Saracen Mineral Holdings posted record quarterly gold production of 89,208 ounces for the March quarter, with costs below its previous guidance.
Carosue Dam and Thunderbox operations produced 49,038 oz and 40,170oz, respectively, at an all-in sustaining cost of $1,035 per ounce.
Saracen said Thunderbox delivered a record quarter with AISC falling to $972 per ounce as the C Zone open pit mine steadily progresses into higher grade to lower strip ratio ore.
The company said unaudited quarterly net profit was in a range of $26 million to $29 million, as cash and equivalents rose to $153.3m million from $142.6 million at December 31.
Saracen managing director Raleigh Finlayson said the quarter’s performance showed Saracen was meeting its undertakings to the market on every level.
“Our operations are performing extremely well, as shown by the fact that production is comfortably within annual guidance and costs are below guidance,” he said.
“This combination enabled us to exceed our own forecast for cash generation, with cash and equivalents rising by $11 million to $153 million despite us spending more than $58 million on growth and exploration in the quarter.
“This considerable investment is proving highly successful, as demonstrated by the two recent discoveries in the Carosue Dam corridor and a host of other strong drilling results.
“Given the excellent operating results and the success we are enjoying with the drill rig, we are confident that we are well on track to meet our wider objective of growing production to 400,000oz a year while establishing long mine lives.”
Saracen shares were off 2.29 per cent to $2.57 each at 12.15pmAEDT.
