Resolute Mining says it swung back to profitability in 2010/11 and expects gold production to rise in the current year.

The gold mining and exploration company reported net profit of $61.39 million for the 12 months to June 30, 2011, compared with a loss of $37.17 million in the prior corresponding period. Revenue from gold sales rose 30 per cent to $445.06 million, Resolute said in a statement on Tuesday.

The company said it achieved gold production of 330,859 ounces in 2010/11, down from 352,302 ounces in 2009/10. But Resolute forecast production to rise 24 per cent to 410,000 ounces in 2011/12.

Also, the company said cash flow was expected to improve in 2011/12, “significantly strengthening the balance sheet”.

“In the early part of the year, this will involve the aggressive pay down of secured debt,” Resolute said in a statement.

Depending on market conditions, Resolute said further de-gearing of the balance sheet could occur through early redemption or conversion of convertible notes, which represented about $68 million of unsecured debt.

“Consideration will also be given to capital management initiatives,” Resolute said.

The company operates mines in Queensland, Tanzania and Mali.

No dividend was declared.