Nickel miner Mincor Resources has bounced back into the black, lodging a net profit of $240,000 for the year ended June 30, despite a 19 per cent drop in nickel prices.
Mincor announced today that its EBITDA was up 99 per cent to $32.4 million, with the performance underpinned by a 27 per cent drop in cash costs.
The result is a significant bounce back from the company's $23.4 million loss in FY2011, however, sales revenue was down 20 per cent, to $121.6 million, a direct result of the falling nickel price, Mincor said.
The company paid a fully franked final dividend of 2 cents per share.
Mincor said its focus in FY2013 would be on organic growth, with an ambitious exploration budget at its Papua New Guinea projects, as well as comprehensive drilling across its nickel developments near Kambalda.
Managing director David Moore said he was pleased the company was able to return to profitability and generate an operating surplus despite difficult trading conditions.
“At a time when rising costs and falling prices are creating real challenges for resource companies, we have been able to maintain solid margins thanks to the successful restructuring of our Kambalda operations, which delivered a 27 per cent drop in operating costs,” Mr Moore said in a statement.
“This is a tremendous result and a great credit to our operating team.
“This enabled us to fund all of our capital and exploration commitments , maintain our 10-year track record of dividend payments and fund a share buy-back – all achieved while maintaining a strong balance sheet with $76 million in cash at year end and no debt.”
Mincor stocks were down 2.2 per cent at 12:00PM, trading at 66 cents.
