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.