Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner Millennium Minerals has reported a A$12.49-million after-tax net loss for the six months to June, compared with a net profit of A$34.14-million in the previous corresponding period.
The miner told shareholders on Friday that the after-tax loss included an unrealised derivative loss of A$9.16-million related to the value of the hedge book at the end of June, as well as higher depreciation and amortisation charges of A$12.3-million and a tax benefit of A$3.28-million.
Revenue for the interim period under review increased slightly to A$55.4-million, from A$54-million reported in the previous corresponding period, on the back of a higher gold production.
During the half-year ended June, Millennium’s Nullagine project, in Western Australia, produced 36 551 oz of gold, of which 36 718 oz was sold at an average price of A$1 552/oz. This compares with the 33 530 oz of gold produced in the previous corresponding period, with 33 767 oz sold at an average realised price of A$1 598/oz.
Millennium noted that the high average price achieved during the interim period under review reflected the company’s hedge price of A$1 552/oz, and an average spot price of A$1 411/oz.
However, cash costs for the period reached A$1 120/oz, compared with the A$794/oz reported in the same period in 2013, and Millennium said on Friday that the company’s focus for the remainder of the year would be on operating cost reduction, limiting capital expenditure to critical activities only, and minimising exploration activities while reducing debt.