Gold producer Troy Resources has announced a loss of $6.7 million for 2010 compared to a profit of $16.7 million in 2009, as the company focuses on the development of its new mine in Argentina.
Gold producer Troy Resources has announced a loss of $6.7 million for 2010 compared to a profit of $16.7 million in 2009, as the company focuses on the development of its new mine in Argentina.
In a statement to the Australian Securities Exchange the company said the loss came from gold production of 61,453oz and gold sales revenue of $75.2 million.
This was down slightly from $72.5 for the previous financial year.
However the company said its Casposo mine and processing plant development remains on schedule and on budget to complete its first production and gold pour during September 2010.
"FY2010 continued to be one of transition for Troy as we move Sandstone to closure, care and maintenance and build Casposo," said Troy's CEO, Paul Benson.
"With the commissioning of Casposo and the processing of higher grade ores at Andorinhas, we expect production will more than double in FY2011," he said.
See summary statement below:
PERTH, Western Australia: Growing junior gold producer, Troy Resources NL
(TSX/ASX: TRY) today announced a loss of $6.7m for the financial year ended 30 June
2010. This result compares to a profit of $16.7m in FY 2009.
The loss for the year came from gold production of 61,453oz and gold sales revenue of
$75.2m (FY2009: 61,786 oz and $75.4m).
Commenting on the results Troy's CEO, Paul Benson, said: "FY2010 continued to be one of transition for Troy as we move Sandstone to closure, care and maintenance and build Casposo. With the commissioning of Casposo and the processing of higher grade ores at
Andorinhas, we expect production will more than double in FY2011.
"A lot of hard work has been invested in FY2010 which will be better reflected in future
financial results, the most obvious being the construction of Casposo. We only approved
construction of the project in August last year and we are on track to pour first gold in
September; 13 months from commencing earthworks to first pour is a considerable
achievement.
"Although it doesn't make the same headlines, we have made excellent progress at
Andorinhas. The June quarter saw a 17% increase in gold production and a 15%
reduction in unit cash costs. We expect to see continued improvement over the coming
financial years as the focus on minimising dilution and moving into wider, higher grade
parts of the orebody should see production increasing to over 40,000oz in each of the
next two years.
"Coincidentally, in the same month we are opening our new mine in Argentina, we will be closing Sandstone in Australia. Sandstone has historically been the backbone of the
Company. Although never having had a forecast mine life of more than three years, it
recently celebrated its 11th anniversary of continuous production for the Company. We
hope that Casposo will be able to break that record.
"Sandstone will go into care and maintenance while nickel exploration will continue
through the joint venture with Western Areas. We will re-evaluate what we do with the
property next calendar year once we have greater clarity from the nickel exploration
program.
"The Board will make a final decision on an annual dividend in October after Casposo is
commissioned."
