BASE METALS

Western Areas produces improved nickel quarter

WESTERN Areas has had a better quarter at its nickel operations and will meet full-year guidance if its operational improvement continues into the June period.

Western Areas' Forrestania operation

Western Areas' Forrestania operation

Production in concentrate came in at 4267t, up 21% on the December quarter, and taking output for the financial year to date to 11,558t.

Revised guidance provided in February for the Forrestania in Western Australia was for 16,000-17,000t for the full year.

The better March quarter came as the miner "re-entered the higher-grade areas of the Flying Fox mine" following earlier seismic issues.

Western Areas produced 20,926t last financial year and started the current financial year forecasting 19,000-21,000t of nickel in concentrate.

Meanwhile, Western Areas raised A$85 million in a placement last month, with the funding to be used to complete the company's new Odysseus development.

New shares issued in the raising were priced at $2.15 each.

Shares in Western Areas were up 4% to $2.22 in early trade, capitalising the company at $611 million.

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