Focus Reports Record Full-Year Result for FY11

FOCUS REPORTS RECORD FULL-YEAR RESULT FOR FY11

Revenue increased 39% to $102.8 million (FY10: $73.7 million)
Net Cash from Operating Activities increased 11% to $30.3 million (FY10: $27.8 million)
Focus opened two new gold mines in FY11, positioning the Company for growth in FY12
Focus completed first full year of ore processing at the Three Mile Hill plant with total gold production increasing 17% to 72,830oz (FY10: 62,296oz)
The acquisition of Crescent Gold positions Focus as a +200,000oz gold producer for calendar 2012

Result Summary

Focus Minerals Limited (ASX: FML), a leading Australian gold producer, today announced record full-year Revenue and Net Cash from Operating Activities, positioning the company for strong growth after a year of significant transformation.

In FY11 Focus’ annual revenue increased by 39% to $102.8 million (FY10: $73.7 million) and Net Cash from Operating Activities increased by 11% to $30.3 million (FY10: $27.8 million), as the company grew total gold production by 17% to 72,830oz (FY10: 62,117oz).

During FY11, Focus increased gold sales by 16.2% to 72,721oz of gold (FY10: 62,294oz) at an average price of $1,391/oz (FY10: $1,197/oz).

NPAT for FY11 was $7.6 million (FY10: $10.9 million). The increase in the average cost of production and the decrease in NPAT reflect significantly increased levels of mine development expenditure (particularly at The Mount underground and Tindals Open Pit operations), increased exploration expenditure and the impact of mill upgrades.

Significant developments in FY11 included:

Commencing ore production at Tindals Open Pit operations
Commencing ore production at The Mount underground operation
First full year of ore processing at the Three Mile Hill plant
Increased commitment to exploration to $23.9 million (FY10: $6.3 million)
Discovery of new gold camp at Treasure Island Gold Project
Record production from the Tindals Underground operation increasing 29% to 61,248oz (FY 10: 47,516oz).
Significant increase in scale of operations through the acquisition of Crescent Gold

Focus Commentary

“FY11 was a transformational year for Focus Minerals,” said CEO Campbell Baird. “We will now go about capitalising on our production capability after establishing a very solid platform for growth. The best is very much still ahead.”

After successfully starting new open pit and underground mining operations in the second half of FY11, Mr Baird said that Focus was ramping up production at its Coolgardie operations and with the acquisition of Crescent Gold, will be significantly increasing total gold production during FY12 allowing the company to capitalise on high gold prices.

“At the start of FY11 we had just one operating mine; by the end of FY11 we had three mines with production commencing at The Mount underground and the Tindals Open Pit operations. With the recent addition of Crescent’s Laverton Gold Project open pit operations, we now have four operating gold mines.”

Outlook

Mr Baird said with its developing presence in the Coolgardie area, and its new presence in the Laverton area (following the acquisition of Crescent Gold), Focus has a combined JORC resource base of 4.3Moz[1] of gold and will produce +200,000oz of gold in CY12[2].

“FY12 will be a year of growth as we get our new open pit and underground operations up to full production, maximise higher-grade throughput at the Three Mile Hill plant, optimise performance and grow production at the Laverton Gold Project and continue our accelerated exploration program to increase resource and reserve ounces,” he said

[1] Includes total JORC resources of 2.1Moz from Crescent’s projects. Focus has a ~80% shareholding in Crescent as of 27 September 2011. On a consolidated basis, attributable JORC resources from Crescent are 1.66Moz for 3.96Moz attributable to Focus

[2] Includes targeted production from Focus’ projects of +100,000oz, and targeted production from Crescent’s projects of 100,000oz. Focus has a ~80% shareholding in Crescent as of 27 September 2011. On a consolidated basis, attributable production target from Crescent is 80,000oz for a 180,000oz production attributable to Focus.