[miningmx.com] — Gold One International on Tuesday reported a swing to an interim profit, from a loss, after it doubled its production and cashed in on a higher gold price.
The company posted earnings per share of 9 cents for the six months to end-June 2011, which compared to a loss per share of 3c posted in the six months to end-June 2010.
The turn of fortunes was largely on the back of improved production, which doubled form 25,495 ounces in the first half of 2010 to 54,699 ounces in the first half of this year.
Revenue for the six months amounted to R533m, compared to R219.7m for the same six months of last year, as a result of an increase in production and a higher average gold price received of US$1,446 and ounce, against $1,155 an ounce during the previous year’s corresponding period.
The company reported a profit of R75.5m for the six months, a swing from a loss of R26.3m last year.
Profit was positively impacted by higher revenue from gold sales, reduced general and administrative expenses, lower finance costs and a positive fair value adjustment on the convertible bonds and partially offset by higher exploration and pre-feasibility expenses.
Net cash flow from operating activities more than tripled to R252.7m for the period under review, compared to R74.3m previously.
At end June 2011 the company’s cash balance increased to R120.1m from R46m at end-June 2010.
“These results reflect the quality of our underlying assets at Modder East and show that the company has successfully matured into a solid commercial enterprise with strong cash flows,” said Gold One president and CEO Neal Froneman.
“With the recent rapid increase in the dollar gold price and a slight weakening of the South African rand, the outlook for Gold One for the rest of 2011 is most positive,” he said.
