Jakarta. G-Resources Group, a Hong Kong-based gold and silver miner operating the Martabe mine in North Sumatra, reported robust profit growth in the first half of the year despite a price decline in both commodities, thanks to the company's cost-trimming efforts in its Indonesian units.
Net profit at G-Resources rose 15 percent to $39 million from $34 million in the same period last year, according to a company statement released on Wednesday.
Earnings before taxes, interest, depreciation and amortization (Ebitda) reached $130 million, up 16 percent from $112.5 million in 2014.
“The strong operating and financial performance in these six months has been against the backdrop of weakening gold and silver prices," Tim Duffy, president director of G-Resources Group's local unit Agincourt Resources, said in the statement.
During the first half of the year, production from the Martabe mine stood at 156,316 ounces of gold and about 1.3 million ounces of silver, up 16 percent and 23 percent respectively from last year. Meanwhile, average gold prices stood at $1,207 per ounce during the first half of the year, compared to $1,284 per ounce in 2014.
"The management team has continued to deliver on cost reduction via the Martabe Improvement Program," Duffy said, referring to a site-wide program aimed at increasing volumes and reducing costs to maximize the operational results and competitive position of Martabe Gold Mine.
The company managed to cut all-in sustaining cost sto $520 per ounce sold, from $695 per ounce sold in the same period a year ago, he added.
G-Resources owns Martabe gold and silver mine, which covers an area of about 1,639 square kilometers. The mining site started production in early 2013 with the annual capacity to produce up to 25,000 ounces of gold and up to 3 million ounces of silver.