- Western Areas Ltd is an Australian nickel miner and producer presenting on its operations and outlook.
- It operates two nickel mines, Flying Fox and Spotted Quoll, as well as a nickel concentrator, producing over 25,000 tonnes of nickel concentrate per year.
- Resources and reserves continue to increase at its mines through ongoing exploration, and production is ramping up at low cash costs below $3 per pound.
Western Areas Ltd (ASX:WSA, “Western Areas” or “the Company”) today announces the Company’s Full Year Results for the year ended 30 June 2013.
In all, against a backdrop of a challenging year for all nickel companies with a falling nickel price and high Australian dollar, Western Areas reported a net loss after tax of $94.1m. This result was impacted by a tax effected non-cash impairment charge of $99.7m which redominately related to historical exploration. Excluding the impairment, the Company recorded an Underlying Net Profit after Tax of $5.6 million.
Western Areas Ltd (ASX:WSA, “Western Areas” or “the Company”) today announces the Company’s Full Year Results for the year ended 30 June 2013.
In all, against a backdrop of a challenging year for all nickel companies with a falling nickel price and high Australian dollar, Western Areas reported a net loss after tax of $94.1m. This result was impacted by a tax effected non-cash impairment charge of $99.7m which redominately related to historical exploration. Excluding the impairment, the Company recorded an Underlying Net Profit after Tax of $5.6 million.
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Corporate Presentation June 2013
1. “Think Nickel, think Western Areas”
Western Areas Ltd
Corporate Presentation June 2013
2. This presentationis being furnished to you solely for your information and for your use and may not be copied, reproduced or redistributedto any other person in any manner.
You agree to keep the contents of this presentationand these materials confidential. The information contained in this presentationdoes not constituteor form any part of any
offer or invitation to purchase any securities and neither the issue of the information nor anything contained herein shall form the basis of, or be relied upon in connection with,
any contract or commitment on the part of any person to proceed with any transaction.
You must not take or transmit this presentationor a copy of this presentationinto the United States or Japan or distribute it, directly or indirectly, in the United States or Japan or
to any US persons. By your acceptanceof this document, you acknowledge that you are a not a “U.S. person” for the purposes of the US Securities Act. Neither this document, in
whole or in part, nor any copy thereof may be taken or transmittedto any other person. The distributionof this document to other persons or in other jurisdictions may be
restrictedby law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these
restrictionsmay constitutea violation of the federal securities laws of the United States and the laws of other jurisdictions. The distribution of this presentationin other
jurisdictionsmay be restrictedby law, and persons into whose possessionthis presentationcomes should inform themselves about, and observe, any such restrictions.
The information contained in this presentationhas been prepared by Western Areas Ltd. No representationor warranty, express or implied, is or will be made in or in relation to,
and no responsibilityor liability is or will be accepted by Western Areas Ltd, employees or representativesas to the accuracy or completenessof this information or any other
writtenor oral information made available to any interested party or its advisers and any liability therefore is hereby expressly disclaimed. No party has any obligation to notify
opinion changes or if it becomes aware of any inaccuracy in or omission from this presentation.All opinions and projections expressed in this presentationare given as of this date
and are subject to change without notice.
This document contains forward-lookingstatements. These statementsare subject to certain risks and uncertaintiesthat could cause the performance or achievements of
WesternAreas Ltd to differ materially from the information set forth herein, although such information reflects forecasts and projections prepared in good faith based upon
methods and data that are believed to be reasonable and accurate as at the dates thereof and although all reasonable care has been taken to ensure that the facts stated herein
are accurate and that the forward-lookingstatements,opinions and expectationscontained herein are based on fair and reasonable assumptions. WesternAreas Ltd undertakes
no obligation to revise these forward-lookingstatementsto reflect subsequentevents or circumstances. Individualsshould not place undue reliance on forward-looking
statementsand are advised to make their own independent analysis and determination with respect to the forecastedperiods, which reflect Western Areas Ltd’sview only as of
the date hereof.
The information within this PowerPointpresentationwas compiled by Mr. David Southam, but the information as it relates to mineral resources and reserves was prepared by Mr.
