Gold miner Catalpa posts maiden profit

Townsville Bulletin - - Investor -

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.

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