Weaker nickel prices have taken their toll on Western Areas (ASX:WSA), with the miner revealing that free cashflow fell to $25.6m in the December Quarter from $42 million in the previous three months.
The impact of the lower price was partially offset by falls in the Australian dollar and lower C1 cash costs of $2.23 a pound of nickel in concentrate. Western Areas said this cost was the lowest for three years.
The end result was that the company's net cash position rose by $8.7 million over the December Quarter to $53.7m.
Western areas noted that the half-year cash cost of $2.37 a pound was about 20% lower than its full-year guidance, which would be updated with its interim results next month.
"WSA can confirm that it expects there will be a significant improvement in unit cash cost guidance for the year," it said.
Western Areas has a policy of not disclosing its full production costs, with only the C1 cash cost put on the record.
Total tonnes of nickel mined in the December Quarter were 6597 compared with 6660 in the September Quarter.
Western Areas shares were 5% higher this morning at $3.61.
The impact of the lower price was partially offset by falls in the Australian dollar and lower C1 cash costs of $2.23 a pound of nickel in concentrate. Western Areas said this cost was the lowest for three years.
The end result was that the company's net cash position rose by $8.7 million over the December Quarter to $53.7m.
Western areas noted that the half-year cash cost of $2.37 a pound was about 20% lower than its full-year guidance, which would be updated with its interim results next month.
"WSA can confirm that it expects there will be a significant improvement in unit cash cost guidance for the year," it said.
Western Areas has a policy of not disclosing its full production costs, with only the C1 cash cost put on the record.
Total tonnes of nickel mined in the December Quarter were 6597 compared with 6660 in the September Quarter.
Western Areas shares were 5% higher this morning at $3.61.