Dan Lougher and Mr. Andre Wulfse. Mr. Southam, Mr. Lougher and Mr. Wulfse are full time employees of Western Areas Ltd. Mr. Lougher and Mr. Wulfse are members of
AusIMM and have sufficientexperience which is relevant to the style of mineralisation and type of deposit under considerationand to the activity which they are undertaking to
qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reportingof Exploration Results,Mineral Resourcesand Ore Reserves’. Mr. Southam,
Mr. Lougher and Mr. Wulfse consent to the inclusion in this presentation of the matters based on the information in the form and context in which it appears.
For Purposes of Clause 3.4 (e) in Canadian instrument 43-101, the Company warrants that Mineral Resources which are not Mineral Reserves do not have demonstratedeconomic
viability.
THIS PRESENTATION IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
2
Disclaimer and Forward Looking Statements
3. 3
Introduction
Operations
Financials
Exploration & Growth Outlook
Nickel Industry
“Western Areas has an enviable track record of
exploring, finding, developing and producing
profitable mines.”
Explore Develop
ProduceSales
Agenda
4. 4
%
1 T Streeter 13.18
2 JCP Partners 6.07
3 Colonial Group 5.95
4 M & A Greenwell 5.15
5 Celeste Funds Management 3.72
6 Concise Asset Management 3.27
7 Tribeca 3.16
8 BT Investments 3.10
9 Giovanni Santalucia 2.60
10 Antares 2.55
11 UBS Asset Management 2.11
12 Solaris 1.90
13 Macquarie 1.74
14 Mount Kellet 1.56
15 Kinetic Investment Partners 1.55
TOTAL 57.61
Top 15 ShareholdersListing: Member of S&P ASX 200
Shares on Issue: 196.8M
Share Price: ~ A$2.40 (June 2013)
Market Cap:
(undiluted)
~ A$450 million
Cash: A$58M at 31 March 2013
Introduction – Corporate Summary
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$6.00
Jul-12
Jul-12
Aug-12
Sep-12
Sep-12
Oct-12
Nov-12
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Dec-12
Jan-13
Jan-13
Feb-13
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Apr-13
Apr-13
May-13
Jun-13
WSA FY2103
Closing Share…
5. Western Areas is:
Australia’s lowest cash cost nickel producer
A proven explorer, developer and operator led by an experienced management team
An S&P ASX 200 index member
Market cap ~ $450 million at current prices
Profitable, even at the current low A$ nickel price
A proven dividend payer, with a strong balance sheet
Australia’s third largest producer of nickel at 31,000 tonnes of nickel mined and 25,000 tonnes of
nickel in concentrate produced
No 1 = BHP-B Nickel West and No 2 = Glencore
Employer of approx 500 staff, either directly or through contractors
Into its seventh consecutive year of production, tenth consecutive quarter with no downside
surprises
First production 26 October 2006
Committed to stable growth from the current solid platform
5
Ready For The Cycle
6. 6
Strong Asset Base
Production
Assets
Flying Fox
• 1st nickel mine
• 15kt to 20kt nickel
per annum
Spotted Quoll
• 2nd nickel mine
• 10kt to 15kt nickel
per annum
Cosmic Boy
• Nickel concentrator
– treats ore from
both mines
Exploration
& Growth
Forrestania &
WA Regional
- Nickel
Canadian Assets
- Nickel / Copper
- Platinum group
Finland
- VMS
- Outokumpu Cu
Disciplined
Acquisition
Potential
(Nickel &
Base Metals)
8. 8
Western Areas are Safe Areas
Continuous Safety Improvement
Zero LTIFR - is the lowest result since 2009
Flying Fox > 800 days LTI free
Spotted Quoll > 500 days LTI free
Exploration >1,500 days LTI free
MTIFR trending down to 5.9
Contractors and Employees fully integrated into a
site wide commitment
Environment & Social
No environmental breaches
Strong local commitments from the Hyden
Respite Centre, Perth Zoo (Northern Quoll) and
Starlight Childrens’ Foundation WA
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-
13
Jun-13
LTIFR LTIFR
10. Summary
Continuous high grade Nickel to 1300m. Open at
depth
Resource ore grades increase at depth from 3.9% to
5.8% Nickel
Announced intersection T5: 34.7m @ 8.9% Nickel
