PERTH (miningweekly.com) - Australian gold miner Kingsgate Consolidated has reported a 76% decline in net profit for the interim period ending December, after a A$14.9-million cash write down on the sale of its greenfield exploration properties.

Net profit after tax for the six months under review reached A$8.1-million, compared with the A$38.9-million reported in the previous corresponding period.

Earnings before interest, taxes, depreciation and amortisation reached A$65-million during the half year, compared with the A$69.6-million in the previous corresponding period, while revenue for the period was up 10%, to A$161.6-million.

MD and CEO Gavin Thomas said on Monday that the half-year results reflected the transitional nature of the 2013 financial year, with the Chatree operation finally receiving its metallurgical licence for Plant 2 in October, and the Challenger mine undergoing an accelerated development programme during the December half year, to set the mine up for a sustainable future.

The results also reflected higher revenue from gold sales, which reached 91 480 oz during the half-year, with a higher contribution by Chatree offset by lower production from Challenger, and a lower realised average gold price.

Meanwhile, at the Nueva Esperanza project, in Chile, detailed feasibility, design and approval work continued during the period, and Thomas noted that the feasibility study had been expanded to investigate a complementary heap leach operation and on-site power options.

Looking ahead, Thomas said Kingsgate expected a stronger production performance during the second half of the year.

“Group gold production for the full year to June is expected to be in the range of 200 000 oz to 220 000 oz. This includes 120 000 oz to 130 000 oz from Chatree and between 80 000 oz to 90 000 oz from Challenger.”

Thomas noted that Kingsgate’s two advanced development projects were also expected to progress through feasibility studies during the second half of the financial year.