PROFIT GUIDANCE - RECORD FULL YEAR NET PROFIT RESULT
Final toll treatment campaign underway
HIGHLIGHTS
- Record full year Net Profit result expected to be $10.0 -$11.0
million
- Final toll treatment campaign for La Mancha commenced 16th August
2010
- Reconfirm production guidance of 12,000-14,000 ounces for
September 2010 Quarter
Profit Guidance
The Directors of gold producer Focus Minerals (ASX:
FML) are pleased to advise of an expected substantial increase in the Group�s
annual Net Profit after Tax to be in the range of $10.0 - $11.0 million.
The expected annual net profit result was generated
from record gold production of 62,296 ozs gold and
gold sales revenue of $ 72 million for the financial year to 30 June 2010.
The result compares very favourably with the prior
period recorded net profit of $3.15 million from revenues of $43.6 million
and gold production of 41,401 ozs gold.
The Company advises that the above profit guidance
for the financial year to 30 June 2010 is an expected result only and has
been based on draft financial accounts and is subject to the completion of
the Group�s financial audit presently in progress.
The Company�s annual financial report will be lodged
with ASX following completion of the audit.
Operations Update
The Company is also pleased to announce that the
final toll treating campaign for La Mancha Resources is underway. The
campaign was brought forward by two weeks and commenced on the 16th August. It
will run for approximately 26 days for a total of 90,000 tonnes.
In October 2009, Focus announced that it would
undertake two toll treating campaigns for La Mancha during the 2010 calendar
year. This toll treating agreement remains profitable in its own right
notwithstanding ongoing operational costs incurred during the ramp up to full
mining production.
The purpose of the toll milling agreement with La
Mancha was to facilitate a steady ramp up of Focus� mining operations to full
capacity so as to not place undue pressure on the developing mining
operations. This ramp up continues on schedule and remains underpinned by the
Tindals Mining Centre, trial mining at The Mount and
extensive surface stockpiles [approx 1.5 million tonnes].
The current toll treating campaign, which is
scheduled for completion in the second week of September, will be the final
toll treating campaign at Three Mile Hill with Focus mining and milling 100%
of its own material from this period onwards.
Aggressive capital mining, mining development and
near mine exploration continued throughout July and August with 8,700 ounces
already produced for the September Quarter. Focus maintains its guidance of
12,000 to 14,000 ounces production for the September Quarter with the
foundation now set for increased gold production and lower cash costs,
beginning in the December quarter.
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Links
www.focusminerals.com.au
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