- Net profit for FY2010 up from $3.1m to $10.9m
- Production rises 50% to 62,296oz
- Annual cash cost A$792/oz
Focus Minerals (ASX:FML) is pleased to report that the ramp-up of production at the Company’s refurbished processing plant has underpinned a record $10.9 million net profit for the year to June 30, 2010.
The result compares with a $3.1 million net profit in the previous corresponding period and comes on the back of a 70 % rise in revenue to $70.7 million.
Focus produced a record 62,296 ounces in the year, up from 41,401 ounces in the previous 12 months.
|
|
FY2010 ($,000) |
FY2009 ($,000) |
Change |
|
Revenue |
73,738 |
43,308 |
70% |
|
Cost of Sales |
(45,452) |
(20,666) |
120% |
|
Gross Profit |
28,226 |
22,592 |
25% |
|
Other Expenses & Income |
(3,949) |
(5,205) |
-25% |
|
Net Interest Costs |
(1,203) |
(3,854) |
-69% |
|
Depreciation and Amortisation |
(12,192) |
(10,386) |
17% |
|
|
10,882 |
3,147 |
246% |
|
Tax |
0 |
0 |
|
|
Net Profit |
10,882 |
3,147 |
246% |
Cash costs for the year were $792/oz (AUD), an increase from $603/oz (AUD) reflecting the greater tonnage processed at Three mile Hill, including a component of lower grade surface stocks.
Major capital expenditure during the year included completion of refurbishment of the Company’s Three Mile Hill treatment plant at a cost of $21.9 million. In addition, $14.8 million of capital development was spent on the expansion of the underground mine at the Tindals Mining Centre in Coolgardie.
After commencing as an exploration decline in September 2009, The Mount continues to far exceed expectations, producing 15,230 tonnes in the year at an average of 8.4 g/t for 4,090 ounces. Mining continues at The Mount in anticipation of moving to the next phase of exploration development in the December quarter.
Focus’ exploration division also enjoyed a highly successful year with expenditure of $6.3 million. The Company’s reserves increased by over 100% from 98,000 ounces to 207,000 ounces and the total resource inventory increased from 1.8 million ounces to over 2 million ounces.
During the year, Focus raised $8 million through a share placement to fund the acquisition of spare parts and increase the Company’s exploration drive. It also repaid all outstanding loans to be debt-free at June 30 with $10.9 million cash and bullion on hand.
“The past financial year has been one of rapid transformation for Focus,” Chief Executive Officer Campbell Baird said. “The ramp-up at Three Mile Hill helped drive a 50% jump in production, which in turn enabled us to treble our profit.
“This investment in the mill has positioned Focus perfectly to enjoy further substantial production increases.
“The progress for the company has been nothing less than outstanding. The past 12 months was the start of an operation at Coolgardie that will last for the next 10 years at least.”