Nickel miner Western Areas has delivered a slim interim profit in the face of a falling nickel price and continued strength in the Australian dollar.
Western Areas announced today a $2.1 million net profit for the six months to December 31, on revenue of $158.9 million, up 7 per cent on the previous corresponding half year.
Over the first half of the financial year, the company achieved a realised nickel price of $US7.56 per pound, down from $US8.29/lb in the first half of FY12.
The company will pay a fully franked interim dividend of 2 cents per share, it seventh consecutive dividend payment.
Managing director Dan Lougher said production at the company’s Forrestania operation was tracking well, which led to an increase in full-year production guidance.
“Looking to the second half of the year, the company wants to maintain the strict cost control which achieved unit cash costs remaining consistent at $2.69/lb in concentrate, despite the completion of the low cost Spotted Quoll open pit and the ramping up of the new underground oeprations at Spotted Quoll,” Mr Lougher said.
AT 11:00AM, WST, Western Areas shares were down 0.58 per cent, trading at $4.30.
