11/01/2016 - 11:17

Gold miners keep production pace

11/01/2016 - 11:17

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Gold companies Doray Minerals, Ramelius Resources and Saracen Mineral Holdings have posted better-than-expected production results for the December quarter, with the precious metal miners bullish on the next six months.

Doray Minerals produced about 21,507 ounces of gold from its Andy Well mine north of Meekatharra in the December quarter.

Gold companies Doray Minerals, Ramelius Resources and Saracen Mineral Holdings have posted better-than-expected production results for the December quarter, with the precious metal miners bullish on the next six months.

Doray produced about 21,507 ounces of gold from its Andy Well mine north of Meekatharra in the December quarter, bringing its half-year production total to 47,460oz, about 8 per cent above guidance.

Doray expects to achieve full-year production towards the higher end of its FY16 guidance of between 78,000oz and 85,000oz.

In a statement, the miner said annual production and profit margins were set to substantially increase once its Deflector project started producing around the middle of the year.

It forecasted an annual production rate of 140,000oz from the two projects heading into FY17, targeting an all-in sustaining cost of less than $1,000/oz.

Ramelius boasted a fruitful December quarter, with 27,793oz produced from its Mt Magnet and Kathleen Valley projects.

The result was 11 per cent above expectations, while all-in sustaining costs are expected to be significantly lower than the company’s previously stated guidance of $1,250/oz for FY16.

During the December quarter, Ramelius’s cash and gold on hand increased slightly to $39.8 million, along with no corporate debt.

Meanwhile, Saracen announced production of 44,265oz at its Carosue Dam project during the December quarter, taking its first-half FY16 production figure to 82,405oz (above its outlook range for the full year of between 150,000oz and 160,000oz).

Reaffirming its ambition of doubling annual production to 300,000oz when its $65 million Thunderbox project begins producing in FY17, the company revised its forecast all-in sustaining cost for the project up slightly to $1,075/oz.

Saracen managing director Raleigh Finlayson said the company’s strategy to double gold production using 100 per cent internally generated funding was close to fruition.

“2016 will be a transformational year for Saracen as we bring Thunderbox on stream and elevate the company into the ranks of Australia’s mid-tier gold producers,” Mr Finlayson said.

Doray shares were 6.7 per cent higher to 63 cents each, while Ramelius shares gained 6.3 per cent to 25 cents per share at 11am.

Saracen shares were up 10.4 per cent to 74 cents each.

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