Miner Kagara has returned to profitability with a modest full year net profit and also forecast a rise in production in the current financial year.
Net profit for the year to June 30 was $3.7 million, a big turnaround from last year's $94 million net loss, which reflected provisional pricing adjustments and impairments related to the global financial crisis.
Revenue was $223.2 million, up from $166.1 million previously.
Metal production totalled 20,214 tonnes of contained copper and 43,970 tonnes of contained zinc.
Executive chairman Kim Robinson said zinc production for the 2011 financial year was forecast to increase to 50,000 tonnes of metal in concentrate while copper production would rise to 22,000 tonnes of metal in concentrate.
The Lounge Lizard nickel project in the Forrestania region of Western Australia, which produced first ore in January, is expected to contribute about 2,000 tonnes of nickel production in 2010/11.
"A concerted effort will also be made to expand resources and reserves at each of our mines at Mungana, Mt Garnet, Balcooma and Thalanga (in Queensland) during the current financial year," Mr Robinson said.
"Exploration has also commenced along the 50 kilometres of prospective strike length for nickel sulphides in the Forrestania region."
Mr Robinson said a large exploration program was being carried out by Kagara's 62 per cent-owned subsidiary, Mungana Goldmines Ltd, in the Chillagoe region of Queensland with the objective of expanding gold resources to more than three million ounces.
Shares in Kagara were down 1.5 cents, or 2.38 per cent, at 61.5 cents in early afternoon trade.
AAP