Vatukoula Gold Mines plc
("Vatukoula" or "the Company")
Interim Results to 28 February 2010
Financial Highlights of the first half year:
· Turnover for the period reached £16.5 million (2009: £9.5 million)
· Gross margin increased to £7.5 million (2009: £0.23 million)
· Profit after tax of £4 million (2009: loss £3.9 million)
· Capital expenditure for the period £5.5 million (2009: £1.4 million)
· Cash balance of £8.2 million as at 28 February 2010
Operational Highlights:
· Gold shipped increased to 24,092 ounces (2009: 17,920 ounces)
· Ore mined and processed increased to 188,631 tonnes (2009: 94,592 tonnes)
· Cash cost per ounce of gold recovered reduced to US$ 635 (2009: US$857 / ounce)
· Average price of gold received increased to US$1,102 / ounce (2009: US$834 / ounce)
· Average underground grade mined 7.52 grams per tonne (2009: 6.90 grams / tonne)
· Average surface grade mined 1.96 grams per tonne
· Continued underground development programme achieved 3,700 metres for the six months.
David Paxton, CEO of Vatukoula commented - "The first half year has been particularly productive for Vatukoula. Our continuing efforts to increase production at the mine resulted in higher gold production, increased gross margins and £4 million of profit after tax. The fundraising during the period has enabled the purchase of capital equipment and continue the much needed capital development programme."
"We now expect production for the year to be about 50,000 ounces and anticipate reaching our targeted production rate of 100,000 ounces per annum in the first calendar quarter of 2011. Our cash costs per ounce are expected to fall as production ramps up, providing further scope for growth."
"Additionally, we remain fully committed to our exploration programme, which itself could provide further potential upside and we have engaged a minerals consultancy group to develop an exploration programme both within the mining lease, and within exploration leases surrounding the mine."
