Silver Lake higher on record quarter

Shares in Silver Lake Resources have closed higher after the company boosted its gold production guidance on the back of a record-breaking quarter.

Silver Lake produced a record 61,152 ounces of gold across its Mount Monger and Murchison Gold operations during the December quarter, up from 59,902oz in the three months to September.

The company also boosted its sales for the quarter, selling 62,265oz at an average realised price of $1,371/oz compared to 60,910oz in the September quarter.

The strong results have prompted Silver Lake to lift its annual production guidance from 180,000oz-200,000oz to 205,000oz-220,000oz. 

This comes despite Silver Lake reducing its production guidance at Murchison Gold from 60,000oz-70,000oz to 45,000oz-50,000oz as it awaits results from a strategic review at the mine.

The company also continues to gradually reduce its costs, with all-in sustaining cash costs for the December quarter at $1,002/oz compared to $1,135/oz at the beginning of 2013.

Silver Lake cut its debt from $20 million to $8 million during the quarter and expects to pay off the remaining debt by the end of next month.

Shares in Silver Lake closed the day's trade almost 19 per cent higher at 69 cents.