Solid six months for gold miners

Local gold miners Saracen Mineral Holdings, Silver Lake Resources and St Barbara reported a profitable six months, however shareholders won’t be seeing any returns in the form of dividends.

A week after pouring first gold at its Thunderbox mine, Saracen announced today a 106 per cent surge in net profit to $7.9 million for the six months to December, with revenue up 5 per cent to $126.6 million.

The result was driven by a 22 per cent fall in all-in sustaining costs from the previous corresponding period, to $1,017 per ounce.

Operating cash flow surged 149 per cent to $55.1 million but the company incurred a $25 million non-cash charge during the half year.

Saracen managing director Raleigh Finlayson said it had been a pivotal period on the company’s development.

“We have slashed costs, generated a significant increase in cashflow and doubled our profit,” he said.

“At the same time, we funded the development of our second major WA project, Thunderbox, from cash flows and still finished the period with $42.1 million in cash and bullion and no debt.”

Silver Lake reported a return to the black with a $198,000 first-half profit result with revenue up 25 per cent to $104.9 million.

The company’s earnings before interest, tax, depreciation and amortisation surged 118 per cent to $25.8 million, while ASIC fell 8 per cent to $1,281/oz.

Silver Lake realised an average gold price of $1,552/oz, up from $1,467 compared with the previous corresponding period.

Meanwhile, St Barbara also announced a return to the black with a $77 million half-year profit, up from a $20 million loss in the first half of FY15, while revenue rose 32 per cent to $311.6 million.

The group’s EBITDA surged 107.2 per cent to $155.4 million, with the company reporting a dramatic 20.9 per cent fall in AISC to $922/oz.

None of the companies declared an interim dividend.

Silver Lake shares were unchanged at 32 cents each, while Saracen shares rose 9.3 per cent to $1.05.

St Barbara shares closed 9.1 per cent higher to $1.84 each.