PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has increased its production expectations for the 2019 financial year, on the back of record production during the December quarter.
Saracen has increased its production guidance to between 345 000 oz and 365 000 oz, up from the previous estimate of between 325 000 oz and 345 000 oz.
Gold production during the three months to December reached a record 88 833 oz, with the Carosue Dam operation producing 53 108 oz, and the Thunderbox operation delivering 35 725 oz - this was up from the 51 753 oz and 37 187 oz respectively produced during the September quarter.
Saracen MD Raleigh Finlayson said on Monday that the December quarter results continued the company’s track record of growth in its three key target areas; inventory, production and cash flow.
“The increased production guidance published today, which comes with no increase in costs, shows that our strategy of investing in exploration and development is generating outstanding results,” Finlayson said.
“In parallel with this latest production growth, we have delivered exceptional exploration results which will help underpin further growth in our inventory.”
He noted that the strong production and tight costs meant that Saracen was able to invest in exploration and development while also increasing its cash position by another A$11.6-million, to A$142.6-million.
“In light of our recent exploration success, we have increased the 2019 capital development budget by A$35-million. This will enable us to capitalise on our exploration success by sustaining the increased production rate while maintaining mine lives.
“Investing in organic growth has driven our success in recent years and it will continue to do so as we move towards our longer-term production target of 400 000 oz/y,” Finlayson said.