Doray reports strong earnings despite lower product
JOHANNESBURG (miningweekly.com) – ASX-listed Doray Minerals ended the 2016 financial year in June with strong earnings and record cash flow, despite lower production, compared with the previous year.
The company, which owns the Andy Well mine and is ramping up production at its second Western Australia mine, Deflector, reported earnings before interest, taxes, depreciation and amortisation (Ebitda) of A$62.7-million, down 7% on the previous year’s A$67.2-million. Revenue fell to A$131.1-million, from A$134.1-million in 2015.
Production decreased from 88 736 oz to 84 141 oz in 2016. However, cash flow from operations increased to A$60.9-million, from A$56-million in 2015.
MD Allan Kelly noted on Wednesday that the company’s Andy Well mine had delivered within production and cost guidance for the third consecutive year and that it looked forward to reaping the benefits of Deflector.
Despite the Ebitda margin dipping from 50.1% to 47.8%, Kelly said it remained among the highest of any ASX gold producer.
He added that Doray’s cash and debt position was better than expected at the end of the financial year, as a combined result of higher gold prices being received for production at Andy Well and Deflector coming on line, on schedule and within budget.
At the end of June, Doray had A$39.1-million cash and gold on hand, compared with A$28.7-million in 2015. Its debt stood at A$80.5-million, compared with A$21.3-million at the end of June last year.
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