PERTH (miningweekly.com) – Junior gold miner Silver Lake Resources has reported a 697% increase in net profits after tax for the financial year ending June, on the back of higher production and revenues.

Net profit after tax for the 2018 financial year reached A$16.2-million, up from the A$2-million reported in the 2017 financial year, while earnings before interest, taxes, depreciation and amortisation increased from A$70-million to A$87.9-million.

Gold production for 2018 was reported at 157 936 oz, up from the 135 837 oz produced in 2017, with gold sales up from 137 000 oz to 151 250 oz, driving revenues from A$227.5-million to A$255.5-million.

“The strong financial results for 2018 are a reflection of the operational and exploration strategy pursued over the past two years at Mount Monger. Establishing three independent mining centers and diversifying our high-grade underground feed sources delivered a material increase in production, and more importantly, increased our cash operating margins,” said Silver Lake MD Luke Tonkin.

“Our strong balance sheet and cash margins allow Silver Lake to continue pursuing our near-mine exploration and development strategy,” Tonkin said, adding that the current suite of advanced exploration targets had considerable potential to add to the four-year reserve and life-of-mine through resource conversion and the delineation of new resources proximal to exiting mine and processing infrastructure.

For the 2019 financial year, Silver Lake is targeting gold sales of between 140 000 oz and 150 000 oz, with all-in sustaining costs targeted at between A$1 350/oz and A$1 390/oz for the full year.

The miner is also setting aside A$12-milion for exploration, to pursue numerous high-value targets proximal to existing infrastructure, with at least two-thirds of the total exploration budget allocated to drilling programmes.