The prospect of lower grades and higher operating costs in the first half of 2004-05 took some of the gloss off Jubilee Mines's bumper net profit as it continues to reap the benefits of strong nickel prices.
Jubilee, the owner of the lucrative Cosmos nickel mine in Western Australia, reported a 96per cent jump in net profit for the 12 months to June 30 to $95.1million.
The company declared a fully franked final dividend of 25y a share, which was at the higher end of expectations and an improvement on the partly franked 20y dividend paid for the same period in the previous year.
It took the full-year payout to 45y a share. The final dividend is payable on September 8.
The profit was built on a 53 per cent jump in sales revenue to $235.4 million, attributed to higher nickel prices and a strong operating performance as mining at Cosmos moved from open pit to underground.
Managing director and 16 per cent shareholder Kerry Harmanis said the company was moving to a "cut-and-fill" phase of mining at Cosmos Deeps over the next two quarters, which could result in some reductions in mining grades and a small increase in operating costs.
Patersons Securities resources analyst Hayden Bairstow said the prospect of higher costs could have dampened some of the excitement yet the stock closed 9y higher at $4.44 after a late rally.
Mr Bairstow said the market would focus on Jubilee's exploration success.
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