The December quarter production and costs were in line with guidance. The commissioning of the underground main pump station and associated infrastructure at Odysseus has been successful and the underground mine rehabilitation is advancing.

New nickel concentrate offtake contracts include significantly improved commercial terms. Western Areas remains Morgans' preferred nickel exposure and an Add rating is maintained. Target is reduced to $3.23 from $3.39.

Sector: Materials.

Target price is $3.23.Current Price is $2.64. Difference: $0.59 - (brackets indicate current price is over target). If WSA meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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