Image: Saracen Mineral Holdings.
BY JESSICA CUMMINS
SARACEN Minerals capped off FY18 with a net profit surge of 166 per cent to $76 million; an increase from $28.4 million a year prior.
Results stemmed from increased gold sales of 317,675 ounce sand lower AISC of $1139/oz.
Underlying NPAT – excluding the $10.6 abnormal profit received from its sale of King of the Hills; doubled to $67.3 million.
In early August, Saracen reported a 64 per cent increase in reserves at its Karari Dervish project to 1 million ounces, , and an increase in reserves to 980,000oz at Thunderbox.
Saracen managing director Raleigh Finlayson said the strong results were particularly pleasing given the company was in the middle of a major growth phase.
“Profit and free cashflow surged as we grew production and reduced costs,” Mr Finlayson said.
“This combination stemmed in part from our huge exploration success.
“This is the key to our ongoing growth and therefore we have committed $60 million to exploration in FY19.
“Continued growth in our inventory will underpin our push to become a 400,000ozpa producer with 10 year mine lives at both operations.”
Other significant FY18 results included St Barbara which posted a net profit after tax of $227 million, and Western Areas Mining which had cash at bank of $151.6 million.
