26/08/2016 - 14:21

Gold result for Saracen

26/08/2016 - 14:21

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Gold miner Saracen has more than doubled financial year net profit to $26 million on the back of higher gold production and a continuing strong local dollar gold price.

Start up of milling at Thunderbox has boosted results at Saracen.

Gold miner Saracen has more than doubled financial year net profit to $26 million on the back of higher gold production and a continuing strong local dollar gold price.

Revenue was $276.5 million in the 12 months to June, up 11 per cent from the previous period, while earnings before interest, tax, depreciation and amortisation rose a similar percentage to $73.5 million and NPAT was up 132 per cent.

Production was 13 per cent higher to just less than 189,000 ounces, with milling at the Thunderbox operation getting under way in the March quarter.

In the June quarter, Thunderbox produced 22,155 ounces, for a total of 31,465 during the year.

Saracen bought the operation, located near Leinster, in January 2014 from Norilsk Nickel, and spent about $60 million during the year on readying the project for production.

Saracen Managing Director Raleigh Finlayson said he expected very high growth in free cash flow, with the company debt free.

“The outstanding performance of our operations generated the cash to fund almost $100 million of mine development and exploration during the year,” he said.

“This has enabled us to remain debt-free with a clear growth path to 300,000ozpa and a further significant increase in free cashflow”.

“It has also allowed us to triple the exploration budget to $42 million for this financial year.

“We are confident that this aggressive campaign will underpin the next round of growth in our inventory and mine life, generating a strong return on our investment in the process”.

It has been a positive market for gold miners across the country, with the surprise Brexit vote in June pushing the price of the commodity to record highs in Australian dollar terms.

That has been helped along by a gradual depreciation of the currency from mining boom highs to a level of around US76 cents overnight.

Saracen shares were down 0.1 per cent to $1.51 at the time of writing.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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