TORONTO (miningweekly.com) – Ontario-based nickel producer First Nickel has reported a narrower net loss for full-year 2014, as higher nickel prices and improved sales volumes boosted the bottom line.
The company, which operates the Lockerby mine, in the Sudbury basin, on Thursday reported a net loss of C$20.7-million for the year ended December 31, compared with a net loss of C$55.6-million a year earlier.
Sales rose 9% to C$78.4-million, up from C$62.6-million a year earlier.
“This increase can be attributed to higher average realised nickel prices and foreign-currency translation gains in 2014, combined with an increase in tonnes of ore sold, partially offset by lower average realised copper prices in 2014,” the company advised.
The average realised nickel price rose 13% from $6.74/lb in 2013 to $7.63/lb in 2014.
The increase in revenue was partially offset by a lower average realised copper price, which, at $3.09/lb, was down 8% year-on-year.
Lockerby produced 13.3-million pounds of contained nickel and 7.7-million pounds of contained copper during the year. Nickel output came in below full-year guidance of between 13.5-million pounds and 15.1-million pounds. Operations were temporarily suspended in May last year after two contract drillers died in a seismic activity-related fall-of-ground incident.
First Nickel in January announced plans to cut about 110 jobs at its flagship Lockerby nickel/copper mine, as part of a restructuring exercise aimed at reducing costs, increasing exploration and extending the mine life.
The company noted that output in the first quarter was expected to be lower than planned. “The company will assess the 2015 production outlook along with its first-quarter results,” First Nickel noted.