An expansion of its gold mining interests drove Celtic Resources Holdings plc into the black in the six months to June 30th.
Dublin- and London-listed Celtic yesterday reported a pre- tax profit of $561,000 (€496,372) in the first half of the year, compared with a $521,000 loss during the same period in 2002.
Chairman Mr Peter Hannen said the company's decision to increase its stake in the Suzdal gold mine in Kazakhstan from 40 per cent to 100 per cent in late 2002 was behind the swing to profitability. He said profits were in line with expectations.
Turnover was $3.1 million - the company had no sales during the comparable period last year. Earnings per share were 0.57 cents, compared with a three cents loss last year.
During the period, Narodny Bank in Kazakhstan agreed to provide a $21 million loan, which will allow the company to develop part of the Suzdal deposit. The construction work needed for this project began in August.
The company also plans to acquire complete ownership of the Nezhdaninskoye gold mine in Russia. Celtic owns 50 per cent of the South Verhoyansk Mining Company (SVMC), which owns the mine, and has signed heads of agreement to buy the remaining half from another Russian company, Investment Group Alrosa.
Mr Hannen said that Nezhdaninskoye mine contained more than 29 million ounces of gold. "The full ownership of this gold mine will put our company into a new league of resources companies, and we will keep you informed as we progress," he said.
Celtic focuses mainly on gold mining in Russia and Kazakhstan. Over the coming months, it plans to pass its non-core oil and gas assets in Kazakhstan to two new companies and seek separate listings for both on London's alternative investment market (AIM).
It will keep a substantial shareholding in both, but the new operations will have dedicated management, allowing Celtic to focus on its gold interests.
