Perth, April 6, 2006 AEST (ABN Newswire) - A warchest of up to A$45 million has been set aside by low cost Australian gold producer, Troy Resources NL (ASX: TRY), to expand its current worldwide exploration operations.
Addressing the 2006 Gold Conference in Perth today, Troy Resources Chairman, Mr John Jones, said the Company was keen to add significantly to its existing and emerging gold production and exploration projects in Australia, Brazil and Finland, and its new coal project in Mongolia.
"We now have access to approximately A$45 million for acquisitions and exploration and are keen to build on our gold asset portfolio, particularly in the current high gold price environment" Mr Jones said.
"The Company is primed for further growth. We are debt free, unhedged and have a strong cash flow and balance sheet.
"Our record half year net profit of A$10.5 million for the six months to 31 December, 2005 equalled our earnings for the whole of the previous year, a postive trend.
"Our forward exploration is underpinned by our shallow and robust gold oxide ore bodies and we are confident of achieving our current 2005-2006 production forecast of 100,000 ounces of gold backed by an exploration budget of A$6.0 million.
"We have kept production costs low to A$178 per ounce for the last half year period so with gold at around A$800 an ounce so in the current price environment, I would expect Troy would be a dividend payer later this year."
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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