New management's efforts to turnaround Norseman Gold (LON:NGL, ASX:NGL) hit revenues in the year just ended.
Revenues dipped 31 per cent to A$45.3 mln in the year to June as two of Norseman's deep mines were mothballed while a plan to revive the company was thrashed out. Net losses rose to A$70.1 mln from A$21.8 mln.
Norseman received a major boost last week when one of China's largest gold mining companies, Zhaojin Mining Industry took an 8.95 per cent stake in the company.
The shares Zhaojin bought came from a placing underwritten by Tulla Resources, which took effective control of Norseman in February. It is the vehicle of mining tycoon Kevin Maloney, who was appointed Norseman's executive chairman in July.
Maloney's plan is to cut cost below A$1,000 and boost production significantly through development of the open pit resources at the mine.
Zhaojin also specialises in high grade narrow ore bodies, similar to those present at the Norseman mine and its expertise will help it improve the running of its operations say brokers.