28/08/2008 - 16:44

Dominion records 35% fall in FY earnings

28/08/2008 - 16:44

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West Perth-based gold miner Dominion Mining Ltd has booked a full year net profit after tax of $33.4 million net profit, down 35 per cent from the previous year's result of $51.7 million.

Dominion records 35% fall in FY earnings

West Perth-based gold miner Dominion Mining Ltd has booked a full year net profit after tax of $33.4 million net profit, down 35 per cent from the previous year's result of $51.7 million.

The result was struck on a 19 per cent increase in gross revenue to $97.6 million (2007: $81.8 million).

The net profit was achieved after taking into account a loss on the sale of the Company's shareholding in Deep Yellow Ltd of $2.5 million and a charge of $2.7 million which represents the notional value of options and performance rights issued to employees as required by Australian Accounting Standards and an income tax benefit of $7.5 million.

The result for the year has enabled the Company to declare a final unfranked dividend of 8 cents per share taking the full year dividend to 12 cents per share, 20 per cent higher on the previous year.

Earnings before interest, tax, depreciation and amortisation was $43.4 million (2007: $37.3 million), achieved after expensing exploration and evaluation expenditure of $5.2 million, administration costs of $3.8 million and $4.1 million in royalty payments. Depreciation and
amortisation charges totalled $12.0 million.

The results were underpinned by record gold production from the Challenger mine 109,326 ounces

Cash operating costs increased by 19 per cent to $367 per ounce, representing a positive achievement in the current rising cost environment in the mining industry.

Revenue from gold sales increased by 17.8 per cent to $95.1 million, mainly due to the increased average price received for the year of A$872 per ounce, up from $744/ounce.

The higher revenue resulted has increased the company's cash and bullion position to $55.6 million

The company remains debt free with the exception of some minor hire purchase arrangements.


"These results represent a strong performance by the Dominion team in what has been an increasingly demanding operating environment, " managing director Jonathan Shellabear said.

"Our Challenger operation continues to deliver exceptional results, with another year of record gold production and exploration success resulting in a further increase in our reserve position.

"We are looking forward to another positive 12 months, with forecast gold production for 2008/09 remaining above 100,000 ounces.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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