Western Areas’ net profit has more than doubled to $31.9 million for the full financial year, with the nickel miner also reporting strong sales revenue.
The company said it had achieved its highest net profit after tax (NPAT) in seven years, up from $14.2 million on FY19.
Underlying earnings also improved, up 51 per cent to $121.9 million, due to a stronger nickel price and reliable performance from Western Areas' Forrestania operations south west of Kalgoorlie.
The mine produced 20,900 tonnes of nickel in FY20, in line with guidance.
“This was achieved while also operating under COVID-19 regulations, which required the adoption of a number of new protocols and procedures during the second half of the financial year,” managing director Dan Lougher said.
“This year was impacted by events out of our team’s control, such as bushfires through December, followed by the fast-moving and unpredictable disruptions caused by COVID-19.
“Despite the various disruptions, the company continues to deliver on its production and cost expectations.”
Western Areas expects to produce between 19,000 and 21,000t of nickel in FY21, with the guidance allowing for “some uncertainty” as a result of the pandemic.
Mr Lougher said the company was well-positioned to fund its growth projects including the Odysseus mine (as part of Western Areas’ Cosmos project) in the Northern Goldfields, with $144.8 million in cash and zero debt at June 30.
“The long-life Odysseus project makes Western Areas one of the few companies that can demonstrate a clear mining reserve that extends into the 2030s and beyond,” Mr Lougher said.
He said Western Areas was set for long-term nickel exposure, noting the expectation of a growing market thanks to higher demand for electric vehicle-linked batteries.
The board has declared a fully franked, 1 cent per share dividend, increasing the total dividend payout in FY20 to 2 cents.
Shares in Western Areas closed down 4.5 per cent to trade at $2.32.
