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Saracen reports record profits

22nd August 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has reported a 166% increase in net profits after tax for the full year ended June, on the back of an increase in production.

Net profit after tax reached a record A$75.6-million, up from the A$28.4-million in the previous financial year, while earnings before interest, taxes, depreciation and amortisation increased from A$113.4-million to A$198.7-million.

Revenue for the full year was up by 21%, from A$423.1-million to A$511-million, as gold production increased from 272 800 oz to 316 500 oz.

Saracen MD Raleigh Finlayson told shareholders on Wednesday that the financial results were particularly pleasing given the company was in the midst of a major growth phase.

“Profit and free cash flow surged as we grew production and reduced costs. This combination stemmed in part from our huge exploration success. This is the key to our ongoing growth and therefore we have committed A$60-million to exploration in 2019.”

Finlayson said that continued growth in Saracen’s inventory would underpin its push to become a 400 000 oz/y producer, with a ten-year mine life at both of its operations.

Edited by Creamer Media Reporter

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