21/01/2009 - 11:40

Higher gold price boosts Dominion Mining

21/01/2009 - 11:40

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A higher gold price has boosted Dominion Mining's quarterly revenue by 27 per cent despite a dip in production and higher cash costs at its Challenger mine in South Australia.

A higher gold price has boosted Dominion Mining's quarterly revenue by 27 per cent despite a dip in production and higher cash costs at its Challenger mine in South Australia.

In its December quarterly report released today, the West Perth-based miner's revenue reached $29.3 million through the sale of 25,510 ounces of gold at an average price of $A1149 per ounce.

In the previous quarter the company sold 28,113oz of gold at an average price of $822/oz.

Over the six months to the end of December 2008, Dominion achieved $51.9 million in revenue, up from $55.3 million in the previous year.

Gold production was down 13 per cent over the December quarter to 25,014oz while cash operating costs were up from the September quarter's $A351/oz to $431/oz.

Meantime, Dominion produced 52,283oz of gold over the six months to the end of December 2008 at a cash cost of $416/oz.

The company has forecast gold production for the next six months to be around 54,000oz with a cash operating cost of $425/oz.

Dominion said at the end of the December quarter, 45,000 gold ounces, representing around 7 per cent of current reserves, was sold under forward sales contracts. The average delivered price was $A1003/oz.

"Of this position, 30,500 ounces at an average price of $1,035 are currently scheduled to be delivered over the 6 months January - June 2009. Deliveries into these contracts will be dependent on the spot gold price prevailing at that time," Dominion said in its report.

At around noon today the price of gold in Sydney was $US849.90 per fine ounce, up $US20.40 on Tuesday's close of $US829.50.

At the end of the December quarter, the company had $51.4 million in cash and $5 million in bullion.

Shares in Dominion were up 11 cents to $3.55 at 13:56 AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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