Western Areas Reports Full Year Financial Results and FY17 Guidance - Seite 2

Despite the nickel price headwinds, the Company had a very productive FY16 with a number of notable events:

1. Repaid A$125m on convertible bonds driving a significant reduction in interest charges;
2. Acquired the Cosmos Nickel Complex (Cosmos) for A$24.2m with strong growth prospects;
   1. Launched a significant exploration program.
   2. Completed a Scoping Study and moved to a Pre-Feasibility Study on the Odysseus deposit.
3. Completed a significantly oversubscribed capital raising of A$75m ensuring the Company would remain debt free and could fund growth options;
4. Made significant gains in productivity improvements and implemented cost reduction strategies which have been embedded into the business; and
5. Operated for another year without a single Lost Time Injury.

Consistent with previous Company commentary that dividends are fundamentally linked to nickel price and having regard to the financial results, the Board has elected not to pay a final dividend for the half year.

Western Areas Managing Director, Dan Lougher, said that whilst the nickel price environment had not rewarded the Company's efforts, the delivery of significant outcomes across safety, controllable cost reductions and an improved second half performance were pleasing to note.

"Western Areas has clearly demonstrated its resilience and flexibility by seeing through the worst nickel price environment in its operating history," said Mr Lougher.

"Our underlying reported net loss of A$16.6m is entirely a function of the significant reduction in the nickel price, which was the major driver behind a decrease in total revenue of A$103.6m. On any metric this was a considerable challenge for the Company, however we have taken proactive measures to retain our robust balance sheet whilst investing in the future with the acquisition of Cosmos."

"All of this has been achieved by our workforce which has not wavered or been distracted by the external challenges. The Company has now operated without a LTI for 865 days and we have significantly lowered our operating cost base through innovation, productivity improvements and a resolute focus on cost control."

"The Company took decisive action in October 2015 by announcing the deferral of capital expenditure and some exploration activities into FY17. These decisions are only possible due to prior period investments in the business and reflect the operational flexibility we've built into the business model."