PERTH (miningweekly.com) – ASX-listed PanAust has seen a significant decline in its after-tax profit, after writing off $50.9-million on its exploration assets during 2013.

The metals miner reported on Friday that profit after tax had declined to $43.7-million, compared with $158.3-million in 2012.

Earnings before interest, tax, depreciation and amortisation also declined to $272.5-million, compared with the $331.1-million reported in the previous financial year.

MD Gary Stafford told shareholders that the Phu Kham and Ban Houayxai operations, in Laos, had ended the year on a high, with both mines recording strong production and cost performances.

Stafford said that copper production at Phu Kham was at the top end of the guidance, while gold production at Ban Houayxai exceeded the mid-year upward guidance revision.

Copper-in-concentrate production reached 64 885 t during the full year, while gold–in-concentrate production reached 183 769 oz.

Sales revenue increased by 2%, to $725-million, with higher pay-metal sales volumes more than offsetting lower average commodity prices.

“Despite the higher pay-metal production and competitive costs, materially lower metal prices had an adverse impact on the company’s overall financial performance,” Stafford said.

“The business transitioned from being free cash positive during the second half of 2013, following the completion of a three-year capital development phase of our Lao operation, which totalled some $350-million.

“The Ban Houayxai gold/silver operation and the expanded Phu Kham copper/gold operation had their first full year of operation in 2013, and the Phu Kham increased recovery project was commissioned in the June quarter.”

Stafford added that the completion of these projects, along with reduced sustaining capital and lower project costs as studies were completed, should enhance PanAust’s cash flow over the coming years.

PanAust was expecting to produce between 65 000 t and 70 000 t of copper in concentrate in 2014, and some 160 000 oz to 165 000 oz of gold, with earnings before interest, tax, depreciation and amortisation expected to reach between $200-million and $225-million for the full year.