London, England — MININGREVIEW.COM — 23 September 2009 – GMA Resources plc – incorporated in Australia and listed on the AIM – has announced that the company generated a net profit of £1 096 000 (R13.2 million) for the six months ended 30 June 2009, compared to a loss of £3 986 000 (R48.1 million) for the same period in 2008.
The company’s Amesmessa gold mine in Algeria produced a total of 24 424 ounces of gold in the first eight months of 2009 “’ a 75% increase on the 13 914 ounces produced in the same period last year. GMA owns a controlling 52% stake in ENOR spa “’ the Algerian based operating company for the Amesmessa project.
Announcing its results here, GMA said its profit in the first half of this year had resulted in earnings of 0.29p per share, compared to a loss of 1.1p per share for the first six months of 2008.
It added that, while the profit was a first for GMA since its inception, the company and ENOR Spa were still suffering from shortages of working capital.
These cash flow problems were due to the lack of supply of explosives, and also because the company was building up inventory levels at Amesmessa to counter the long and complicated supply chain. The supply chain and bureaucratic problems in Algeria continued to hinder GMA’s production and resultant income levels.
The GMA statement revealed that the increased market price of gold had partially offset the impact of lower gold production volumes. The company had realised average sales revenue of US$914.29 per ounce for the first six months of 2009 “’ a significant increase on the budgeted sales price of US$802 for the period. Prices had risen substantially, especially in the third quarter of 2009, and the short and medium term outlook for gold prices remained strong.
The company had stated earlier that it would be required to raise additional finance in the second half of the year to deal with working capital shortages. Management was currently exploring a number of options and opportunities and would report back to shareholders as soon as a definitive arrangement is secured.