Western Areas sees strong cashflow
UPDATE 3.15pm: Shares in Western Areas rose after the miner reported its strongest quarterly cashflow in two years on the back of rising nickel prices.
Western Areas said free cashflow for the quarter ended June 30 was $39.6 million, which had allowed the company to move from a net debt position to a net cash position of $10.3 million.
Consolidated cash at bank had risen by $55 million over the quarter to $230.5 million.
Its full-year unit cash cost came in at $2.50 a pound, below guidance of $2.70 a pound.
Full year production of 28,686 nickel tonnes comprised record production of 13,973 nickel tonnes from Spotted Quoll and 14,713 tonnes from Flying Fox.
The company noted the price of nickel had increased by 30 per cent since January on the back of a ban on the export of unprocessed laterite nickel from Indonesia.
Western Areas shares closed up 19 cents, or 3.83 per cent, at $5.15 after touching an intraday peak of $5.215.
