Gold miner Catalpa posts maiden profit
GOLD miner Catalpa Resources Ltd has posted a maiden first half profit on t he back of r ecord production at its two Australian mines.
Net profit for the six months to December 31 was $ 1.98 million, compared to a net loss of $ 3.67 million for the previous corresponding period.
‘‘ Our maiden profit follows a period in which Catalpa has been transformed from an explorer and developer into one of Australia’s fastest-growing gold miners,’’ chief executive Bruce McFazdean said.
Gold production from Catalpa’s Edna May mine in Western Australiaand Cracow gold project in Queenslandtotalled 46,082 ounces, up more than 40,000 ounces from the previous half.
‘‘ Our long-life Edna May project and our Cracow joint venture with Newcrest have created a solid production base from which to grow,’’ Mr McFazdean said.
The company said it was well funded for ongoing development of the Edna May mine and had reduced its bank debt to $ 59.25 million.
Catalpa has started studies targeting the development of a high-grade underground operation at Edna May, which was currently an open pit operation.
First half sales of 46,600 ounces was at an average realised gold price of $ 1,492 per ounce.
At the end of December, Catalpa’s gold hedge book had been reduced to 317,789 ounces hedged at $ 1,557 per ounce.
Shares in Catalpa closed two cents firmer at $ 1.64.