Capricorn Metals shares lower as first-half profit slides
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More news: Shares in Capricorn Metals slipped after the gold miner reported a 20% decline in first-half net profit as gold production at its Karlawinda mine fell and costs climbed.
Capricorn shares were down 1.3% to $7.72 at 11:50am AEDT, having advanced around 50% over the last 12 months.
Capricorn Metals posts 20% profit drop, reiterates guidance
The news: Gold producer Capricorn Metals reported a 20% decline in first-half net profit as gold production at its Karlawinda mine in Western Australia fell and costs climbed.
The numbers: Capricorn recorded statutory profit before tax of $63.1 million for the six months to December, down from $78.8 million in the prior corresponding period.
Gold production at Karlawinda was down 9.7% year on year from 60,099 ounces to 54,261 ounces. All-in sustaining costs grew 18.1% to $1,564 per ounce.
However, receipts from gold sales increased by 17%, boosted by a 31% uptick in average gold prices during the period.
Capricorn also said that it was on track to achieve its full-year production guidance of between 110,000 and 120,000 ounces at AISC of $1,370 to $1,470.
The context: Capricorn, which agreed to buy the prospective Mummaloo project in WA in January, said that while statutory profit fell year on year, underlying profit before tax increased by 10% to $90.7 million.
The company noted that underlying profit excludes adjustments following the adoption of hedge accounting and reflects the company's full participation in the rising spot gold price.
The source: ASX
