30/01/2009 - 11:29

Independence books $1.2m quarterly loss

30/01/2009 - 11:29

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Nickel miner Independence Group has booked an unaudited net loss of $1.2 million for the December quarter following a $7 million write-down in investments and exploration expenditure.

Nickel miner Independence Group has booked an unaudited net loss of $1.2 million for the December quarter following a $7 million write-down in investments and exploration expenditure.

The company holds 17.7 per cent or 128.9 million shares in Matrix Metals, which went into administration last year due to depressed copper prices.

Independence also holds an 11.5 per cent interest in Brumby Resources, with that investment worth $300,000 at the end of the quarter.

Over the quarter, the company suffered a $5.1 million write down of its listed investments and $1.9 million in capitalised exploration write-offs.

The company said the $1.2 million net loss is an estimate at this stage, with the figure subject to finalisation of estimated nickel prices and the Australian dollar.

At the end of the reporting period, Independence reported a sales revenue - inclusive of hedging - of $15.4 million, down from the previous corresponding quarter's $33 million.

The company's Long nickel mine produced 2074 tonnes of nickel, down from the previous corresponding period's 2343t.

Independence's share was 1254t for the December quarter.

Cash costs were $A3.88 per pound payable nickel, below the budgeted $A4.58/lb.

At the end of the quarter, the company had $113 million in cash.

Late yesterday the company released its estimates for its upcoming half yearly report, with revenue estimated to fall to $42.7 million from $89.8 million, while profit before tax is estimated to plunge to $129,000 from $53.9 million.

Independence held off releasing an estimate for its net profit/loss after tax, saying a final figure will be released in its report next month.

Shares in Independence were up one cent to $2.48 at 13:27 AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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