Western Areas Half Year Results
Published : February 22, 2013
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PERTH, AUSTRALIA--(Marketwire - Feb. 22, 2013) - Western Areas Ltd (News - Market indicators) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Highlights:

  • EBITDA of A$61.6m for the six months ending 31 December 2012 (1H 2013);
  • Reported Net Profit After Tax (NPAT) of A$2.1m on the back of a significantly reduced Australian dollar nickel price;
  • Underlying NPAT of $6.5m;
  • Positive cashflow from operations of A$48.1m;
  • Repayment of A$105.5m in July for the 2012 Convertible Bonds;
  • Fully franked interim dividend of 2c per share;
  • Better than guidance unit cash costs of A$2.69/lb (nickel in concentrate), retaining the company's standing in the lowest quartile of global nickel production costs;
  • Substantial increase in Flying Fox Reserves to 72,200t of high grade nickel;
  • New high grade discoveries at New Morning and Sunrise;
  • Lost time injury frequency rate (LTIFR) of 0.78 (now zero at 31 January 2013);
  • Operations on track to better current production and cash cost guidance; and
  • Final payment of US$15m to retire the life of mine Outokumpu Royalty.

Western Areas Ltd ("Western Areas" or "Company") is pleased to announce continued profitable operations in the first half of FY2013 despite the challenges of a depressed Australian dollar nickel price. 

Western Areas has reported NPAT of A$2.1m, with the largest impact on profitability for the half year being the further deterioration in realised nickel price from an average US$8.29/lb in 2H 2012 to US$7.56/lb in 1H 2013.

               
Key Metrics              
  Half Yearly Snapshot 1H 2012   2H 2012   1H 2013  
  Mine Production (tonnes Ni) 16,230   14,872   14,461  
  Mill Production (tonnes Ni) 13,045   12,596   13,673  
  Recovery 93 % 91 % 91 %
  Sales Volume (tonnes Ni) 11,595   15,042   13,752  
  Cash Costs (US$/lb) 2.23   2.77   2.79  
  Cash Costs (A$/lb) 2.17   2.69   2.69  
  Exchange Rate USD/ AUD 1.03   1.03   1.04  
  Nickel Price (US$/tn) 18,761   18,276   16,664  
  EBITDA ('000) 96,633   89,950   61,619  
  EBIT ('000) 52,814   42,088   17,433  
  NPAT ('000) 24,102   16,079   2,117  
  Cashflow from Operations ('000) 64,412   94,841   48,076  
  Net Debt ('000) (179,844 ) (220,198 ) (194,354 )
  Cash at Bank 160,856   165,502   85,846  
  Dividend (cents) 5.0   6.0   2.0  
               

Reported NPAT was also impacted by a A$4.4m (post tax) impairment charge following the company's exit from the Sandstone JV with Troy Resources Ltd. In the absence of this charge, underlying NPAT was A$6.5 million.

The Company, despite the challenging environment, has remained profitable throughout the nickel price cycle and is pleased to announce a fully franked dividend of 2c per share. Western Areas has now paid seven consecutive dividends totalling 44c per share (A$79.4m). 

Western Areas' Managing Director, Mr Dan Lougher, said that the main driver on headline NPAT compared to the previous halves was a sustained weak nickel price and strong Australian dollar. 

"Production at the Forrestania operation is travelling very well which has lead to the increase in our production guidance for the full year. Looking to the second half of the year, the company wants to maintain the strict cost control which achieved unit cash costs remaining consistent at A$2.69/lb in concentrate, despite the completion of the low cost Spotted Quoll open pit and the ramping up of the new underground operations at Spotted Quoll," said Mr Lougher.

"I am especially proud of the Company's magnificent achievements in safety with the LTIFR standing at zero today. Combined with ten consecutive quarterly reports with no downside operational surprises, our workforce and contractors are to be congratulated."

Dividend Payment

The Board has declared a fully franked dividend of 2c per share. The Board is pleased to be able to return a significant percentage of NPAT to shareholders in the form of dividends whilst maintaining balance sheet strength through the retirement of the A$105.5m convertible bond during the half and repaying the ANZ Facility of A$45.0m subsequent to the half year end.

Key dates for the interim dividend will be:

  • Record Date, 15 March 2013
  • Payment date, 4 April 2013

Forward Looking Activities

The Forrestania Nickel Project remains Western Areas' core project and will be its primary focus in pursuing the Company's growth path, including allocation of the majority of FY13 exploration budget. This strategy has already delivered two discoveries to date, New Morning (recent intersection announced from drill hole NMD177 of 3.0m @ 6.3% nickel) and Sunrise, which provide exciting organic growth opportunities in an area where permitting and extensive infrastructure already exists.

