Resolute, Doray post profits

Higher revenue from gold and silver sales have helped Resolute Mining post a positive net profit result for the 2016 financial year.

It has been a strong year for gold miners, with the Australian dollar gold price reaching a record high on the day British voters elected to leave the European Union.

Resolute’s NPAT was $213 million, well up from a loss of $569 million in the 2015 financial year, while sales revenue increased 20 per cent to $555 million.

Gold production was 315,000 ounces, slightly lower than 329,000 in the year to 2015.

Gross profit was 135 per cent higher at $167 million, and the company said its return on equity would be 129 per cent.

In the year ahead, Resolute is planning exploration worth $19 million, and a further $170 million in capital expenditure on growth projects.

The company announced yesterday it would allow shareholders to receive dividends in the form of gold, held in accounts at the Perth Mint.

Doray Minerals also filed an earnings report for the 2016 financial year, with earnings before interest, tax, depreciation and amortisation of $62.7 million on a margin of 47.8 per cent.

That was marginally down from the previous corresponding period’s $67 million, on a margin of 50.1 per cent.

Production was slightly lower, down about 4,600oz to 84,100oz.

Doray managing director Allan Kelly said that had been within guidance, with an Ebitda margin among the highest of ASX-listed gold producers.

“Our cash and debt position was also better than expected at the end of the financial year, as a combined result of higher gold prices being received for production at Andy Well and the new Deflector project coming on line on schedule and within budget,” he said.

Shares in Resolute Mining were down 4 per cent to $1.80, while shares in Doray Minerals were up 4 per cent to 76.5 cents each.