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GDO - Gold One International Limited - Interim Financial Report - six months

Release Date: 30/08/2011 07:16
Code(s): GDO
Wrap Text

GDO - Gold One International Limited - Interim Financial Report - six months ended 30 June 2011 Gold One International Limited Registered in Western Australia under the Corporations Act, 2001 (Cth) Registration number ACN: 094 265 746 Registered as an external company in the Republic of South Africa Registration number: 2009/000032/10 Share code on the ASX/JSE: GDO OTCQX International: GLDZY ISIN: AU000000GDO5 ("Gold One" or the "company") Interim Financial Report - Six Months Ended 30 June 2011 - Gross profit increases by 126% to A$ 38.1 million (ZAR 270.5 million) - Operating profit increases to A$ 26.2 million (ZAR 186.5 million) from a loss of A$ 3.1 million (ZAR 12.8 million) - A$ 37.8 million (ZAR 268.4 million) of cash generated from operations - Earnings per share swung from a loss of A$ 0.01 (ZAR 0.03) to a profit of A$ 0.01 (ZAR 0.09) per share Gold One is pleased to announce the company`s financial statements for the six months ended 30 June, 2011. The results for the period under review reflect the company`s continued quarter- on-quarter production growth for the year so far; detailed in the quarterly production report released on 26 July, 2011. Revenue for the six months ended June 2011 amounted to A$ 75 million (ZAR 533 million), compared to A$ 32.5 million (ZAR 219.7 million) for the six months ended June 2010. The higher revenue was the result of an increase in production, from 25,495 ounces for the six months to 30 June 2010 to 54,699 ounces for the six months to 30 June 2011, and a higher average gold price received of US$ 1,446/oz, compared to US$ 1,155/oz during the previous year`s corresponding period. Gross profit for the period was A$ 38.1 million (ZAR 270.5 million), which amounts to a 126% increase when compared to the gross profit at the same time last year. The company reported a profit of A$ 10.6 million (ZAR 75.5 million) for the six months ended June 2011, compared to a loss of A$ 3.9 million (ZAR 26.3 million) for the six months ended June 2010. In line with this, the earnings per share have swung from a loss of A$ 0.01 (ZAR 0.03) per share to a profit of A$ 0.01 (ZAR 0.09) per share. The profit was positively impacted by higher revenue from gold sales, reduced general and administrative expenses, lower finance costs and a positive fair value adjustment on the convertible bonds and partially offset by higher exploration and pre-feasibility expenses. Net cash flow from operating activities more than tripled to A$ 35.6 million (ZAR 252.7 million) for the period under review, compared to A$ 11 million (ZAR 74.3 million) for the six months ended June 2010. The company spent A$ 17.6 million (ZAR 127.7 million) on purchases of property, plant and equipment during the six months ended 30 June 2011 and A$ 16 million (ZAR 105.2 million) for the corresponding period in 2010. The end of June 2011 cash balance increased by 136% to A$ 16.6 million (ZAR 120.1 million) compared to the end of June 2010 cash balance of A$ 7 million (ZAR 46 million). Gold One President and CEO Neal Froneman comments: "These results reflect the quality of our underlying assets at Modder East and show that the company has successfully matured into a solid commercial enterprise with strong cash flows. With the recent rapid increase in the dollar gold price and a slight weakening of the South African rand, the outlook for Gold One for the rest of 2011 is most positive." ENDS Parktown, Johannesburg 30 August 2011 JSE Sponsor MACQUARIE FIRST SOUTH CAPITAL (PTY) LIMITED Issued by Gold One International Limited www.gold1.co.za For further information contact: On behalf of Gold One: Neal Froneman President and CEO +27 11 726 1047 (office) +27 83 628 0226 (mobile) neal.froneman@gold1.co.za Ilja Graulich Investor Relations +27 11 726 1047 (office) +27 83 604 0820 (mobile) ilja.graulich@gold1.co.za Carol Smith Investor Relations +27 11 726 1047 (office) +27 82 338 2228 (mobile) carol.smith@gold1.co.za Derek Besier Farrington National Sydney +61 2 9332 4448 (office) +61 421 768 224 (mobile) derek.besier@farrington.com.au About Gold One Gold One is a gold producer listed on the financial markets operated by the ASX Limited and the JSE Limited, issuer code GDO. Its flagship operation is the newly built shallow Modder East mine on the East Rand, some 30 kilometres from Johannesburg. Modder East is the first new mine to be built in the region in 28 years and distinguishes itself from most of the other gold mines in South Africa owing to its shallow nature (300 metres to 500 metres below surface). To date Modder East has provided direct employment opportunities for over 1,500 people. Gold One also owns the nearby existing Sub Nigel mine, which is used primarily as a training centre in the build-up of Modder East to full production. Gold One`s other projects and targets include Ventersburg in the Free State Goldfields, the Tulo concession in Mozambique and the Etendeka greenfield project in Namibia. Gold One has an issued share capital of 808,992,972 shares. This news release does not constitute investment advice. Neither this news release nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of securities in any jurisdiction. Date: 30/08/2011 07:16:23 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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