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Western Areas Ltd has completed the fiscal year with a loss

29 August 2013

Corporation «Western Areas Ltd.», a leading producer of nickel in Australia, reported on August 27th to withdraw at a loss and (parallel) — on payment of dividends to its shareholders cancellation. «This situation meant a sharp decrease in the cost of nickel on the world market» — commented the decision of management in the company.

The detailed report of the Australian corporate financiers reported: total loss «Western Areas Ltd.» for the reporting year ended in June, reached the level of 94.1 million Australian dollars… Recall that the last financial year the company ended with a profit of $ 40.2 million. AUD. As for the cost of impaired assets, the figure «Western Areas Ltd.» for the period stood at 99.7 million. Australian dollars. Basically this figure influenced by the costs of the implementation of previously planned exploration programs.

Recall that the price of nickel on the world markets came to his four-year low this year, referring to the sharp decline in demand for the metal in China, and in the short-term explicit preconditions for significant changes for the better market operators are not watching. However, the National Australia Bank experts believe that in the near future the market situation should improve. According to them, now felt the positive developments in the global markets and concerns regarding the decline in demand for metals, nevertheless, turned out to be more serious than what corresponds to the real situation.

Some analysts also sees the foreseeable future nickel sector in a positive light. Some statistics in Europe show that the resource market can emerge from the crisis. China's economy — according to experts — is gradually stabilizing, the US economy is showing some growth, and even some European countries emerge from recession. Group optimistic professionals from the field of investments in commodities suggests that after reaching a maximum in the last ten years, the volume of non-ferrous metals stocks (and, in particular, nickel) in the warehouses of the world's trading floors, this indicator begins to steadily decline. And the reason for that — experts say — the growth in consumer demand.

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