Gold producer Evolution Mining has swung to a half-year profit after expanding operations to lift output and benefiting from improved gold prices.
Evolution's $136.67 million profit for the six months to December 31 compares to a $15.5 million loss for the same period the previous year.
Underlying profit rose 26 per cent to $136.3 million, while sales revenue climbed 17 per cent to $711.15 million.
But the miner's all-in sustaining costs of $978 an ounce were up, from $954.
The half-year included the first two months of production from Ernest Henry mine, in far northwest Queensland, in which the group acquired a 30 per cent stake last year.
During the half, the Sydney headquartered miner repaid $160 million of debt to reduce it to $588.5 million geared at 22 per cent.
Evolution on Thursday also announced its board had approved plans for its Cowal gold mine in NSW that secures the mine's life for at least 15 years.
RBC Capital analyst Paul Hissey said Evolution's results were in line with estimates and praised the company's operational expansion.
"We believe the portfolio optimisation strategy has helped Evolution to become a quality, low-cost, long-life mining company with growth potential," he said in a research note on Thursday.
He said he expects Evolution will continue to pay down debt during the second half of the 2017 financial year.
The company has maintained interim dividend at two cents a share, unfranked.
Shares in Evolution were up 2.5 cents, or 1.06 per cent, at $2.375 at 1206 AEDT.
EVOLUTION BACK IN THE BLACK:
* Half-year net profit of $136.67m, compared to $15.5m loss
* Sales revenue up 17 per cent to $711.15m
* Interim dividend unchanged at two cents a share, unfranked.
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