Aurora Gold falls as Indonesian turmoil hurts profit

Aurora Gold Ltd. shares posted their biggest decline in a week and a half after the mining company said first-half profit slumped 50 percent because of the illegal occupation of its Indonesian mines.

Profit fell to A$2.38 million ($1.4 million) in the six months to June 30 from A$4.8 million a year earlier. The report came after the close of trading yesterday. The shares fell 1 cent, or 4.4 percent, to A$0.22, the biggest drop since Aug. 8.

Aurora is part owned by Ashton Mining Ltd., an Australian diamond producer currently the subject of an unsolicited bid by South Africa's De Beers.

The company in November was forced to remove 85 exploration staff as tensions rose in Indonesia over Australia's leading role in United Nations intervention in East Timor.

A joint community, police and government team regained the company's access to most of its operations in the Mt. Muro area of Central Kalimantan late in the first half, Aurora said.

Still, production from Mt. Muro fell to 117,604 ounces of gold equivalent in the first half from 118,261 ounces a year earlier.

Aurora's overall sales fell to A$54.7 million, from A$68.4 million a year earlier. (*)