mining goodies of the week

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Colourful profit season comes to an end


Friday, 1 September 2006

BARELY a hint of red in the last of this season's bumper crop of financial results, while the green light is given for the once blackballed art of new Aussie yellowcake production.



Honeymoon gets green light
Australia is set to get its fourth uranium mine after sxr Uranium One gives the green light to the development of the Honeymoon project in South Australia, 34 years after the discovery of the deposit.

PanAust in for re-rating: GSJBW
Pan Australian Resources opts for the owner-operator route for its large Phu Kham copper-gold project in Laos, while analysts from Goldman Sachs JBWere believe the company is in for a "significant" re-rating over the next six to 18 months.

ConsMin posts maiden loss
Consolidated Minerals posts a full-year loss of $A6.5 million for the 2006 financial year on the back of a weak manganese price and write-downs, the first loss since the company was restructured in 1998.

Hedge book, labour costs stifle Newcrest result
Newcrest Mining's infamous hedge book takes a bite out of the company's bottom line, with the Australian gold miner only slightly increasing its after-tax profit from its operations despite a strong market for the yellow metal.

Record result for Mincor
With its four mines in the Kambalda region operating at full capacity, Mincor Resources rides the back of the strong nickel price to and achieve a record $29.3 million net profit in fiscal 2006.

Pumped-up profit at Perilya
The strong price of lead and zinc propels Perilya to a record net profit result of $67 million for fiscal 2006, with shareholders rewarded with a 4 cent per share fully franked dividend.

Moto unveils "robust" numbers
Moto Goldmines' namesake project in the Democratic Republic of Congo could generate $US89.5 million ($A117.7 million) in pre-tax operating cash flow per annum, according to a pre-feasibility study.

Indophil looking further afield as Tampakan timeline ticks
Shares in Philippine-focused explorer Indophil Resources go on another upward run as the deadline for Xstrata to exercise its option to acquire a stake in the substantial Tampakan copper-gold project nears.

Cazaly trying plan B
Shovelanna underdog Cazaly Resources attempts to wrestle the iron ore tenement back from Rio Tinto in the Warden's Court on the grounds that it believes the mining giant has not done sufficient work on the tenement and has no plans to develop it in the foreseeable future.

Broker thumbs up for Bendigo
Two leading brokers agree the market should ignore Bendigo Mining's $A13 million loss in the June quarter and maintain Buy recommendations on "the most leveraged, major gold stock in the Australian market", in the words of Citigroup.

Kingsgate wake-up call to come: analyst
The market is yet to fully appreciate that Kingsgate Consolidated's Chatree gold operation in Thailand is based on a gold province, not a small gold deposit, says an analyst with one of Australia's largest broking houses.

Exploration success for Perseverance
Victorian gold producer Perseverance has success with the first drilling outside of the mining lease at its Fosterville operations, forcing a re-evaluation of the company's exploration strategy and budget in the coming year.

Paladin making rapid progress in Namibia
Uranium frontrunner Paladin Resources says plant commissioning has begun a month ahead of schedule at its Langer Henrich project in Namibia, which remains within its forecast capital cost.

Davyhurst nears million-ounce mark
Monarch Gold Mining identifies a further 760,000 ounces at its Davyhurst project in Western Australia, pushing the total resource close to the million-ounce mark as it looks to kick-off mining by July 2007.

Crescent secures Laverton loot
Crescent Gold secures $25 million in funding from Investec Bank to finance the development of its Laverton project in WA, with first gold production pegged for early 2007.

Marathon looks to scope Mt Gee
Takeover target Marathon Resources revises the resource and increased the grade of its Mt Gee uranium deposit in South Australia as it looks to kick-off a scoping study early next year.

Copper inspires strong profit at Straits
Diversified producer Straits Resources joins the tide of companies reporting record profits this season, with its $44 million return for the first half of 2006 quadrupling its corresponding result of 2005.

Xstrata keeping sharp eye on South African costs
Xstrata estimates it is saving more than $110 million in additional development and construction costs by ensuring the management team is very "hands on" at its new Project Lion ferrochrome operation in South Africa.

Major power problems in Ghana
AngloGold Ashanti faces electricity restrictions at its Ghana operations just a week after entering into a $US40 million sales agreement for its Bibiani gold mine in the southwest of the country.

Saracen targets mid-2007 pour
Junior explorer Saracen Mineral Holdings says it could bring its South Laverton gold project into production by June next year, after the completion of a pre-feasibility study over the project.

Sino confirms Jinfeng underground
Sino Gold blames the bulk of its half-year loss of $A8 million on a non-cash expense and financing costs, while the China-focused company plans to bring forward development of an underground mine at Jinfeng to ensure operational flexibility and potentially expand capacity.

CopperCo chasing 25,000tpa
Aspiring copper producer CopperCo will assess the possibility of increasing production from its Lady Annie copper project in Queensland to 25,000 tonnes per annum, about 18 months earlier than expected after ongoing exploration success in the area.

Monarch pondering mergers
Monarch Gold chairman Michael Kiernan reveals the company is "seriously reviewing two companies" with a view to a friendly merger with names such as Croesus, Leviathan, Gleneagle and St Barbara thrown up by analysts.

South Miitel a goer
Mincor Resources gives the green light to the $24 million development of the South Miitel ore body at its Miitel mine in the Kambalda district of WA.

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