Nickel miner Mincor Resources says a restructuring of its operations has placed it on a solid financial footing, despite booking a net loss after tax of $23.4 million for the 2010-11 financial year.
Mincor said the loss included a $9.9 million write-down in exploration costs, and $25 million in non-cash impairment charges.
Before the impairment charges, Mincor’s operating loss was $5.9 million.
Over financial 2010-11, Mincor produced 10,372 tonnes of nickel-in-ore, driving revenue of $152.1 million, down from $184 million in 2009-10.
Cash costs were $7.95 per pound of payable nickel, which Mincor said reflected its operational difficulties.
Despite the loss, Mincor paid a dividend of 2 cents per share, bringing its full-year payout to 4 cents per share, and maintaining an unbroken run of dividend payouts stretching back to 2003.
Mincor maintained a bright outlook, however, saying the restructure of its operations recognised its reduced production capacity at Kambalda.
In March it announced it would close its Otter Juan project early in calendar 2012 after it was forced to reduce production from the mine due to a sudden deterioration in ground conditions in its lower-most levels.
Mincor followed up in May with an announcement that it was looking outside its home base for acquisitions and opportunities, after entering a $30 million joint venture covering a group of highly prospective gold and copper tenements in Papua New Guinea.
“While it’s been a tough year for our Kambalda operations, I’m confident that we have now got them back on track,” managing director David Moore said.
“Importantly, we have also been able to maintain our exemplary track record of dividend payments and a strong balance sheet.
“Our cash balance and ongoing cash flows provide a solid foundation from which to pursue the outstanding range of growth opportunities in front of us, both in Kambalda and further afield.”
At 1:25PM Mincor’s stock had gained 2.2 per cent to trade at 90.5 cents.
