DJ Kingsgate Profit Slumps on Exploration Writedown
Feb 24, 2013 (Dow Jones Commodities News via Comtex) --
By Rhiannon Hoyle
SYDNEY--Kingsgate Consolidated Ltd. (KCN.AU) on Monday halved its interim dividend as it reported a sharp drop in first-half profit, citing a writedown against the sale of some of its Australian exploration assets.
The Australian-based gold producer said net profit in the six months to Dec. 31 was 8.1 million Australian dollars (US8.3 million), down 76% from a year earlier. It declared a 5 cents interim dividend, compared with 10 cents in the same period a year prior.
Kingsgate said it wrote down A14.9 million against its exploration assets after selling properties in Western Australia and Queensland state to Caravel Minerals Ltd. (CVV.AU).
Kingsgate last month reported a 5% increase in half-year gold output. The mining company produced 90,413 troy ounces of gold in the period, boosted by a new plant at its Chatree mine in central Thailand.
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