Saracen keeps FY20 guidance

Saracen Mineral Holdings has maintained its full-year production guidance, saying COVID-19 measures would have minimal impact on March quarter production, in contrast to yesterday's update from fellow gold miner Northern Star Resources.

Northern Star said its March quarter production would be 10 to 15 per cent below its previous guidance, withdrew its full-year guidance and deferred an interim 7.5 cent dividend payment to the end of October.

Saracen today announced it would not withdraw its FY20 guidance of more than 500,000 ounces of gold, but said it would continually review this decision.

The Perth-based miner also noted there was no certainty that operations would not be affected in the June quarter.

The company has delayed commissioning of the Carosue Dam mill to 3.2 million tonnes per annum until the March 2021 quarter.

Saracen managing director Raleigh Finlayson said measures taken by the company so far had minimal impact on its production.

“The controls and restrictions we have put in place in recent weeks are likely to impact our mining production rates in the coming quarter,” he said.

“At this stage, with the benefit of substantial ore stockpiles, we expect the impact to be limited on mill production, but we will ensure we keep all stakeholders informed if and when circumstances change in the future.

“It may also become necessary to implement further measures, which we will do without hesitation if circumstances require.”

The company expects cash as at March 31 to be $325 million to $330 million – up from $239 million as at December 31 – and debt of $360 million.

Its shares closed down 1.7 per cent to trade at $3.48 per share.