BASE METALS

Western Areas produces improved nickel quarter

Return to higher grade areas in Flying Fox mine boosts output

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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