Norton Goldfields expects to record a $33 million loss for the 2010 financial year.
Norton Goldfields expects to record a $33 million loss for the 2010 financial year.
The net loss after tax is significantly more than the 2009 financial year loss of $17 million.
Norton Goldfields has blamed the lower profit on lower open pit gold grades and increased costs.
The loss included $13 million in asset impairment and $44 million in hedging losses.
Norton Goldfields gross profit for the 2010 financial year was $21 million down from $37 million for the corresponding period last year.
See full company statement below:
Norton Goldfields Limited wishes to advise that it expects to report a downgraded profit result for the 2010 financial year compared with the previous corresponding period as follows:
- Gross Profit of $21M Vs $37M previous year
- Net loss after tax of ($33M) Vs ($17M) previous year
Gross profit is down primarily due to lower open pit gold grades and increased material moved causing mining costs to escalate. Gross profit accounts for all operating costs along with changes in inventories, depreciation and amortisation.
Key drivers contributing to the downgraded Net loss after tax include:
- Asset impairment $13M
- Fair value hedge negative adjustment $33M
- Hedge reserve amortisation $11M
The FY2010 financial statements are unlikely to reflect the hedge settlement agreement as announced by the Company on 19 July 2010 as this agreement remains subject to final documentation and approval.
Notwithstanding this, the hedge settlement agreement is unlikely to affect the financial statements in a material manner going forward as the discounted hedge valuation in the 30 June 2010 financial statements should be similar to the valuation of the hedge settlement agreement.
Cash
As at 30 June 2010, the Company was holding approximately $68M in cash. In addition, the Company had $18M on deposit, securing environmental bonds.
Audited financial statements
More detail will be disclosed in the upcoming release of the Appendix 4E and the Company's final audited statements. Any material variation from this announcement will be highlighted with those releases.
