Saracen Mineral Holdings Ltd – Lifted FY19 Guidance from 300,000 to 325-345,000 ounces

Saracen Mineral Holdings Limited (ASX: SAR) released its Quarterly report for the quarter ended 30 June 2018 wherein the group had total cash of A$118 Mn and capped an outstanding year of production growth and exploration success. During the quarter, the gold sales recorded 82,206oz at an average sale price of A$1,655/oz, for total revenue of A$136.1 Mn. The company has maintained its corporate debt-free status during the quarter. Besides this, the company hedged 60,000oz of gold at A$1,774/oz, and 54,000oz of hedging was delivered at the price of A$1,610/oz. Of the 54,000oz, 14,900oz were A$1,520/oz pre-delivered ahead of schedule, compared to average spot of circa A$1,720/oz i.e. ~A$3.0m cash impact. At 30 June 2018, the hedge book comprised 275,600oz at an average delivery price of A$1,730/oz. The company recorded mine operating cash flow of A$14.1 Mn for the quarter while net mine cash flow stood at A$5.1 Mn after growth capital of A$9.0 Mn. Based on robust quarterly performance, the group has increased its FY19 guidance from 300,000 oz to 325-345 000 ounces at all-in sustaining costs (AISC) of A$1,050 – 1,100/oz. Meanwhile, the stock has fallen 1.90 per cent in the last five days as on July 16, 2018. Currently, it traded at $ 2.040 with the market-cap of circa $1.69 Bn as of July 17, 2018 before market close.


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