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December 2002 Half-Year Results - Announcement

14 March 2003

Gympie Gold Limited today announced a loss after tax of $11.6 million (2001 loss after tax of $0.5 million) and earnings before interest, tax, depreciation and amortisation (“EBITDA”) of $1.1 million (2001 EBITDA of $8.0 million) for the half-year ended 31 December 2002.

The Southland Colliery contributed an operating loss before tax of $9.2 million (2001 profit before tax of $2.2 million) and an EBITDA loss of $3.2 million (2001 EBITDA of $6.9 million) as a significant production shortfall for the half-year occurred when the longwall passed through a zone of difficult mining conditions. It is anticipated that the experience gained in these ground conditions over the last six months together with a new regime of operating parameters will mitigate against a recurrence of this production shortfall.

This poor first-half result from the colliery means that the Group will not achieve its growth objectives for the 2002-03 fiscal year. However, coal production resumed on 10 February 2003 and the build-up to full production has been achieved. Coal production over the past two weeks has averaged more than 50,000 tonnes per week. This supports a projected production rate exceeding current budget, as agreed with contract-operator Thiess, of approximately 150,000 tonnes per month. Mine development over the past 6 months has continued to progress more quickly than budgeted and in excess of 2.5 million tonnes of coal has now been developed through favourable ground conditions and is ready to extract.

Gympie Eldorado's revenue rose to $16.1 million as gold production increased by 7,743 ounces (36%) to 29,146 ounces for the half year. Improved revenue and lower cash operating costs were partially offset by increased amortisation. Gympie Eldorado achieved an operating profit before tax of $1.0 million (2001 profit before tax of $0.6 million) and an EBITDA of $6.1 million (2001 EBITDA of $3.3 million), which helped fund exploration and development programs.

Early results of the Gympie Goldfield Exploration Program, launched in July 2002, have extended the known strike length of the Inglewood Structure, the major goldfield feeder. Along with its associated orebodies, the Inglewood has historically yielded approximately 2 million ounces from a strike length of about 2 kilometres. The recently drill-intercepted extensions more than double the known strike length and provide the exploration platform to target increased mineral resources, ore reserves and ultimately production.

Read more in the full announcement.

  • Download this announcement (170KB) [ pdf ]

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    Last Modified: Thursday, 22-May-2003 14:43:39 EST