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Western Areas sees revenue rise

20th August 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Nickel miner Western Areas has reported an increase in net profits after tax and revenue for the year ended June, compared with the previous corresponding period, as sales volumes increased.

Western Areas on Tuesday reported that net profits after tax reached A$14.19-million at the end of June, compared with the A$11.83-million in the previous financial year, while revenue in the same period increased from A$248.2-million to A$268.71-million.

The increase in revenue was driven by an increase in sales volumes, which reached 21 483 t in the full year ended June, up from the 20 549 t sold in the previous corresponding period.

MD Dan Lougher told shareholders that with robust operating cash flow of A$98.2-million, Western Areas maintained a strong debt free balance sheet, alongside significant capital, feasibility and exploration expenditure which totalled A$99.3-million in the financial year.

“Strong cashflow from our operating assets enables both continued investment in organic growth projects, such as Odysseus, and the maintenance of reasonable returns to shareholders. We continue to focus on operating our Forrestania assets as safely as possible, while also entering the exciting development phase of our Odysseus mine at Cosmos.”

Odysseus is scheduled to start concentrate production late in 2022.

Lougher said that the recent completion of a new offtake agreement for Western Areas’ premium-grade mill-recovery-enhancement-project nickel product was also an excellent outcome, seeding the company’s direct involvement in the emerging electric vehicle battery market.

Looking ahead, Western Areas is targeting a nickel concentrate production of between 21 000 t and 22 000 t for the 2020 financial year, at a unit cash cost of between A$2.90/lb and A$3.30/lb.

Edited by Creamer Media Reporter

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