Western Areas Announces Half Year Financial Results and FY17 Guidance Upgraded - Seite 2

A fall in the January 2017 average nickel price, from the December 2016 price, resulted in NPAT being impacted by A$2.9m due to a quotational price (QP) adjustment. The nickel price was adversely affected following the Indonesian announcement of the relaxation of its nickel ore export ban.

Given the recent volatility of the nickel price, the Company has elected not to pay an interim dividend for the half year, however is positively disposed to reinstating a dividend payment at financial year end should the nickel price consolidate around current levels.

Key 1st Half Highlights ($'000)	1H FY 2017	1H FY 2016
Mine Production (tonnes Ni)	13,224	13,977
Mill Production (tonnes Ni)	11,607	12,508
Recovery	89%	89%
Sales Volume (tonnes Ni)	11,437	12,514
Cash Costs (US$/lb)	1.84	1.63
Cash Costs (A$/lb)	2.44	2.25
Exchange Rate USD/ AUD	0.75	0.72
Realised Nickel Price (A$/lb)	6.59	5.70
Nickel Revenue	113,432	105,947
EBITDA	29,378	18,647
NPAT / (NLAT)	516	(20,036)
Net Cash	103,773	29,882
Pre-financing Cashflow	22,481	(19,513)

Western Areas Managing Director, Dan Lougher, said that the Company welcomed the nickel price improvement compared to the prior corresponding period, but it was the delivery of significant EBITDA improvements and mine performance metrics that were most pleasing.