Shares of small-cap gold and silver miner, Troy Resources Ltd (ASX: TRY), have fallen 4.3% today following the announcement of its half-year results this morning.
In the six months to 31 December 2014, Troy's revenue jumped 22% to $92.2 million. However a $28 million non-cash impairment of the Casposo gold and silver project led the group to a reportable loss of $26.7 million, compared to a loss of $6.9 million in the prior corresponding period.
With a gold grade of 4.09 grams per tonne, cash costs were $US706 per ounce. Total gold produced for the period was 31,682 ounces, whilst a higher silver content from the Casposo mine saw production rise to 1,429,647 ounces, compared to 937,013 ounces a year earlier.
As a result of Casposo's higher silver content – proportionate revenues from silver rose from 20% to 50% – coupled with an unfavourable outlook and lower silver prices, Troy's board took a conservative view on the carrying value of Casposo, which resulted in the write-down.
Looking ahead, things appear likely to get a little brighter with management declaring the Karouni project is on track for first production in the June quarter 2015, with plant construction well advanced.
