The West Perth-based miner said the cut to the target came on the back of a revised management plan to optimise production and capital expenditure in light of the current nickel price slump.
Under the plan, the final output figure will depend on quarter-by-quarter production decisions allowing Mincor to raise or lower production at individual minesites in accordance with economic circumstances.
Mincor said the plan is expected to reduce cash costs to a range of $A5.40-5.70 per pound payable nickel and, when taking the company's hedging into account, cash costs would be at $US2.50-2.80/lb payable nickel (at an exchange rate of 0.62) at current nickel prices.
"Due to the structure of its mining business, Mincor has the advantage of a high degree of flexibility in its choice of production levels," Mincor said.
"This allows the company to tailor production to the prevailing nickel price. The management plan will protect operating margins and strengthen cash flows by enhancing this production flexibility at the minesite level and focusing capital outlays on low-cost operations.
"It will also focus exploration expenditures on those areas of highest immediate potential."
The company anticipates that any production foregone under the management plan will be made up when the nickel price recovers, and that in the meantime its focused exploration will add to resources and reserves.
Meantime, Mincor posted September quarterly production of 4358t of nickel in concentrate from its Kambalda operations, a 4% increase on the previous quarter and equal to Mincor's all-time record for quarterly production.
The company also announced an 11% drop in cash costs for the September quarter to $5.79 per pound payable nickel.
Mincor has previously reported that its June 30 mineral resource had grown by 14% over the previous year after the production of 19,000t of nickel in ore and all but replaced the ore reserves mined during the year.
On the London Metal Exchange, the spot price for nickel jumped 14% to $US13,457/t overnight.
Shares in Mincor have jumped 4c to 69c in morning trade.
