Saracen increases profit in FY17

PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has reported a 10% increase in net profit after tax for the full year ended June, while earnings before interest, taxes, depreciation and amortisation (Ebitda) rose by 54%.

Saracen on Wednesday reported net profit of A$28.4-million, compared with A$25.9-million in 2016, while Ebitda rose to a record A$113.4-million, up from the A$73.5-million in 2016.

The company told shareholders that the substantial increase in cash flow and earnings marked a pivotal year of transition for Saracen, and highlighted the extent to which the company was set to grow over the next three years as production increased and costs fell.

Gold production during the full year rose by 45%, to a record 272 807 oz, compared with the 188 656 oz reported in 2016, as the Thunderbox mine, in Western Australia, came into commercial production.

Revenue from gold sales was also up by 53% on the previous corresponding period, from A$276.5-million to A$423.1-million.

“The substantial investment we have made in growing our inventory and production is now reaping rich rewards,” said Saracen MD Raleigh Finlayson.

“We are growing our mine lives towards ten years, we are producing at our targeted rate of 300 000 oz/y and we are reducing our costs to just A$95/oz by 2020.”

At the end of the financial year, Saracen held cash and bullion worth A$45.2-million, up from the A$40.3-million in the previous corresponding period, with the company also remaining debt free.