Gold-Ore Resources posts record Q3 profit, shares rise
Gold-Ore Resources (TSE:GOZ) reported Thursday that net income for the third quarter more than doubled, as revenues increased on higher realized gold prices.
For the three months ending August 31, the Sweden-focused gold producer posted net income of $5.5 million, or 6 cents per share, up from $2.3 million a year ago.
Despite lower gold production and higher cash costs, revenue jumped to $17.2 million from $14.1 million a year earlier. Average realized gold price per ounce was US$1,623 versus US$1,275 in the third quarter of 2010.
Cash costs, however, increasede to US$ 882 an ounce, from US$ 781 a year ago.
Operating cash flow for the quarter was $7.8 million or nine cents per share, before changes in working capital.
"We are pleased to report record earnings for the quarter and a significant increase in working capital. Our cash balance at third quarter end was equal to $0.20 per share. The company remains debt free and un-hedged, and therefore we will continue to benefit directly from the current gold price," said chairman Glen Dickson.
"Our increasing financial strength enables us to expand exploration programs and to seek other mining development opportunities."
Indeed, the company's cash position increased to $16.8 million at quarter-end, from $6.5 million at the end of the second quarter.
Gold-Ore Resources' primary asset is the Bjorkdal Gold Mine, which has produced 1,040,000 ounces in the last 23 years of operation. The estimated gold resources from underground and open pit at Bjorkdal are: 188,000 measured ounces and 732,000 indicated ounces. Drilling is expanding the resources, the company said.
Shares of Gold-Ore were up over 7% at 88 cents as of 3:00pm EDT.
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