Nickel sales up for Western Areas

Local miner Western Areas closed flat on the ASX despite posting an increase in cash on hand and nickel sales in the three months to December.

Western mined 6,867 tonnes of nickel in the December quarter, up from 6,357t in the previous quarter, and sold 6,249t at a realised price of $7 per pound.

Its cash costs of production for the quarter came in lower compared to the previous quarter, at $2.35 per pound.

On the back of these results, Western generated cash flow of $22.7 million, with cash at the bank now at $103.8 million.

“A key highlight was the signing of two improved offtake contracts, particularly the agreement with Tsingshan Group, establishing a new relationship with China’s largest stainless steel producer,” managing director Dan Lougher said.

“With a strong balance sheet and no debt, we are very well positioned to advance our growth projects, including the Odysseus project at Cosmos nearing PFS completion and our exploration activities.”

Western shares closed 0.4 per cent higher to $2.42 each.