Troy Resources Limited

Half-Year Ended 31 December 2014 Financial Results

PERTH, WESTERN AUSTRALIA--(Marketwired - Feb. 26, 2015) - Troy Resources Limited (ASX:TRY)(TSX:TRY) -

NOT FOR RELEASE TO UNITED STATES NEWSWIRE SERVICES

Highlights

• Gold equivalent production for 1H 2015 of 65,014 ounces (1H 2014: 60,334 ounces).
• Cash costs of US$706 per ounce (on a co-product basis) (1H 2014: US$861 per ounce).
• Revenue $92.2 million up 22% on 1H 2014 revenue of $75.7 million.
• Gross Profit of $10.8 million (1H 2014: Loss $4.3 million).
• EBITDA¹ of $21.3 million (1H 2014: $3.1 million).
• Underlying profit after tax² of $1.9 million and net loss after tax of $26.7 million (1H 2014: Loss $6.9 million) due primarily to a non-cash asset impairment of the Casposo gold and silver project in Argentina of $28.0 million after tax.
• Cashflow generated from operations $12.9 million compared with an outflow of $11.7 million in 1H 2014.
• $100 million debt facility approved by Investec Bank Plc.
• Karouni project on track for first production in the June quarter 2015.

Results

Production for the half increased by 8% to 65,014 Au_Eq ounces compared to the previous corresponding period, despite the 12% deterioration in the gold to silver ratio. Notwithstanding a 15% fall in the silver price and 5% fall in the gold price, revenue increased by 22% compared with the previous corresponding half-year figure, resulting in a gross profit of $10.8 million.

The Group also recorded an 18% decrease in cash costs per ounce (on a co-product) basis to US$706. Given that AISC were only first reported for the Group in the December quarter for FY14, no comparison is available for the previous corresponding half-year.

Net cash generated by operating activities totalled $12.9 million representing a significant improvement on the cash outflow of $11.7 million in the previous corresponding period. This was principally due to higher production and lower operating costs.

This was the first half-year reporting period where all mined production at Casposo came from underground operations. The mine processed a total of 263,002 tonnes at an average gold grade of 4.09g/t gold and 209.68g/t silver to produce 31,682 oz gold (1H 2014: 29,590 oz) and 1,429,647 oz silver (937,013 oz).