Production
FY2012 – 373,726t @ 5.0% nickel for 18.5kt nickel
FY2013 guidance – 16kt nickel in ore
Low cash cost operation <US$3/lb
Ore Reserve now 72,200t of high grade nickel
Total High Grade Resource now stands at around
100,286t of Nickel
Major drilling program ongoing at Lounge Lizard
T5 & T7 down dip extensions cross into Lounge
Lizard and remain open
Flying Fox Mine
10
11. Summary
Ore reserve was upgraded in June 2012 by 94%
with an exceptional 88% conversion ratio
Ore reserve now 3.0mt @ 4.20% containing
126,135t nickel
Remains open at depth
Surface drilling program complete to improve
conversion of inferred resource to indicated
resource
Already >10 year mine life on reserve
New Spotted Quoll North Resource of 50kt
@11.3% for 5,730 nickel tonnes
Production
Successfully ramped up nickel production to a
10ktpa rate for the six months to Dec 2012
Mine optimisation study complete and decline
being accelerated to reach 15ktpa nickel in FY2015
Spotted Quoll Mine
11
12. 12
Concentrator Summary
Current nameplate capacity of 550,000tpa of ore (but being exceeded)
Nickel concentrate output >25,000tpa Ni
Concentrate grades of around 14.0% Ni
Premium blending product (Fe/Mg ratio >15)
Desirable to smelters as it enables lower quality concentrates to be
economically utilised after blending
14,000t of concentrate storage capacity
Export Infrastructure and Logistics
Access to >1400 sealed shipping containers
No Environmental issues
Using 25 trucks for concentrate transportation
Shipping contract in place, FOB Esperance Port
Concentrator Expansion
Preliminary high grade expansion study (750ktpa) completed
Expansion configured for upgrade to 1mtpa of ore
Some items of infrastructure (crusher) already capable of 1mtpa
Forrestania Nickel Concentrator
13. 13
Full Year 2013 Guidance
Released FY2013 Guidance on 31 May 2013:
Guidance
Original
Guidance
Upgraded
Guidance
Final
Guidance
Nickel in Ore ('000t) 26,000 27,000 27,000
Nickel in Concentrate ('000t) 25,000 25,500 26,500
Nickel Sales ('000t)* 26,000 26,000 27,000
Unit Cash Costs <A$3.00/lb <A$3.00/lb <$2.90/lb
Capital Expenditure <A$70m <A$70m <A$65m
Exploration A$20m A$20m <A$19m
*Assumes shipment planned for June is not delayed until July
• Delivered 11 consecutive Quarterly Reports without missing one operational target
• Costs remain well under control
• Capex heavy lifting completed in 1HFY2013
• Strong free cashflow generation in Q4 expected
14. Concentrate Supply
Tightness in smelter supply to be experienced from 2014
Global nickel sulphide grades in decline
Reliable nickel sulphide concentrate supply dwindling
Laterites and Nickel Pig Iron do not fill the void
Offtake Contracts
Long term offtake to BHP – 12ktpa nickel in concentrate
Tender process complete – 26,000t of nickel in
concentrate awarded to Jinchuan
Improved payability achieved
Bids from end users, investors and traders
WSA in a unique position being an independent producer
Ability to complete spot/opportunistic sales
14
NOTE: The graph FORRESTANIA – OFFTAKE CONTRACTS is based on Western Areas’ 10 Year
Production Targets. These Targets include estimates and assumptions on production rates of
existing ore reserves, conversion of existing mineral resources to ore resources and assumptions
on potential extensions to existing mineral resources, based on current information. These
Production Targets may vary due to future drilling results, nickel prices, costs and market
conditions. Refer to Disclaimer and Forward Looking Statement in Presentation
500
550
600
650
700
750
800
850
900
950
1000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
NickelinConc/Kt
Global Smelter Demand vs Global Concentrate Supply
Nickel in Concentrate Supply Smelter Demand
Concentrate Supply and Offtake Contracts
16. Delivering on Objectives
16
Report Card 1st Half 2012/13
Objectives What's Been Delivered
Pay Dividend 2c interim dividend
Cashflow from Operations A$48.1m cashflow, debt reduction and dividends
