Saracen exceeds FY20 forecast

Saracen Mineral Holdings has surpassed its production guidance for the 2020 financial year, though the goldminer’s performance has been overshadowed by the recent death of an underground worker.

An employee working at the Dervish gold mine, which is part of Saracen's Carosue Dam operations in Western Australia, had sustained fatal injuries after “falling from a height", the company announced last week.

The incident was investigated by the Department of Mines Industry Regulation and Safety, which is continuing its investigation.

Speaking at a teleconference this morning, Saracen managing director Raleigh Finlayson extended his condolences to the family, friends and colleagues of the late employee.

“These are indeed very sad days at Saracen with the passing of one of our underground employees,” Mr Finlayson said.

“We’re hurting because we care. We’re a devastated, close-knit unit.

“The accident at the Dervish mine was an absolute tragedy, and on behalf of the board at Saracen I extend my deepest condolences.”

Mr Finlayson said the company had ‘unpacked’ its operations, including those unrelated to the incident, to find new ways to improve its industry critical controls.

“While we’re resuming operations at Carosue Dam, it’s not business as usual,” he said.

“We are in the midst of a soft restart. Slowly, respectfully and carefully we’re getting back on the bike.”

Saracen, which had suspended its Carosue Dam operations immediately after the incident, resumed ore processing last Wednesday followed by underground development and open pit mining activities two days later.

Mr Finalyson said all other activities had recommenced except for open holes, which is part of the department's ongoing investigation.

Saracen produced 520,414 ounces of gold at an all-in sustaining cost of $1,101/oz, ahead of the company’s FY20 guidance of more than 500,000oz.

That includes 145,830oz of gold at an AISC of $1,152/oz for the June quarter, with the Thunderbox operations having produced 42,117oz, Carosue Dam 50,315oz, and 53,398oz from Saracen’s 50 per cent-stake in the Kalgoorlie Super Pit.

Saracen has kept its FY21 production guidance of more than 600,000oz.

The company says it has ore stockpiles of 1.7 million ounces of gold as at June 30, which will help insulate the business, should mining become restricted from further COVID-19 impacts.

Saracen's cash and bullion stands at $369 million, and debt at $321 million.

Its shares closed up 2.9 per cent to trade at $6.13.