PRESS RELEASE
27 August 2009
Troy
Announces a Profit of A$16.7 Million and Builds the
Foundation for Future Growth
Highlights:
Net
profit after tax of A$16.7 million
Pays
10th consecutive fully-franked cash dividend. FY2009 4 cents per
share
53%
increase in gold production to 61,832 ounces
Acquired
the Casposo gold/silver deposit in Argentina
32%
increase in the Casposo Mineral Resource
Commenced
production from the high grade Mam’o
underground mine at the Andorinhas operation in Brazil
The Sandstone mine which was due to close in February
2009, will now continue production through at least July 2010 with the mining
of additional ore (30,000oz) from a cut back to the pit at the Lord Nelson
deposit
Discovery of high-grade mineralisation at the Two Mile
Hill prospect at Sandstone, Western Australia
including an intercept of 13.7m at 25.98g/t Au
96% increase in gold Reserves to 539,500oz, a 60%
increase in Measured and Indicated gold Resources to 893,400oz and a 240%
increase in Indicated Resources to 648,400oz
Maiden silver Reserves of 6.7 million ounces and
silver Indicated Resources of 15.4 million ounces
Cash reserves of over A$35
million
Unhedged
gold and silver position
Debt
free
PERTH, Western Australia: Growing
junior gold producer, Troy
Resources NL (TSX/ASX: TRY) today announced a profit of $16.7m for the financial year ended 30 June 2009. This result compares to a loss $17.6m in FY 2008.
The profit for the year
came from gold production of 61,832 oz and gold sales revenue of $75.4 million (FY2008: 40,318 oz and $39.7m). The
result included the first full year of production from the Company's new
underground gold mine at Andorinhas in Brazil.
Commenting on the results Troy's CEO, Paul Benson,
said: "This has been a very good year for Troy.
Last year we said FY2008 had been a year of transition as we positioned the
Company for growth. In FY2009 we have laid strong foundations and started
delivering on that growth.
"We saw a 53% increase in gold
production compared to last financial year and have reported a profit of A$16.7 million. We have rewarded shareholders with a 33%
increase in our dividend to 4 Australian cents per share which represented a
dividend yield of 2.3%. It is worth noting that this is Troy's
10th consecutive, fully-franked cash dividend.
"Although the results for the
year were impressive, it's the foundation that we have laid for the Company's
future growth which has been most pleasing. With the acquisition of the Casposo project in Argentina, Troy
now has the longest forecast production profile in the Company's history. The Casposo acquisition and exploration at Sandstone have led
to significant increases in gold Reserves and Resources, again giving us the
largest gold and silver inventory in the Company's history.
"We have started development of
the Casposo project and expect it to be in production
in the September quarter of 2010. Casposo will be a
low cost gold mine that will help lift the Company's production well above 100,000 ounces per
year..
"We see the year ahead as just
as exciting with excellent potential to add further to our Reserve and Resource
base. The high grade discovery at the Two Mile Hill prospect at Sandstone will
be tested before the end of the calendar year. Similarly we will be testing
targets at Andorinhas in Brazil
and surface targets at Casposo.
"Troy
is excellently placed to achieve its vision of becoming a profitable mid-tier
gold producer," Mr Benson said.
Clean Balance Sheet
At the end of July 2009,
Troy
had cash reserves of over $35 million, with no debt and no forward sales in
place.
Notably, Troy's
profit result for FY2009 was achieved after allowing $7.2 million for
exploration expenditure (FY2008: $11m) and $10.5 million for depreciation and
amortization (FY2008: $5.1m). Troy
has an aggressive exploration program aimed at increasing reserves and
resources and generally this expenditure is expensed in the year it is
incurred.
10th Consecutive Dividend
In recognition of the
excellent potential to continue growing Troy's gold resources the Board
increased the final annual fully-franked dividend by 33% to 4 Australian cents
per share (FY2008: 3.0 cents). This represented a yield of 2.3% based on the
share price on August 7, 2009. The record date for entitlement to the dividend
was August 21 and it will be paid on September 4, 2009.
Operations
During the year mining
was completed in the Lagoa Seca
open pit at Andorinhas with production now coming
from the higher grade Mam’o underground mine.
At Sandstone low grade
stockpiles were processed for the majority of the year. A new cut back in the
Lord Nelson pit will provide mill feed through the 2010 financial year. Drilling
of the Two Mile Hill prospect led to the discovery of high grade mineralisation
which will be drill tested before the end of the 2009 calendar year.
In May 2009 Troy acquired the Casposo
deposit in Argentina
from Intrepid Mines paying US$20 million from cash reserves. An additional US$2
million is payable on the 6th month anniversary of first production.
Construction will commence in the September quarter of 2009 and first
production is expected in the September quarter of 2010.
ENDS
Please follow the
link below to view Appendix 4E:
http://www.purplecom.com.au/_content/documents/1324.pdf
For further information
please contact:
Mr. Paul
Benson
Annette Ellis / Warrick Hazeldine
Chief Executive
Officer
Media Relations
Troy Resources
NL
Purple Communications
T: (618) 9481
1277
T: (618) 6314 6300
E: troy@troyres.com.au
E: aellis@purplecom.com.au
About Troy
Resources
Troy Resources (TSX, ASX: TRY) is a dividend-paying junior gold
producer, with a clear growth strategy. The Company has two producing
gold operations; at Sandstone in Western Australia and the Andorinhas
Mine in Para State, Brazil and a gold silver development project, Casposo, in San Juan province, Argentina.
Troy has an experienced Board and management team with a portfolio of
successful, fast-track mine development and low-cost operations.
Troy has an annual exploration budget of $5 million and a proven track
record in exploration discoveries and strategic acquisitions.
Troy is currently focused on developing its Casposo
Project, which it acquired in May 2009. With the acquisition
and development of Casposo, Troy
is entering a renewed growth phase which will again lift the Company's annual
gold production above 100,000
ounces of gold per annum.
The Company maintains a robust balance sheet, and its current assets are
forecast to continue to generate strong cash flow. Troy's
gold production is unhedged; allowing its
shareholders access to the full benefit of current and future gold price
upside.
With the recent Casposo acquisition, Troy
is positioned to continue its path of strong growth and profitable operations
and is well on track to achieve its vision of becoming a highly profitable
mid-tier gold producer with a portfolio of quality long-life assets.
Troy is a responsible corporate citizen, committed to the best practice of
health and safety, environmental stewardship and social responsibility.
Project Locations
