ASX: DRM
ASX Announcement
31 August 2016
RECORD CASHFLOW AND STRONG EARNINGS FROM ANDY WELL AS DEFLECTOR PRODUCTION RAMPS UP
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Production and costs within full year guidance, with production to date exceeding 2012 BFS
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EBITDA of A$62.7M with outstanding EBITDA margin of 47.8%
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Record Cash flow from operations of A$60.9M despite lower production
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Cash and debt balances at 30 June 2016 beat forecasts
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Deflector production forecast to further increase profit margins
Doray Minerals Ltd (ASX: DRM, Doray, the Company), is pleased to report strong earnings and record cash flow for the 2016 financial year, whilst funding and building the Company's second high‐grade gold mine at Deflector.
Unaudited financial results for the full year ending 30 June 2016 showed Revenue of A$131.1 million and net profit before tax of A$17.5 million, after one‐off non‐cash exploration write‐offs totalling approximately A$5.8 million.
Cash flow from operations increased by 8.7% to A$60.9 million, despite lower production when compared with the previous year.
Doray's Managing Director, Mr Allan Kelly, said Andy Well had delivered within production and cost guidance for the third consecutive year and the Company looked forward to reaping the benefits of having a second high‐grade gold operation for the first time with the ongoing ramp‐up of production from Deflector.
"Over the last 12 months, we achieved EBITDA of $62.7 million from revenue of $131.1 million, resulting in an outstanding EBITDA margin of 47.8%, amongst the highest of any ASX gold producer," Mr Kelly said.
"Our cash and debt position was also better than expected at the end of the financial year, as a combined result of higher gold prices being received for production at Andy Well and the new Deflector Project coming on line on schedule and within budget," he added.
Mr Kelly said further information will be provided in the Full Year Accounts, to be released during September.
Summary of Key Results
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Units
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2016FY
|
2015FY
|
|
Production
|
oz
|
84,141
|
88,736
|
|
Revenue
|
A$M
|
131.1
|
134.1
|
|
EBITDA1
|
A$M
|
62.7
|
67.2
|
|
EBITDA margin
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%
|
47.8
|
50.1
|
|
Cash flow from operations
|
A$M
|
60.9
|
56.0
|
|
Cash and gold on hand
|
A$M
|
39.1
|
28.7
|
|
Debt
|
A$M
|
80.5
|
21.3
|
1 EBITDA is earnings before interest income and finance costs, income tax expenses, depreciation and amortisation,
and non‐cash exploration write‐offs.
For further information, please contact: Cameron Peacock
Investor Relations Doray Minerals Ltd
+61 (0)439 908 732
[email protected]
Doray Minerals Ltd, 31 August 2016
Margie Livingston Media Relations AMN Corporate
+61 (0)438 661 131
[email protected]
About Doray Minerals Limited
Doray Minerals Limited is an Australian gold producer, developer and explorer with two high‐grade Western Australian gold assets: the Andy Well Gold Project, which commenced production in August 2013; and the Deflector Gold Project, which commenced gold and gold‐copper concentrate production in May 2016.
Doray has a strategic portfolio of gold exploration properties within Western Australia and South Australia and each presents multiple discovery opportunities. The Company's Board and management team has a proven track record in discovery, development, and production.