Mincor delivers 246% net profit increase
Kambalda nickel mining company, Mincor Resources has delivered its fifth straight year of strong earnings growth, yesterday announcing a record net profit after tax of $101.3m for the 12 months to June 30, 2007.This result is Mincor’s best ever financial performance and has enabled the company to declare a final fully franked dividend of six cents, lifting the full-year payout by 140 percent to 12 cents. The company said this record earnings result represented a 246 percent increase over last year’s record $29.3m profit. The strong financial performance was achieved on solid production from Mincor’s four Kambalda nickel operations of 12,927 tonnes of nickel-in-concentrate. This was sold into an exceptionally strong nickel price environment, with an average selling price (net of hedging) of A$17.28 per pound payable nickel achieved for the year. Mincor’s Managing Director, David Moore said the record profit reflected the benefits of an aggressive but disciplined growth strategy which had positioned the company second only to BHP Billiton in terms of nickel sulphide production from Australian listed companies. “This has enabled us to benefit fully from the strong nickel prices realised during the year,” Mr Moore said. “But the real message is that we have used the last 12 months to establish an exceptionally strong foundation for further growth, with production likely to rise strongly over at least the next two years as a number of new mines come on stream.” “We already now have production from our newly acquired Otter Juan Mine and from early next year we will have production from our new Carnilya Hill Mine, which is currently under construction. “In addition we are carrying out feasibility studies on two new projects, McMahon and Durkin, and we are drilling out what looks like a major new discovery at Mariners,” he said.