Whilst the Company cannot control the nickel price or the US dollar exchange rate, our absolute focus remains on safety, cost control, production and sales. Western Areas is on track to better the current guidance for mine production, concentrate production and costs this financial year. Consequently guidance has been updated as follows:

  1. Mine production - 27,000t of nickel in ore
  2. Concentrate production - 25,500t of nickel in concentrate
  3. Unit cash cost of production in concentrate - <A$3.00/lb

COMPETENT PERSON STATEMENT

The information within this report as it relates to exploration, mineral resources and mine development activities is based on information compiled by Mr Charles Wilkinson and Mr Daniel Lougher of Western Areas Ltd. Mr Wilkinson and Mr Lougher are members of AusIMM and are full time employees of the Company. Mr Wilkinson and Mr Lougher have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Wilkinson and Mr Lougher consent to the inclusion in the report of the matters based on the information in the form and context in which it appears.

FORWARD-LOOKING STATEMENT: This release contains certain forward-looking statements. Examples of forward-looking statements used in this release include: "Production at the Forrestania operation is travelling very well which has lead to the increase in our production guidance for the full year. Looking to the second half of the year, the company wants to maintain the strict cost control which achieved unit cash costs remaining consistent at A$2.69/lb in concentrate", and "Operations on track to better current production and cash cost guidance", and "Western Areas is on track to better the current guidance for mine production, concentrate production and costs this financial year".

These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements.

This announcement does not include reference to all available information on the Company or the Forrestania Nickel Project and should not be used in isolation as a basis to invest in Western Areas. Any potential investors should refer to Western Area's other public releases and statutory reports and consult their professional advisers before considering investing in the Company.

For Purposes of Clause 3.4 (e) in Canadian instrument 43-101, the Company warrants that Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.



Western Areas Ltd
Dan Lougher
Managing Director
+61 8 9334 7777
dlougher@westernareas.com.au
or
Western Areas Ltd
David Southam
Executive Director
+61 8 9334 7777
dsoutham@westernareas.com.au
www.westernareas.com.au
or
FTI Consulting
Shane Murphy
+61 8 9485 8888 / 0420 945 291
shane.murphy@fticonsulting.com
Data and Statistics for these countries : Australia | All
Gold and Silver Prices for these countries : Australia | All

Western Areas NL

PRODUCER
CODE : WSA.AX
ISIN : AU000000WSA9
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Western Areas NL is a nickel and gold producing company based in Australia.

Western Areas NL holds various exploration projects in Australia.

Its main assets in production are FORRESTANIA, FLYING FOX MINE and KOOLYANOBBING in Australia, its main asset in development is SANDSTONE - LORD NELSON in Australia and its main exploration properties are MT FINNERTY NICKEL JV, LAKE KING, MT ALEXANDER, MT JEWELL and SPOTTED QUOLL in Australia and EAST BULL LAKE in Canada.

Western Areas NL is listed in Australia and in Canada. Its market capitalisation is AU$ 1.0 billions as of today (US$ 754.6 millions, € 661.0 millions).

Its stock quote reached its highest recent level on April 15, 2011 at AU$ 6.78, and its lowest recent point on March 27, 2020 at AU$ 1.66.

Western Areas NL has 272 280 000 shares outstanding.

