PERTH (miningweekly.com) – ASX-listed gold miner Saracen Mineral Holdings has reported a strong finish to the 2019 financial year, helping to deliver a record full year production.
Gold production in the three months to June reached 88 096 oz, bringing full-year production to a record 335 077 oz, which was in line with the twice-revised guidance of between 345 000 oz and 365 000 oz.
The Carosue Dam operation delivered 45 845 oz during the fourth quarter, while Thunderbox added 42 251 oz, with group all-in sustaining costs for the quarter reported at A$1 026/oz.
For the full year, all-in sustaining costs (AISC) of A$1 030/oz were below the guidance of between A$1 050/oz and A$1 100/oz.
“Our production and cost base is consistently in line with, or better than, our guidance. This combination of reliable production and low cost gives investors an outstanding opportunity to capitalise on the strong gold price while minimising the operational risks,” said Saracen MD Raleigh Finlayson.
“At the same time, we continue to generate exceptional exploration results which support our strategy to grow the inventory and establish a 400 000 oz/y production profile with long mine lives. The ongoing success of our exploration campaign is demonstrated by the Atbara discovery at Carosue Dam, where there is potential for growth and ongoing scale.”
Saracen invested a record A$18.2-million in exploration during the fourth quarter of the 2019 financial year, and spent A$14.1-million on the bolt-on acquisition of Box Well. The company also launched a A$38-million all-scrip takeover offer for Bligh Resources.
Looking ahead, Saracen was expecting full-year production in 2020 to increase to between 350 000 oz and 370 000 oz, with AISC targeted at between A$1 025/oz and A$1 075/oz.