Independence posts 30pc profit hike

UPDATE 1.25pm: Independence Group's interest in the Tropicana gold project has helped deliver a 30.3 per cent jump in first-half profit to $21.5 million.

The result was achieved on revenue of $166.7 million, up 36.5 per cent on the previous corresponding period.

It enabled the miner to deliver a fully franked, interim dividend of three cents a share, up 200 per cent on the one cent payout previously.

Independence lifted cash reserves from $27.2 million at the end of June last year to $45.8 million at the end of December while debt was up from $27.8 million to $61.7 million over the period.

The miner got a $6.5 million profit before tax contribution from its 30 per cent stake in the Tropicana gold project during the period, which entered production in September last year. The mine is a joint venture with AngloGold Ashanti.

Profit before tax from the company's Jaguar base metals mine was up by $18.8 million to $24.6 million on improved production of zinc, copper and silver and lower cash costs.

The company's Long nickel mine near Kambalda posted record half-year production of 5729 tonnes, up from 5598 tonnes previously but profit before tax fell by $12.3 million because of a 21.4 per cent slump in realised nickel prices and no hedging. However cash costs per pound were down 17.3 per cent at the operation.

Independence shares fell 21 cents, or 4.99 per cent, to close at $4.