PERTH (miningweekly.com) - Higher operating costs during the first half of 2012 affected ASX-listed Norton Gold Fields' profitability, the company reported on Wednesday.

Gross profit for the first six months of the year reached A$17.2-million, down A$9.38-million on the previous corresponding period, largely owing to the accounting treatment of A$5-million of prestripping costs at the Blue Gum opencut mine.

The company said that it also incurred higher mining expenses owing to harder ore being mined at the opencut mines, lower capitalisation of mining expenses, and increased amortisation of the capitalized mining costs, which reflected the increased extraction of ore from the Navajo Chief opencut operation.

Profit after tax also declined to A$5.7-million during the period under review, compared with the A$8.4-million in the previous corresponding period.

Revenue for the interim period was up to over A$7-million, owing to the higher average gold price, which was partially offset by the lower gold shipments.

During the three months ending December, Norton produced some 35 857 oz of gold. For the full year, the miner expected to produce around 150 000 oz.
 

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