26/02/2010 - 15:35

Minara books $48.5m full-year profit

26/02/2010 - 15:35

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Nickel miner Minara Resources has reported a net profit of $48.5 million for calendar 2009 on the back of record production and reduced cash costs.

Minara books $48.5m full-year profit

Nickel miner Minara Resources has reported a net profit of $48.5 million for calendar 2009 on the back of record production and reduced cash costs.

The result compares with the $19.8 million net loss recorded in the previous corresponding period.

During the six months to the end of December, the Murrin Murrin mine produced a record 32,977 tonnes of nickel and 2,350t of cobalt.

Cash costs for the first half of calendar 2009 was $US4.99 per pound of nickel, down from $US5.23/lb, while cash costs in the second half was down from $US5.57/lb of nickel to $US4.95/lb.

"In response to the business pressures which arose during the deteriorating economic and market conditions of 2008, a new business plan was successfully implemented in the second half of 2008," Minara said in its report.

"The business plan focused on a number of cost saving initiatives including a reduction in fixed and variable operating costs, a new mine plan and reduced capital expenditure.

"The full impact of these initiatives was realised during 2009 and is reflected in the improvement in the company's direct cash costs."

Minara added that the cost of sulphur, used to process nickel, was still at low levels.


 

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