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TSX & ASX: TRY
PERTH, Western Australia, Feb. 15 /CNW/ - Troy Resources NL ("Troy" or the "Company") (TSX & ASX: TRY). Troy announces a net loss after tax and minority interests of A$5.4 million for the half year ended 31 December 2007.
This financial report is unaudited and has been released at this time to comply with Canadian reporting requirements. As required by Australian law, fully audited financial statements for the half year to 31 December 2007 will be released by 29 February 2008.
The loss reflects a period of transition as the last gold was produced from the Sertao mine in Brazil in August 2007 while the positive impact of the Andorinhas mine (also in Brazil) is not expected to be realized until the March 2008 Quarter. During the half year ended December 31, 2007 costs associated with Troy's future growth, including A$3.3m on exploration, continued to be expensed.
Subsequent to the close of the period, Troy announced it had listed on the Toronto Stock Exchange (TSX) and successfully completed an IPO raising C$22m (approximately A$24.8m) from the issue of 8,462,000 shares at C$2.60 per share (approximately A$2.94 at the then existing exchange rates).
Revenue for the half year was A$22.0 million (2006: A$41.3 million) from the production of 19,496 ounces of gold (2006: 55,121 ounces). The loss for the period of A$5.4m compares to the corresponding period in the previous year in which there was a profit of A$7.3 million. Production from the Company's Lord Nelson and Lord Henry mines at Sandstone in Western Australia was 18,051 ounces for the six months ended 31 December 2007, compared to 46,911 ounces for the six month period ended December 31, 2006.
Production from the Sertao project in Brazil was 1,445 ounces for the current half year (reflecting that production at Sertao ceased in August 2007 when the mine closed) as compared to 8,210 ounces for the six month period ended December 31, 2006.
At 31 December 2007, the value of Troy's cash, investments and other liquid assets was approximately A$70 million.
CEO Paul Benson said "This is a reasonable result considering the enormity of the change the company has gone through in the last six months. We treated the last ore at Sertao in August and then relocated the processing plant 1,100kms to the north to our new project at Andorinhas where commissioning commenced in December. During the six month period ended December 31, 2007 we also finished mining and demobilised the mining contractor at Sandstone and moved onto the processing of low grade stockpiles."
"We did not, however, allow any of these the changes to distract us from growing the company. We continue to aggressively explore, spending some A$3.3m during the half. At Sandstone we are focused on discovering more ore to enable us to bring the mining fleet back to site and at Andorinhas we are just starting step-out exploration from the initial resource. During the six month period ended December 31, 2007 we entered into agreements granting us options to triple our land position, all within trucking distance of our Andorinhas plant. Our objective at Andorinhas over the next 12 months is to extend the mine life beyond the 5 years currently contemplated by the feasibility study. It is important to note we prudently expense our exploration costs as we incur them".
"During the half year ended December 31, 2007 we also completed the planning and preparatory work for a listing on the TSX and a share issue in that market. The hard work paid off and Troy closed the share offering on February 11, raising C$22m (approximately A$24.8m) from the issue of 8,462,000 shares at C$2.60 per share (approximately A$2.94 at the then existing exchange rates) in what was an extremely difficult and volatile equity market."
"We now look to calendar 2008 as the start of the next chapter in Troy's evolution. In the first half the second mill line will be brought on stream at Andorinhas bringing the plant to full capacity. We already have 6 months of ore stockpiled ahead of the plant ready for processing which will allow us to maintain production as we bring the high grade underground mine on stream. We will also complete a scoping study on commercialising the iron ore potential of the project area and, if the results of that study are positive, we would aim to commence production of iron ore by the end of calendar 2008."
"We are also focused on finding a home for the gold processing plant we have in storage in Cobar NSW. We are seeking an opportunity to vend the plant in return for a direct equity stake in a new gold project."
"Troy has the track record of quick, efficient and low cost project development and as excellent mine operators. We have a very strong balance sheet, a portfolio of growth options and a Board and Management team that are committed to creating value for shareholders through profitable growth."
This news release contains forward-looking statements. These forward-looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in the forward looking statements. Such factors include, among others, future prices of gold, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in ore grade or recovery rates, plant and/or equipment failure, delays in obtaining governmental approvals or in the commencement of operations.