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Corporate Presentations of Western Areas NL
2/17/2014Half Year Results Corporate Presentation
11/21/2013Areas AGM Corporate Presentation
2/21/2013Half Year Results Corporate Presentation
Annual reports of Western Areas NL
Annual Report to shareholders
Annual Report to shareholders
2009 Annual Report
Option Grants of Western Areas NL
2/14/2012Maintains Strong Profits and Declares Dividend
Nominations of Western Areas NL
1/3/2012appoints new Managing Director
Financials of Western Areas NL
2/24/2016Half Year Financial Results Press Release
8/20/2015Areas Full Year Financial Results Presentation
Project news of Western Areas NL
1/28/2014Revised Resource Table - December Quarterly Report
12/6/2013RBR: Drilling to Commence at Caesar Hill JV
12/4/2013Drilling to Commence at Musgrave Tenements
11/22/2013Final Director's Interest Notice
9/6/2013Assays Increase New Morning High Grade Nickel Intersection
8/30/2013High Grade 8% Nickel Intersection at New Morning
7/19/2013Further High Grade Intersections at New Morning
7/1/2013TKL: Musgrave project farm-in by Western Areas
3/27/2013New Morning Exploration Update
3/14/2013Exploration Strategy and Activities Update
2/1/2013GEOPHYSICS CONFIRMS SIGNIFICANT CONDUCTOR AT NEW MORNING
1/24/2013(Forrestania)New High Grade Nickel Discovery at Forrestania
1/24/2013GTE:Encouraging gold results intersected in drilling Mt Gibb
7/18/2012(Forrestania)Announces New High Grade Nickel Sulphide Discovery at Forres...
5/11/2012Production Guidance Update
3/14/2012Completed the Acquisition of Kagara Nickel
10/5/2011(Flying Fox Mine)Major Nickel Intersection Below Flying Fox Mine
Corporate news of Western Areas NL
8/11/2017Advance Notice - Full Year Results Conference Call
8/2/2016Diggers and Dealers Presentation
6/15/2016Final Director's Interest Notice
6/9/2016Western Areas Board Change
4/22/2016Quarterly Activities Report
4/5/2016Western Areas - Security Purchase Plan Booklet
4/5/2016Western Areas - Section 708A Cleansing Statement
3/31/2016Successful Completion of Western Areas Placement
1/28/2016Change in substantial holding
1/27/2016Quarterly Activities Report
1/11/2016Becoming a substantial holder
12/21/2015Western Areas Reduces Standby Bank Facility Fees
12/1/2015Change in substantial holding from NAB
11/25/2015Annual General Meeting - MD Presentation
11/25/2015Chairman's Address to Shareholders
10/26/2015Quarterly Activities Report
10/23/2015Notice of Annual General Meeting/Proxy Form
10/12/2015MOX: Western Gawler Craton Drilling Recommenced
10/12/2015Western Gawler Craton Update
10/7/2015Western Areas Revised FY16 Capital Expenditure Plans
10/1/2015Cosmos Nickel Complex Acquisition Completed
9/29/2015Western Areas to Commence Drilling at Fowlers Bay Nickel JV
9/28/2015STA: Western Areas to Commence Drilling at Fowlers Bay Nick
9/28/2015Prospective Mafic Intrusions Confirmed at Western Gawler
9/22/2015Becoming a substantial holder
9/14/2015Change in substantial holding
9/1/2015Change in substantial holding
8/28/2015Change of Director's Interest Notice x 3
8/20/2015Dividend/Distribution - WSA
8/20/2015Western Areas Report Increased Full Year Profit and Dividend
8/20/2015Appendix 4E & Full Year Statutory Accounts
8/20/2015Western Areas Full Year Financial Results Presentation
8/18/2015Full Year Results Conference Call Details
7/30/2015Change in substantial holding from NAB
7/21/2015Quarterly Activities Report - Revised
7/19/2015GNG: Contract Award
7/19/2015MILL ENHANCEMENT PROJECT
7/5/2015Major Drilling Program Commenced at Western Gawler Project
7/2/2015WESTERN AREAS NOW DEBT FREE
6/18/2015Western Areas to Acquire the Cosmos Nickel Complex
4/1/2015Change in substantial holding
3/25/2015Change in substantial holding from NAB
3/11/2015Change in substantial holding from NAB
3/5/2015Ceasing to be a substantial holder
2/18/2015Change in substantial holding from NAB
2/17/2015Becoming a substantial holder from MS
2/16/2015Becoming a substantial holder from CBA
2/12/2015Half Year Results Conference Call Details
2/12/2015Ceasing to be a substantial holder from MS
1/21/2015Western Gawler Craton Project Update
11/6/2014Western Areas to Commence Major Exploration at Fowlers Bay
