PERTH (miningweekly.com) – Nickel miner Western Areas has hit its production targets in the full year ended June, delivering another consistent quarter in the three months to June.
Western Areas produced 5 423 t of nickel in the June quarter, bringing full-year production to 23 208 t, with total nickel-in-concentrate reaching 5 433 t in the quarter under review, while full-year production was reported at 21 675 t of nickel-in-concentrate.
The full-year production was in line with the guidance of between 20 500 t and 22 00 t of nickel-in-concentrate, while unit cash costs for the full year also hit target at A$2.98/lb, compared with the guidance of between A$2.80/lb and A$3.20/lb.
Sales volumes for the quarter were up from the 5 189 t reported in the March quarter, to 5 890 t, bringing full-year sales volumes to 21 483 t. This resulted in the highest operational cashflow for the year of A$49.3-million being reported in the June quarter.
Western Areas MD Dan Lougher said on Thursday that strong free cash flows of A$27.6-million were reported for the June quarter, which resulted in A$144.3-million cash at bank at the end of the quarter.
Meanwhile, Lougher noted that the Odysseus project’s early works package was completed on time and on budget.
A previously completed definitive feasibility study estimated that the A$299-million Cosmos Odysseus project would produce on average 13 000 t/y of nickel-in-concentrate over an initial ten-year mine life, based on an ore reserve of 8.1-million tonnes, grading 2% nickel for 164 000 t of nickel.