1. Cash cost of A$3.04/lb nickel in concentrate for first 2 months production from Flying Fox T1 deposit. T1 is already one of Australia's lowest cost nickel mines. 2. Rapid advance of the mine decline should result in increased production from two wide stopes at T1 containing 9,240 tonnes nickel, commencing in March/April. 3. Target (greater than)8,000tpa nickel in concentrate expected to be produced at Flying Fox in CY 2008. Production is expected to ramp up to 14,000tpa nickel by 2011. 4. Study progressing on a raise bore ore haulage shaft at Flying Fox in addition to existing decline. The shaft gives potential to increase production to (greater than)20,000 tpa nickel by 2011. 5. Continuing high grade drilling results extend mineralisation at T4, T6 and T7 deposits. Target is to increase Flying Fox mineral resource by 50% to (greater than)150,000 t nickel in 2008. 6. Outstanding high grade drilling results at shallow depth at Spotted Quoll discovery, 6km from Flying Fox. Intersections include 8.7m @ 11.4% Ni and 6.5m @ 9.4% Ni. 7. Decision to mine Diggers South deposit due in September Q. Permitting is underway and a contract is to be awarded to dewater the open pit to access the underground mine. 8. Existing Cosmic Boy mine boxcut is being excavated to expose the entry to Outokumpu's large underground mine which ceased production in 1999. 9. Site works completed for Cosmic Boy concentrate plant. The construction contract is expected to be awarded end February with construction due to start at end of March. 10. Target to produce 34,000tpa nickel in concentrate from five mines at Forrestania from 2011. This target assumes successful outcomes from a number of studies in progress. >>
Assuming the ongoing production performance at Flying Fox, strong cash flows anticipated during the second half CY2008, continuing exploration success, potential to accelerate development of new mines at Forrestania and the Company's strong cash position, the Board of Western Areas has resolved to adopt a dividend policy as follows:
Western Areas' Dividend Policy
The objective is to pay an initial interim dividend to shareholders in January 2009. The policy is to pay both an interim and a final dividend of at least half the net profit after tax with the first eligible accounting period being the six months from July 2008 to December 2008. Western Areas Chairman Mr Terry Streeter said "We are committed to making substantial dividend payments as soon as we are in a position to do so. Western Areas has many growth opportunities available to shareholders. These opportunities occur not only at the developing mines at Forrestania but also at the many significant exploration projects in the surrounding 500km long nickel province in Western Australia as well as in Canada." "We believe that the Company is well positioned to become one of the premier growth and yield mid-cap stocks in the Australia and Canadian resources sector," said Mr Streeter.
WSA Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held