Troy Resources NL

Troy Resources NL

February 28, 2007 03:17 ET

Troy Resources NL: Half Year Profit of $7.3 Million

WEST PERTH, WESTERN AUSTRALIA--(CCNMatthews - Feb. 28, 2007) - Australian gold miner Troy Resources NL (ASX:TRY)(FRANKFURT:TRW)("Troy") today announced a net profit after tax and minorities of $7.3 million for the half year ended 31 December 2006.

The profit was generated from revenue of $41.3 million (2005: $42.7 million) and production of 55,121 ounces of gold (previously 71,186 ounces).

The profit was 31% lower than the previous corresponding period of $10.5 million. Production from the Company's Lord Nelson and Lord Henry mines at Sandstone in Western Australia was up to 46,911 ounces as against last year's 41,231 ounces. However, production from the Sertao project in Brazil was down to 8,210 ounces from 29,078 ounces previously as production switched into lower grade satellite deposits during the period.

Despite the lower production levels, the Company's sales revenue remained relatively stable as it was able to take full advantage of the rising gold price due to its unhedged position.

The profit for the half year was achieved after expensing $4.5 million for exploration (2005: $3.7 million) and amortisation and depreciation of $3.1 million (2005: $2.2 million).

At 31 December 2006, Troy's equity share of cash, investments and other liquid assets was approximately $53.1 million.

"Troy has had a good first half performance which has set the Company up for another successful financial year. We believe that few companies are better placed in the Australian gold industry," said CEO, Mr Tommy McKeith.

"Troy is actively looking for new projects and opportunities where we can use our expertise and proven track record of efficiently developing and operating projects and we have built the financial base from which to launch this new chapter in the Company's history."

ABN 33 006 243 750

Contact Information

  • Troy Resources NL
    J L C Jones
    (61 8) 9481 1277
    Troy Resources NL
    TD McKeith
    Chief Executive Officer
    (61 8) 9481 1277
    (61 8) 9321 8237 (FAX)