2/28/2014On Market 2014 Convertible Bond Purchase
2/25/2014Areas Share Purchase Plan Offer Document
2/24/2014Cleansing Statement - Notification under section 708A(5)(e)
2/18/2014Successful Completion of Western Areas Raising
2/18/2014Areas Ltd Capital Raising and SPP
2/17/2014Half Year Results Press Release
2/10/2014Areas Upgrades Full Year Guidance
1/28/2014Competent Person Statement
1/9/2014Becoming a substantial holder
12/17/2013Ceasing to be a substantial holder
12/17/2013Managing Director Interview by Market Professional
12/4/2013TKL:Western Areas proceeds to Stage 2 of JV and begins drill
11/21/2013Areas 2013 AGM Results
11/21/2013WSA 2013 AGM Chairman Address
11/21/2013Areas Chairman to Step Down
11/13/2013Finland Exploration Assets - London AIM Listing
10/21/2013Notice of Annual General Meeting/Proxy Form
10/15/2013TKL: Musgraves project - new targets on WSA JV tenements
9/24/2013Becoming a substantial holder
9/12/2013(Spotted Quoll)Spotted Quoll North High Grade Mineral Resource and Reserve
9/6/2013Substantial Shareholder - Restatement from CBA
8/27/2013Preliminary Final Report and Full Year Financial Statements
8/27/2013Areas Full Year Results Press Release
8/27/2013Areas Full Year Result Presentation Pack
8/21/2013Conference Call: Full Year Results for the Year Ended 30 Jun...
7/31/2013Announces Anticipated Non-Cash Impairment
7/23/2013Quarterly Activities Report
7/4/2013Areas Exceeds Full Year Guidance
7/1/2013Strategic Agreement with Traka at Musgraves
6/24/2013GTE: Rights Issue Entitlement
5/31/2013Areas Upgrades Full Year Guidance
4/23/2013Quarterly Activities Report
4/5/2013Chairmans Letter to Shareholders
4/4/2013Becoming a substantial holder
2/21/2013Half Year Accounts and Appendix 4D
2/21/2013Half Year Results Press Release
2/21/2013Results of Meeting
1/29/2013New Offtake Agreement
1/18/2013Notice of General Meeting/Proxy Form
1/14/2013WSA Announces Successful Completion of Share Purchase Plan
1/14/2013Areas Announces New Constitution
1/14/2013Areas Announces Change of Name and Company Type
12/10/2012Section 708A - Cleansing Notice
10/22/2012Notice of Annual General Meeting/Proxy Form
10/16/2012Takes Top Honours at WA Industry & Export Awards
9/21/2012Weekly Summary Alert
8/15/2012Conference Call-Full Year Results for the Year Ended 30 June...
7/25/2012Announces June 2012 Quarterly Activities Report
7/13/2012Weekly Summary Alert
7/2/2012Retires Convertible Bond From Cash Reserves
6/29/2012Weekly Summary Alert
6/15/2012Weekly Summary Alert
6/7/2012(Spotted Quoll)Spotted Quoll Underground Ore Reserves Increase by 94%
6/1/2012Weekly Summary Alert
5/18/2012Weekly Summary Alert
5/4/2012Weekly Summary Alert
4/20/2012Weekly Summary Alert
4/6/2012Weekly Summary Alert
3/23/2012Weekly Summary Alert
3/9/2012Weekly Summary Alert
3/5/2012Acquires 100% of Lounge Lizard and Kagara's Nickel Assets
2/24/2012Weekly Summary Alert
2/10/2012Weekly Summary Alert
1/27/2012Weekly Summary Alert
1/23/2012Announces December 2011 Quarterly Activities Report
1/13/2012Weekly Summary Alert
12/30/2011Weekly Summary Alert
12/22/2011Closes Out Royalty Obligation To Outokumpu
12/16/2011Weekly Summary Alert
12/2/2011Weekly Summary Alert
11/30/2011Agrees One Year Offtake Contract with Jinchuan
10/12/2011Clarification: Lounge Lizard Nickel Deposit
9/23/2011Weekly Summary Alert
9/8/2011Announces Update on Nickel Concentrate Tender Process
8/26/2011Weekly Summary Alert
8/22/2011Strong Financial Results for Year Ended 30 June 2011 & Full ...
8/12/2011Weekly Summary Alert
8/2/2011Considering Nickel Offtake Tender
5/6/2011Weekly Summary Alert
4/15/2011Announces March 2011 Quarterly Activities Report
4/8/2011Weekly Summary Alert
3/25/2011Weekly Summary Alert
2/25/2011Weekly Summary Alert
2/14/2011ALERT: New Western Areas Financial Report
2/11/2011Weekly Summary Alert
11/7/2008Weekly Summary Alert
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AUSTRALIA (WSA.AX)TORONTO (WSA.TO)
3.84+0.00%4.00+0.00%
AUSTRALIA
AU$ 3.84
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24hGold TrendPower© : -33
Produces Nickel
Develops Gold
Explores for Cobalt - Copper - Gold - Nickel - Palladium - Platinum - Rhodium - Silver
 
 
 
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