Western Areas (WSA) released March Q results producing 4.8kt nickel in concentrate, below Argonaut’s forecast of 5.5kt. Mill production was impacted by lower feed grades, which were down ~3% Q-on-Q. Cash and receivables increased by $5m to $154m at 31 March, benefiting from an 8% increase in nickel prices. WSA announced the completion of commissioning of the Mill Recovery Enhancement Project (MREP) this week which should lift overall plant recoveries by 3-5%. This project opens up new opportunities for WSA including nickel sulphate production for the expanding battery market, exploitation of lower quality resources (i.e. New Morning) and licencing the technology to third parties.
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