JOHANNESBURG (miningweekly.com) – ASX-listed Saracen Mineral on Wednesday reported a solid December quarter performance, with production and costs ahead of the yearly guidance and a strong free cash flow that underpinned a growing bank balance.
The company produced 77 522 oz at an all-in sustaining cost (AISC) of A$1 176/oz during the quarter ended December 31, bringing half-year output to 157 795 oz at an AISC of A$1 091/oz, and ahead of the 2018 guidance of 300 000 oz at an AISC of A$1 150/oz.
“This strong production rate, combined with our focused development plan, is underpinning robust margins and free cash flow,” said Saracen MD Raleigh Finlayson.
Saracen reported gold sales of 74 320 oz during the quarter under review at an average sale price of A$1 600/oz, generating revenues of A$118.9-million and enabling the miner to grow its cash and equivalents to $83-million at quarter-end, up from $60.5-million in the prior quarter.
“It is also enabling Saracen to continue investing in exploration, as demonstrated by our recent results on this front, and to continue growing our cash balance while remaining debt-free,” Finlayson said.
Meanwhile, Nexus Minerals and Saracen entered into binding terms of agreement that would see Nexus acquire Saracen’s Wallbrook gold project exploration tenements, in Western Australia, for 1.49-million shares.
Saracen will also subscribe for 3.8-million shares at 8.4c a share, securing a 6% equity stake in Nexus Minerals.
“We are pleased to welcome successful goldfields miner and existing joint venture partner Saracen as a strategic shareholder, and also have the opportunity to secure such a highly prospective tenement package at the same time,” said Nexus MD Andy Tudor.