WA nickel miner Minara Resources has delivered an increase in fourth quarter output and says the company remains focused on cost saving initiatives.
Production during the three months to December 31 was 30.2 per cent higher than the previous corresponding quarter in 2007 at 7836 tonnes of nickel from the Murrin Murrin operation.
Minara said it completed the transition to a new business plan during the quarter, resulting in a reduction in operating costs, capital expenditure and the workforce in response to declining nickel prices and global economic conditions.
The company also completed a $210 million capital raising to repay short term debt and fund committed capital expenditure.
“I am pleased to report that the successful rights issue coupled with our new business plan and the actions we have taken in the last six months to reduce our costs has ensured Minara's operations in difficult economic and market circumstances,” Minara chief executive Peter Johnston said in a statement.
Minara said that the nickel market continued to be volatile but that the company believed fundamentals remained sound over the medium to long term.
The company said there had also been a sharp decline in the cost of sulphur during the quarter, which has been maintained into 2009 and is expected to positively impact Minara’s operating costs.
Sulphur is a key input used in the processing of some nickel ores.
MRE Price at posting:
35.5¢ Sentiment: Hold Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)