Minerals division lifts Gwalia result

Tuesday, 12 October, 1999 - 22:00
While gold targets were down, its mineral division helped Sons of Gwalia Limited register a net profit of $27.99 million, following an overall operating profit after tax for the current fiscal of $54.53 million.

Sons of Gwalia executive chairman Peter Lalor said the 8.8 per cent increase over the previous year’s result was the seventh successive year of increased after tax pre-abnormal profit.

The consolidated operating profit of $74.96 million, before abnormals, was equivalent to 66.7 cents per share.

He said net abnormal write-offs amounting to $26.54 million

primarily comprised write-downs of exploration expenditure, gold processing plants and certain investments, offset by bringing to account future income tax benefits.

The company declared a final dividend of 12.5 cents per share for the 1998/1999 financial year.

Mr Lalor attributed the profit to an “exceptionally well-performed” mineral division.

The average price received for gold during the year was $660 per ounce, resulting in a cash margin of $290/oz over and above cash operating costs.

Mr Lalor said the result from its gold division had not met budgetary targets.

However, increased profits are expected during the forthcoming year due to a restructuring of mining and milling operations.