Saracen experienced a 166 per cent surge in its net profit after tax, which climbed to $75.6 million during the financial year 2018.
This is a record figure for Saracen, after excluding its profit on the King of the Hills sale. Saracen also reported an increase of 75 per cent in its EBITDA, hitting $198.7 million.
This reflected a strong Australian-dollar gold price and 316,453oz record gold production from its Western Australian mines, exceeding guidance.
Saracen’s strong performance is attributed to an increase in gold sales – from 266,556oz in the 2017 financial year, to 317,675oz this financial year.
Further, the company enjoyed a sharp drop in its sustaining costs, which slid from $1348/oz in the previous year, down to $1139/oz.
Saracen managing director Raleigh Finlayson said, “Profit and free cashflow surged as we grew production and reduced costs. 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 financial year 2019. Continued growth in our inventory will underpin our push to become a 400,000oz/y producer with 10-year mine lives at both operations.”
Saracen’s growth-related project development and exploration expenditure totalled $71.8 million in the financial year 2018.
Saracen has pursued an aggressive drilling program and reached 2.5 million ounces (Moz) record gold reserve in June, as it sets its sights on growing the mine life to 10 years.