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OFFTAKE AGREEMENT FOR HIGH GRADE NICKEL SULPHIDE PRODUCT

Western Areas Ltd (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Western Areasâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ or the âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ) is pleased to announce an offtake sale and purchase

agreement (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Contractâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ) has been executed with Sumitomo Metal Mining Co., Ltd. (SMM), a major Japanese mining

and refining conglomerate, for delivery of premium high-grade nickel sulphide precipitate (NSP) being produced at

the Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s Mill Recovery Enhancement Project (MREP) located at the Forrestania Nickel Operation.

 

The NSP product is a new high-grade product stream (grading 45% - 50% nickel), separate from the Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s

conventional nickel sulphide product (which grades ~14% nickel) supplied under existing offtake contracts with

Tsingshan and BHP Billiton Nickel West. The Company has been supplying SMM with the product on a spot sale

basis for many months.

 

The Contract generally contains market standard term and conditions, with key terms of the agreement including:

ââ€âہ“ª Approximate 12 month term, expiring 30 June 2020;

ââ€âہ“ª No set volume to be supplied, however while not an exclusive supply agreement it is expected that all product

produced will be sold into the agreement;

ââ€âہ“ª Delivery on a CIF basis, into the port of Osaka; and

ââ€âہ“ª Increased payable rates compared to the Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s conventional run of mine floatation concentrate, given the

high grade NSP nickel product being suitable for direct feed into the refining process.

 

Western Areas Managing Director, Dan Lougher, said the Company is pleased to announce a longer-term

agreement for offtake from the MREP, following completion of multiple spot sales to various parties.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The execution of the agreement with SMM validates the market demand for this premium NSP product, while

providing the contractual framework to streamline deliveries and remove the need for monthly negotiations on terms

prior to each shipment.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Formalising a relationship with a high quality international resource company with downstream processing

capabilities and direct links into the electric vehicle battery market is a significant step forward

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extract - Nickel Takes The Limelight, But Will It Last?

 

As nickel is increasingly directed to growth segments, the broker likes those producers that have long life, low-cost sulphide projects and can drive value from exploiting downstream refining strategies.

 

This includes Independence Group ((IGO)), with its added exposure to gold, which remains the top pick over Western Areas ((WSA)). Canaccord Genuity notes CleanTeq ((CLQ)), a Class 1 developer, is likely to sell down up to 50% of its Sunrise project, aligning with a final investment decision by the December quarter of 2019.

 

Macquarie believes Western Areas has the most significant leverage to a rally in base metals. Nickel is currently trading 13% above the brokers first quarter FY20 estimates. Under a spot price scenario there is 38% and 59% upside, respectively, to the broker's operating earnings forecasts versus its base case for Western Areas and Panoramic Resources ((PAN)).

https://www.fnarena.com/index.php/2019/07/1...t-will-it-last/

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  • 3 weeks later...

WSA gets a mention

Thereâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s one metal worrying Tesla and EV battery suppliers

Bloomberg News | August 5, 2019 |

Battery producers and electric automakers, including Tesla Inc., are concerned over longer-term supplies of nickel, a key material in their supply chain thatâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s forecast to fall into deficit, according to an Australian miner thatâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s held recent talks with the sector.

 

The need for the high-purity material used in batteries, known as class-one nickel, is likely to outstrip supply within five years, fueled mainly by rising consumption in the EV industry, according to BloombergNEF.

 

Itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s a concern shared by Tesla, according to Peter Bradford, chief executive officer of nickel producer Independence Group NL, who last week met with a member of the car producerâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s battery metals supply chain team.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The dramatic price rise weâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ve seen will pale into insignificance compared to the future,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ Bradford said in the Friday phone interview.

 

Japanâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s Sumitomo Metal Mining Co., said in June the nickel market faces a deficit of 51,000 tons in 2019, raising an earlier forecast. Last month, First Quantum Minerals Ltd. confirmed itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ll reopen the Ravensthorpe mine in Western Australia âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“- shuttered since 2017 âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€šÃ‚ in the first quarter of 2020 amid the strength of interest from potential nickel and cobalt customers.

 

Western Areas Ltd. recently visited Chinaâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s Contemporary Amperex Technology Co. Ltd., a leading battery maker, and is winning interest from the EV sector for nickel supply contracts, the Perth-based producer said Monday in a presentation. Contracts with BHP Group and Tsingshan Holding Group Co. are scheduled to expire in January.

 

Meetings with companies in the EV supply chain in China and South Korea in the past month, including battery suppliers and producers of key raw materials and chemicals, had also underscored the industryâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s concerns about supply, Bradford said.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The big question everyone will be asking in a yearâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s time is where does the nickel come from to satisfy the demands for nickel in stainless steel, as well as the increasing demand for nickel into electric vehicle batteries?âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ he said.

 

read more - https://www.mining.com/web/theres-one-metal...tery-suppliers/

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  • 2 weeks later...

