Saracen Mineral Announces BlackRock Group as a Substantial Holder

Saracen Mineral

On 10 January 2019, Saracen Mineral Holdings Ltd (ASX: SAR) has announced that BlackRock Group (Blackrock Inc and its subsidiaries) has become a substantial holder in the company, effective from 08/01/2019. Now BlackRock Group holds 41,113,468 ordinary shares of Saracen Mineral Holdings Ltd. Each ordinary shares accounts for one vote therefore with 41,113,468 ordinary shares Blackrock will be entitled to 41,113,468 votes. 

Saracen Mineral Holdings Limited is a leading large-cap player in Australia’s mining sector. The company focuses on production and exploration of gold in their mining sites.

As per ASX announcement on 21 December 2018, Paradice Investment Management Pty Ltd ceased to be a substantial holder in Saracen Mineral Holdings Limited which was effective from 19/12/2018. The previous notice was given to the company on November 21, 2017.

On December 17, 2018, Saracen Mineral Holdings Limited has made the public announcement that one of its directors, Mr. Raleigh Finlayson who had an indirect interest in the Company, had acquired 305,000 unvested performance rights issued under the company’s Long-Term Incentive Plan and 1,500,000 unvested performance rights comprising three tranches of 500,000 unvested performance rights issued under the company’s Long-Term Incentive Plan. Vesting of the performance rights will occur in 2021, 2022, and 2023 subject to the satisfaction of performance criteria. Finlayson family Trust is the registered holder for the benefit of Mr. Raleigh Finlayson.

On November 27, 2018, the company has announced the result of its two new discoveries in the Carouse Dam Corridor. With the resourceful discoveries, the company targets to produce 400,000 ounces of gold per annum

Quarterly Performance: As at September 30, the company had maintained a cash and cash equivalents of A$131 Million (up from A$118.3 million at June 30). Gold sales for the quarter were 86,623 oz at an average sale price of A$1,640 per ounces, for total revenue of A$142 million.

FY18 Financial Performance: The company generated net profit after tax of $75.6 million in 2018, representing an upside of 166% over the $28.4 million recorded in the corresponding period in 2017. Net cash flow from operations for the year was $191.4 million, representing an upside of 52.4% over the $125.6 million recorded in the corresponding period in 2017.

Stock performance: On January 10, 2019, the shares of Saracen Mineral Holdings Limited settled at A$3.030 per share which implies the rise of A$0.060 per share, i.e. 2.02%. The market capitalization of the company stood at circa $2.44 Billion. In the time span of the previous six and three months, the stock delivered the returns of 40.09% and 51.53%, respectively. However, during the last month, SAR delivered the return of 12.50%.  With Earnings per share of AUD 0.093, the Price Earnings ratio stands at 31.970x.

In its recently released annual financial statement, the company declared a $60 million exploration budget across the group for FY2019. The company is eyeing substantial returns from its joint venture with Anglo Gold Ashanti. SAR stock would be an interesting one to watch.


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