PERTH (miningweekly.com) – Gold miner Beadell Resources on Friday reported a $100-million drop in net profit after tax for the financial year ended December, with higher costs of production, a foreign exchange rate loss and tax liabilities negatively impacting on the company’s financial performance.
Net profit after tax for the full year ended December reached $13.5-million, compared with the $113.5-million reported in the previous financial year.
However, sales revenue increased from $253-million reported in 2013 to $260-million, as gold prices improved. Full-year sales declined from 172 316 oz to 165 789 oz.
Beadell noted that during 2014, the cost of production increased from $104-million to $145-million owing to higher mining costs as a result of increased maintenance material costs, contract cost and the use of rental equipment.
The cost of production was also adversely affected by a severe wet season, while mining was also temporarily suspended at the Duckhead pit, as the company settled on a new mine plan for the Brazilian operation.
For 2015, Beadell said it expected to sell between 170 000 oz and 190 000 oz of gold, with higher production geared towards the last two quarters of the year.