Western Areas declares first dividend

Western Areas has declared its first dividend payment after it reported a turnaround to profitability for its first half-earnings due to higher production and improved nickel prices.

The miner early today announced that a dividend of three cents per share will be paid to shareholders.

The news followed Western Areas' announcement late yesterday that it had achieved net profit of $10.7 million for the six months to December last year, a turnaround form a $12.3 million net loss for the same period in 2008.

The result was boosted by a one-off $20 million payment from Kagara to access its project using a decline that leads to Western Areas' Flying Fox mine, south of Marvel Lock in Western Australia.

Sales revenue totalled $85.5 million, up from $40.7 million previously.

Production was in line with guidance, at 125,049 tonnes processed at a grade of 3.4 per cent nickel, with 90 per cent recovery rates.

Shares in Western Areas climbed 21 cents, or 5.1 per cent, to a high of $4.35 before easing to $4.30 at 12:01 AEDT.