Profitable through the cycle <nickel price, EBITDA A$61.6m, Underlying NPAT $6.5m
Cash costs below A$3.00/lb A$2.69/lb
Increase reserves at Flying Fox 72kt nickel reserve
New discovery at Forrestania New Morning and Sunrise
LTIFR < 1.0 ZERO
Spotted Quoll production to 10kt nickel pa Achieving production target - delivered on budget
17. 17
Financial Snapshot
Underlying NPAT 1H 2013: A$6.5m (pre Sandstone impairment)
Shipment timing
impacted 2H 2012
Guidance maintained after
full transition to Spotted
Quoll Underground
Nickel Price is primary
driver of EBITDA
changes
Impacted by $4.4m write-
down (post tax)
Includes A$105.5m
Convertible Bond
Repayment. ANZ debt of
A$45m retired in Jan 2013
Half Yearly Snapshot 1H 2012 2H 2012 1H 2013
Mine Production (tonnes Ni) 16,230 14,872 14,461
Mill Production (tonnes Ni) 13,045 12,596 13,673
Recovery 93% 91% 91%
Sales Volume (tonnes Ni) 11,595 15,042 13,752
Cash Costs (US$/lb) 2.23 2.77 2.79
Cash Costs (A$/lb) 2.17 2.69 2.69
Exchange Rate USD/ AUD 1.03 1.03 1.04
Nickel Price (US$/tn) 18,761 18,276 16,664
EBITDA ('000) 96,633 89,950 61,619
EBIT ('000) 52,814 42,088 17,433
NPAT ('000) 24,102 16,079 2,117
Cashflow from Operations ('000) 64,412 94,841 48,076
Net Debt ('000) (179,844) (220,198) (194,354)
Cash at Bank 160,856 165,502 85,846
Dividend (cents) 5.0 6.0 2.0
18. 18
Balance Sheet
Commentary (1H FY 2012)
Strong balance sheet with reduced gearing - $45m
ANZ Facility repaid in January 2013.
Repaid A$105.5m bond on 2 July 2012 – well
flagged to market and strong positioning
Capital Management has plenty of headroom:
ANZ Facility of A$125m – currently undrawn
providing repayment certainty of 2014 CB
Convertible bond July 2014 – A$110.2m
Convertible bond July 2015 – A$125.0m
FY13 capex/mine development likely to be <A$70m
FY13 exploration may be more than A$20m
dependent on results from New Morning and
Sunrise – success will be reinforced
Balance Sheet 1H FY 2012 2H FY 2012 1H FY 2013
Cash at Bank 160,856 165,502 85,846
Receivables 28,971 25,360 26,276
Stockpiles & Inventory 50,841 42,121 41,699
PP&E 106,932 107,111 114,413
Exploration & Evaluation 106,660 133,282 140,051
Mine Development 247,401 295,634 272,104
Other 10,465 5,958 4,525
TOTAL ASSETS 712,126 774,968 684,914
Trade & Other Payables 70,328 66,444 45,216
Short Term Borrowings 103,449 162,656 45,073
Long Term Borrowings 250,268 256,003 265,296
TOTAL LIABILITES 424,045 485,103 355,585
SHAREHOLDERS EQUITY 288,081 289,865 329,329
19. 19
ANZ Facility
A$125m facility, expiring in 2015
Fully covers the July 2014 convertible bond of A$110.2m
Margin is less than the coupon for the 2014 and 2015 convertible bonds
July 2014 Convertible Bond
Will be repaid via all cash or a mixture of cash & the ANZ Facility
Convertible bonds have been a very successful funding tool for both WSA and investors
WSA is not currently planning for any CB restructure/ new issue
WSA gearing levels have been reduced over the last 12 months:
• Repaid $105.5m convertible bond from free cashflow generation
• Repaid A$45m to ANZ which was used to facilitate the acquisition of Kagara Ltd’s nickel assets
• Remain cashflow positive despite a challenging nickel price impacted by a strong AUD
• Sustaining capex profile likely to reduce over the coming years
Capital Management
21. Exploration Budget of A$20M for FY13, majority to be spent on drilling at Forrestania
120km strike length (900 sq km) of prospective Forrestania Nickel Project, within 500km long
nickel province
Drilling Priority within 8km long zone (below). New discovery would access existing mine
infrastructure. Systematic approach
Recent New Morning massive sulphide & Sunrise discoveries (see next slide)
Short Term – Near Mine Exploration
21
Drilling in Progress
22. High Grade Discovery at New Morning
WSA’s latest new high grade discovery, 2.5km from
Flying Fox and 2.8km from Spotted Quoll
Massive sulphide discovered below New Morning
