Saracen Mineral Holdings has reported strong growth in its interim profits, helped by increased production and the recent acquisition of its stake in the Kalgoorlie Super Pit. Fellow gold miner Regis Resources and mining technology company Imdex have also reported positive first-half results.
Saracen Mineral Holdings has reported strong growth in its interim profits, helped by increased production and the recent acquisition of its stake in the Kalgoorlie Super Pit. Fellow gold miner Regis Resources and mining technology company Imdex have also reported positive first-half results.
Saracen produced a record 216,452 ounces of gold for the first-half of FY20, up 22 per cent on the previous year, including a one-month contribution made from the Super Pit.
The company said it made an $80.2 million net profit, up 84 per cent, and on the back of a 45 per cent jump in sales revenue to $409.9 million.
It sold 206,277oz gold at an average price of $1,984/oz.
However, Saracen reported an $11 increase in all-in sustaining costs to $1,041/oz, and a $10.8 million transaction cost for the Super Pit.
Saracen managing director Raleigh Finlayson said the results showed the company was in the midst of a strong growth phase.
“The key message from these results is that Saracen has continued to grow and will continue to grow,” he said.
“We are growing production and our inventory through a financially rewarding combination of aggressive near-mine exploration and prudent acquisition, all within 300 kilometres of Kalgoorlie.
“With the addition of the Super Pit and Carosue Dam mill expansion set for commissioning in the December quarter, our production and cash flow is posed to continue growing.”
The company has forecast gold production of more than 500,000oz for FY20, which includes a seven-month contribution made from the Super Pit.
Saracen acquired its 50 per cent share in the pit for $US750 million in November last year, which Mr Finlayson said had enabled the company to emerge with a vastly different production profile, cash flow projects and balance sheet.
He said Saracen would maintain a conservative balance sheet, placing strong emphasis on debt reduction.
“As part of this strategy, we have made the decision not to pay a dividend in relation to this half year,” Mr Finlayson said.
Shares in Saracen closed up 1.94 per cent to trade at $4.21 per share.
Meanwhile, Subiaco-based Regis Resources reported a 25 per cent increase in net profit to $93.4 million for the first half of FY20.
The company had lower gold sales of 182,807oz, but at a higher average price of $2,063/oz.
Its cash flow from operating activities stood at $126.5 million.
Regis managing director Jim Beyer said the results reflected the reliability of the company’s Duketon operations, in the north eastern Goldfields.
He said Duketon had delivered solid cash flow for the company, which allowed it to undertake capital investment for its Rosemont underground deposits in Western Australia.
The company has declared an 8 cent fully franked interim dividend.
Shares in Regis Resources closed up 2.8 per cent to trade at $4.41 per share.
Mining tech company Imdex has reported solid first-half results, with revenue up 2 per cent to $127.9 million and underlying EBITDA of $28.1 million, up 12 per cent.
The company said it had a robust balance sheet and a strong net cash position of $25.5 million, up 24 per cent.
Imdex has declared a fully franked interim dividend of 1 cent per share.
Its shares also closed up, trading 1.34 per cent higher to $1.52.
