PERTH (miningweekly.com) – Metals miner PanAust has reported an increase in revenue for the first half of 2013, despite the drop in commodity prices.

The miner on Thursday revealed that sales revenue for the six months to June had reached $326.1-million, compared with the $306.3-million achieved in the previous corresponding period.

The increase in sales revenue was driven by the first full half-year contribution from the Ban Houayxai mine, in Laos, which PanAust said more than offset lower copper sales and lower realised commodity prices.

However, MD Gary Stafford noted that despite the higher sales revenue, profitability was adversely impacted by lower prices for all pay-metals and higher depreciation and amortization charges.

Profit after tax for the period was nearly halved to $38.9-million during the six months under review, compared with the $62.2-million achieved in the first half of 2012.

Earnings before interest, tax, depreciation and amortization was $130.5-million, compared with the A$136.9-million reported in the previous corresponding period, which Stafford said reflected the increase in mining costs and employee benefits following a full half-year of operation at Ban Houayxai and a full half-year of expanded operations at the Phu Kham mine, following the completion of the Phu Kham upgrade.

Stafford pointed out that both operations had recovered from setbacks at the beginning of the year, to record strong production and cost performance by the end of the June half.

“At Phu Kham, a requirement to change the mine plan to remediate an area of instability was successfully implemented with record mining rates achieved in May and June, and Ban Houayxai has emerged as a low-cost gold producer following the resolution of post commissioning milling issues in the March quarter.”

Stafford added that the completion of the increased recovery project during the June half had signalled the completion of the $350-million capital spend over the past three years, including the construction of the Ban Houayxai gold/silver operation, and the Phu Kham upgrade.

He said that PanAust remained well positioned to achieve its targeted full-year production, with some 110 000 oz of gold expected.