Extracted from the Australian after announcement MINARA Resources said it produced 7,656 tonnes during the third quarter, just under 1000 tonnes higher than the same period last year.
The Perth-based nickel company (ASX: MRE) completed a 12-day planned maintenance shutdown during the quarter, restarting the plant ahead of schedule.
Nickel output for the full year will be at the lower end of production guidance of 31,000 tonnes to 35,000 tonnes, the company said.
The ballooning cost of sulphur, a major cost component for Minara, has come down significantly over the past two months, and is expected to fall further.
The major price rise in sulphur to around $US800 a tonne from just over $US100 a tonne last year, paired with London Metal Exchange nickel prices plummeting, has been a major drag on Minara’s share price.
The high sulphur price has also delayed an expansion of 8,000 tonnes to 10,000 tonnes at the Murrin Murrin nickel plant in Western Australia.
Murrin Murrin is a joint venture with commodities trader Glencore International AG, which holds 40 per cent of the operation.
The outlook for the nickel market continues to be volatile, the company said, but the medium- to longer-term prospects remain soun
MRE Price at posting:
51.6¢ Sentiment: Hold Disclosure: Held
