Resolute Mining has announced a net profit of $61.39 million for the year ending June 30, 2011. The company has made an impressive comeback over the last 12 months compared to the $37.17 million loss that it reported in the previous year.
Sales of gold rose 30% generating revenue worth $445.06 million as per the company statement released on Tuesday. The company produced 330,859 ounces of gold in the 2010-11 time period. This was actually less than the 2009-10 gold production of 352,302 ounces of gold. The company has forecast a 24% rise in production in 2011-12 as they expect an output of 410,000 ounces.
Resolute Mining also plans an aggressive pay down of its secured debt to be able to strengthen its balance sheet. They may also consider further capital management initiatives such as redemption or conversion of convertible notes, which represented about $68 million of unsecured debt. They are yet to declare a final dividend.
The mining firm has operations in mines located in Queensland, Tanzania and Mali. Resolute Mining is an unhedged gold producer with three operating gold mines that have full exposure to the rising gold prices. Besides pushing up production at existing mines the company is also looking out for possible new assets.