Kingrose Mining Limited (ASX:KRM) staged a turnaround in the six months to December 31, 2017 with revenues increasing threefold from substantially higher gold production.
The company’s Way Linggo mine in Indonesia produced nearly 15,000 ounces of gold in the December half, up from 4450 ounces in the previous corresponding period.
Substantial turnaround in profit
The increase in production was complemented by operational improvements as Kingrose transitioned from a loss of $13 million in the previous corresponding period to a profit of $3.2 million.
The company also strengthened its financial position with the retirement of an unsecured loan.
Production levels to be maintained at Way Linggo
Kingrose was debt free as at December 31, 2017 with cash, trade receivables and bullion of nearly $10 million.
The company will inject some of this capital into expanding the Way Linggo pit and establishing an open pit operation at its Talang Santo mine, 17 kilometres from Way Linggo.
However, a prime focus will be on generating improved underlying cash flow by maintaining production levels at Way Linggo.
