A falling nickel price and lower values on investments have more than halved miner Independence Group NL's net profit after tax to $51.5 million.
The earnings result compared to the previous year's $105.5 million.
Revenue for the 2008 financial year was 34 per cent lower at $149.1 million which the company attributed to a fall in nickel prices, which it said had fallen 35 per cent over the year.
Nickel production was slightly lower at 9275 tonnes, down from 9825t, while cash costs for the year per payable pound was 5.3 per cent lower at $4.12 per pound.
"These costs were tightly controlled during the year despite an escalating capital and operating costs environment that continued to adversely affect the mining industry," the company said.
Earnings before interest, tax, depreciation and amortisation fell 54 per cent to $72.9 million.
Over the year the company spent a record $26 million on exploration with the majority directed towards its Long and Tropicana projects.
Independence has forecast nickel production for fiscal 2009 of between 8400t and 8800t and said it will focus on expanding the Long nickel mine's deposit and on operational performance.
