Independence lifts profit despite soft prices

Independence Group has provided some rare positive half-year results in the gold and nickel sectors, reporting a 30 per cent lift in net profit and lifting its interim dividend.

The Perth-based miner posted a net profit of $21.5 million in the six months to December 2013, up from $16.5 million in the previous corresponding period.

Its revenue was up 36.5 per cent to $166.7 million, boosted by a maiden contribution from the Tropicana gold joint venture in which Independence holds a 30 per cent stake alongside majority partner AngloGold Ashanti.

The first gold pour from the Tropicana mine occured in September last year, with the project delivering total attributable half-year production to Independence of just more than 95,000 ounces.

This translated to pre-tax profit of $6.5 million from the project.

Independence was also bolstered by higher production at its wholly-owned Long nickel project and Jaguar copper-zinc project, despite a 21 per cent fall in the company's average realised nickel price.

The miner said cost-cutting measures and a lower Australian dollar had offset persistent commodity price weakness over the period.

The company has announced a fully-franked interim dividend of 3 cents per share, up from 1 cent per share last year.

Despite this, the company's shares were trading 22 cents lower at $3.99 at 1:05pm WST.