Saracen's record production lifts profits
PERTH (miningweekly.com) – Record gold production pushed miner Saracen Mineral Holdings’ net profit after tax up 86% and revenue by 18% in the 2015 financial year.
Gold production rose 25% year-on-year to 167 531 oz, generating revenues of A$249.9-million. Net profit after tax increased from A$6-million in 2014 to A$11.1-million in the year under review.
Saracen also reported a 58% increase in earnings before interest, taxes, depreciation and amortisation, from A$42.1-million in 2014, to A$66.5-million.
The higher gold production also resulted in an increase in operating costs, from A$150.9-million to A$162.7-million, while all-in sustaining costs (AISC) declined by 25% to A$1 139/oz.
MD Raleigh Finlayson said the strong financial and operating results for 2015 provided a robust foundation for Saracen’s plans to join the ranks of midtier gold producers.
“The strong cash generation of our Western Australian gold operations during the year has enabled us to repay all of our debt, while, at the same time, funding mine development and a significant exploration campaign.”
He added that the continued strong performance from the Carosue Dam operations would generate significant cash flows in 2016, allowing the Thunderbox development to be funded through internal sources.
Saracen was expecting to produce between 150 000 oz and 160 000 oz, at AISC of between A$1 025/oz and A$1 075/oz in the 2016 financial year.
With the development of the Thunderbox asset, gold production would double to a targeted rate of 300 000 oz/y within the next two years, while AISC would reach A$1 075/oz.
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