Kingsrose Mining Ltd (Kingsrose) is has reported a significant turnaround in its financial performance during the first half of this financial year following a vastly improved operational result at its Way Linggo gold mine in Indonesia.
After tax, net profit stood at US$3.16 million compared with a US$13.13 million loss in the previous corresponding period and revenue tripled to US$26.9 million from US$8.96 million previously.
According to Kingrose, this result reflected the strong progress made at Way Linggo, where gold production rose to 14 868 oz for the six months from 4445 oz in the previous corresponding period and all-in sustaining costs fell to US$712/oz from US$2563/oz. During the period, Kingsrose retired all its debt and suspended operations at its Talang Santo underground mine in Indonesia, both of which reduced its costs.
Kingsrose Managing Director Paul Jago said the financial results showed the company’s strategy was working. “We are succeeding in controlling our costs and maintaining a consistent production performance at Way Linggo […] This combination is generating improved underlying cashflow […] At the same time, we are progressing our plans to expand the Way Linggo pit and establish an open pit at Talang Santo to extract the Mineral Resource left in the upper levels of the underground mine.”
“Over the next six months we will focus on maintaining production levels at Way Linggo, actively exploring the broader project area and securing the relevant permits to allow open pit mining at Talang Santo to commence,” Jago added.
Read the article online at: https://www.globalminingreview.com/finance-business/16032018/strong-operational-turnaround-means-return-to-profit-for-kingrose-mining/