Mincor outlines $28 million turnaround

Despite recording an overall loss for the 2009 financial year, Mincor Resources yesterday reported a $28 million profit turnaround for the second half and a 4 cents per share fully-franked final dividend.

According to the company, the results underlined the effectiveness of its response to the global financial crisis.

Mincor made a net profit of $6.05 million for the second half of the year compared to a first half loss of $22.7 million.

This turnaround was the result of a 93% increase in cash margins, brought about by a swift response to last year’s plunge in the nickel price, the company said. Mincor managing director David Moore said the tough year had demonstrated the company’s “extraordinary resilience.”

“We have shown that we can maintain strong cash flows and healthy dividends through a deep downturn,” he said.

“It took a global financial crisis to induce Mincor’s first ever loss as a mining company, but the turnaround in the second half underlines the strength and flexibility of our operations.

“I believe we are in a much stronger position now than at the start of the year.”

The company reported a final full-year loss of $16.7 million, a direct result of the collapse in the nickel price between September and October 2008. Mincor said its underlying operating earnings remained strong at $66.9 million, compared to $171.1 million in 2008.

The company mined and delivered 17,652 tonnes of nickel from a total 573,124 tonnes of ore at an average grade of 3.08% over the year.

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