International Mining’s April issue included an Operations Focus article on West Australian nickel producer Mincor. Its first quarter reports noted costs down, grades up and nickel production on target in the first full quarter following successful implementation of a Management Plan aimed at coping with the fall in nickel prices.

Other highlights from the first quarter include:

• Strong cost performance – cash costs down a further 6% to lowest level in 3 years (A$5.25/lb payable nickel, or $3.41 at an exchange rate of 0.65)
• Strong cash generation – net free cash of $10.3 million for the quarter (operational surplus of $15.5 million minus capital and exploration costs of $5.2 million)
• Highest quarterly nickel grade in 5 years and lowest quarterly cash costs in three years – showcases Mincor’s unique production flexibility and the strength of its core operations
• Exploration program delivers exciting results below the N09 ore body at Mariners, including drill intersections of 1.2 m @ 10.3% Ni and 5.5 m @ 3.38% Ni (both true width)
• Major five-rig exploration program commencing early May – focused on the discovery of Ultra-Sized Nickel Ore Bodies at North Kambalda, new ore systems at Bluebush, and strong exploration targets at Otter Juan, Carnilya Hill, Mariners and Miitel
• Working capital (cash and receivables minus creditors and accruals) increased to $78.5 million – up from $71.7 million at end December, after payment of $4 million interim dividend and negative provisional pricing adjustment of $1.7 million