Saracen posts record quarter

Gold miner Saracen Mineral Holdings has produced a record 96,324 ounces for the September quarter, at a lower cost than it anticipated.

Saracen said the results put it on track to meet financial year guidance of between 350,000 and 370,000oz, while its all-in sustaining cost of $964 an ounce was below guidance of $1,025 and $1,075/oz.

Its cash and cash equivalents reached $196.1 million at September 30, up from $154.5 million from the June quarter, despite outlaying $5.5 million on tax and $34.6 million on exploration.

Managing director Raleigh Finlayson said the production reflected Saracen's investment in exploration and development.

"These results show that we are harvesting the benefits of what we sowed over the past two or three years," he said.

Saracen acquired Bligh Resources for $38.2 million in the quarter to amalgamate Bligh’s Bundarra project with its own Thunderbox operations.

The two operations are located only 30 kilometres apart, near the Goldfields town of Leinster.

Shares in Saracen were up 4 per cent to trade at $3.50 each at 2pm AEDT.