The Western Areas Ltd (ASX: WSA) share price went up more than 5.3% today after it revealed its June quarter report.
Western Areas, which was founded in 1999, is one of Australia’s largest nickel producers, as well as other base metal exploration and development projects. It claims to have two of the highest grade underground nickel mines in the world called Flying Fox and Spotted Quoll, both of which are within the Forrestania project area.
Western Areas June 2019 Quarter
The nickel company reported that it produced 5,423 nickel tonnes in the quarter and 23,208 nickel tonnes for FY19.
Western Areas reported its highest quarter of sales of 5,890 nickel tonnes, with 21,483 nickel tonnes sold in FY19. Management said it had strong free cashflow, lifting cash at the bank by $27.6 million to $144.3 million.
Western areas revealed the Odysseus early works have been completed on time and on budget. Also, the proposed acquisition of Kidman Resources Ltd (ASX: KDR) by Wesfarmers Ltd (ASX: WES) would see Western Areas realise $33.1 million.
Western Areas Managing Director Dan Lougher said: “The June quarter another consistent performance in line with plans across the operations that generated strong operational cashflow and delivered full year guidance metrics.”
Whilst this was a solid update, as you may know, I prefer to go for non-commodity businesses for my portfolio, which is why I’d prefer to invest in the reliable businesses in the free report below instead.
[ls_content_block id=”14945″ para=”paragraphs”]
[ls_content_block id=”18380″ para=”paragraphs”]
