Western Areas reports earnings lift

Nickel miner Western Areas NL has reported a turnaround to profitability for its
first-half earnings due to higher production and improved nickel prices.

The result was boosted also by a one-off $20 million payment for allowing Kagara Ltd
to access its project using a decline that leads to Western Areas' Flying Fox mine,
south of Marvel Lock in Western Australia.

Western Areas on Monday said it had achieved net profit of $10.7 million for the six
months to December last year, compared to a $12.3 million net loss for the same
period in 2008.
Sales revenue totalled $85.5 million, up from $40.7 million previously.
Production was in line with guidance, at 125,049 tonnes processed at a grade of 3.4
per cent nickel, with 90 per cent recovery rates.
Western Areas is expected to announce soon an interim dividend of about three cents
per share.
Shares in the miner closed 14 cents, or 3.27 per cent, weaker at $4.14 on Monday.