3.0m @ 6.3% nickel including 2.4m @ 7.6% nickel
DHEM geophysics confirms plate approximately
250m x 150m
Major drilling program underway
22
Drilling in Progress
23. WSA owns 19.5% of Mustang Minerals - a Canadian listed nickel and PGM company
WSA has two of 5 board seats, plus provides technical assistance
Makwa Nickel/PGE mine in Manitoba – feasibility in progress targeting 5ktpa Ni in concentrate
Mayville Copper/Nickel deposit in Manitoba – drilling in progress – new resource expected Q1, FY2013
Potentially significant Palladium & Platinum discovery adjacent to Mayville
Mayville drill core: 74.7m @ 0.75% Cu & 0.24% Ni
Canada – Mustang Minerals
Mayville outcropping
23
24. 83% WSA, planning to list on AIM - dependent on
market conditions
300km long base metal province in Finland
Numerous nickel/copper/zinc mines & occurrences
Focus on two key projects:
1. Outokumpu Copper Project
2. Hammaslahti VMS Project
Drill priority targets for potential extensions and
repetitions to known copper deposits
Geophysics proving very effective in defining targets -
ZTEM survey completed
Finland – FinnAust Mining PLC Projects
24
25. Growth Outlook
25
Short Term < 12 Months
• Flying Fox > 10 years –
drilling in progress
• Forrestania drilling
• Mill expansion decision
• Cash costs <US$3.00/lb
• Strong cashflow
• Dividends
• Further enhanced
offtake contract
• Advance FinnAust
Mining exploration
Medium Term 2-5 years
• Spotted Quoll & Flying
Fox – 30ktpa
• New Morning/ Sunrise
reserve & production –
5-10ktpa
• 4th mine from
Forrestania
• Mill expanded 750ktpa
• First quartile cash costs
• FinnAust in feasibility
• Dividends
• Mustang prod – 5ktpa
Long Term >5 years
• Base Case production
40-50ktpa , plus new
mines
• Large disseminated
resource potential
• FinnAust producing
• Base Metals exposure
• Dividends
• Continued
exploration upside
• Independent
producer
Disciplined Acquisition Potential (Nickel & Base Metals)
26. Jkjjljljlkj
Kawana JV
80%
Bullfinch
North JV
70%
Lake King JV
70%
East Bull
Lake JV 65%
Cosmic Boy
Resource
Mt
Alexander
JV 25%
New
Morning
Mt Jewel
25%
Mt Gibb JV
70%
Hatters Hill
Makwa &
Mayville
Canada
Diggers
South
Spotted
Quoll
Undergroun
d Upgrade
Cosmic Boy
Mill
Expansion
Spotted
Quoll
Flying Fox
Cosmic Boy
Mill
= International = WA Regional = Forrestania
Koolya -
nobbing
Finland –
Nickel
Bioheap
Southern
Cross
Goldfields -
Other
Finland –
Copper
The Portfolio
26
Sunrise
27. 27
The Investor Equation
+ Industry Leading Safety (Safety)
+ Highest Grade Mining Operation in the World (Grade)
+ A Profitable and Cashflow Positive Company in a Low Price Environment (Defensive)
+ A Company which Continuously Meets and Betters Guidance (Management)
+ A Company whose Commodity Price is at Marginal Cost, therefore only Upside (Leverage)
+ A Company is one of the Remaining Few Pure Play Stocks (Appeal)
+ A Company which has a History of Discovery and Development (Delivery)
+ A Company with Numerous Organic Growth Opportunities (Growth)
+ A Company with a Strong Balance Sheet (Flexibility)
+ A Company that pay Dividends (Returns)
Investor Equation
= Western Areas Ltd (ASX: WSA)
29. Current LME spot price up ~ 10% on average price for prior
period
Demand increase linked to:
Chinese steel production – construction and consumer
good uses, linked to Chinese economic growth
North American economy – linked to consumer goods
European economy – linked to consumer goods
Two from three showing good signs
Supply side still suggests positive pricing dynamic:
Indonesian laterite export ban to hit new age nickel pig
iron producers
Looming quality sulphide gap with major mines
reaching end 2013-2014
Consolidation in the nickel industry a potential driver over
2013
Nickel Outlook
We believe prices have bottomed
and will gradually trend higher
over our forecast period to
encourage the rise in capacity
utilization rates required to meet
our forecast demand growth. We
expect marginal costs to be a key
determinant of prices.
