This morning $275 million gold miner, Beadell Resources Ltd (ASX: BDR) reported a steep fall in profit, despite a jump in sales revenue for its 2014 financial year.
For the year ended 31 December 2014, the sale of 165,789 ounces of gold at an average price of $1,569.46 per ounce saw Beadell enjoy a 3% lift in revenue, net of smelting and refining costs. It also achieved an all-in sustaining cost (AISC) of $US922 per ounce over the year.
Unfortunately lower grades and plant recovery coupled with higher depreciation and amortisation and finance costs hurt the company's bottom line, with profit falling to just $13.5 million, from $113.5 million a year earlier. This comes despite the achievement of a very low AISC of $US638 per ounce in the final quarter of 2014.
However, pleasingly, with a cash balance of $71.7 million at 31 December 2014, Beadell's board resolved to declare an unfranked dividend of one cent per share, on earnings per share of two cents. At yesterday's close price of $0.345, the payout places Beadell shares on a dividend yield of 2.9%.
Whilst this year's results have been weighed down by a number of factors, looking ahead, it appears the next year could be a much better one for the company and its shareholders.
Indeed with its $US60 million Bridge Loan now restructured into a three-year facility and gold sales expected to increase throughout 2015, stronger profits should return. Management are targeting 170,000 to 190,000 ounces of gold at an AISC of US$810-US$890 per ounce.
