It seems the turnaround at Hambledon Mining (LON:HMB) is already starting to pay-off, as the Kazakstan based gold miner revealed a sharp return to profit this morning.
The news was welcomed by the group’s new chief executive Tim Daffern, who joined in November towards the end of the financial year.
In this morning’s final results, for the year ended 31 December 2010, Hambledon revealed that pre-tax profits had swung to £2.1 million from last year’s £200,000 loss. Indeed as it points out 2010 gave the firm its first significant net attributable profit, at £1.9 million.
The group has disappointed investors in the past but its supporters will now point to this notable achievement, which came despite what it admits was a very poor start to the year that was compounded by the worst Kazakh winter in recent history.
It produced 22,678 ounces of gold over the course of the year. It is now planning to start underground mining at the Sekisovskoye mine by the end of this year. Notably it has also completed phase one of a ‘winterisation’ programme.
“These are welcome results as they show improvement on all fronts,” Daffern said.
“With mining from underground at Sekisovskoye expected to start at the end of the year, results from our drilling campaign and a continuing steady performance from open pit operations, we face the future with increasing confidence.”
During the financial year the company spent £3.2 million in capital expenditure. It ended the period with £0.6 million in the bank and since the end of the period Hambledon raised £8.6 million in March, which has been earmarked for site upgrades that will improve efficiencies and reduce operating costs.