Solid year for gold miners

Local gold miners Resolute Mining, Saracen Mineral Holdings and Ramelius Resources have hit their production targets for FY16 at lower-than-expected costs.

Ramelius produced 32,752 ounces of gold in the June quarter, bringing its FY16 production total to 110,839oz, slightly above its target.

The miner expects its final all-in sustaining cost (AISC) figure to be significantly lower than its guidance of $1,175/oz.

Cash on hand increased to $49.7 million, up from $37.8 million as of the end of the March quarter, with zero corporate debt.

“An excellent quarter from the operations teams, bouncing back strongly after a slightly lower March 2016 quarter,” managing director Mark Zeptner said.

“We have finished the 2016 financial year above 110,000oz of gold production and will further build on this with 135,000oz in FY17.

“Our Vivien mine is now commencing stope production and will have a significant impact on our gold production and bottom line margins going forward.

“On the exploration front, we have effectively doubled our budgeted total expenditure to $10 million, in order to further grow the mine life of our existing assets and also accelerate work on our newly granted tenements in Tanami.”

Resolute today revealed gold production of 315,169oz for FY16, just above its guidance of 315,000oz, with 340,540oz sold at an AISC of $1,210/oz, down from its target of $1,280/oz and its later revised (in April) guidance of $1,220/oz.

The company reduced its debt by $91 million, with cash in hand at $101 million.

Resolute expects to produce a minimum of 300,000oz in FY17 at an AISC of $1,280/oz.

The group also expects to spend $170 million on its major projects.

Managing director John Welborn said Resolute had taken a disciplined approach to reducing debt, generating cash and completing three major project studies, which had revitalised and re-valued its existing assets.

“Our operating team, led by Peter Beilby, has again delivered on production targets. Looking forward we will continue to focus on reducing costs of our operations as we make investments in the exciting long mine life futures we have identified at Syama, Ravenswood and Bibiani,” he said.

“We remain committed to explore all opportunities to fulfil our primary function; to reward our shareholders.”

Saracen, meanwhile, told the market today it had achieved record production of 188,656oz for FY16, on the back of record gold production in the June quarter.

The company had $40.3 million in cash at June 30.

Managing director Raleigh Finlayson said the results highlighted Saracen’s track record of delivery.

“We have now met or exceeded guidance for four straight financial years,” he said.

“Meeting our undertakings to the market is at the core of our business and we look forward to delivering further growth.”

Ramelius shares were 6.9 per cent higher to 54 cents, while Saracen shares were 0.9 per cent higher to $1.65 each, at 12:45pm.

Resolute shares were 1.6 per cent lower to $1.52 each.