Based on the historical
inventory/price relationship and
our cost work, we see
fundamental price support in the
$8.50/lb to $9.50/lb range.
-RBC Capital Markets,
21 January 2013
“Nickel Market Outlook”
29
32. Left to right: David Southam (Executive Director),Dan Lougher (Managing Director),
Rick Yeates (Non-Exec Director), Terry Streeter (Non-Exec Chairman), Ian Macliver (Non-Exec Director) Julian
Hanna(Non-ExecDirector),Robin Dunbar (Non-ExecDirector) & Joseph Belladonna(Company Secretary)
Proven Depth & Experience
Terry Streeter and Julian Hanna
founders of Western Areas
Extensive experience in nickel
exploration, mining and
processing
Global expertise in project
sourcing, exploration and mine
development
Strong banking, financial, M&A
and corporate governance
backgrounds
Involvement with other
successful nickel companies
(Jubilee Mines)
Solid understanding of Chinese
markets, project financing and
offtakes
32
Board of Directors
34. 2. Low Grade disseminated sulphide
Mature nickel camps contribute ~45%
global production
NO MAJOR NEW DISCOVERIES
1. Conventional Nickel Sulphide
4. Chinese Nickel Pig Iron
Chinese nickel pig iron, 15% global
production. Announced cut backs
ENERGY INTENSIVE, HIGH COST
3. Nickel Laterite
Laterite & Ferro Nickel contribute >40%
global production
HIGH CAPEX, HIGH ENERGY COST
Increasing reliance on low grade and
low quality nickel sulphide production.
HIGH CAPEX, MODERATE ENERGY
Increasing energy intensity
and production cost
Increasing energy intensity
and production cost
Energy Intensity
34
35. 35
Income Statement
Commentary (1H FY 2012)
Nickel price down A$0.95/lb and A$0.73/lb
versus 1H 2012 and 2H 2012 respectively.
Prior two halves have the impact of the
super low cost Spotted Quoll Open Pit – 1H
2013 is purely two underground mines.
Sales volume high in 2H 2012 due to timing
of shipments
Unit cash costs kept below guidance at
A$2.69/lb and consistent with 2H 2012.
Sandstone post tax impairment charge of
A$4.4M.
Interest expense reduction reflects
retirement of A$105.5m bond in July 2012
Final dividend declaration of 2c fully franked
represents return of 62% of underlying NPAT.
Underlying* NPAT 1H 2013: A$6.5m *Underlying NPAT reconciliation $m
Underlying NPAT $6.5
Less Sandstone impairment (post tax) ($4.4)
Reported NPAT $2.1
Earnings Data ($'000) 1H FY 2012 2H FY 2012 1H FY 2013
Exchange Rate USD/ AUD 1.03 1.03 1.04
Nickel Price (U$/tn avg) 18,761 18,276 16,664
Revenue 149,106 181,592 158,963
EBITDA 96,633 89,950 61,619
Depreciation & Amortisation 43,819 47,862 44,186
EBIT 52,814 42,088 17,433
Interest Expense 18,086 19,355 13,671
Tax 10,626 6,654 1,645
NPAT 24,102 16,079 2,117
Dividend (cents) 5.0 6.0 2.0
Earnings per share (cents) 13.4 9.0 1.1
36. 36
Cashflow Statement
Commentary (1H FY 2013)
Cashflow from Operations of A$48.1m,
significantly impacted by a lower nickel price
and first income tax payment.
