Source: www.miningnews.netAusMines comes out of negative...

Source: www.miningnews.net

AusMines comes out of negative territory

Rebecca Lawson
Friday, 16 March 2007

AUSTRALIAN Mines has pulled itself out of the red and into a sizeable net profit windfall of $5.8 million, according to its interim financial report, with the company set to take full advantage of the rampant rise of the spot nickel price, which has reached $US50,075 per tonne.

Over the six months to December 31, 2006, AusMines reported it swung to a profit after tax of $5.8 million from a loss of $2.3 million in the previous corresponding period.

The average nickel price received by AusMines more than doubled from 2005's $A9.09 per pound to $19.13/lb, although operating cash costs crept up from $6.85/lb to $9.28/lb.

Speaking to MiningNews.net, executive director Brett Young said he was pretty happy with the result and the fresh record for the spot price of nickel.

"It's a long time coming. We came off an ordinary result in June 2006," he said.

"We're pretty happy with the nickel price [reaching $50,000/t], as all our nickel is unhedged."

Young added that a drop in production figures from the Blair nickel mine was attributable to ongoing development of the decline access to the ore body.

Over the six months to December 31, AusMines treated a total of 20,346 dry tonnes at an average grade of nickel of 3.13% for 638t of contained nickel.

That figure was lower than 2005's corresponding period of 21,512t ore treated at 3.51% nickel for a contained 756t.

Young said production for the second half of the financial year would be in line with the first half's result.

"We expect production levels to be sustained for the rest of the financial year," he said.

Shares in AusMines climbed 0.4c to 7.8c in trading at lunchtime today.


End.

Cheers, Pie