Australian nickel miner Western Areas has retained its nickel production guidance for FY 2021, despite a decline in nickel concentrate output in FY 2020, which ended on June 30, 2020.
The group has set a guidance range of 19,000-21,000mt for its yearly nickel concentrate output for FY 2021. The firm has predicted a shift in nickel consumption from stainless steel to the electric vehicle (EV) market, with China subsidizing EV and hybrid car production. Indonesia’s ban on imported nickel from Australia, however, could affect volumes.
The company’s yearly nickel production of 20,926mt in FY 2020 fell short by 3.5pc from 21,675mt in FY 2019. Sales amounted to 19,857mt of concentrate in the fiscal, down by 8pc from 21,483mt in the prior year. The company realized a higher nickel price of $6.82/lb in FY 2020, compared with $5.67/lb in FY 2019.
The miner’s FY 2020 revenue rose by 14.7pc to $308.3mn from $268.7mn last fiscal. It posted a net income of $31.8mn, doubling from $14.1mn in the same period under comparison.