Oxiana - Melbourne-based miner to a net profit of $80.3 million, compared to a $8.8 million loss in 2004

http://www.smh.com.au/news/Business/Oxiana-tips-strong-yr-on-metals-outlook/2006/02/20/1140283976681.html

Mid-tier miner Oxiana Ltd has rewarded its shareholders with their
first dividend after booking a record annual net profit.

Better production combined with booming commodity prices helped the
Melbourne-based miner to a net profit of $80.3 million, compared to a
$8.8 million loss in 2004.

Oxiana's report card for 2005 was boosted by a half year of production
from the Golden Grove base metals mine in Western Australia, which the
company acquired last July.

The additional production helped grow Oxiana's gross revenue by 500 per
cent to $432.56 million, up from $76 million in 2004.

The company's flagship Sepon mine in Laos also increased its gold
output and started up copper production.

"The Oxiana group result for 2005 was excellent," managing director
Owen Hegarty said.

"With a full year of copper and gold production from Sepon and a full
year of production from Golden Grove, 2006, particularly at present
buoyant metals prices, is shaping up to be an outstanding one."

Oxiana has returned some of its good fortune to its shareholders,
declaring a maiden dividend of one cent per share.

The company is developing the Prominent Hill copper and gold project in
South Australia and said it would be ready to make a investment
decision by the middle of the year.

"Every day that goes by we get one day closer to production there, at
one of the world's best copper gold projects," Mr Hegarty said.

At full capacity the mine would produce 100,000 tonnes of copper and
130,000 ounces of gold in a copper-gold concentrate per year.

A bankable feasibility study is now being completed at the project with
an earlier scoping study indicating it could cost $530 million to
develop.

"Prominent Hill is eminently and well and truly financeable within our
current means and you've got the financiers talking to us regularly
about it," he said.

"We've got an outstanding project at an outstanding time with an
available number of alternatives in terms of financing without having
to go anywhere near the equity markets."

While the mining industry worldwide is facing rising costs, Mr Hegarty
said the strong commodity prices alleviated that risk with Prominent
Hill.

"At today's commodity prices there's no dramas about that," he said.

"Prominent Hill is a long term, seriously competitive ore body with
good grades and relatively no cost."

With a major project in the development pipeline the company was now
looking for other acquisitions but Mr Hegarty said he was following
strict guidelines on any new purchase.

"We are always on the lookout for making takeovers," he said.

"We expect to see more consolidation over the coming year or two."

Shares in Oxiana closed 7.5 cents higher to $1.925 on Monday.

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