Profit, dividend soar

WESTERN Areas has posted a leap in full-year net profit after beating nickel production targets at two of its mines in Western Australia.

By InvestSMART · 23 Aug 2011

By InvestSMART ·
23 Aug 2011

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WESTERN Areas has posted a leap in full-year net profit after beating nickel production targets at two of its mines in Western Australia.

Net profit for the year to June 30 was $135 million, up from $14.2 million for the previous financial year. The shares gained 39?, or 7.4 per cent, to close at $5.67.

The Perth-based company declared an unfranked final dividend of 15? a share, bringing the full-year payout to 25? unfranked, compared with 6? in the 2010 financial year.

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Frequently Asked Questions about this Article…

What full-year net profit did Western Areas report for the year to June 30?

Western Areas reported a full-year net profit of $135 million for the year to June 30, up from $14.2 million in the previous financial year.

Why did Western Areas' profit jump this year?

The article says the profit leap followed Western Areas beating nickel production targets at two of its mines in Western Australia, which boosted the company’s results.

How did the market react to Western Areas' results—what happened to the share price?

Shares rose on the news, gaining 7.4 per cent to close at $5.67 after the company released its results.

Did Western Areas declare a dividend and how large was it?

Yes. Western Areas declared an unfranked final dividend of 15? a share, bringing the full-year unfranked payout to 25? (the article notes these figures compared with 6? in the 2010 financial year).

Was the dividend franked or unfranked?

The company described the final dividend—and the full-year payout—as unfranked in the article.

How does this year’s dividend compare with the prior year?

According to the article, the full-year unfranked payout rose to 25? compared with 6? in the 2010 financial year, indicating a substantially higher cash payout this year.

Which operations contributed to Western Areas beating production targets?

The article attributes the stronger production to two of Western Areas’ nickel mines in Western Australia, where the company exceeded its nickel production targets.

What are the key takeaways everyday investors should note from the report?

Key points from the article: Western Areas delivered a large jump in full-year net profit (to $135 million), beat nickel production targets at two WA mines, saw its share price rise to $5.67 (up 7.4%), and declared an unfranked final dividend that lifted the full-year payout versus the prior year.