Record quarterly profit for Saracen

Saracen Mineral Holdings has reported a record unaudited September quarter net profit after tax of A$70-80 million (reports MiningNews).
23rd October 2020
Resources Rising Stars

Saracen Mineral Holdings has reported a record unaudited September quarter net profit after tax of A$70-80 million (reports MiningNews).

September quarter production was 154,388 ounces of gold at all-in sustaining costs of $1169 an ounce.

Carosue Dam produced a record 54,987oz at $1262/oz even before the plant expansion was commissioned.

The operation generated mine operating cashflow of $60.8 million and net mine cashflow of $27.1 million after $33.7 million in growth capital.

Thunderbox production of 44,211oz at $790/oz was also a record.

That performance generated mine operating cashflow of $85.8 million and net mine cashflow of $47.1 million, after growth capital of $38.8 million.

Saracen's 50% stake in KCGM contributed 55,190oz at $1423/oz, generating mine operating cashflow of $77.3 million and net mine cashflow of $43.3 million after growth capital of $34 million.

Saracen remains on track to meet FY21 guidance of 600,000-640,000oz at AISC of $1300-1400/oz.

"It's fair to say the past few months has seen Saracen experience some extreme highs and some extreme lows," Saracen managing director Raleigh Finlayson said this morning.

One of the highs was the announcement of a merger of equals with KCGM partner Northern Star Resources, which is expected to unlock $1.5-2 billion in synergies.

The low was the fatality at Carosue Dam in early July.

Revenue for the quarter was $359 million from the sale of 152,790oz at an average price of $2352/oz, including 70,800oz at $1977/oz delivered into the hedge book.

Cash at the end of September jumped to $467 million, from $369 million, after paying $16 million in tax and investing $121 million in growth capital.

Debt stood at $321 million.

Read more at https://www.miningnews.net/profit-loss/news/1397656/record-quarterly-profit-for-saracen

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