Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner Doray Minerals has reported a maiden net profit of A$18-million for the six months ended December after starting gold production at its Andy Well mine, in Western Australia.
Gold production started in August last year, and the project had delivered some 37 964 oz at the end of the interim period, generating revenue of A$53.9-million, at a cash cost of A$470/oz.
Doray MD Allan Kelly said on Friday that the results confirmed the company’s status as Australia’s newest high-grade, low-cost gold producer.
“The first six months of production have been very profitable for the company and this has allowed us to reduce our debt position substantially. In the December quarter, we were one of the highest-grade and lowest cost gold producers in Australia, and our operating margins were further enhanced with our hedging programme.”
Kelly added that the company was looking forward to bedding down production at Andy Well, and conducting a near-mine exploration programme, which could translate to an increase in the resource and reserve base at Andy Well.
The mine was expected to have produced between 75 000 oz and 80 000 oz by June this year.