Avoca Resources Limited (AVO) said it was expecting to post its first ever profit of $40.5 million, pre-tax, for the six months to 31 December, 2009. The swing to a maiden profit from last year’s $21 million loss came on the back of the sale of just over 100,000 ounces of gold.
Post-tax, the junior miner said it was expecting to book a profit of around $29.4 million
Managing director, Rohan Williams, said the profit was a fantastic result and a credit to the team at its flagship Higginsville mine near Kalgoorlie in Western Australia.
“Avoca and its Higginsville operation are performing above expectations and we are confident that the company will continue to grow and become Australia’s premier mid-tier gold producer,” Mr Williams added.
”The unaudited December 2009 half-year operating result does not include a potential fair value gain (non cash) adjustment to the book value of the company’s investment in Dioro Exploration NL as a result of the application of the relevant accounting standard,” the company added in relation to its proposed takeover of the even smaller miner.
At 1009 AEDT, Avoca shares were up 7c to $1.67.
