Celtic Resources Holdings today announced that first-half pre-tax profit fell sharply on increased sales costs and administrative expenses.
But the Irish-registered mining firm said it anticipates record gold production levels for the group for 2007 of about 90,000 ounces.
For the six months ended June, the company's pre-tax profit was $17 million compared to $40 mln last year as the cost of sales rose to $15 million from $12 million.
Administrative expenses rose to $9.52 million from $8.07 million in the year-ago period, whilst revenues grew to $23.72 million from $17.34 million.
Monthly production increased from 3,500 ounces in January to about 8,500 ounces in both July and August, it said, adding it is on track to meet the overall 2007 target production of 83,000 ounces at Suzdal.
The company, which operates three mines in Kazakhastan, said gold production at Suzdal rose 24 per cent to 30,780 ounces, and estimates that the mine has the potential to expand production in excess of 150,000 ounces per year by end-2008.
Production at its Zherek mine to end of August was 3,000 ounces and Celtic hopes to meet the 7,000 ounce target for 2007. Profit from gold sales for the period rose to $8 million compared to $3 million last year.