Navigator lodges maiden profit

Navigator Resources has announced a maiden net profit of $3.04 million for financial year 2010-11, driven by the first full year of production from its Bronzewing gold mine and trial mining at Leonora.

The profit came on revenue of $106 million, up from $15 million in financial year 2009-10, Navigator said in an announcement to the ASX late yesterday.

Navigator’s net loss for 2009-10 was $21 million.

The gold miner first flagged it would generate its maiden profit in March this year.

Over the year to June 30, Navigator produced 77,606 ounces of gold and sold 76,386oz, at an average sale price of $1,389/oz.

Navigator acquired the Bronzewing project in late 2009, and commenced production in April 2010.

It is also progressing development opportunities at its Leonora gold project, and has carried out a trial mining program alongside targeted exploration.

Navigator said it made a $6.6 million profit on the sale of its 25 per cent interest in the Cummins Range project to Kimberley Rare Earths, but incurred a $4.9 million writedown on finance costs, and a $5.7 million charge due to administration and corporate expenses.

The company is forecasting production of 75,000 to 80,000 ounces for the 2011-12 financial year.

At 1:00PM (WST) Navigator’s stock was up 5 per cent, to 2.1 cents.