Brisbane, Dec 9, 2008 AEST (ABN Newswire) - North Queensland Metals Limited (ASX:NQM) is pleased to announce that it expects to record a net profit after tax for half year ended 31 December 2008 in the range of A$6 million to A$8 million, after inclusion of net tax credits of A$2.3 million.
This forecast is based upon a gold price in the range of AUD1050/oz to AUD1200/oz and mine cash costs maintaining their current levels to the end of the year.
The CEO of NQM, Mr John McKinstry, said, "This is a good result for the Company, less than two years from listing. We are extremely pleased with the performance of Pajingo and the strong Australian gold price has provided additional profitability."
The Company expects to be in a strong cash position at 31 December 08, enabling it to meet the commitment to replace NQM's share of the Queensland Government environmental bond ($4.1 Million) currently being met by its joint venture partner in Pajingo, Heemskirk Consolidated. NQM has negotiated a cash backed bank guarantee with Westpac Banking Corporation.
The Company will also have, in the next six months, cash requirements for progressing the Baal Gammon tenements and permits, plus exploration funding at both Pajingo and Herberton.
The Chairman, Mr Neville Thomas said that in keeping with the Company's policy, Directors would evaluate the possibility of paying a dividend for the interim year ending 31 December 2008, when final audited half yearly accounts are received and cashflow projections are available.
Contact
John D McKinstry
Chief Executive Officer
North Queensland Metals Limited
Email info@nqm.com.au
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