The West

Mincor s Miitel mine. Picture: Beau Pearson/The Kalgoorlie Miner.
Mincor's Miitel mine. Picture: Beau Pearson/The Kalgoorlie Miner.

UPDATE 2pm: Shares in Mincor Resources were higher after the company declared an interim fully franked dividend of two cents a share despite posting a first-half loss of $29,000.

The Kambalda-focused nickel miner boasted a near break even bottom line result despite the languishing nickel price during the period.

Mincor posted EBITDA of $14.36 million, down slightly on the previous corresponding period, with the bottom line result dragged down by $14.6 million in depreciation and amortisation charges.

The result was achieved on revenue of $53 million, down 4.6 per cent on the previous corresponding period.

Mincor produced 5618 tonnes of nickel-in-ore over the half at cash costs of $4.46 per pound.

The nickel was sold at an average price of $7.01 a pound, 15 per cent lower than that received in the previous corresponding period.

"The strong performance - which was achieved despite the lowest global nickel prices since 2009 and the lowest average nickel price actually realised by the company (after hedging) since 2005 - has reaffirmed Mincor's position as a highly efficient junior miner with outstanding leverage to a recovery in nickel prices," Mincor said in a statement.

Managing director David Moore said the company had again been able to weather the storms of market volatility and low commodity prices by delivering strong operating earnings and reporting essentially a break-even bottom line result.

"With some indication that the nickel price may now have seen its lows for this cycle, and with our strong balance sheet and healthy cash flows, we believe the company is well-placed for the future," he said.

Mincor said it held cash and receivables of $64.7 million at the end of December and no debt.

Shares in the company closed up 5.5 cents, or 9.65 per cent, at 62.5 cents.

The West Australian

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