It has to be related to nickel price.
From the qtrly the co. sold nickel @ AUD$26.20/lb and costs were AUD$21.91/lb
Currently nickel price is US$13.54/lb (say AUS$ = US$0.85) giving AUD$15.93/lb (or AUD$38867/tonne).
If this remains as is, then to make a profit costs need to decrease and production beefed up.
Tis' the reason why they got rid of the contractors and brought in new equipment to do more work and hopefully get more nickel out of the ground.
Coupled with the fact that nickel price continues to fall and LME supplies continue to rise, that's my take on the reasoning behind the further slump for AUZ.
In saying that, the co. made very good profit last fin. yr, the question is can they increase production substantially and decrease costs given the price weakness for nickel ?
total collapase, page-2
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