A full year after tax profit of $26.3 million with no abnormals was posted for the year, up 22% on the previous year. Earnings per share jumped 74% to 16c and the company has announced a fully franked dividend of 5c.
Goldfields has been pursuing a strategy of rationalisation centred on its Kundana and Paddington operations north of Kalgoorlie.
In the past year it has snapped up a tenement from Homestake Mining, on which it has established its Moonbeam open pit operation, and taken over junior gold explorer Gilt-Edged Mining, which had reported a 938,000 ounce resource.
Yesterday it announced the settlement of the purchase of Mineral Commodities Ltd’s 49% interest in the Mungari West Joint Venture with Mines and Resources Australia. The venture includes the White Foil deposit, which has a 915,000oz resource.
During the year, production from its four mines – Porgera (25%), Henty (100% equity, 90% revenue), Paddington (100%) and Kundana (100%) - totalled 544,679oz of gold.
However, sales revenue for the year fell to $301.7 million from $304.1 million as a lower average gold price was largely offset by increased production.
The company is bullish about its future, despite the lagging gold price.
“Goldfields is now well positioned to build on the success we have achieved over the last 12 months,” said managing director and CEO Peter Cassidy, adding that the company would look for further opportunities to rationalise the region north of Kalgoorlie.
