BASE METALS

Steady Western Areas quarter as Odysseus spend begins

Production output and cash at bank more or less unchanged

Steady Western Areas quarter as Odysseus spend begins

Cash at bank was just about unchanged from the previous quarter at A$150.9 million after capital expenditure, feasibility study and exploration costs doubled to $25.4 million.

The debt-free Western Areas reported significant development activity comprised early works at Cosmos, new primary ventilation fans at Spotted Quoll, and new filtration and bagging facilities at the mill recovery and enhancement project.   

Mill production totalled 5379 tonnes of contained nickel at unit cash costs of $2.99 per pound, "well within guidance range".

The company also said mine grades at both Spotted Quoll and Flying Fox were ahead of plan and reserve for the quarter which resulted in less material movements to produce 5868t of nickel in ore.

Regarding its market, Western Areas said the nickel price remains volatile, with geopolitical factors putting further downward pressure on the market during the quarter, despite nickel fundamentals being strong for stainless steel and future battery demand growth. 

It noted LME nickel stockpiles have fallen to around 220,000t, down over 40,000t from the prior quarter.

Shares in Western Areas were trading at $2.24 this week, capitalising the company at $612 million.

The stock is down nearly 40% on levels it was trading at mid-year.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.