Exploration and capex broadly in line with
guidance.
2nd half exploration may be higher based on
New Morning success.
Final US$15m paid for Outokumpu Royalty
retirement.
Convertible bond retired for A$105.5m in July
2012.
A$50m received from equity placement in
December (before costs).
Final dividend of 6c per share from FY2012
paid in October.
Cashflow Statement ($'000) 1H FY 2012 2H FY 2012 1H FY 2013
Operating Cashflow 64,412 94,841 48,076
Less:
Exploration (17,860) (15,940) (12,795)
FinnAust Investment (4,058) (3,307) (2,297)
Acquisition of Mining Interests (1,512) - -
Mine Development (38,506) (28,911) (15,475)
Capital Expenditure (8,087) (5,625) (14,333)
Investment activities (274) (811) -
Outokumpu Royalty Payout (14,926) - (14,317)
Payment for subsidiary - (71,100) -
Proceeds from Share Issues - - 50,000
Proceeds/(Costs) from Financing (319) 44,486 (2,231)
Dividends Paid (26,962) (8,987) (10,784)
Repayment of convertible bond - - (105,500)
Net Cashflow (48,092) 4,646 (79,656)
Cash at Bank 160,856 165,502 85,846
37. December Quarter
Unit Cash Costs < guidance of
A$3.00/lb
Concentrator operating >
capacity, on target to exceed
guidance
Spotted Quoll ramped up to
10ktpa nickel
On target to exceed
guidance for nickel in ore
production
FY
Tonnes Mined Mar Qtr Jun Qtr Sep Qtr Dec Qtr Total
Flying Fox
Ore Tonnes Mined Tn's 81,143 96,289 102,218 89,846 192,064
Grade Ni % 5.3% 5.3% 5.0% 4.9% 5.0%
Ni Tonnes Mined Tn's 4,278 5,097 5,129 4,380 9,509
Spotted Quoll - Tim King Pit
Ore Tonnes Mined Tn's 57,204 - - - -
Grade Ni % 4.0% 0.0% 0.0% 0.0%
Ni Tonnes Mined Tn's 2,280 - - - -
Spotted Quoll - Underground
Ore Tonnes Mined Tn's 23,261 42,574 43,581 50,907 94,488
Grade Ni % 4.5% 5.1% 5.4% 5.1% 5.2%
Ni Tonnes Mined Tn's 1,044 2,173 2,375 2,577 4,952
Total - Ore Tonnes Mined Tn's 161,608 138,863 145,799 140,753 286,552
Grade Ni % 4.7% 5.2% 5.1% 4.9% 5.0%
Total Ni Tonnes Mined Tn's 7,603 7,270 7,504 6,957 14,461
Tonnes Milled and Sold Mar Qtr Jun Qtr Sep Qtr Dec Qtr Total
Ore Processed Tns 131,748 143,148 142,795 151,855 294,650
Grade % 5.1% 4.9% 5.3% 4.9% 5.1%
Ave. Recovery % 93% 90% 92% 90% 91%
Ni Tonnes in Concentrate Tns 6,276 6,320 6,951 6,722 13,673
Ni Tonnes in Concentrate Sold Tns 8,154 6,888 6,923 6,829 13,752- -
Total Nickel Sold Tns 8,154 6,888 6,923 6,829 13,752
Financial Statistics Mar Qtr Jun Qtr Sep Qtr Dec Qtr Total
Cash Cost Ni in Con (***) A$/lb 2.48 2.90 2.49 2.89 2.69
2012/20132011/2012
37
38. Total Period to Date Ni Tn
Production
38
Ore Tn Ni Tn Grade %
20,088 450 2.24%
124,303 4,214 3.39%
252,152 10,338 4.10%
325,198 14,022 4.31%
642,902 33,984 5.29%
665,421 32,279 4.85%
428,555 21,607 5.04%
2,458,619 116,894 4.75%
Total Combined Mine
Production