Nickel miner Western Areas says it expects nickel sales and production to be better than anticipated for the 2013 financial year.
Western Areas said today that while it would not provide exact full-year cashflow guidance, it expected cashflow generation to be "particularly strong" in the last quarter of FY2013.
Nickel in ore, nickel in concentrate and nickel sales guidance have all been upgraded, Western Areas said.
The company expects to have around $70 million in the bank by June 30, up from $58 million at March 31.
Cash cost guidance has also been reduced, to less than $2.90 per pound of nickel concentrate for the full year.
Managing director Dan Lougher said the resilience of the company's mines despite a volatile nickel price and currency fluctuations was satisfying.
"In our recent quarterly report we advised the market that the cashflow heavy lifting in the first half of the year was completed setting up the company with long-term benefits," Mr Lougher said in a statement.
"It's now rewarding to see these actions crystallise in the form of free cashflow generation over the last six months, which I believe separates Western Areas from the pack in a testing minerals environment.
At 10:45AM, WST, Western Areas shares were up 6.1 per cent, trading at $3.10.