Business Description:
Mirabela Nickel Limited (MBN) is a base metals exploration, development and production company with a specific focused on nickel. The flagship’s project is Santa Rita in Brazil.

Strategy Analysis:
Construction of the Santa Rita plant is now complete with production commencing in late 2009. Throughput capacity has since been increased to 7.2Mtpa with further expansion to 9.0Mtpa likeley. Drilling is ongoing and resource extension is targeted through extension of the current open-pit mine and from a potential underground resource. Mirabela Nickel reported a net loss of US$37.24m for the half-year ended 30 June 2011. The Company's net loss was primarily driven by financing costs, general & administration and other expenses, offset by favourable exchange movements. Revenues from ordinary activities were US$123.56m, up 31% from the same period last year. Sales generated comprised 5,993t Ni and 1,930t Cu which contributed to gross sales. Diluted EPS was (0.08) US cents compared to (0.05) US cents last year. The net operating cash outflow was US$36.12m compared to an outflow of US$14.08m in the pcp. No dividend was declared. Looking ahead, the Company's current focus is the continued ramp-up of operations to achieve full production levels in 2012. The immediate focus will be the expansion of the processing plant and crusher to 7.2Mtpa, and the installation of a desliming circuit.