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Western Areas (ASX:WSA) - Managing Director, Dan Lougher
Managing Director, Dan Lougher
Source: Western Areas
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  • Western Areas (WSA) shares have slipped slightly after the company released its results for the 2021 financial year
  • The nickel producer tabled sales revenue of $257.2 million, down on FY20’s revenue of $308.4 million, with earnings also dropping over FY21
  • WSA ended FY21 with a $7.7 million loss, well down on last year’s $31.9 million profit, with the loss blamed on lower nickel production and sales
  • Shareholders won’t be issued a final year dividend, while since the end of FY21 WSA has confirmed takeover talks are underway with IGO (IGO)
  • Western Areas shares are trading down 1.27 per cent at $3.12 per share at 1:00 pm AEST

Western Areas (WSA) shares have slipped slightly after the company released its full year results for the 2021 financial year.

The nickel producer revealed on Tuesday that it ended FY21 with a $7.7 million net loss, well down on last year’s $31.9 million profit.

The loss has been blamed on lower nickel production and tonnes sold over the year, with 16,812 tonnes of nickel mined and 15,509 tonnes sold.

WSA’s sales revenue hit $257.2 million at the end of June 30, down on FY20’s revenue of $308.4 million.

It’s earnings before interest, taxes, depreciation and amortisation also dropped from $121.9 million to $73.5 million.

Shareholders won’t be issued a final year dividend, with the company also deciding against issuing an interim dividend at 1H Fy21.

Western Areas Managing Director Dan Lougher said there had been a number of challenges throughout the financial year.

“I am proud of the professional and resilient performance of the technical team which successfully overcame the mine production difficulties encountered in the first half to enable the improved second half production and costs performance,” Mr Lougher said.

“Ultimately it was this turn around that allowed us to deliver into updated guidance for FY21. At Odysseus, our new long life mine continues to advance towards production of first ore in this September quarter, which will mark a very significant milestone in its expected 10 plus year mine life.

“Odysseus remains one of the few long-dated supplies of nickel sulphide to enter the market in the coming years, just as the EV market continues to drive nickel demand for delivery into the EV battery supply chain.”

Since the end of the financial year, Western Areas has confirmed it has been in preliminary takeover talks with ASX-100 lister IGO (IGO).

No updates have been released since then, but looking ahead the business is expecting first ore from Odysseus by the September quarter.

Western Area shares were trading down 1.27 per cent at $3.12 per share at 1:00 pm AEST.

WSA by the numbers
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