Vatukoula gold mines record inaugural net profit of $4.1m

After enduring years of uncertainty and financial losses, the Vatukoula gold mines recorded its inaugural net profit of $4.1 million last year under the new ownership.

It is highlighted in Vatukoula Mines 2009 annual report that the profit was a major turnaround compared to the loss of $1.8 million recorded in 2008.

However, the report states that removing the adjustments for movement in Gold in Circuit, ore stock and any credit in relation to charges to mining development, this gross profit would be reduced to approximately $1.7 million.

For the period in review, the Company produced 33,757 ounces of gold from Vatukoula during the year.

The report said, the focus of the year, however, was to provide the infrastructure for the mine to operate efficiently in the future.

The Company said it has introduced new practices to the operation which will hold the Company in good stead in the years ahead, and with good management and given a favourable gold price environment, the Vatukoula Mine has a long future.

Meanwhile, the Reserve Bank of Fiji in its economic review for the Month of April 2010, stated that gold production has gained momentum with Vatukoula Mines producing 10,000 ounces in the first two months of this year, which is higher on an annual basis by 119.4 percent.

The Vatukoula Gold Mines contained 680,000 ounces of gold reserves, and 4.3 million ounces of gold resources.