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WSA, WESTERN AREAS LIMITED
nipper
post Posted: Sep 6 2019, 07:10 PM
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QUOTE
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 nickel’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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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Sep 2 2019, 10:45 AM
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SP up 16.94% on this mornings news

2 September 2019
QUOTE
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:

 Massive nickel-copper sulphides discovered at shallow depth in first ever drilling at the
recently named Radar Prospect

 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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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 20 2019, 02:45 PM
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WESTERN AREAS REPORTS FULL YEAR FINANCIAL RESULTS & FY20 GUIDANCE
QUOTE
Western Areas Ltd (ASX: WSA, “Western Areas” or the “Company”) is pleased to announce the Company’s
financial results for the year ended 30 June 2019 (“FY19”) and key operational guidance metrics for the year ending
30 June 2020 (“FY20”):
Key Metrics for FY19
✓ Strong balance sheet with cash at bank of A$144.3m and no debt
✓ Nickel produced in concentrate 21.7kt (21.1kt)
✓ Nickel in concentrate sales totaled 21.5kt (20.5kt)
✓ Sales revenue of A$268.7m (A$248.3m)
✓ Average realised price of nickel (before payability) of A$7.84/lb (A$7.53/lb);
✓ Net Profit After Tax of A$14.2m (A$11.8m)
✓ Fully franked final dividend of 2.0c per share (2.0c per share)
✓ Odysseus Project early works completed on time and on budget – 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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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 6 2019, 09:50 AM
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Posts: 6,217
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In Reply To: blacksheep's post @ Jul 19 2019, 08:00 PM

WSA gets a mention
There’s one metal worrying Tesla and EV battery suppliers
Bloomberg News | August 5, 2019 |
QUOTE
Battery producers and electric automakers, including Tesla Inc., are concerned over longer-term supplies of nickel, a key material in their supply chain that’s forecast to fall into deficit, according to an Australian miner that’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.

It’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 producer’s battery metals supply chain team.


QUOTE
“The dramatic price rise we’ve seen will pale into insignificance compared to the future,’’ Bradford said in the Friday phone interview.

Japan’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 it’ll reopen the Ravensthorpe mine in Western Australia –- shuttered since 2017 — in the first quarter of 2020 amid the strength of interest from potential nickel and cobalt customers.

Western Areas Ltd. recently visited China’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 industry’s concerns about supply, Bradford said.

“The big question everyone will be asking in a year’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?’’ he said.


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



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jul 19 2019, 08:00 PM
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Posts: 6,217
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In Reply To: blacksheep's post @ Jul 19 2019, 01:05 PM

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

QUOTE
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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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jul 19 2019, 01:05 PM
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Posts: 6,217
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In Reply To: blacksheep's post @ Jul 19 2019, 11:40 AM

OFFTAKE AGREEMENT FOR HIGH GRADE NICKEL SULPHIDE PRODUCT
Western Areas Ltd (“Western Areas” or the “Company”) is pleased to announce an offtake sale and purchase
QUOTE
agreement (“Contract”) 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 Company’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 Company’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:
▪ Approximate 12 month term, expiring 30 June 2020;
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
;
▪ Delivery on a CIF basis, into the port of Osaka; and
▪ Increased payable rates compared to the Company’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.

“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.

“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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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


blacksheep
post Posted: Jul 19 2019, 11:40 AM
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Posts: 6,217
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Highlights from yesterdays Quarterly
QUOTE
JUNE QUARTER 2019 HIGHLIGHTS
▪ Unit cash cost of nickel in concentrate of A$2.96/lb and A$2.98 for FY19
▪ Mine production of 5,423 nickel tonnes and 23,208 nickel tonnes for FY19
▪ Mill production of 5,433 nickel tonnes and 21,675 nickel tonnes for the FY19
▪ Highest quarter nickel sales of 5,890 nickel tonnes and 21,483 nickel tonnes for full year
▪ Strong free cashflow lifting cash at bank by A$27.6m to A$144.3m (March quarter A$116.7m)
▪ Odysseus early works completed on time and on budget
▪ Kidman proposed change of control transaction expected to realise A$33.1m for Western Areas


Nickel price catches battery, export ban fever. Again
Frik Els | July 18, 2019 | 2:41 p
extracts.....
QUOTE
Nickel is now up 37% since the start of the year, reaching $14,665 per tonne on Thursday in London and jumping 4% in Shanghai to the equivalent of $16,690.
........
Nickel’s inroads is mainly due to shifting chemistries of nickel-cobalt-manganese (NCM) battery cathodes. First generation NCM111 batteries had a chemical composition of 1 part nickel, 1 part cobalt and 1 part manganese, but the industry is shifting towards an 811 mix. Roughly speaking NCM 811 batteries for light passenger EVs require more than 50 kilograms of nickel.
..........
Nickel also jumped this week due the mooted reinstatement of a ban on ore exports from Indonesia from 2022 onward
s.
https://www.mining.com/nickel-price-catches...an-fever-again/

Total short positions @ 12/7/19 - 6.51%, with a notable short alert yesterday
QUOTE
Thu 18th Jul, 2019 1,681,686 273,546,162 0.61% 8,592,584 19.57%

https://www.shortman.com.au/stock?q=wsa
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 7 2018, 08:00 PM
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Diggers & Dealers 2018: Cost hurdle for nickel developers chasing battery cash, says Western Areas
Josh ChiatThe West Australian
extract
QUOTE
Western Areas, which produces about 20,000t of nickel metal a year at its Spotted Quoll and Flying Fox mines south of Southern Cross is expecting to sign its first deal to supply nickel directly to the battery market soon through a new product from a recent plant expansion.

It is hoping to add a third mine, Odysseus, near Leinster in the northern Goldfields early next decade.

https://thewest.com.au/business/mining/digg...s-ng-b88920940z

https://www.shortman.com.au/stock?q=wsa
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Apr 19 2018, 10:32 PM
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Posts: 6,217
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In Reply To: blacksheep's post @ Oct 23 2017, 02:52 PM

SP following surge in nickel prices

QUOTE
Nickel surged to a more than three-year high amid growing fears that Russia's Norilsk Nickel, top producer of the metal, could be the next victim of US sanctions against Russia that has already caused chaos on aluminum markets.

Nickel, used primarily in steelmaking, jumped as much as 4.6% to $14,870 a ton on the London Metal Exchange, the highest level since February 2015. Bullish sentiment was also boosted after production slumped 18% at Brazil's Vale, world number two producer. Year to date nickel is the top performing major metal enjoying a 21% rise. Measured from the bottom of the mining cycle early 2016 nickel has nearly doubled in price.

http://www.mining.com/russia-fears-light-fire-nickel-price/

https://www.shortman.com.au/stock?q=wsa
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 23 2017, 02:52 PM
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Posts: 6,217
Thanks: 2204


In Reply To: blacksheep's post @ Oct 17 2017, 07:49 PM

Some broker views on WSA, FWIW.....SP down currently 4.61% @ $2.90/share
QUOTE
EV Batteries Spark Interest In Western Areas

QUOTE
Increasing demand for nickel in the battery market has provoked interest in Western Areas. Some brokers, but not all, are on board with this theme.

https://www.fnarena.com/index.php/2017/10/2...-western-areas/
https://www.shortman.com.au/stock?q=WSA
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


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