Silver Lake Resources (ASX: SLR) targets gold sales of 210k to 230k ounces in FY24

Highlights

• Silver Lake Resources is a gold explorer and producer in Canada and Western Australia
• In the FY23, the company registered 13% YoY growth in revenue to AUD 719.6 million
• The company is focused on investing in external and organic growth opportunities

Silver Lake Resources Limited (ASX:SLR) is an ASX-listed gold company, whose operations are focused on gold exploration, mine operations, mine development and sale of gold and copper concentrate.

The AUD 953.43 million market cap firm marked the ninth consecutive year of meeting its annual sales guidance in the financial year 2023 (FY23). During the stated period, gold production was 267,478 ounces and gold and copper sales reached 260,372 ounces and 1,325 tonnes, respectively.

During the reported period, gold sales surged by 3% YoY to 260,372 ounces, while revenue increased by 13% YoY to AUD 719.6 million, backed by record sales at Deflector and enhanced commodity prices. However, in FY23, EBITDA declined by 7% YoY to AUD 248.4 million.

Top 10 shareholders of SLR

The top 10 shareholders of SLR have nearly 34.95% stake in the firm, while the top four have around 23.74% shareholding. Van Eck Associates Corporation and Dimensional Fund Advisors, L.P. have the highest stake in the firm, with a shareholding of ~10.55% and ~4.99%, respectively.

Recent business update

On 13 November 2023, the company informed about the issuance of over 1.28 million FY24 performance rights as part of its employee incentive plan.

Through an ASX update dated 26 October 2023, the company shared the September quarterly update. In the latest quarter, the company registered 65,070 ounces of gold production and 305 tonnes of copper production.

The period saw gold sales of 65,421 ounces at an average sales price of AUD 2,952 per ounce and copper sales of 295 tonnes at an AISC of AUD 1,717 per ounce. Furthermore, the company acquired a strategic shareholding in Red 5 Limited during the quarter.  

Outlook

In FY24, the company expects to deliver gold sales of 210,000 to 230,000 ounces at an AISC of AUD 1,850-2,050 per ounce.

Moreover, the company is committed to investing in external and organic growth opportunities.

Share performance of SLR

SLR shares closed 1.96% higher at AUD 1.04 apiece on 21 November 2023. Including today’s gain, SLR’s share price has dropped by 14.40% in the past one year and has risen by 20.93% in the last three months.

The 52-week high of SLR is AUD 1.505, recorded on 24 January 2023, while the 52-week low is AUD 0.805, recorded on 28 September 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 21 November 2023. The reference data in this report has been partly sourced from REFINITIV.

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