Mincor books profit turnaround to $14.2m

A strengthening nickel price and reduced operating costs have lifted Mincor Resources' earnings into the black, with the nickel miner today booking a $14.2 million interim net profit after tax.

The net profit compares with a $22.7 million net loss recorded for the previous corresponding period, which was affected by a plunging nickel price.

Over the six months to the end of December 2009, Mincor said the nickel price had increased 32 per cent to $A10.59 per pound, which prompted cash operating margins to more than double to $5.30/lb of payable nickel.

The nickel price and margin underpinned a surge in Mincor's earnings before interest, tax, depreciation and amortisation from $11.6 million to $39.9 million.

Sales revenue for the period reached $94.4 million, down from $100.4 million in the prior year, while production was lower at 5,611 tonnes of nickel-in-concentrate, compared to 8,976t booked the prior year.

Mincor said the result reflected the cost and production flexibility of its Kambalda operations, which achieved an 8 per cent reduction in cash operating costs to $5.29/lb of payable nickel.

Shares in Mincor closed up nine cents to $1.545 today.