Australian gold miner Resolute Mining last month announced a net profit of A$213-million for the financial year ending June 30. The outstanding unaudited result was generated from gold sales of 340 540 oz, which delivered a gross profit from operations of A$167-million, up 135% from the previous financial year.
The record net profit was made up of the strong A$167-million operating result. This was further boosted by A$45-million in profits booked on the divestment of Resolute’s residual Tanzanian interests in November last year, including a A$3-million extinguishing of net liabilities and a A$42-million accumulated foreign exchange gain recognised in equity up to the date of the sale.
“Resolute has delivered above all expectations to generate a record net profit in the 2016 financial year. “The excellent result endorses our strategy of implementing strict discipline in the allocation of capital and applying an urgency . . . to reduce costs in every area of our business,” says Resolute MD and CEO John Welborn.
He adds that the company has prioritised debt repayment and cash and gold bullion accumulation to strengthen the company’s balance sheet and prepare for future organic growth investments.