Good numbers from QEE. They made money!
<Queenstake Generates Positive Cash Flow in Second Quarter
2006-08-14 08:00 ET - News Release
DENVER, Aug. 14 /PRNewswire-FirstCall/ -- Queenstake Resources Ltd. generated net income of $731,000 from gold sales of 51,216 ounces in the second quarter of 2006, compared to a net loss of $5.6 million in the second quarter of 2005. Queenstake had record revenues of $32.2 million for the second quarter.
During the second quarter, the Company's Jerritt Canyon operations in northeastern Nevada produced 50,421 ounces of gold at cash operating costs per ounce of $461, a 69% increase in production and a 17% improvement in costs per ounce from the first quarter of 2006. Second quarter production and costs were impacted by a 12-day mill refurbishment shut down in April 2006. Since the shut down, the mill has been operating uninterrupted at near capacity.
Highlights from the 2006 second quarter included:
* Operating cash flow, after working capital changes, was $2.6 million;
* Cash and cash equivalents at June 30, 2006 totaled $10.5 million;
* Working capital improved by $2.6 million from year-end 2005 and by
$9.7 million from the end of the first quarter 2006 to $7.4 million at
June 30;
* Capitalized mine development footage was significantly ahead of plan;
and
* Jerritt Canyon marked its 25th anniversary as a gold producer and its
7.5-millionth ounce of gold produced.
Commenting on the results, Queenstake President and Chief Executive Officer Dorian L. (Dusty) Nicol said, "With an average realized gold price of $627 per ounce and cash operating costs per ounce of $461, our cash margin was $166 per ounce for the quarter, the best since we acquired Jerritt Canyon in mid-2003. We remain an unhedged US gold producer. Queenstake is one of the most leveraged gold equities, allowing maximum investment exposure to the gold price and to our continuing exploration success.">
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