March Quarterly Performances Of Mining Players – NML, SAR, SLR And OGC

Navarre Minerals Limited

Navarre Minerals Limited (ASX: NML) is an ASX listed metals and mining company based in Australia. The company’s projects comprises of Tandarra Gold Project, Glenlyle Gold-Silver Project etc.

On 30th April 2019, the company released its quarterly report for the March 2019 quarter. At Langi Logan project, the discovery of high-grade gold has been reported. In the Irvine Gold Project, significant zones of gold mineralisation over a 1.3km strike has been confirmed by the RC drilling program. Highest-grade gold and silver results were received from Glenlyle Project, through an expansion air-core drilling program.

In Tandarra Gold Project, drilling work has commenced, and results from one diamond drill hole confirmed the discovery of two deeper gold-bearing quartz reef horizons.

The company used total cash of A$788,000 in the operating activities for the quarter. No cash flow has been generated from the investing activities, and net cash of A$15,000 has been generated from financing activities. The estimated cash outflows for the next quarter is A$1.27 million.

The company announced the completion of the second phase of air-cooling drilling on Glenlyle project on 21st March 2019.

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The stock last traded at A$0.076, up by 4.11% from the previous closing of A$0.073, (as on 30th April 2019). The YTD return of the stock is 19.67%.

Saracen Mineral Holdings

Saracen Mineral Holdings (ASX: SAR) operates in the metals and mining sector, and has an annual production of 300kozpa. The company is totally debt free and funds the projects from the growing internal cash flows.

In the corporate presentation released on 30th April 2019, the company stated improvement in the safety and production with LTIFR falling from 2.0 (as on 31st March 2018) to 0.7 as on (31st March 2019) and the production capacity to 400kozpa is well underway.

The profit for the quarter was reported at A$26 – A$29 million (unaudited). The company has been consistently building the cash and its net cash at the end of the quarter stood at A$153 million, up by A$10 million from the previous quarter’s net cash of around A$143 million. The company’s reserves have been improving as well, gaining a 20% increase in FY18 to 2.5Moz with the discovery cost of A$25 / reserve oz (a record low). The key drivers for the production increase were the exploration spending which amounted to A$60 million in FY19, expansion of Carosue Dam mill to approximately 3.2Mtpa etc.

In the March 2019 quarterly report, the company posted a record production of 89,208 ounces of gold.

The market capitalisation of the company is A$2.28 billion. The stock last traded at A$2.790, up by 0.36% from the previous closing of A$2.78 (as on 30th April 2019).  In the last six months period, the stock has given a yield of 9.02%.

Silver Lake Resources Limited

Silver Lake Resources Limited (ASX: SLR) is an ASX listed gold mining and production company. It has Mount Monger Gold Camp project, which has an established history of reserve replacement and discovery, with the production of around 158,000 ounces in FY18.

The company acquired management control over Doray Minerals Ltd on 5th April 2019, which helped Silver Lake to become a mid-tier gold producer with financial strength. Besides, the Mount Monger project produced 35,172 ounces of gold, which was sold at the realised price of A$1,783/oz and AISC of A$1,444/oz. A total of A$3.4 million was invested in exploration work at Mount Monger, during the period of the quarter. The Deflector production for the quarter was 20,961 ounces of gold, 650 tonnes of copper at an AISC of A$1,182/oz.

The company had cash and bullion of $108.5 million on 31st March 2019, with no debt in the balance sheet. In the FY19 outlook given by the company, no change in the Mount Monger gold sales guidance has been made. Its previous estimate of 140,000-150,000 ounces at an average FY19 AISC of A$1,350-A$1,390/oz remains intact.

In the 1HFY19 results of the company, an increase in the revenue was reported by 4%.

The market capitalisation of the company is A$646.36 million. The stock last traded at A$0.785, down by mere 0.633% from the previous closing of A$0.79 (as on 30th April 2019). The YTD return of the stock is 42.34%.

OceanaGold Corporation

OceanaGold Corporation (ASX: OGC) is an ASX listed mid-tier gold mining company. The company has a global experience in operational and exploration work. It is also listed on the Toronto Stock Exchange (TSX).

In its presentation for the result of March 2019 quarter, released on 30th April 2019, the company posted gold production of 125,681 ounces, which is slightly lower than the production in the previous quarter of 126,656 ounces. Gold sales for the March quarter stood at 121,144 ounces, while the previous quarterly sales were reported at 132,161 ounces.

However, the company received a significantly higher AISC price of $1,026 per oz as compared to the $814 price of the previous quarter. The revenue was reported at $180 million, down by 3 million from the last quarter’s revenue, and EBITDA was also down to $64 million, down by 10 million in the same period. The company had focused on its safety performance and had been able to reduce recordable injury frequency rate to 4.4 from FY18 rate of 4.5.

On 8th March 2019, the company released its investors presentation, incorporating all the operational updates and financial performance.

The market capitalisation of the company is A$2.55 billion. The stock last traded at A$3.99, down by 2.68% from the previous closing of A$4.1 (as on 30th April 2019). The YTD return of the stock is negative 20%.


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