Western Areas increases output expectations
PERTH (miningweekly.com) – Nickel miner Western Areas has bumped up its production expectations for the 2014 financial year on the back of the continued strong performance from its operations.
Mine production has been increased from the original guidance of between 25 000 t and 26 000 t, to 27 000 t, while nickel-in-concentrate production has increased from an initial estimate of between 23 000 t and 24 000 t, to 25 000 t.
Unit cash costs for the full year were also expected to drop to less than A$2.70/lb, while capital expenditure for the year would also be less than the planned A$60-million.
“While we have been able to improve our cost profile with the cooperation of major services providers, our commitment to stringent and disciplined cost management remains core to our business ethic at Western Areas,” said MD Dan Lougher.
Western Areas produced 7 407 t of nickel in the December quarter, compared with 8 290 t in the previous quarter, while unit cash costs for the quarter reached A$2.54/lb, bringing half-year cash costs to A$2.41/lb, which was well below the guidance of between A$2.80/lb and A$2.90/lb.
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