Doray delivers $4m profit

Perth-based Doray Minerals has posted $4 million in net profit for the six months to December, on the back of lower cash costs and solid growth in gold production.

Doray took in $60.1 million in revenue for the first half of the 2015 financial year, a 6 per cent rise, as gold sold in the period increased by about 9 per cent.

In the previous corresponding period, Doray delivered $12.5 million in profit and $53.9 million in revenue.

The company maintained net cashflow from operations at $27.1 million despite a lower gold price environment.

Managing director Allan Kelly said the results exceeded expectations in what the company foreshadowed to the market as a leaner period of cash flow for Doray’s Andy Well mine in Western Australia’s Murchison region.

“Coming in to the first half of the 2015 financial year, we forecast lower grades and higher costs at Andy Well as we transitioned from treating stockpiled higher grade open pit material to being purely dependant on underground ore,” he said.

“I’m pleased to say we had considerable success in reducing unplanned dilution underground and saw significant monthly improvement in our head grade, costs and profit margins resulting in better than expected results for the half-year.”

Doray said it expected an increase in production and cashflow in the second half of the financial year as a result of the high-grade stage 2 open pit at Andy Well, which was recently increased by 67 per cent.

The company has made a net loss every full year since it listed in 2010.

In the 2014 financial year, Doray made a net loss of $5.6 million.

Doray shares were steady at 47 cents per share at 10:15am.