Value Microcaps Junior Miners

[JustForFun7]

Sallay Malay reports

Maybe this will bode well for BMC.

http://www.wabusinessnews.com.au/en-story/1/56275/Sally-Malay-rides-high-on-nickel

Sally Malay rides high on nickel
30-August-07 by Mark Beyer


Latest News


Indonesia expects Aussie uranium if nuclear plan proceeds - 31 Aug, 09:39am
Second airline invited for Perth-Geraldton route - 31 Aug, 09:29am
Harvey Norman reports profit surge - 31 Aug, 07:43am
Competition bureau approves Rio Tinto purchase of Alcan - 31 Aug, 07:40am
Territory to adopt "wait and see" approach in bid for ConsMin - 31 Aug, 07:32am
Today's headlines - 31 Aug, 07:13am

Strong nickel prices and a big increase in production volumes have enabled nickel miner Sally Malay Mining Ltd to record a 453 per cent increase in net profit after tax to $88.1 million for the year to June 2007.

Sally Malay joins Western Australia's other major nickel stocks, such as Minara Resources Ltd, Jubilee Mines NL, Independence Group NL and Mincor Resources Ltd in reporting sharply higher profits.

The nickel price has tumbled from the peak it reached in mid 2007 but is still well above the levels that prevailed in recent years, which augurs well for the sector.

Sally Malay has also predicted a big jump in production volumes and has increased its exploration budget to $10 million to identify additional resources.

The company lifted production volumes to 11,920 tonnes of nickel in 2006-07 and is predicting output of 16,000 tonnes this year and 20,000 tonnes in 2008-09.

The higher production helped the company lift sales revenue by 125 per cent to $302.2 million.

Earnings per share jumped 397 per cent to 45.7 cents while the company declared an inaugural dividend of 12 cents per share.

"The company is in good shape with a robust financial position and poised for strong growth," managing director Peter Harold said.

He said positives for the company included higher production volumes, the repayment last year of all of its debt and changes to its hedging structure.

Mr Harold said about 35 per cent of 2007-08 production was hedged through forward contracts, adding that the company had bought put options which would give it some upside if the nickel price rose.

Sally Malay is planning to invest about $80 million in capital projects this year, which Mr Harold believes will set up the company for longer-term growth.

He said it was difficult to make precise predcitions about future earnings.

"Anywhere between fifty and a hundred million of profit would be a fantastic result," he said.