Leederville-based mining company Fox Resources Ltd recorded its first ever profit, or $1.7 million - up from the $4.3 million loss recorded in the previous corresponding period.
The company recorded earnings before interest, tax, depreciation and amortisation of $7.9 million, while company revenue was up 80 per cent to $27.3 million for the period.
Fox attributed the significant revenue increase to high copper prices achieved for shipments from its West Whundo mining operation, which generated a net cash flow of $10.3 million.
The full text of a company announcement is pasted below
The Board of Fox Resources presents the half yearly report for the six months ending 31 December 2006, and is pleased to report a maiden net profit of $1.7 million with an EBITDA of $7.9 million. The West Whundo mining operation generated a net cash flow from operating activities of $10.3 million.
Fox completed the following significant milestones for the half year ending 31 December 2006:
- Mined and treated 105,000t of copper ore (contained copper metal 7,200t) from West Whundo mine
- New 2.5 year nickel mining reserve at Radio Hill underground mine
- Repaid Jinchuan Group Limited $4million project loan
- Completed flotation upgrades to the Radio Hill plant
- Purchased Elizabeth Hill processing plant and silver tailings project
- 5 new base metal targets generated from helicopter VTEM surveys
- Successful exploration drilling at the Razerline nickel deposit, confirming continuity of nickel mineralisation
- Resource drilling at Sholl B2 delivered an indicated resource of 663,000t @ 0.6% nickel and 0.6% copper
- Resource drilling at Whundo delivered an indicated resource of 627,000t @ 1.6% copper and 1.7% zinc, a 600% increase on the original indicated resource
- Drilling at West Whundo delivered a measured and indicated resource estimate of 668,000t @ 1.27% copper and 440,000t @ 2.69% zinc
- Resource drilling at Ayshia delivered a total resource of 767,000t @ 2.4% zinc
"On behalf of the Board, I would like to thank our staff, contractors and shareholders in supporting the Company in achieving a profit for the first time in the Company's history" said Managing Director, Don Harper.
