Troy gets tax break in Guyana
Troy Resources managing director Paul Benson.
Picture: Simon Santi/The West Australian.
UPDATE 2.45pm: Troy Resources has secured a tax break from the Guyanese government to import capital equipment needed for its Karouni gold project.
The Investment Development Agreement will allow it to import equipment duty and tax free.
Managing director Paul Benson said with funding in place and all major long lead items ordered, Troy was confident that Karouni would be the first of the new large gold mines coming into production in Guyana over the coming years.
"Karouni will have a major beneficial impact on the economy of Guyana through the creation of jobs and payments of taxes and royalties," he said.
Troy picked up the Karouni project when it acquired Azimuth Resources last year.
Troy also has operating gold mines in Argentina and Brazil.
The company also released its quarterly report today, which showed record quarterly silver production from the Casposo mine in Argentina, up 22.3 per cent to 710,178 ounces.
Casposo produced 17,533 ounces of gold for the quarter with a 47 per cent decrease in all-in sustaining cost to $US690 an ounce, net of silver credits.
Production at the company's Andorinhas mine in Brazil was up 5.7 per cent to 8200 ounces.
However Mr Benson warned of a risk to previous production guidance at Casposo.
"It is too early to be precise, but due to a number of factors including the slower than expected access to the higher grade underground ore, delays in receiving the air sparging system required to improve silver recoveries and the deteriorating ratio of silver to gold price, there is a risk Casposo will come in just under 10 per cent lower than original guidance at around 110,000 ounces gold equivalent for this financial year," he said.
"The lower silver to gold price ratio decreases the 'gold equivalent production' for any given level of silver production.
"Pleasingly it looks like Andorinhas will be about 10 per cent ahead of original guidance coming in around 32,000 ounces for FY2014."
Troy shares closed up one cent at $1.02.
