Western Areas’ Fiscal 2013 Net Loss Hits $94.1 Million

Western Areas Ltd. (ASX:WSA), an Australian nickel producer, announced its results for the full 2013 financial year, commenting that it recorded a net loss after tax of $94.1 million, citing falling nickel prices, a high Australian dollar and a $99.7-million non-cash impairment charge.

Results highlights include:

• Financial Year 2013 Revenue of A$306.5m;
• EBITDA of A$125.9m;
• Underlying Net Profit After Tax (NPAT) of A$5.6m — profitable underlying operations despite impact of significantly weaker $A nickel price;
• Reported Net Loss After Tax (NLAT) of A$94.1m after non-cash post tax impairment charges of A$99.7m;
• Positive cash flow from operations of A$112.1m despite challenging nickel price environment and strong Australian dollar;
• Cashflow pre-financing cost and repayments (after all capital expenditure and exploration) of A$33.0m;
  • This compares to A$35.4m on the same measure for FY12 which had the benefit of a significantly higher nickel price — cash management initiatives are delivering;
• Repayment of A$150.5m in Convertible Bonds and borrowings;
• Unit cash costs of A$2.68/lb (nickel in concentrate), retaining the Company’s standing in the lowest quartile of global nickel production costs;
• Spotted Quoll Underground successfully ramped up ahead of schedule and on budget with no commissioning issues.

Click here to read the full Western Areas Ltd. (ASX:WSA) press release.