After tax, the profit result was $8.8 million – a dramatic lift on the $300,000 it earned last year.

The result was achieved on turnover of $33 million coming from gold sales from its Sandstone and Cornishman mines in Western Australia.

The cash operating cost of $157/oz from Sandstone makes it the lowest cost producer in Australia this year. Cornishman was also well in the lowest quartile with a cash operating cost of $236/oz.

Gold production totaled 78,642oz with Sandstone contributing 47,803oz and Cornishman 30,839oz. The Sandstone mine is relatively new being opened at the end of August last year.

Troy’s executive chairman, John Jones, said the profit windfall would provide the cornerstone for the company’s growth in the future.

“The earnings have created a strong balance sheet with $8.1 million in cash, no borrowings and significant quantities of gold and investments held at the end of the year.”

Jones said Sandstone was budgeted to produce 41,000oz in the current year.

“The average grade will remain excellent although it will be somewhat less than the exceptional level achieved in the past year,” he said.

“A decision on whether to proceed with Stage 3 of the Cornishman operations is expected to be made before the end of December this year.”

The closing date for the maiden dividend payment, which will be unfranked, is October 31, 2000 with payment on November 21, 2000.