Normandy hits record 2.3-million-oz. mark

Australia’s biggest gold producer, Normandy Mining (NDY-T), cranked out a record 2.3 million oz. during the financial year ended June 30, but, due to writedowns, the major still ended up in the red.

Gold production was derived from stakes in more than eight mines around the world. The biggest contributors were the Kalgoorlie, Tanami and Pajingo mines in Australia.

Last fiscal year, Normandy produced 1.6 million oz.

Total cash costs fell slightly to A$302 per oz. during the recent year, down from A$310 per oz. a year earlier.

Increased production and a declining Australian dollar allowed Normandy’s annual sales revenues to rise to A$1.5 billion from A$1.2 billion in the previous year. Net losses shrunk to A$155 million from A$282 million.

Writedowns slashed A$289 million off the company’s bottom line, including a A$159-million writeoff stemming from the failed Kasese cobalt project in Western Uganda, which was hampered by chronic political instability and unreliable new bioleaching technology.

Another A$42 million was written off on non-Australian exploration and development properties.

Normandy ended the period with gold reserves of more than 26 million oz. This was a 20% improvement from a year earlier.

The company’s net debt fell by A$353 million to A$951 million.