after tax reached A$5.5-million, compared with the A$40.2-million in the previous financial year.

Western Areas reported that cash flow from operations was recorded at A$112.1-million, despite the challenging nickel price environment and the strong Australian dollar.

MD Dan Lougher said that despite the challenging market environment, Western Areas had remained profitable at an operating level and continued to generate solid cash flow.

“Outside of the nickel price challenges, this year would rate extremely well for operational excellence. We met or exceeded all guidance metrics, including record sales, and we did so safely,” he stated.

He noted that Western Areas reacted swiftly to the changing price environment, adding that the company’s prefinancing cash flow for 2013 was nearly identical to that of the previous financial year, which had the benefit of substantially higher nickel prices.

“We’ve adjusted the business framework by reducing exploration expenditure and mine development, while also successfully ramping up production at the Spotted Quoll underground mine,” said Lougher.

For 2014, the Forrestania nickel project remained Western Areas’ core project and would be the primary focus in the company’s growth path, including allocating the majority of the exploration budget to this project.

Lougher said the company also remained committed to exploration efforts near-mine and was also conducting a number of exploration joint ventures in Western Australia.