Altona Mining lifts earnings

Copper and gold miner Altona Mining has increased its revenue, production and gross profit for the financial half year ended December 31 2013.

However, a significant tax benefit received in the previous corresponding period has caused its profit after tax to drop 69 per cent.

Altona Mining recorded a $4.4 million profit for the half financial year to December 31, compared with $14.2 million.

The miner, which has most of its operations in Finland and some in Australia, increased its revenue and earnings before interest and tax substantially.

Altona’s revenue increased 40 per cent to $42.6 million, while earnings before interest and taxes rose 892 per cent to $6.4 million. 

This was largely due to a 32 per cent boost in copper production and 40 per cent lift in gold output this financial half year.

Altona Mining said it was pleased with continued production and profit growth at its operations in Finland despite weaker metal prices and unfavourable exchange rate movements.

It has increased its production guidance to 9,000-10,000 tonnes of copper and 9,000-10,000 ounces of gold.

Altona said it was progressing with plans to develop its Little Eva Project near Mount Isa in Queensland, which is expected to produce 39,000t of copper per annum.

“The process to sell, partner or finance Little Eva Project has gained momentum, with the assistance of a Chinese-based investment banker,” Altona said in a statement.

Altona’s C1 cash costs for the 12 months to June 30 are expected to rise slightly above the guidance range of $US1.60-$US1.75 per pound.

Altona shares rose 2.94 per cent to 17.5 cents after its half-yearly report announcement.

Altona paid down its debt to $US10 million, reducing its gearing from 22 per cent to 12 per cent.