PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has reported a 105% increase in net profits after tax for the financial year ended June, on the back of higher gold production and higher gold prices.
Net profits after tax for the 2020 financial year reached a record A$189.7-million, up from the A$92.5-million reported in 2019, with earnings before interest, taxes, depreciation and amortisation increasing by 104%, from A$219.5-million to A$447.6-million.
Gold production for the full year increased by 47%, from 355 077 oz to a record 520 414 oz, with the addition of Saracen’s 50% interest in the Super Pit project, in Kalgoorlie, while gold sales increased from 350 904 oz to 528 693 oz, prompting revenue to increase by 93%, from A$555.6-million to A$1.07-billion.
The average gold price realised during the full year increased by 24%, from A$1 722/oz to A$2 142/oz.
“These results show Saracen has successfully made the transition to the big league of ASX gold producers,” said MD Raleigh Finlayson on Wednesday.
“Our production rate is now running at more than 600 000 oz/y and our cost base is still tight. This means we are perfectly positioned to capitalise on the strong gold price and continue generating strong growth in our cashflow.
“Our cashflow and robust balance sheet also ensure we can continue to grow through exploration and development, underpinning future increases in production and mine lives.
“And all of our operations are based in the tier-1 location of Western Australia, which, in conjunction with our future-proofing strategy, adds further certainty to the outlook for the business,” Finlayson said.
Looking at 2021, Saracen has set a production target of between 600 000 oz and 640 000 oz, with all-in sustaining costs targeted at between A$1 300/oz and A$1 400/oz.