Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner Regis Resources has reported a 201% decline in profit for the full year ended June, with the miner swinging to a loss of A$147.8-million, compared with a profit of A$146.5-million in the previous financial year.
The loss was ascribed to lower gold prices during the 2014 financial year, as well as higher production costs, as the Garden Well and Rosemont openpit operations, in Western Australia, were affected by flooding in February this year.
Furthermore, Regis reported pre-tax impairment charges of A$289.6-million during the year, following a review of the carrying value of the Garden Well and Rosemont projects, as well as the McPhillamy’s gold mine in New South Wales.
Group gold production for the year increased slightly to 270 759 oz, compared with the 269 013 oz produced in the previous financial year, with the Moolart Well mine delivering 104 880 oz, Garden Well 137 484 oz and Rosemont 29 695 oz.
Meanwhile, gold sales increased to 263 913 oz during the 12 months, compared with the 253 090 oz sold in 2013.
However, revenue from gold sales declined by 11% during the full year, to A$371.2-million, compared with the A$416.1-million reported last year, as the gold sales price declined from A$1 599/oz to A$1 461/oz.
Looking ahead, Regis forecast that the Moolart Well mine would deliver between 95 000 oz and 105 000 oz in 2015, while Garden Well would deliver between 145 000 oz and 165 000 oz. Rosemont would produce between 65 000 oz and 85 000 oz.