Doray posts profit surge

Doray Minerals has posted a sizeable boost in net profit for the six months to December, as the company works towards opening its second gold mine in Western Australia later this year.

Perth-based Doray announced a 263 per cent surge in profit to $14.5 million for the half year, with revenue up 22 per cent to $73.1 million.

Earnings before interest, tax, depreciation and amortisation grew by $10 million to $35 million compared with the previous corresponding period, while production increased 20 per cent to 47,197 ounces of gold.

No interim dividend was mentioned.

Managing director Allan Kelly said the results put the company in a strong position moving into its next phase of growth.

“The first-half results see us on track to meet the upper end of our production guidance of 78,0000-85,000 ounces, the third consecutive year we have outperformed the BFS forecast of 74,000 per annum, whilst the significant increase in earnings and profit see us outperforming some of our larger peers in the sector on a per-capita basis,” Mr Kelly said.

“Doray is currently the highest grade and one of the highest margin gold producers in Australia, with further significant growth in production and profit margin coming from the development of the Deflector gold project, on track for first production in mid-2016.”

Doray also operates its Andy Well gold mine north of Meekatharra.

Doray closed 7.6 per cent lower to 85 cents each.