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- Nickel producer Western Areas is looking to bring high profiting nickel out of WA in the 2023 financial year
- The company has recently completed a successful feasibility study from its Odysseus Project, with ongoing development on site checking major boxes this week
- The project’s AM5/6 deposit alone is believed to hold 57.6 kilotonnes of nickel and a pump station has been placed 500 metres below surface
- Western Areas also finished the 2018/2019 financial year strong, standing tall with no debt and A$144.2 million in unaudited cash
Explorer Western Areas has reported the company is on track with its WA Odysseus Project.
The $299 million project was checking boxes earlier this year, following a positive definitive feasibility study (DFS) from the year before.
Today, the nickel producers state the project has successfully undergone an early works program. Western says the project will deliver its first nickel ore early in the 2023 financial year.
Company Managing Director Dan Lougher says the company is pleased to announce the completion of the early works programme, with the Odysseus Project now well on track to deliver the first nickel ore early in FY2023.
“The Company is fully committed to the development of the Odysseus mine and is very excited to be in a position to advance the next phase of the underground rehabilitation programme down to the AM5/6 orebodies, which will allow new decline development toward the Odysseus deposit,” said Dan.
AM5/6 is a drilling area at Odysseus.
“In addition, Western Areas is continuing to work on the planned mining studies for the AM5/6 orebodies,” he continued.
“It is important to note that the DFS did not include the 57.6 [kilotonne] nickel Indicated Mineral Resource contained in the AM5/6 deposits. The potential to mine ore from these deposits will provide both upside and optionality within the mining production sequence,”
Most recently on site, the company placed a pump station 500 metres below surface. Ongoing contracts for work at Odysseus have been either completed or partially completed.
Odysseus is estimated to give the company hefty financial returns over a 10 year life span.
“The capital outlay for the coming years is expected to be funded from the Company’s operating cashflows and cash reserves, while the project retains significant funding optionality into the future,” added Dan.
Western’s balance sheet and cash flow finished strong for the financial year – no outstanding debt and A$144.2 million in unaudited cash.
Shares in WSA are trading for $2.02 today, a 3.87 per cent premium from yesterday’s closing price of $1.94.
The company’s market cap is currently valued at $530.6 million.
