Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has reported record quarterly gold production during the three months to September.
The miner on Tuesday announced that gold production for the quarter had reached 96 324 oz, up from the 88 096 oz produced in the previous quarter, with the Carosue Dam operation delivering 50 590 oz and the Thunderbox operation adding 45 735 oz.
Saracen told shareholders that the Thunderbox operation had also achieved a record all-in sustaining cost during the quarter under review, falling to A$682/oz, as the C Zone openpit mine delivered higher grades and lower strip ratio ore, as planned.
MD Raleigh Finlayson said that the production and free cash flow generation achieved during the quarter reflected the investment that Saracen made in exploration and development in recent years.
“These results show that we are harvesting the benefits of what we sowed over the past two or three years. Organic growth is underpinning not only record production rates but also substantial free cashflow, which also reflects our low production costs and our status as a debt-free company.”
Finlayson said that the ramp-up of the Thunderbox operation was exceptional, with the project achieving some of the lowest costs in the industry, thanks to the combination of high grades and low strip ratios.
With the record quarter under its belt, Saracen on Tuesday said that the company was ahead of its full year production guidance of between 350 000 oz and 370 000 oz for the 2020 financial year, while costs are below the all-in sustaining cost guidance of between A$1 025/oz and A$1 075/oz.