Western Areas NL: Strong Financial Results for Year Ended 30 June 2011 & Full Year Dividend

PERTH, AUSTRALIA--(Marketwire - Aug. 22, 2011) -

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The Board of Western Areas (TSX:WSA)(ASX:WSA) is pleased to announce a substantial increase in all aspects of financial performance for the year ended 30 June 2011, including record Net Profit after Tax (NPAT) of A$135.0m (A$14.2m in FY2010).

Cashflow from operations increased by A$189.0m to A$276.2m from FY2010, whilst free cashflow was A$143.58m (A$14.84m loss in FY2010). Furthermore earnings per share increased from A$0.08 in FY2010 to over $A0.75 in FY2011.

The strong results for the financial year have been primarily driven by the following factors:

1. Production targets being exceeded from Spotted Quoll and Flying Fox mines in respect of both grade and tonnage - resulting in production of 32,222t nickel in ore;
   
   
2. 93% average mill recovery for the 2^nd half, lifting the average recovery to 91% for the year;
   
   
3. In combination with a higher nickel price, the Company had record sales of nickel in concentrate and ore (27,498t) to offtake partners. As a result the contract tonnage to Jinchuan will be filled earlier than anticipated; and
   
   
4. Cash costs of nickel in concentrate of A$2.12/lb for the full year (A$3.00/lb FY2010).
   
   

Due to these results, the Board has declared an unfranked final dividend of 15 cents, bringing the full year dividend payout to 25 cents, unfranked (6 cents in FY2010). The record date for the dividend will be 16 September 2011, with the payment date 3 October 2011.

Full year highlights are summarised in the following table:

Discussion

Western Areas Managing Director, Mr Julian Hanna, said that the company had continued to exceed all operational and financial benchmarks for the financial year.

"Western Areas production and sales volumes have exceeded our targets and this performance has naturally flowed into our financial results for the full year and second half. These results are not possible without a dedicated team effort across all the Company's operations," said Mr Hanna.

"Importantly, due to the excellent nickel grades, mine life and low cash cost position of Western Areas, the company is well positioned for the future. Having a solid base case as one of Australia's largest independent nickel sulphide producers and an enviable project pipeline at Forrestania, regionally and internationally, Western Areas is well primed for growth.

"The Western Areas Board is very pleased to be able to announce an increased final dividend of 15 cents, which when combined with the 10 cent interim dividend places the Company as one of the highest yielding mining stocks on the ASX200," said Mr Hanna.

An updated presentation for the financial results is available on the company's website.