Kagara delivers A$58m first-half profit

28 January 2007 | 06:40 Code : 12572 Geoscience events
Kagara said that the excellent half-year result, which increased from a full-year....

  Kagara Zinc continues to reap the benefits of rising metal production from its Mt Garnet operations in Queensland and strong commodity prices, with an unaudited pre-tax profit of A$58m for the first half of the 2006/07 financial year, announced as part of its December 2006 Quarterly Report.

Kagara said that the excellent half-year result, which increased from a full-year pre-tax profit of A$51.7m for 2005/06, confirmed a trend of rising production of all metals, with the Mt Garnet Project delivering another excellent production performance during the December 2006 Quarter.However, the company has revised its forecast pre-tax profit for the full year to A$175m, A$25m lower than previous forecasts, due to the previously reported six-week delay in commissioning the Thalanga copper treatment facility in Queensland and reduced forecast prices for copper.“Notwithstanding necessary revisions to our full-year profit forecast, the December Quarter saw another very strong operational, production and financial performance by Kagara, completing an excellent half-year which has already seen us exceed the profit generated over a full year in 2005/06,” Kagara’s Executive Chairman, Kim Robinson said.The December 2006 Quarter saw production of all metals from Mt Garnet at 15-month highs, with copper output rising by 70% to 4,076 tonnes, zinc by 6% to 10,770 tonnes, lead by 13% to 3,459 tonnes, silver by 33% to 235,000 ounces and gold by 17% to 1,568 ounces.The strong increase in copper production reflected the successful commissioning of the Thalanga treatment facility, representing Kagara’s third operating production plant in North Queensland and a key leg of its growth strategy. The start-up at Thalanga has positioned the company to achieve full-year production in excess of 25,000 tonnes of contained copper metal, sourced predominantly from Thalanga and the copper circuit at Mt Garnet.“Kagara is continuing to deliver on its growth strategy, with production increasing strongly at our core base metal operations, providing the necessary momentum and financial capability to support our continued diversification as well as a very aggressive exploration program, in North Queensland and Western Australia,” Mr Robinson said.

tags: QAZVIN

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