Saracen posts strong FY19

Saracen Mineral Holdings has recorded an increase in full-year production in line with guidance, while its costs were lower than expected.

It achieved production of 355,077 ounces at an all-in sustaining cost of $1,030 per ounce for the 2019 financial year, in line with increased guidance of between 345,000oz and 365,000oz.

It bettered its fiscal AISC guidance of between $1,050/oz and $1,100/oz.

In the 2018 financial year, it achieved production of 316,453oz.

Last July, the company had a production guidance for the 2019 finacial year of between 325,000oz and 345,000oz, but in January the company increased it.

For the June quarter it produced 88,096oz at an AISC of $1,026/oz.          

This quarter it acquired Box Well tenements from Hawthorn Resources for $14.1 million in cash and also launched a takeover offer to acquire Bligh Resources for $38 million.

Box Hill is located near its Carosue Dam project and Bligh Resources’ tenements are situated close to its Thunderbox project.

Saracen said this was part of a strategy to continue its growth.

Managing director Raleigh Finlayson said the company’s production and cost base was consistently in line with, or better than, its guidance.

“This combination of reliable production and low costs gives investors an outstanding opportunity to capitalise on the strong gold price while minimising the operational risks,” he said.

“At the same time, we continue to generate exceptional exploration results which support our strategy to grow the inventory and establish a 400,000oz per annum production profile with long mine lives.”

Shares in Saracen were up 1.8 per cent to trade at $4.22 each at 2pm AEST.

If it closes at this price it will be the highest close in its history.