Oxiana posts $318.2 in profits

The operator of the biggest mine in Laos, Oxiana Ltd today announced that net after tax profit was $318.2 million for the year ending in December 2007 lower than $553.2 million in 2006.

Oxiana''s earnings before interest, tax and depreciation were $595.1 million against $827.2 million for the year before. The company said strong production levels were offset by a stronger Australian dollar, a weaker zinc price, and a higher effective tax rate in Laos.

Oxiana''s balance sheet strengthened, reflecting net assets of $1.5 billion at year-end. During the year under review, Oxiana invested almost $700 million in new property plant and equipment, with the largest single item for the construction of Prominent Hill funded from cash flow. Oxiana will retain a positive cash balance of $246 million at year-end after the capital investment.

In 2008, the company expects to complete projects Prominent Hill, the Sepon copper expansion and the Martabe gold project.

A final dividend of 4 cents per share was declared, following the interim dividend of 4 cent. Oxiana stock gained 2.1%.