Mincor s Miitel nickel mine near Kambalda. Picture: Jarrod Lucas/The West Australian.
Mincor's Miitel nickel mine near Kambalda. Picture: Jarrod Lucas/The West Australian.

Mincor has got back into the black on the back of a rising nickel price, stronger production and lower operating costs.

The nickel miner this morning posted a full-year profit of $1.85 million, bouncing back from last year's $22.5 million loss.

The result was achieved on the back of an 11.3 per cent jump in revenue to $110 million.

Mincor produced 10,219 tonnes of nickel over the year up from last year's figure of 9688 tonnes and cash costs were $4.96 a pound, down from last year's $5.34 a pound.

The company will pay a final fully franked dividend of two cents, in line with last year's return.

Mincor said it ended the year with $50.65 million in cash and $61.16 million in working capital.

The company said rising nickel prices in the second half pointed to a sustained recovery, from which it was well placed to benefit.

Mincor said it expected to produce about 295,000 tonnes of ore at an average grade of 2.9 per cent nickel from its Kambalda operations for 8500-9000 tonnes of nickel-in-ore for the year.

Cash operating costs are targeted at $5.30 a pound of payable nickel (including royalties).

Managing director David Moore said the company was excited by outstanding exploration results from major new exploration programs, which began in the second half.

"Mincor has the dominant land position in Kambalda and we are convinced that there are many more ore bodies out there yet to be discovered," he said.

Mincor shares were up three cents, or 3.87 per cent, to 80.5 cents at 9.15am.

The West Australian

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