daytrading oct 3 morning, page-2

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Sydney - Monday - October 3: (RWE Australian Business News) - Focus Minerals Ltd (FML), "a leading Australian gold producer", today announced record full-year revenue and net cash from operating activities, positioning the company for strong growth after a year of significant transformation.

In FY11 annual revenue rose 39pc to $102.8m from $73.7m in FY10 and net cash from operating activities increased 11pc to $30.3m from $27.8m as total gold production grew 17pc to 72,830oz from 62,117oz.

During FY11, Focus increased gold sales 16.2pc to 72,721oz of gold from 62,294oz at an average price of $1,391/oz (FY10: $1,197/oz).

Net profit was $7.6m, down from $10.9m.

The increase in the average cost of production and the decrease in net profit reflect increased levels of mine development expenditure (particularly at The Mount underground and Tindals Open Pit operations), higher exploration expenditure and the impact of mill upgrades.

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"FY11 was a transformational year for Focus Minerals," said CEO Mr Campbell Baird.

"We will now go about capitalising on our production capability after establishing a very solid platform for growth.

"The best is very much still ahead," he said.

After successfully starting new open-pit and underground mining operations in the second half of FY11, Mr Baird said Focus was ramping up production at its Coolgardie operations, and with the acquisition of Crescent Gold would be significantly increasing total gold production during FY12, allowing the company to capitalise on high gold prices.

"At the start of FY11 we had just one operating mine; by the end of FY11 we had three mines with production commencing at The Mount underground and the Tindals Open Pit operations.

"With the recent addition of Crescent's Laverton Gold Project open-pit operations, we now have four operating goldmines," he said.

Mr Baird said Focus now had a combined JORC resource base of 4.3Moz of gold and would produce more than 200,000oz of gold in CY12.

"FY12 will be a year of growth as we get our new open-pit and underground operations up to full production, maximise higher-grade throughput at the Three Mile Hill plant, optimise performance and grow production at the Laverton Gold Project and continue our accelerated exploration program to increase resource and reserve ounces," he said.

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