Mincor’s Half-year Results Strong Despite Low Nickel Prices

Mincor Resources NL (ASX:MCR) announced its results for the half year ended December 31, 2013, commenting that it achieved a strong performance “despite the lowest global nickel prices since 2009.” One highlight is that the company produced 5,618 tonnes of nickel in ore at a cash cost of AU$4.46 per pound of payable nickel.

Other highlights include:

  • Mincor delivers healthy EBITDA of $14.36M (1HFY13: 14.77M) with a strong operating performance and continued focus on cost control offsetting a 15% drop in nickel prices.
  • First-half loss of $0.03M (1HFY13: $2.2M loss) after Depreciation & Amortisation charges of $14.61M represents an essentially break-even result, despite the lowest global nickel prices since 2009 and Mincor’s lowest average realised nickel price since 2005.
  • This performance has allowed the Directors to maintain Mincor’s outstanding record of dividend payments, declaring a fully-franked interim dividend of 2 cents per share (1HFY13: 2c).
  • Net operating cash flow of $16.59M (1HFY13: $16.53M), set against capital development and nickel exploration costs of $13.75M, regional exploration expenditure of $1.71M and $3.76M in dividend payments.
  • Mincor’s balance sheet remains strong, with no debt and $64.67M in cash and receivables, net of creditors and accruals, at 31 December 2013 (30 June 2013: $67.53M).

Click here to read the full Mincor Resources NL (ASX:MCR) press release.