Takeover target AurionGold lifts profit


Gold is trading at $314.20 an ounce Tuesday after touching $331 in June

Staff and wires

SYDNEY, Australia -- Australian gold producer and takeover target AurionGold Ltd said Tuesday its full-year net profit rose 30 percent to Aust. $63.25 million (US$34.2 million).

It also flagged higher production and profit in the 2002-03 fiscal year.

AurionGold said the 2001-02 results included a six-month contribution from Delta Gold, the company it merged with in December. Full-year revenue was A$476 million ($257 million), up 34 percent.

AurionGold shares opened Tuesday at A$3.30, but then slipped to A$3.23, down 1.22 percent on Monday's close.

Canadian gold miner Placer Dome launched a $1.1 billion hostile takeover bid for AurionGold in May. It later sweetened its all-stock bid with a cash component.

Final dividend

"Given ongoing strong operating performance, we currently anticipate that the production level for the coming year will be increased over 2001-02, which with lower anticipated costs, should lead to increased profits and fully franked dividends," chief executive Terry Burgess said in a statement.

AurionGold declared a final dividend of seven cents and said it aims to pay out proceeds from non-core asset sales as special dividends.

AurionGold shares touched a recent intraday high of A$5.00 on May 29 just after Placer Dome made its bid. The shares hit a recent low of A$3.01 on July 26.

Placer Dome says it has acceptances for about 26 percent of the group.

Reuters contributed to this report.