Unity Mining books $5.3 million loss

BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.

The State Government has announced a grant of $50,000 to carry out the review.

The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.

Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.

Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.

“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.

“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”

Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.

The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.

“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,

“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.

“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”

Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.

“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.

“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”

Anthony Radford | Bendigo Weekly | 26-Aug-2011

UNITY Mining has announced a loss of more than $5.3 million for the year ended June 30.

In a statement released this morning, the company said it had recorded a gross profit of $9.0 million from revenue of $80.5 million, and that the net loss of $5.3 million included $5.1M of non-recurring losses.

Managing director Rod Hanson said the past 12 months had seen the company continue its transition to a diversified gold producer.

Exploration success at Henty has grown the resource inventory and extended mine life beyond four years. We have also increased our stake in West African gold explorer GoldStone Resources to 33 er cent, reflecting Unity's desire for GoldStone to become a more meaningful part of our business.

''Operationally, the past year has been challenging as production at Henty transitioned from old and often remnant ore sources to the newly developed Tyndall and Newton ore, negatively impacting both ore grades and tonnes available for processing.

''We have made strong progress in addressing these transitional issues, with grades and costs now performing to expectation as reported in the June 2011 quarter.

''Operating results at the Kangaroo Flat Mine in the March 2011 quarter triggered an acceleration of the planned transition to care and maintenance. The reduction in output at the Kangaroo Flat Mine, was the major cause of the full year gold production of 55,990 ounces being 30% below that achieved in FY10,'' Mr Hanson said.

Unity says In comparison to last year’s $11.2M net profit, this full year’s net loss of $5.3 million was primarily a consequence of lower production, but was significantly impacted by a net $5.1 million of non-recurring losses, including the loss on the sale of BCD shares and the costs associated with transitioning the Kangaroo Flat Mine to care and maintenance. In the absence of these items, Unity would have recorded an approximately break-even result for FY11 after expensing exploration costs.

''In the coming year, our key objectives are firstly to increase the production rate at Henty, primarily through increasing the head grade, and secondly to further build on the growth options for the company.

''At Henty, production from Tyndall and the expanding Newton Zone look set to provide a robust production profile for some years to come.

''Opportunities for growth include continuing our vigorous exploration program at Henty, and building on the strategic alliance with GoldStone with the ultimate goal of securing a significant new production source in Africa. Our robust balance sheet places us in a unique position to pursue sensible internal growth and external consolidation opportunities" said Mr Hanson.