Shares in West Perth-based gold miner Millennium Minerals have soared after the company reported a maiden net profit following its first year of commercial production.
Millennium posted a net profit after tax of $41.7 million in the 2013 calendar year, with the headline profit figure including an unrealised derivative gain of $16.2 million and an income tax benefit of $11.6 million.
The result is a significant improvement on 2012, when the company posted a $16.7 million net loss.
Millennium achieved first gold pour at its Nullagine project in the Pilbara in October 2012 and moved to full production a month later.
The company reported revenue of $103 million for the period, with sales costs of $80.8 million.
"Delivering a maiden profit result in our first year of commercial production represents a significant milestone for Millennium that reflects the company's strong focus on operating margins and sensible risk management - at a time when the gold industry is experiencing very difficult operating conditions," Millennium managing director Brian Rear said.
Millennium reported C1 cash costs of $910 per ounce poured and sustaining costs of $1,071/oz poured for the period.
Shareholders cheered the news, with the company's shares closing the day's trade 60 per cent higher at 16 cents.
