GOLD producer View Resources had a bumper December quarter with...

GOLD producer View Resources had a bumper December quarter with production boosted 45% from the preceding quarter, and the company becoming hedge-free, exposing itself to the soaring spot gold prices at record output levels.




During the December quarter, View produced 25,406oz of gold from its Bronzewing gold mine in Western Australia's eastern Goldfields, up nearly 8000oz on September's recorded 17,500oz gold output and is ramping up to the 30,000oz per quarter target.

At the end of September, Perth-based View closed its hedge book for $2.5 million, leaving the company entirely exposed to spot gold prices for the following three-month period.

View conducted a $10.6 million capital raising in the December quarter, issuing 53 million shares at 20c.

Proceeds from the placement were used to close the hedge book and fund working capital at Bronzewing.

View sold off a 30% stake in its Carnilya Hill nickel project to Mincor for a total of $25 million, which on settlement will be used to repay the outstanding $13 million debt, leaving the company debt free and wide open for positive cash flow at the end of this quarter.

The company will also enter into a further joint venture with Mincor over its Bronzewing tenements, with Mincor to explore for nickel, spending the first $1 million on exploration and View subsequently contributing 30% towards total expenditure.

Operating costs for the December quarter were about $9.5 million, against $9 million in revenue.

With Bronzewing operations close to breaking even, View has an optimistic outlook that the current quarter will surge into positive cash flow territory.

View shares closed up 1c at 18c.