Troy Resources achieves record gold production at Karouni

Troy Resources (ASX: TRY) has revealed it produced a record 21,703 ounces of gold at its Karouni operation in Guyana in the March quarter.

The company said the production figure exceeded budget and was 8% higher than its previous record of 20,195oz, achieved two years ago in the March 2016 quarter.

Troy’s latest production record was also a 35% gain on its 16,109oz output in the December quarter

Troy managing director Ken Nilsson said today the company would draw on its new record when setting new quarterly production targets.

“Excellent grades from the Smarts 3 pit together with a strong performance by mining and processing have enabled the company to beat budget and set a record quarter of gold production for the Karouni project,” Mr Nilsson said.

“The production budget for future quarters is set at an amount slightly below that of this record quarter.”

The company tipped its full March quarterly report would be released to market towards the end of this month.

Troy’s market capitalisation rested at $39.52 million this morning.

Half-year results

The company’s half-year accounts, released on 28 February, showed a 76% increase in underlying earnings before interest, depreciation and amortisation of $2.955 million to $6.829 million in the December 2017 half-year, when compared to the December 2016 half-year.

Net loss after tax for the December 2017 half was decreased 90% or $68.743 million to $7.947 million, when compared to the previous corresponding period.

The net loss of $76.69 million for the December 2016 half had included an impairment charge sum of $57.288 million.

Cash reserves on 31 December sat at $3.544 million, a $5.311 decline on the cash it held on 30 June last year.

The company’s debts were at $26.167 million at year’s end before it paid another $3 million to debtor Investec, taking the total amount it owes under the Investec funding facility to $20.192 million.

Troy securities were up 10.5% to 9.5c in late morning trade.