Gold miner, Saracen Mineral Holdings Limited (ASX: SAR) has reported record production of 89,208 ounces and outstanding exploration results in the 2019 March quarter, meeting its undertakings to the market on every level. In its quarterly activities report for the March quarter, the company has advised that its production ounces are in line with FY19 guidance.
According to the company’s Managing Director Raleigh Finlayson, the company’s operations are performing extremely well, as its production is comfortably within annual guidance and its costs are below guidance, providing excellent operating results to meet its wider objective of growing production to 400koz a year.
The company reported quarterly gold production of 89,208oz at AISC of A$1,035 per ounce. Thunderbox delivered a record quarter with production of 40,170 oz at an AISC of A$972/oz with C Zone open pit mine steadily progressing into higher grade / lower strip ratio ore. Carosue Dam produced 49,038oz for the March quarter at an AISC of A$1,097/oz.
During the quarter, around A$7.3 million (unaudited) of gold sales were made from gold recovered from development activities at Whirling Dervish (A$4.6 million) and Thunderbox Underground (A$2.7 million).
During the March quarter, the company’s Cash and equivalents increased to A$153.3 Mn, up from A$142.6 Mn at December 31, despite of spending more than $58 Mn on growth and exploration in the 2019 March quarter.
During the March quarter, the company delivered another host of impressive exploration results across the portfolio and received excellent operating results which is why it now believes that it is well on track to meet its goal of growing production to 400koz a year while establishing long mine live.
The company has confirmed that its production outlook for FY19 is unchanged at 345- 365,000oz at an AISC of A$1,050 - 1,100/oz and it is on track to deliver into the 7-year production outlook, with an upside case to 400kozpa.
As at 31 March 2019, the company had total cash, bullion and investments of A$153.3 million with no corporate debt drawn. The company currently has a robust balance sheet with available funding in excess of A$300 million plus operating cash flows and ore stockpiles.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $2.580, down by 1.527% during the day’s trade with a market capitalisation of ~$2.15 billion as on 17 April 2019. The counter opened the day at $2.610 and reached the day’s high of $2.610 and touched a day’s low of $2.550 with a daily volume of ~3,475,802. The stock has provided a year till date return of -9.97% & also posted returns of 17.49%, -10.27% & -6.43% over the past six months, three & one-month period respectively. It had a 52-week high price of $3.470 and touched 52 weeks low of $1.720, with an average volume of ~5,967,255.
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