Focus announces 28% profit increase

Goldfields-focused gold miner Focus Minerals has reported a 28 per cent rise in its pre-tax profit guidance for the six months to December 31.

Focus said its record pre-tax profit of $6.2 million was driven by strong gold production of 36,339 ounces, which underpinned revenue of $48.9 million.

Focus recorded 21,841oz and $23 million in revenue in the previous corresponding period in 2009.

Focus chief executive Campbell Baird said results indicated solid production had positioned the company for growth.

"Focus is now a significant mid-tier gold producer with robust cashflow, a 2.2 million ounce Resource Inventory, the 1.2 million tonne per annum gold plant and immense exploration upside," Mr Baird said.

"The company is now ideally positioned for the next stage of growth, which will see a significant increase in production with the high-grade mine at The Mount commencing production of ore in March, as well as a series of new open pits at the Tindals Mining Centre commencing production starting in April".

Focus will also start drilling at its highly prospective Treasure Island project, south-east of Kambalda, in March.

"Treasure Island has one of the best addresses in Australian gold mining so we are eagerly awaiting the commencement of this exploration program," Mr Baird said