31/08/2009 - 12:47

Dominion posts $31.1m full-year profit

31/08/2009 - 12:47

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West Perth-based Dominion Mining has recorded a net profit of $31.1 million for fiscal 2009 as higher gold prices offset lower production volumes.

Dominion posts $31.1m full-year profit

West Perth-based Dominion Mining has recorded a net profit of $31.1 million for fiscal 2009 as higher gold prices offset lower production volumes.

The gold miner, which operates the Challenger operation in South Australia, said the net profit is a 7 per cent dip on the previous reporting period after taking into account non-cash charges of $11.3 million.

Dominion said after taking into account the adjustments, normalised net profit for the year was $42.4 million, up from $31.3 million on the previous year.

Gold production fell 10 per cent from 109,326 ounces to 98,755oz while revenue from gold sales climbed 16 per cent to $109.9 million.

During the reporting period, the average gold price received was $A1,128 an ounce, compared to $872 an ounce received the previous year.

Cash and bullion at the end of the reporting period totalled $45.3 million and the company has declared a final, unfranked dividend of eight cents per share, taking the full-year dividend to 14 cents.

"With work on the plant expansion to production levels of around 120,000 ounces per annum from early 2010 progressing on schedule and on budget we are expecting another solid result for the 2010 financial year," Dominion managing director Jonathan Shellabear said.

"With a strong cash position, increasing production profile and positive cash flow, Dominion is well placed to continue delivering strong growth into the future."

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