Gold miner Regis Resources has posted a strong rise in earnings, with net profit after tax hitting $86.9 million for the year to June 2015.
That compared with a loss of $147.8 million in the previous financial year when the company had impairments of $202 million.
Adjusting for impairments and tax, Regis still reported a 57 per cent improvement in annual profit.
The annual result was weighted towards the first-half, when the company posted a net profit of $47.6 million.
The second-half profit of $39.2 million was affected by the decline in production volumes, as foreshadowed by the company in its March production update.
The company said gold sales for the year increased by 25 per cent to $464 million, due to a 14 per cent lift in production volumes (to 310,000 ounces) and a 2 per cent gain in the realised gold price.
The company also disclosed its all-in sustaining costs for the first time for 2015; it was $994 per ounce for the year.
Regis has declared a dividend of 6 cents per share; there was no dividend in the prior year.
Managing director Mark Clark said the result reflected the company’s robust operations.
“With gold production guidance for FY 2016 of 275,000 to 305,000 ounces at an all-in sustaining cost of $A970 to $A1,070 per ounce, I think we have a really strong base to grow the business in the coming years,” he said.
The Regis share price has recovered from a low of $1.08 in late June to $1.62 yesterday.
It had been trading as high as $2.00 in early March, when it plunged sharply following the downgrade to its production guidance.