Doray profit surges as Andy Well shines

PERTH (miningweekly.com) – Gold miner Doray Minerals on Tuesday announced a 263% increase in net profit after tax for the six months to December, compared with the previous corresponding period, as both gold production and revenue increased.

Doray reported a net profit after tax of A$14.5-million, compared with the A$4-million reported in the prior period, as production from the Andy Well mine, in the Murchison region of Western Australia, increased by 20% over the same period, to 47 197 oz.

Revenue for the interim period also increased by 22%, from the A$60.1-million reported in the six months to December 2014, to A$73.1-million.

Doray MD Allan Kelly said that improvements in mining methods and dilution control at the Andy Well mine resulted in significant increases in gross profits and cash flow from operations, compared with the previous year.

“We have had a very good half-year, and it sets us up as we move into commissioning at Deflector and increase production,” Kelly said in a conference call.

“The first-half results see us on track to meet the upper-end of our production guidance of 78 000 oz to 85 000 oz, and if we achieve that, it would be the third consecutive year that we have outperformed the bankable feasibility forecast at Andy Well of 74 000 oz/y, while the significant increase in earnings and profit sees us outperforming some of our larger peers in the sector on a per-capital basis.”

Kelly meanwhile said that construction of the Deflector project, also in Western Australia, was progressing to schedule.

Deflector, which was due to start production in mid-2016, was expected to produce 1 972 oz of gold from its openpit operation and 348 592 oz of gold from its underground mine. The mine would boost Doray’s production to some 140 000 oz/y.