LONDON (Alliance News) - GoldBridges Global Resources PLC Tuesday said it swung to a profit in its last financial year as it increased production and took back some of the provisions it had made for fines related to a leak at a tailings dam in 2011.
The company reported a pretax profit of USD1.2 million for 2013, compared with the loss of USD20.5 million it booked in 2012 when it had booked a USD10.3 million provision for the tailings dam leak. It booked a gain of USD9.3 million for the provision in 2013 after successfully appealing against additional fines and costs.
Its revenue rose to USD42.4 million, from USD38.9 million in 2012, as the gold poured during the year rose to 30,669 ounces, from 22,470 ounces, and the grade rose to 1.61 grammes per tonne, from 1.37 grammes a tonne.
The company, which mines from both underground and open pit mines, said it sold a total of 29,712 ounces last year at an average price of USD1,426 an ounce, compared with 24,800 ounces at an average price of USD1,563 an ounce in 2012.
"I am confident that 2014 will continue to be a positive year for GoldBridges against the backdrop of changing economic and market conditions. Indeed on a positive note the 20% devaluation of the Kazakh Tenge announced in February 2014 is expected to have a beneficial effect on the group and the impact is currently being assessed," Chief Executive Aidar Assaubayev said in a statement.
"The group will continue its approach of concentrating on the exploitation of higher grade underground in order to keep operating costs as low as possible, as a buffer against further downward gold price movements," he added.
GoldBridges shares were up 0.7% at 3.475 pence Tuesday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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