Gold miner Avoca Resources is expecting to unveil a maiden first half pre-tax profit of $40.5 million.
The Perth-based company says its unaudited pre-tax result for the first half of the financial year is $40.5 million compared to a loss of $21 million in the prior corresponding period.
Shortly after the market opened, shares in Avoca were up 9 cents, or 5.62 per cent, at $1.69.
Avoca managing director Rohan Williams said it was a "fantastic result" and a credit to the operational teams at its Trident gold mine.
The company said the estimated first half net profit was $29.38 million, compared to a loss of $14.65 million in the corresponding period in 2008.
Recovered gold production for the half is tipped to come in at 101,536 ounces, compared to 49,622 ounces in the first half of the 2008 fiscal year, Avoca told the stock exchange.
"The upward variation in operating results for the half-year is due to the commencement of steady state operations at Higginsville following a successful ramp up in production," the company said.
"The unaudited December 2009 half-year operating result does not include a potential fair value gain (non cash) adjustment to the book value of the company's investment in Dioro Exploration NL," it said.
Avoca is expecting to reveal its audited half-year results to the Australian Securities Exchange before the end of this month.
AAP
