| Mon 28 Feb 2011, 7:06 | | GDO - Gold One declares maiden annual profit - 2010 Annual financial results |
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GDO
GDO
GDO - Gold One declares maiden annual profit - 2010 Annual financial results
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")
GOLD ONE DECLARES MAIDEN ANNUAL PROFIT - 2010 ANNUAL FINANCIAL RESULTS
- Profit before taxation of U$ 17.74 million (A$ 19.35 million)
- Cash generated from operations of U$ 32.85 million (A$ 35.83 million)
- Capital expenditure of U$ 31.46 million (A$ 34.31 million) (equates to US$
474 per ounce)
- 2011 earnings guidance of US$ 59 million
Gold One is pleased to report a maiden net profit before taxation of U$ 17.74
million (A$ 19.35 million) for the 2010 year, compared to the company`s 2009
loss before taxation of U$ 24.38 million (A$ 30.80 million). This growth is
attributable to the successful production ramp-up at Gold One`s flagship Modder
East mine, which contributed to gold production of 66 445 ounces at an average
cash cost of US$ 484 per ounce* and at an average total cost of US$ 686 per
ounce** during 2010.
Operating profit before finance costs for 2010 was U$ 22.88 million (A$ 24.95
million) from gold revenue of U$ 81.91 million (A$ 89.33 million), compared to a
2009 operating loss of U$ 19.53 million (A$ 24.67 million). Cash generated from
Gold One`s operations was U$ 32.85 million (A$ 35.83 million), compared to cash
used by operations of U$ 9.67 million (A$ 12.22 million) in 2009. Annual group
free cash flow was U$ 2.54 million (A$ 2.77 million)***.
Cash at the end of 2010 was U$ 4.57 million (A$ 4.5 million), compared to U$
10.10 million (A$ 11.26 million) at the end of 2009. A portion of the available
cash at the beginning of the year was used to repay U$ 4.20 million (A$ 4.70
million) of the convertible bonds. Finance costs for 2010 were U$ 5.65 million
(A$ 6.16 million), which decreased from U$ 6.30 million (A$ 7.96 million) in
2009.
A notable company achievement for 2010 was in October when Gold One received
credit approval for a US$ 65 million debt facility to cover the potential
liability of the bondholders` December 2010 once-off put option. This once-off
put would have allowed bondholders to request US$ 62 million of cash back in
return for their bonds. However, in November 2010 the bondholders announced that
they would not put their bonds.
For 2011, production guidance is 120 000 ounces forecast at a cash cost of US$
417 per ounce. Earnings for 2011 are forecast at US$ 59 million, based on
consensus broker views of a US$ 1 234 per ounce gold price and a ZAR 7.69 / US$
1 exchange rate.
Gold One President and CEO Neal Froneman comments: "To date our focus has been
operational achievements, so it was a significant milestone to provide our first
earnings guidance of US$ 59 million for the 2011 financial year in late 2010.
Having focused on creating a sustainable and strong production platform at
Modder East during 2010, and increasing both the size and quality of our
resources, the company is well positioned for both production and organic growth
in 2011."
*Cash cost refers to all costs directly associated with mining activities, mine
administration, processing and refining.
**Total cash cost refers to the sum of cash costs, depreciation and royalties.
Capital expenditure, finance costs and corporate costs are excluded from total
cost.
***Group free cash flow refers to cash available from group operations before
interest charges and taxation.
Parktown, Johannesburg
28 February 2011
JSE Sponsor
MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED
Issued by Gold One International Limited
www.gold1.co.za
For further information contact:
Neal Froneman Ilja Graulich
President and CEO Investor Relations
+27 11 726 1047 (office) +27 11 726 1047 (office)
+27 83 628 0226 (mobile) +27 83 604 0820 (mobile)
neal.froneman@gold1.co.za ilja.graulich@gold1.co.za
Carol Smith Derek Besier
Investor Relations Farrington National Sydney
+27 11 726 1047 (office) +61 2 9332 4448 (office)
+27 82 338 2228 (mobile) +61 421 768 224 (mobile)
carol.smith@gold1.co.za 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 1 100 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 807 080 905 shares.
Forward-Looking Statement
This release includes certain forward-looking statements and forward-looking
information. All statements other than statements of historical fact included in
this release including, without limitation, statements regarding future plans
and objectives of Gold One International Limited are forward-looking statements
(or forward-looking information) that involve various risks, assumptions and
uncertainties. There can be no assurance that such statements will prove to be
accurate and actual values, results and future events could differ materially
from those anticipated in such statements. Important factors could cause actual
results to differ materially from Gold One`s expectations. Such factors include,
among others: the actual results of exploration activities; actual results of
reclamation activities; the estimation or realisation of mineral reserves and
resources; the timing and amount of estimated future production; costs of
production; capital expenditures; costs and timing of the development of Modder
East and new deposits; availability of capital required to place Gold One`s
properties into production; the ability to obtain or maintain a listing in South
Africa, Australia, Europe or North America; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future prices of
gold and other commodities; possible variations in ore grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated; accidents;
labour disputes and other risks of the mining industry; delays in obtaining
governmental approvals, permits or financing or in the completion of development
or construction activities, economic and financial market conditions; political
risks; Gold One`s hedging practices; currency fluctuations; title disputes or
claims limitations on insurance coverage. Although Gold One has attempted to
identify important factors that could cause actual results to differ materially,
there may be other factors that cause results not to be as anticipated,
estimated or intended.
Any forward-looking statements in this release speak only at the time of issue.
There can be no assurance that such statements will prove to be accurate as
actual values, results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Gold One does not undertake to update
any forward-looking statements that are included herein, or revise any changes
in events, conditions or circumstances on which any such statement is based,
except in accordance with applicable securities laws and stock exchange listing
requirements.
Date: 28/02/2011 07:06:01 Produced by the JSE SENS Department.
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