Western Areas cash costs drop 48%

Nickel miner Western Areas says it has probably recorded the lowest cash costs in Australia as production at its Flying Fox mine in Western Australia exceeded its yearly target.

The company reported cash costs had declined from $US2.59 per pound nickel in concentrate in the September quarter to $US1.36 in the December quarter, excluding smelter and refinery charges and royalties.

December quarterly production at Flying Fox increased by 52 per cent from the previous quarter to 2573 tonnes, while yearly production exceed the 8000t mark to reach 8114t.

At the end of the quarter, the company had $65 million in cash and its ANZ facility was drawn to $62 million.

Shares in Western Areas closed up five cents to $3.85 today.