BUOYANT GOLD MARKET PUSHES UP PERTH MINT'S PROFIT TENFOLD

The buoyant gold market has helped raise state-owned Gold Corporation's profit tenfold, figures from the company show.

Gold Corporation, which trades as The Perth Mint,reported a pre-tax profit of A$38 million (US$33.19 million) for the year ended June 30, up from A$3.7 million a year earlier.

The 920 per cent jump came on the back of a major increase in demand for gold bullion and gold coins, a statement from the organisation said.

Gold prices rallied during the past year, with the precious metal considered a safe haven during the global economic crisis and a hedge against a weakening US dollar.

In a statement on Wednesday, Gold Corporation warned that demand for the precious metals was expected to ease over the next 12 months, but also maintained a positive outlook.

The organisation's depository business also added to the result, with the value of precious metal deposits increasing from A$1.5 billion to A$2 billion.

A dividend of A$16 million and an income tax equivalent of A$13.1 million was delivered to its sole shareholder, the Western Australian government, it said.

"The strong result was testament to Gold Corporation's investment in additional and improved factory equipment, ensuring we could streamline production and take advantage of the favourable market conditions," said Gold Corporation's chief Ed Harbuz.

"The corporation is aiming to take advantage of the renewed interest in precious metals, with a concerted push towards improving its market shares," he said.

The business said uncertainty and volatility in global equity markets had resulted in "significantly higher levels of activity" across all its divisions.

(AAP) bl

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