PERTH (miningweekly.com) – ASX- and TSX-listed gold miner Troy Resources has reported a 22% increase in revenues for the half-year ended December, on the back of a higher gold output.
The miner on Friday reported that gold equivalent production during the interim period reached 65 014 oz, compared with the 60 334 oz produced in the first half of 2014. The Casposo underground mine, in Argentina, delivered higher output.
This resulted in revenues increasing from the $75.7-million reported in the first half of 2014, to $92.2-million. Gross profits for the year also surged to $10.8-million, compared with the loss of $4.3-million in the previous corresponding period.
However, a $28.6-million noncash impairment charge, which related mostly to the Casposo mine, resulted in a net loss after tax of $26.7-million for the interim period.
The noncash impairment at the Casposo mine came about as the underground mining encountered higher volumes of silver ore, which by the December quarter resulted in an equal revenue split between gold and silver. Over the remaining life of the mine, the proportion of revenue attributed to silver was expected to rise to about 60%, and as the silver price was falling at a rate higher than the gold price, Troy took a noncash impairment hit.
Meanwhile, underground activities at the Andorhinas mine, in Brazil, were expected to cease this month, and the mine would be closed by the middle of the 2015 calendar year.
The Karouni gold project, in Guyana, was expected to pick up the slack, and would be in production by the June quarter of this year.
The opencut operation, which would have a mine life of three years, would produce on average 101 000 oz/y of gold, barring the first year in which 104 400 oz is expected.