PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has reported another quarterly production record, with the miner producing 158 132 oz of gold in the three months to March.
The March quarter production was up from the previous record of 120 127 oz produced in the December quarter, with all-in sustaining costs (AISC) for the March quarter increasing to A$1 130/oz, up from the A$1 098/oz reported in the previous quarter.
The miner on Tuesday said that its Thunderbox operation, in Western Australia, produced a record 50 091 oz of gold during the March quarter, Carosue Dam produced a further 49 478 oz, while the Super Pit, in Kalgoorlie added 58 563 oz.
For the nine months to March, Saracen produced 374 584 oz at an AISC of A$1 081/oz.
Gold sales for the quarter reached 165 798 oz, and at a record average gold price of A$2 228/oz generated revenues of A$369-million.
MD Raleigh Finlayson said that the quarterly results highlighted the growth Saracen was enjoying at all levels of its business.
“Our strategy of growing through a combination of exploration and production has resulted in record production, low cost and strong net cash flow. This cash flow enabled us to reduce debt ahead of schedule during the quarter, while also continuing to invest in exploration and organic growth.
“As part of our strategy to maximise free cash flow while also insulating the business, we will bring forward processing of some higher-grade stockpiles into the current quarter. This will provide an additional buffer against any operational impacts which may emerge at a later date as a result of Covid-19.”
The company was aiming to build its surface ore stockpiles to some 1.7-million ounces, and will prioritise the milling of higher-grade portions of the stockpiles at Carosue Dam and Thunderbox to bring forward production ounces and cash flow into 2020.
The miner noted that although this plan would bring forward ounces from the 2021 financial year, it would further insulate the business should production be restricted from any Covid-19-related impacts at a later date.
Despite the new mine plan, production guidance for the 2021 financial year has been maintained at some 600 000 oz.