09/01/2014 - 10:49

Saracen exceeds quarterly guidance again

09/01/2014 - 10:49

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Saracen Mineral Holdings has exceeded its production guidance for the third consecutive quarter and says it is on track to produce more gold for the financial year than initially forecast.

Saracen Mineral Holdings has exceeded its production guidance for the third consecutive quarter and says it is on track to produce more gold for the financial year than initially forecast.

Saracen produced 31,096 ounces of gold in the December 2013 quarter, exceeding guidance of 28,000oz to 30,000oz.

More than half of the quarter's production came from the company's Red October underground mine, which produced a record 16,346oz.

Saracen's annual production is now tracking 11 per cent ahead of the upper end of guidance of 120,000oz to 130,000oz.

The Perth-based miner produced a record 41,241oz in total during the September 2013 quarter. 

Saracen managing director Raleigh Finlayson said the company had taken a risk averse view on the near-term gold price and added additional ounces to its price protection program during the quarter.

"This will give Saracen the flexibility to deliver up to 100 per cent of production into hedging for the next 8 months over which period our all-in sustaining cash costs are forecast to fall from $1,500/oz to $950/oz in FY15," he said.

Saracen shares firmed on the back of the announcement, up 3.8 per cent to 19.2 cents.

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