Business Description:
Western Areas NL (WSA) is an Australian-based nickel sulphide explorer and producer. The Company's core asset is the 100% owned Forrestania Nickel Project, 400km east of Perth, Western Australia. Flying Fox and Spotted are WSA's two operating mines, producing approx 25,000 tonnes pa nickel in ore. WSA also has substantial ground north of Forrestania. Internationally, WSA owns 16% in listed Canadian Company, Mustang Minerals Inc. and a 77.2% stake in FinnAust PLC in United Kingdom.

Strategy Analysis:
Western Areas is engaged in the acquisition, exploration and development of nickel sulphide deposits in established mineral provinces in Australia and Canada. The company´s main focus is exploring for and developing high grade massive nickel sulphide deposits at the Forrestania Project in Western Australia and exploring for nickel, copper and platinum group element deposits elsewhere. Western Areas reported NPAT of $134.97m for the year ended 30 June 2011 ($14.2m in FY2010). Revenues from ordinary activities were $468.66m. The strong results for the FY have been primarily driven by production targets being exceeded from Spotted Quoll and Flying Fox mines in respect of both grade and tonnage; and 93% average mill recovery for the 2nd half, lifting the average recovery to 91% for the year. Diluted EPS was 75.1 cents compared to 8.0 cents last year. Net operating cash flow was $276.24m compared to $87.21m last year. The final dividend declared was 15 cents, taking the full year dividend to 25 cents compared with 6 cents last year. Looking ahead, the Company reported that due to the excellent nickel grades, mine life and low cash cost position of Western Areas, the company is well positioned for the future.