Nickel miner Mincor Resources has shrugged off a first half loss of $2.21 million to declared an interim dividend of 2 cents per share.
Mincor said it experienced its lowest cost production since 2009 over the six months to December 31, generating EBITDA of $14.77 million.
The company produced 5,063 tonnes of nickel in ore at cash costs of $5.07/lb of nickel.
Revenue came in at $55.5 million, down from $62.4 million in the previous corresponding half-year.
“The past six months has seen the nickel price reach what may be its nadir, having dropped around 45 per cent between February 2011 and August 2012,” managing director David Moore said.
“This has put the entire industry under pressure and decimated profits globally.
“Under these circumstances, it is pleasing that Mincor has been able to maintain a strong operating performance and continue to generate substantial levels of free cash.”
Mr Moore said the additional funds would be used to advance exploration at projects in Kambalda and Papua New Guinea.
“Mincor will maintain its focus on low-cost, high-margin nickel production, while investing substantial resources into expanding our ore reserves in Kambalda, as well as pursuing our other exploration targets,” he said.
“While it is disappointing to report a bottom line accounting loss, we believe that Mincor is in great shape and stands ready to reap the benefits of any positive change in commodity prices or exchange rates – while retaining the ability to weather sustained periods of low prices.”
At close of trade today Mincor shares were up 1 per cent, trading at 99 cents.
