Troy Resources chief executive Paul Benson. Picture: Michael Wilson/The West Australian.
Troy Resources chief executive Paul Benson. Picture: Michael Wilson/The West Australian.

UPDATE 1.20pm: Gold producer Troy Resources has posted a $6.8 million first-half loss on slumping gold and silver prices.

It was a significant reversal of fortunes from the $5.1 million profit made in the previous six months ending June 30 last year.

It came on a 31 per cent fall in revenue to $75.7 million on lower prices and lower production.

Chief executive Paul Benson said reporting a loss was never pleasing, but it was particularly hard when so much progress had been made by the company's workforce on many fronts.

"With the successful installation of new grinding capacity at the Casposo plant, throughput increased by 36 per cent compared to the corresponding half-year and unit costs per tonne processed dropped 22 per cent, but this was not enough to offset the 32 per cent fall in the gold equivalent grade.

"Obviously the biggest driver on reduced profitability has been the significant falls in gold and silver prices, 23 per cent and 33 per cent respectively compared to the previous corresponding half year, accounting for 76 per cent of the $33 million fall in revenue.

"The recent pick up in metals prices is obviously welcome, but we also continue to make good progress at our operations which will lead to improved profitability."

Troy operates gold mines in Brazil and Argentina and now holds advanced stage exploration assets in Guyana following last year's takeover of Azimuth Resources.

Troy shares fell 13 cents, or 9.19 per cent, to close at $1.285.

The West Australian

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