Independence Group lifts profit guidance

A higher nickel price and better returns on listed investments have prompted miner Independence Group to lift its first half profit guidance to $11.2 million.

The upgrade is substantially higher than the $100,000 the company reported for the six months to the end of December 2008.

In its December 2009 quarterly report released today, Independence estimates its net profit for the quarter to be $5.3 million, which is subject to the finalisation of nickel prices and the exchange rate of the Australian dollar as compared to the US dollar.

The miner reported a net profit of $5.9 million for the September quarter, which was boosted by higher nickel prices.

During the December quarter, the company produced 2,255 tonnes of nickel at its Long nickel mine in the Kambalda region. Independence had budgeted to produce 2,115t of nickel.

Cash costs for the quarter was $A4.25 per pound of payable nickel, in line with budget estimates.

During the quarter, the company delivered a total of 840t of nickel at $A21,003 per tonne under its hedge contracts. Total hedged nickel to data is 4,440t at $19,390/t.

At the end of the quarter, Independence had $144.9 million cash and net receivables.