Saracen ends FY with record gold quarter

THE BOURSE WHISPERER: Saracen Mineral Holdings (ASX: SAR) announced it had beaten its annual gold production target of 145,000 to 155,000 ounces by hitting out 167,531 ounces of gold.

The total was pumped up from record gold production achieved in the June Quarter of 46,563 ounces of gold from the company’s Carosue Dam gold mine in Western Australia.

The company has now completed mining of the Whirling Dervish open pit.

“We finished the pit within 36 hours of the original predicted completion date of 30 June 2015 which we set back in 2012 before mining commenced,” Saracen Mineral Holdings managing director Raleigh Finlayson said in the company’s announcement to the Australian Securities Exchange.

“The pit has been a great success and gives us real momentum and confidence as we embark on our next project at Thunderbox.”

With $44.9 million in cash and bullion, no debt and a hefty ore stockpile, Saracen said it anticipates a further strong production outlook for its next phase of growth at the Thunderbox open pit.

Saracen has a production target of 150,000 to 160,000 ounces from Carosue Dam in the upcoming FY16 at an All-in Sustaining Cost (AISC) of $1025 to $1075 per ounce.

With the addition of Thunderbox, Saracen indicated production is set to double to approx. 300,000 ounces per annum from the two operational centres at an AISC of less than $1075 per ounce within two years.