PERTH (miningweekly.com) – Gold miner Silver Lake Resources has reported increased profits and cashflows for the half-year ended December, on the back of increased gold production and higher gold prices.
Gold sales in the first half of the 2021 financial year reached 130 354 oz, up from the 127 459 oz sold in the previous corresponding period, while realised gold prices improved from A$2 011/oz to A$2 400/oz.
Revenue for the first half reached A$316.3-million, up from the A$258.8-million reported in the previous corresponding period.
Silver Lake on Wednesday reported that statutory profits after tax had increased by 48% on the previous corresponding period, to A$65.8-million, while earnings before interest, taxes, depreciation and amortization had increased by 37%, to A$160.1-million.
Cash flows from operations have increased by 62% on the first half of the 2020 financial year, to A$160.5-million.
Meanwhile, Silver Lake reported that capital expenditure for the first half of the 2021 financial year reached A$88-million, compared with the A$42.6-million spent in the first half of 2020, with the increase driven by the ramp-up of growth projects in the Deflector region.
These growth projects included the plant upgrade at the Deflector mine, the South West Deflector decline development, and the start of the Rothsay mine. All of the growth projects remain on schedule and in line with budget, the gold miner added.
Activity levels and capital expenditure will increase in the second half of the year as the projects approach completion, with expenditure to peak in the third quarter.
For the full 2021, Silver Lake has maintained the group’s sales guidance at between 240 000 oz and 250 000 oz, with copper sales expected to reach some 1 600 t, up from the previous estimate of 1 100 t, while all-in sustaining costs would range between A$1 400/oz and A$1 500/oz.