PERTH (miningweekly.com) – ASX-listed Saracen Mineral Holdings swung to profit during the year ended June, despite lower gold production.
The Western Australia-focused gold miner this week reported that net profit after tax of A$6-million was recorded for 2014, compared with a net loss of A$63.1-million last year, when the company was hit by impairment charges.
Gold production for 2014 declined to 133 492 oz, compared with the 136 168 oz produced in the previous financial year, resulting in revenue of A$211.4-million. This was marginally up from the revenue of A$210.6-million reported in 2013, as a result of Saracen’s substantial hedge book, which insulated revenues from a fall in the spot gold price.
Earnings before interest, taxes, depreciation and amortisation also decreased to A$42.1-million, from A$55.8-million in 2013.
“Saracen’s cash generation was strong during the year, being some A$10-million higher than guidance, which fully covered the development expenditure on the Whirling Dervish openpit and the Red October underground mine,” said Saracen MD Raleigh Finlayson.
“This, combined with the March equity raising, has placed the company in a robust financial position.”
Finlayson pointed out that with the Whirling Dervish openpit development nearing completion, the acquisition of the Thunderbox project settled, and the equity raising during the year, Saracen had set the foundation for a strong cash flow in 2015.
For 2015, Saracen was expecting gold production to reach between 145 000 oz and 155 000 oz, with gold mainly sourced from the Whirling Dervish openpit mine and the Red October underground operation.