ASX/MEDIA
ANNOUNCEMENT
15
August 2008
Maiden profit follows Paddington
acquisition
Results for Announcement to the
Market
Key points
w EBITDA for FY2008 of $26.5M on revenue of $115M at average A$911 per oz
w NPAT of $9.2M for FY2008
w 2.9 cents earnings per share for FY2008
w June cash balance $27M; cash flow from operations of $35.1M
w Total assets (excl. Hedge tax adj and net of
rehabilitation) of $137.6M
w Project pipeline set to unlock shareholder value:
o Mount
Morgan Mine Project: approval pending
o Homestead underground development: approval pending
o Paddington:
10-year Life of Mine Plan
o Sienna
Coal Project: 60-hole drilling program underway to define Resources
w FY2009 a development year providing the basis for 250,000 oz production in
FY2010
Norton
Gold Fields Limited (Norton), one of the largest ASX-listed (ASX: NGF)
Australian gold producers, posted a net profit after-tax of $9.238M for the
financial year ending 30 June and represents a turnaround of some $14M on the
previous financial year.
The
maiden profit marked Norton?s
first year of production from its strategically located Paddington Gold Mine in
the Kalgoorlie
region of Western Australia. Importantly,
this profit was against a backdrop of substantial challenges in the Australian
gold mining industry including strong cost pressures and energy supply issues
from the Varanus Island gas
explosion.
In
addition to $16M on deposit which secures Norton?s environmental obligations, the Company had $27M
cash at bank as of 30 June.
?The Company?s
fast track into the black since acquiring the Paddington Gold Mine, is a credit
to the capability and efforts of the Company?s
executive team and staff,? said Jon Parker, the
Managing Director.
?Shareholders can see that the board
and management have not only recognised assets with substantial potential but
also successfully transformed Norton through to profitable production.
?Acquiring
Paddington was the second step in Norton?s strategy
of becoming a major gold company following the acquisition
of the Mount Morgan Mine Project in Queensland.
?Norton?s Mount Morgan Mine Project is progressing on track. In
July, the Board approved the refurbishment and relocation of the Company?s Kundana
plant to the Mount Morgan site in
anticipation of final Queensland Government approvals.
?Mount Morgan is
planned to produce an initial 35-40,000 oz per year from FY2010 to augment Norton?s
current annual production of 150,000
oz.
?We have also made
significant progress in our planning towards commencing underground operations
at Paddington in FY2009 which will help us ramp up production to
250,000 oz in FY2010.
Mr Parker said Norton expected to increase its landholding in the Gold
Fields region with the acquisition of the Bellamel
gold assets.
?I am confident we
can apply to the Bellamel assets the same combination
of management and technical expertise now in use at Paddington. Bellamel shareholders will benefit from Norton?s organisational, management and financing
capabilities through Norton?s mining and production
business at Paddington. The combined entity will have significant JORC
Code-compliant Reserves and Resources in one of the world?s foremost gold provinces, together with a major low
cost processing plant.
?We are very happy
with the level of acceptances which as of today is 22.64%. Norton?s
offer of four (4) Norton shares for every five (5) Bellamel
shares is open to Bellamel shareholders until 29
August, unless extended,? Mr Parker concluded.
The accounts and Appendix 4e (Rule 4.2A) Preliminary
Report are attached.
About
Norton Gold Fields
Norton Gold Fields Limited is Australia?s fourth largest ASX-listed
Australian gold producer. It also has active gold, copper, and coal exploration
projects.
Norton?s
all-share offer to acquire Bellamel Mining Limited
will, if accepted, add 1.68 Moz of gold to the
Paddington Resources, and further extend the life of the Paddington Mine. Bellamel also has the potential to develop a 40-50,000 oz per year gold
heap leach operation. Additionally, the Bellamel
properties are highly prospective for underground development.
The
Company operates the Paddington Gold Mine near Kalgoorlie in Western Australia and is planning to develop
the Mount Morgan Mine Project in Queensland.
Paddington has a 5Moz resource and a 3 Mtpa CIP plant
capable of producing more than 150,000 oz of gold per year. With the planned
addition of underground operations in FY2010, production is expected to lift to
250,000 oz
of gold per year.
Norton plans to augment this with up to 40-50,000 oz of gold
annually from the Mount Morgan Mine Project.
