Australia's Leviathan Narrows 1H Loss To A$2.1MWednesday August...

Australia's Leviathan Narrows 1H Loss To A$2.1M

Wednesday August 31, 2005, 11:49 am

DJ Australia's Leviathan Narrows 1H Loss To A$2.1M

SYDNEY (Dow Jones)--Melbourne-based gold junior Leviathan Resources Ltd. (LVR.AU) Wednesday reported a A$2.1 million net loss for the six months ended June 30, compared to a A$6.2 million loss in the same period last year.


The result included a A$2 million pretax gain from the sale of Leviathan's 50% stake in the Coolgardie gold joint venture assets and exploration spending of A$3.3 million, it said.


Earnings before interest, taxes, depreciation and amortization grew to A$6.6 million from A$1.4 million in the first half last year, while the company's cash balance at the end of June 2005 was A$35.1 million, it said.


Lower-than-expected output at the company's only operating mine, Stawell in Victoria state, hurt the first half result as mining switched from the Magdala to the Golden Gift orebody.


"That transition is now behind us, the capital redevelopment of the mine has been completed (which) has provided the foundation for higher production and lower costs in the second half," said Managing Director Kevin Wilson.


Leviathan aims to consolidate Stawell's output at 130,000 ounces a year with cash costs below A$380 an ounce.


It is also looking to lift the operation's reserves to 450,000 ounces by December and extend mine life by increasing resources in the medium term.


"In the longer term, we expect our regional exploration program will provide the next generation of development opportunities for Leviathan," Wilson said in a statement.


The company has prospective exploration tenements in the Stawell and Ballarat/Bendigo corridors and has budgeted A$8 million for exploration this year, up A$1 million from last year.