JOHANNESBURG (miningweekly.com) – Owing to a production increase, paired with a cost decrease at its Duketon gold mine, in Western Australia, miner Regis Resources has delivered a 29% increase on its after-tax profit to A$111.79-million for the year ended June 30.
This was bolstered by an 8% increase in the delivered gold price to $1 600/oz and a 7% decline in all-in sustaining costs (AISC) to A$927/oz, as further cost efficiencies were achieved across the business at Duketon.
Earnings a share also increased by 29% to 22.37c apiece, while earnings before interest, taxes, depreciation and amortisation increased from A$181-million to A$234-million.
Ongoing optimisations of the processing plant and ore blend at the Duketon south operations saw throughput increase 4% to 10.25-million tonnes for the year, while milled grade for the entire Duketon operation of 1.03 g/t was lower than the grade of 1.11 g/t reported in 2015, primarily owing to lower head grade at the Moolart Well mine, which was as expected and reflective of the ore scheduled to be mined during the year.
Gold production at Duketon of 305 084 oz for the year exceeded the upper end of the yearly guidance of 275 000 oz to 305 000 oz.
“It is pleasing that the strong operating performance at Duketon has been reflected in a 29% increase in 2016 earnings to A$112-million. The robust cash operating margin has seen cash on the balance sheet build and has underpinned the payment of 13c a share in dividends for the year. It is also exciting that our organic growth strategies are delivering opportunities to increase reserves and a higher medium-term production outlook,” the company stated.
In July, the company increased its production guidance for the 2017 financial year to between 305 000 oz and 330 000 oz, after a strong operational performance in 2016.
The board declared a final dividend of 9c a share, with the full year dividend of 13c a share representing a payout ratio of 13% of revenue and 58% of profit after tax.