PERTH (miningweekly.com) – Record gold production has seen ASX-listed Red 5 narrow its losses in the 12 months to June.

Gold production in the full year to June increased from 66 871 oz to 165 544 oz, with gold sales increasing from 64 315 oz to 164 974 oz. Sales revenue for the full year increased from A$164.9-million to A$422.7-million.

Red 5 declared commercial production at its King of the Hills mine, in Western Australia, and has ramped up to steady state production following the completion of its newly constructed processing plant in 2022.

Following the period of increased production and strong gold prices, Red 5 has narrowed its loss from the A$28.6-million reported in the last financial year, to A$8.7-million.

“This is a solid financial result for Red 5 reflecting both the operational ramp-up at our newly commissioned King of the Hills mining and processing hub during the first half of the financial year and the strong performance we have been able to deliver in the second half since commercial production was declared in December 2022. We have also seen a greatly improved safety performance in line with our primary objective to deliver safe, efficient and profitable ounces,” said Red 5 MD Mark Williams.

“Our three mining operations continue to perform in line with the mine plan, and the processing plant is performing well above nameplate capacity, putting Red 5 on track to achieve our stated production and cost guidance for 2024.”

The miner has set a production target of between 195 000 oz and 215 000 oz for the 2024 financial year, at an all-in sustaining cost of A$1 850/oz to A$2 100/oz.

“We continue to deliver positive cash flow from our operations and we are targeting to accelerate our debt repayments in the year ahead. This will provide the company with a robust balance sheet for future growth as we continue to unlock the potential of our long-life King of the Hills mining operation,” said Williams.