WESTERN AREAS REPORTS FULL YEAR FINANCIAL RESULTS & FY20 GUIDANCE

Western Areas Ltd (ASX: WSA, âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Western Areasâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ or the âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ) is pleased to announce the Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s

financial results for the year ended 30 June 2019 (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“FY19âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ) and key operational guidance metrics for the year ending

30 June 2020 (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“FY20âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ):

Key Metrics for FY19

âÅâہ“âہ“ Strong balance sheet with cash at bank of A$144.3m and no debt

âÅâہ“âہ“ Nickel produced in concentrate 21.7kt (21.1kt)

âÅâہ“âہ“ Nickel in concentrate sales totaled 21.5kt (20.5kt)

âÅâہ“âہ“ Sales revenue of A$268.7m (A$248.3m)

âÅâہ“âہ“ Average realised price of nickel (before payability) of A$7.84/lb (A$7.53/lb);

âÅâہ“âہ“ Net Profit After Tax of A$14.2m (A$11.8m)

âÅâہ“âہ“ Fully franked final dividend of 2.0c per share (2.0c per share)

âÅâہ“âہ“ Odysseus Project early works completed on time and on budget âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ mine development advancing well,

following decision to mine

(Comparisons in brackets refer to the corresponding period FY18)

https://www.asx.com.au/asxpdf/20190820/pdf/...m7p82c5g2rd.pdf

 

As at 13th August, 2019 total short positions = 8.07%

SP currently flat @ $2.47- days range $2.,42 - $2.51 - volume 1.283mil

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  • 2 weeks later...

SP up 16.94% on this mornings news

 

2 September 2019

NEW DISCOVERY OF NICKEL-COPPER SULPHIDES AT MT ALEXANDER

Thick Zone of High-Grade Nickel-Copper Sulphides intersected in first hole at a new target area of

the Cathedrals Belt:

 

ïâ€Å¡Ãƒ‚§ Massive nickel-copper sulphides discovered at shallow depth in first ever drilling at the

recently named Radar Prospect

 

ïâ€Å¡Ãƒ‚§ 7.5m thick mineralised interval from 44.2m downhole in drill hole MAD152 comprising:

See full details here - https://www.asx.com.au/asxpdf/20190902/pdf/...4h60mcbvpj8.pdf

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Spotlight on Western Areas

Perth-headquartered Western Areas (ASX: WSA) is a nickel mining company with high-grade nickel production assets, base metals exploration and development projects across the country. Nickel is critical for manufacturing electric vehicle batteries and stainless steel.

 

We first invested in WSA due to the future growth potential of the electric vehicle industry and therefore nickelâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s growing demand profile as it is a core component in batteries. We also believed WSA's access to high-grade nickel mines in an environment of increasing prices would prove profitable for the company.

 

London Metal Exchange September 2019 nickel futures contracts increased 10.2% for the fortnight after Indonesia announced it would ban exports of the raw material from 1 January 2020 to attract investment in processing. Indonesia is the largest nickel exporter in the world, accounting for 21.5% of total supply. WSA's share price rallied on the expectations of tighter nickel supply, increasing 24.2% this week.

We hold WSA as a market-driven investment in WAM Leaders (ASX: WLE), WAM Capital (ASX: WAM) and WAM Active (ASX: WAA).

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  • 3 months later...

BUSH FIRE INCIDENT AT FORRESTANIA

Western Areas Ltd (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Western Areasâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ or the âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ) advises that a bush fire incident has occurred on Wednesday

afternoon (4 December 2019) in the area of the Forrestania Nickel Operation (FNO).

 

The incident, believed to have started from a lightning strike, resulted in the temporary suspension of operations and

activation of the FNO fire safety protocols for all personnel. The immediate fire risk to people and assets has now

passed, while the fire is still being actively monitored.

 

Importantly, all personnel are safe and fully accounted for, however, communications in and out of FNO are very limited

at this time. Regular fly-in fly-out schedules for staff are expected to be unaffected.

 

No mining or infrastructure assets have sustained damage and normal operations are expected to resume imminently.

Presently the Company does not expect any impact to nickel production or cost guidance as a result of the incident.

 

The Company would like to extend its thanks to the various firefighting teams that have assisted in keeping our

people safe.

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  • 6 months later...

nice early days drill results from Gawler Craton SA...... Up 15% today

 

• The first diamond hole at the Sahara prospect has intersected over 200m (down-hole length) of nickel and copper bearing sulphides hosted by a thick pyroxenite intrusive body.

 

• Drill hole 20WGDD005 at the Sahara Prospect represents the first diamond hole completed by the Company on the Iluka Farm-in and Joint Venture ground.

 

• Average 2%–5% sulphide content across the entire intrusive body, with average sulphide content increasing with depth and Niton XRF values confirming elevated nickel and copper values (assays pending).

 

• Drilling targeted electromagnetic (EM) conductor plate F1-6 (target plate dimensions 80m strike x >200m dip), which was successfully intersected at 195m down-hole depth. The EM conductor is currently unconstrained below 250m, remaining open at depth.

 

• Numerous interpreted mafic intrusive bodies (and accompanying EM conductors) remain to be tested in the Firefly district, with the Company now modifying drilling plans to focus on the Sahara Firefly area

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  • 8 months later...

raising $100M

 

• Fully underwritten placement to raise A$85 million @ $2.15 <floorprice, with bookbuild>

• Non-underwritten Share Purchase Plan available to eligible shareholders to raise up to A$15 million at the same price as the placement

• Proceeds from the placement and Share Purchase Plan will be used to complete the Odysseus development, advance organic growth projects at Forrestania and Cosmos and continue exploration

 

o Provides funding for mine development capital expenditure at Odysseus with development progressing on schedule and first concentrate production targeted in mid FY23. Once in steady state production, delivery of 14.6kt nickel in concentrate per annum is targeted from Odysseus

o Allows progression of studies with respect to the inclusion of AM6 in the Odysseus mine plan and New Morning in the Forrestania mine plan

 

o Proceeds will help advance Western Areas' targeted drilling campaign on its portfolio of exploration assets which includes Western Gawler, Metal Hawk and Forrestania (among other projects

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