PERTH (miningweekly.com) – Gold miner Doray Minerals has narrowed its net losses for the 2018 financial year after the closure of its Andy Well operation, in Western Australia, in 2017.
Doray on Thursday reported a net loss of A$14.7-million for the 2018 financial year, compared with a net loss of A$74.2-million in the 2017 financial year, while revenues for the full year declined from A$183-million to A$159.2-million.
During the financial year, Doray generated cash flow from operations of A$38.3-million and earnings before interest, taxes, depreciation and amortisation of A$34.9-million.
The miner also reported a non-cash pre-tax impairment charge of A$27-million in the carrying value of its Andy Well project, which was offset by an income tax benefit of A$23.9-million at the Deflector operation.
“An excellent second-half performance at Deflector has driven Doray’s strong full-year cash flow from operating activities at A$38.3-million,” said MD Leigh Junk.
Doray produced 79 631 oz of gold and 3 413 t of copper, which included the final 15 038 oz of gold produced at the Andy Well mine prior to the suspension of operations.
“While Doray recorded a full-year loss, the impressive achievement at Deflector confirms the company has successfully turned around its financial and operational performance. Looking forward, Deflector is forecast to achieve substantial increase in gold production of up to 30% to between 80 000 oz and 85 000 oz of gold in 2019, which should materially improve the profitability of the company.”
Junk said that this improvement in production extended across the recently updated life-of-mine plan, which showed Deflector producing 43% more gold than the previous mine plan, outlined 12 months prior.