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Saracen exceeds expectations in Dec quarter

Saracen exceeds expectations in Dec quarter

Photo by Bloomberg

29th January 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Western Australia-focused gold miner Saracen Mineral Holdings has exceeded its production guidance for the fifth consecutive quarter, producing 31 096 oz during the three months to December.

This was in comparison to the expected production of between 28 000 oz and 30 000 oz.

As a result, the miner has upwardly revised its full-year production guidance to between 125 000 oz and 135 000 oz, up from the previous guidance of between 120 000 oz and 130 000 oz.

“The first half of 2014 has seen Saracen’s Carosue Dam operations exceed guidance by around 10 000 oz, which we are pleased to advise has resulted in our second increase in production for the year,” said MD Raleigh Finlayson.

The Red October underground mine delivered a record 86 000 t of ore during the quarter, grading 5.9 g/t for 16 326 oz of gold, while the Whirling Dervish openpit was tracking 4% ahead of schedule, and delivered a record 18 351 oz during the period.

Finlayson noted that the increased gold production had also translated into additional cash, with the year-to-date free cash flow above the guidance to A$7.1-million, resulting in Saracen remaining in a net cash positive position.

During the quarter under review, the miner sold 28 909 oz, generating a sales revenue of A$22.8-million.

Edited by Creamer Media Reporter

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