HIGHLANDS Pacific Ltd, operator of the Frieda copper/gold project, posted a net profit of US$10.3 million last year, The National reports.
The figure was considered a significant increase from the previous year’s only US$1.1 million.
However, the company’s cash reserves dropped to US$21 million last year from the previous year’s US$24 million.
The key feature in last year’s performance was the gain of US$18 million on the Frieda project, which continued to make significant progress.
Last November, the project moved to the feasibility study stage and last month, the resource inventory increased substantially.
The amount carried in the accounts now reflected the full book value expended by
Another contribution was foreign exchange gain of US$1.2 million due to the appreciation in the Australian dollar against the
The company holds approximately half of its reserves in Australian currency and these are re-valued to US dollars for reporting purposes.
The exploration, evaluation and development expenditure of US$4.3 million provided for expenditure on the
HPL managing director John Gooding said 2010 had been an excellent year with respect to the Frieda project and the exploration programme at
He said Frieda had made significant progress last year under the management of Xstrata and still had a lot more potential in terms of resource inventory.