For further information
Jon Parker
Warrick Hazeldine
Managing Director
Director
Norton
Gold Fields
Limited
Purple Communications
+61 (0) 408 921 551
+61 (0) 417 944 616
jparker@nortongoldfields.com.au
whazeldine@purplecom.com.au
Visit
us at www.nortongoldfields.com.au
Competent Person?s
Statement
The
Mineral Resource statement, with the exception of the Mt Pleasant Mineral
Resource estimate, has been compiled by Mr Ian Copeland who is a Member of the Australasian
Institute of Mining and Metallurgy, and qualifies as a
Competent Person as defined in the 2004 Edition of the ?Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Mr Ian
Copeland is a full time staff member of Norton Goldfields and consents to the inclusion
in the release of the matters based on the information in the form and context
in which it appears.
The
Mt Pleasant Mineral Resource estimate, with the exception of the Homestead
Mineral Resource estimate, has been compiled with the consent of Mr David
Williams, who is a Member of the Australasian
Institute of Mining and Metallurgy, and qualifies as a
Competent Person as defined in the 2004 Edition of the ?Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves?.
Mr David Williams is a full time staff member of CSA Australia Pty Ltd and
consents to the inclusion in the release of the matters based on the
information in the form and context in which it appears. The Homestead Mineral
Resource estimate was compiled with the consent of Mr Ian Copeland.
The
Mineral Resource estimate is tabulated inclusive of Ore Reserves. Cut-off
grades used to estimate the Mineral Resource vary by deposit, ranging from
0.7g/t Au up to 1.0g/t Au. Note rounding errors may occur in the tabulation of
the Mineral Resource estimate.
Measured
Resources are 0.65Mt at 1.7 g/t for 35,000 oz, Indicated Resources are 41.66Mt at
2.0 g/t for 2,720,000
oz and Inferred Resources of 29.64Mt at 2.2 g/t for 2,070,000 oz. Proven
Reserves are 0.12Mt at 1.2 g/t for 4,700 oz, and Probable Reserves are 17.74Mt at
1.8 g/t for 1,007,700oz.
The
information in this report that relates to the Mineral Resources of Bellamel Mining Limited is based on information provided by
Mr Matthew Wood who is a Member of the Australian Institute of Mining and
Metallurgy. Mr Wood is the Chairman of Bellamel
Mining Limited. Mr Wood has sufficient experience which is relevant to the
style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the ?Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Mr Wood
consents to the inclusion in the report of the matters based on his information
in the form and context in which it appears.
Measured
Resources are 9.137Mt at 1.13 g/t for 331,075 oz, Indicated Resources are 12.54Mt at 1.41 g/t for 567,040 oz and Inferred
Resources of 22.30Mt at 1.10 g/t for 784,265 oz
Appendix 4E (Rule 4.2A)
Preliminary Final Report
For the year ended 30 June 2008
Results for announcement to the market
(all comparisons are to the year ended 30 June
2007)
|
$?000
|
Up/down
|
%movement
|
Revenue from ordinary
|
115,002
|
up
|
328,577
|
|
|
|
|
Profit/(Loss) from ordinary activities (NPAT)
|
9,238
|
up
|
Note 1
|
|
|
|
|
Notes
1. The NPAT of $9.238M
represents a movement up of $14.395M. Since the movement was from a loss
a percentage calculation cannot be reliably calculated. There are no
minority interests.
Audit
This report is based on the consolidated financial report which has been
audited.
Acquisitions and disposals
Details of acquisitions are provided in the attached Annual Financial
report
Commentary on results for the period
The company acquired and operated the Paddington Gold Mine from 25
August 2007, producing 125,526
oz of gold. A detailed summary of the years operations is provided in the June quarterly report
released on 1 August 2008.
Commentary on the results is also provided in the ASX release
accompanying this statement.
Dividends
The Directors do not recommend payment of a dividend. No dividend was
paid during the year or the corresponding period. Consequently there is no
record date.
Net tangible assets per share (fully diluted)
The net tangible assets per share were 5.75 cents for 2008 and 4.76
cents for 2007. The relevant numbers excluding the accounting for the hedge
position are 12.23 cents for 2008 and 4.76 cents for 2007.
Additional 4E disclosures
Additional disclosures requirements can be found in the Directors Report
and consolidated financial report attached to this report.
Norton Gold Fields Limited ? 79 Hope Street, South Brisbane, Queensland 4101?Australia
ACN 112 287 797 ? Tel +61 (7) 3846 9200 ? Fax +61 (7) 3846 9232 ? www.nortongoldfields.com.au
Issued by
Purple
Communications
Level 3, 28 Kings Park Road, WEST
PERTH
WA 6005
Ph: 08 9485 1254
Fax: 08 6263 0455
purple@purplecom.com.au