11/09/2015 - 14:26

Doray returns to black

11/09/2015 - 14:26

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Gold miner Doray Minerals has painted a positive outlook for its expanding operations after reporting a small increase in underlying profit for the year to June 2015.

Doray Minerals managing director Allan Kelly. Photo: Attila Csaszar

Gold miner Doray Minerals has painted a positive outlook for its expanding operations after reporting a small increase in underlying profit for the year to June 2015.

The company's underlying profit from operations was up 5.3 per cent to $24.8 million, after a strong 21 per cent lift in revenue from its Andy Well mine.

“(The revenue increase) was the result of increased production and Doray’s decision to undertake a forward sales program for about 40 per cent of the year’s production, thereby achieving an average gold price of about $1,495 an ounce,” the company said in a statement.

However, much of this benefit was offset by a big increase in mining and processing costs, and higher corpoarte expenses. 

Doray's bottom line result was a net profit after tax of $19 million, compared to a loss in the prior year of $5.6 million when it had a large impairment charge.

The company declared no dividend for the year.

Managing director Allan Kelly said the company had delivered against all its objectives for the year, including upgrading its production guidance, while at the same time completing the takeover of Mutiny Gold.

“I’m pleased to say that the company has again delivered in terms of profitable production, safety performance and exploration results and is forecast to achieve further near-term production and profit growth once our second high-grade gold mine at Deflector is up and running in mid-2016,” Mr Kelly said.

Doray recently announced that it would be seeking to double its workforce to support the Deflector project, and has secured $91.7 million in funds to bring it into production.

Doray closed 2.4 per cent higher to 42 cents.

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