28/08/2014 - 12:28

Troy down on asset impairments

28/08/2014 - 12:28

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Gold miner Troy Resources has flagged a net loss of $59.1 million on the back of a $61.2 million asset impairment of its Karouni gold project in Guyana.

Troy down on asset impairments
Troy Resources' processing facilities at the Casposo gold mine in Brazil.

Gold miner Troy Resources has flagged a net loss of $59.1 million on the back of a $61.2 million asset impairment of its Karouni gold project in Guyana.

However it achieved an underlying profit after tax of $2.2 million with a 4.6 per cent increase in annual gold production of 132,939 ounces.

Along with the Karouni asset impairment, Troy said its net loss was affected by lower gold and silver prices and foreign exchange losses, which resulted in the devaluation of the Argentine peso against the Australian and US currencies.

Falling metal prices led to a 12.2 per cent fall in revenue to $178 million.

Troy acquired Karouni through a takeover bid with Azimuth Resources in August last year.

“Troy has completed the first part of the Karouni pre-feasibility study focussed on the open pit only, which has shown it to be an economically robust project with a payback period of just over a year,” Troy said in a statement.

“First production from Karouni remains on track before the end of the 2015 financial year.”

Commenting on the possibility of dividend payouts, Troy chairman David Dix said the current funding requirement for development of Karouni precluded payment of a dividend.

“Shareholders should be aware that the board is very conscious of the company’s extensive record of dividend payments and will look to resume payments as soon as prudently possible,” he said.

“The company has a target rich, highly prospective, Brownfields exploration portfolio in Guyana, which we have just begun to explore, and the board is confident that resource ounces will continue to be added to the Karouni project over time.”

Troy’s share price rose by 2.1 per cent to 82 cents per share at 12:20pm. 

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