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Super Pit leaves Saracen with higher profits

17th February 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has reported an 84% increase in underlying net profit after tax for the six months ended December, as production from the company’s newly acquired 50% stake in the Super Pit mine, in Kalgoorlie, started to pay dividends.

Gold production for the interim period was up 22% to a record 216 452 oz, which included a one-month contribution from the Super Pit.

Underlying net profit after tax for the half-year reached A$80.2-million, up 84% on the previous corresponding period, while revenue was up 45%, to A$409.9-million, and operating cash flow was up by 35%, to A$152-million.

“The key message from these results is that Saracen has continued to grow and will continue to grow. We are growing production and our inventory through a financially-rewarding combination of aggressive near-mine exploration and prudent acquisition, all within 300 km of Kalgoorlie,” said MD Raleigh Finlayson.

“With the addition of the Super Pit and the Carosue Dam mill expansion set for commissioning in the December quarter, our production and cash flow are poised to continue growing.

“We are also looking forward to the results of the review we are undertaking of the Super Pit, which is a world-class asset with an exceptional future.”

Finlayson said that the acquisition of a half-share of the Super Pit for $750-million in November last year had seen the company emerge with a vastly different production profile, cash flow projections and balance sheet.

Looking ahead, the miner is on track to meets its production target of more than 500 000 oz for the 2020 financial year.

“Saracen has shifted to another level in the league of global gold producers with key benefits that brings for scale, asset diversity and cash flow. But we still have a desire to maintain a conservative balance sheet, and therefore we are placing a strong emphasis on debt reduction.”

Edited by Creamer Media Reporter

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