29/08/2013 - 14:54

Lower gold price, reduced grades drop Troy profit

29/08/2013 - 14:54

Bookmark

Save articles for future reference.

Gold miner Troy Resources’ net profit has been smashed by lower gold and silver prices and lower grades at both of its producing mines, falling 41 per cent in the 2013 financial year.

Troy Resources' processing facilities at the Casposo gold mine in Brazil.

Gold miner Troy Resources’ net profit has been smashed by lower gold and silver prices and lower grades at both of its producing mines, falling 41 per cent in the 2013 financial year.

Troy today announced a net profit of $18.6 million for FY2013, down from $31.6 million in FY2012.

Revenue was $202.7 million for the 12 months to June 30, down from $208.6 million a year earlier.

Chief executive Paul Benson said the 2013 financial year was one of transition which positioned the company for future growth.

Mr Benson said gold processing at the miner’s Casposo operation in Argentina was up 35 per cent for the year, but that improvement was offset partly by a 29 per cent decrease in gold grade.

Increased mining costs and lower gold and silver prices saw the project’s gross profit fall 11 per cent.

At the company’s other producing gold mine, Andorinhas, gross profit was down 79 per cent due to lower grades and gold prices.

Troy Resources will not pay a final dividend for FY2013.

Mr Benson said the company would seek to bring the recently-acquired West Omai gold project in Guyana to production, with a targeted date of early 2015.

“It is certainly the board’s intention to pay a dividend at the appropriate time and will revisit the issue once the Casposo underground mine is at full production and the company has a clearer understanding of the timing and quantum of capital requirements for West Omai’s development,” Mr Benson said in a statement.

At close of trade today, Troy Resources shares were down 6 per cent, at $1.85. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options