Photo by: Bloomberg
PERTH (miningweekly.com) – The first revenue stream from the Andy Well mine, in Western Australia, has allowed gold miner Doray Minerals to reduce its debt by 75% during the financial year, to only A$13.9-million.
Doray on Tuesday announced that revenue from the Andy Well operation had reached A$110.6-million, as the mine produced 76 785 oz of gold during the first 11 months since production started.
Earnings before interest, taxes, depreciation and amortisation were reported at A$64.5-million, while the underlying net profit was A$23.5-million during the full year.
However, Doray announced a net loss of A$5.6-million for the financial year, following a A$32-million impairment at the Andy Well operation. The impairment charge related to the recent changes in the gold price, and was well below the previously estimated impairment cost of between A$40-million and A$50-million.
Doray MD Allan Kelly told shareholders on Tuesday that the company had achieved nearly all its internal targets during the year under review.
“We met our production guidance and our costs at Andy Well were among the lowest in the Australian gold sector over the last 12 months. The resulting margins enabled the company to significantly reduce its debt position by repayment and reserving of A$41-million since September 2013, leaving A$13.9-million to be repaid by September 2015.”
Kelly noted that despite the significant cash outflow, Doray had maintained an active exploration programme resulting in the discovery of a third high-grade gold deposit at Andy Well, and the completion of two exploration project transactions.