MENU

Why shares in nickel miner Western Areas Ltd (ASX:WSA) are falling today

The Western Areas Ltd (ASX: WSA) share price is down 4.5% to $2.25 today and has tracked volatility in the nickel price all week as geopolitical uncertainty unnerves investors.

For the six-months ending December 31 2018 Western Areas posted a net profit of $200,000 on revenue of $123.7 million, at an average realised nickel price (before payability) of A$7.45/lb, compared to A$6.81/lb in the prior corresponding half.

As we can see from the chart below the nickel price has gradually tracked higher over the past month with plenty of volatility like the Western Areas share price.

Source: London Metals Exchange, copper price per tonne in USD

Western Areas has a strong balance sheet with $134 million cash on hand and no debt, as such its stock is likely to follow nickel prices higher if this scenario comes about.

Nickel bulls point to rising demand from electric vehicle and battery makers, while bears suggest over supply might flood the market.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked...

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now