Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has reported record quarterly gold production in the three months to September, driven by record production from its Thunderbox mine, in Western Australia.
Gold production during the quarter under review reached 80 274 oz, up from the 79 985 oz produced in the previous quarter, with the Thunderbox mine contributing 37 191 oz, while the Carosue Dam operation contributed 43 083 oz.
All-in sustaining costs (AISC) fell by 11% on the June quarter, to A$1 008/oz.
“Record production, lower costs, a rising cash pile and a 40% increase in reserve growth makes it a bumper start to the new financial year,” Saracen MD Raleigh Finlayson said on Monday.
“At the same time, our strengthening balance sheet means we can continue to fund our ongoing commitment to aggressive exploration across our portfolio, which is delivering impressive results.”
The company sold 79 799 oz of gold, generating revenues of A$126.3-million, which compared with sales of 78 534 oz of gold during the June quarter, for revenues of A$127-million. Saracen’s cash and equivalents grew to A$60.5-million at the end of the quarter, which was up from the A$45.2-million at the end of the last quarter, despite the miner investing A$22-million in capital and exploration spend.
Some 43 200 oz of gold hedging was delivered during the quarter, representing 18% of the total hedge book, with a further 48 000 oz added at a price of A$1 704/oz. At the end of the September quarter, the hedge book comprised 240 143 oz, at an average delivery price of A$1 603/oz.
Saracen has maintained its full-year production guidance of about 300 000 oz of gold, at an AISC of A$1 150/oz.