Western Areas (WSA) reported December Q results with 5.4kt Ni in concentrate at a C1 cost of A$3.10/lb (before payability), broadly in line with Argonaut’s forecast of 5.3kt Ni at A$3.10/lb. Cash at 31 December was $184.9m, up from $165.9m at the end of the previous Q. The Company is tracking within the FY20 guidance ranges of 21-22kt Ni at C1 costs of A$2.90-3.30/lb. Development work at Odysseus continued with $14.9m spent on the project during the Q. Mobilisation of the construction crew for the hoisting shaft will occur this month. Argonaut upgrades WSA to HOLD recommendation with a revised target price of $2.65/sh (from SELL at $2.70/sh).
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