Saracen Mineral Holdings has exited the ASX on a high after merging with fellow Super Pit operator Northern Star Resources, today reporting gold production records from its Western Australian operations.
The company ended its final year as a standalone company by producing a record 309,512 ounces of gold, 43 per cent more than the previous corresponding period.
This puts Saracen on track to meet its standalone 2021 financial year guidance of 600,000 to 640,000 ounces of gold, as well as entering its new era with Northern Star on strong footing.
Having officially joined forces with Northern Star, Saracen is well on its pathway to increase gold production to two million ounces per annum.
“By combining our operations with those of Northern Star, we are creating a world-scale gold miner,” Saracen managing director Raleigh Finalyson said.
“In the process, we will unlock substantial synergies, efficiencies and exploration upside which will drive organic growth.
“Saracen’s assets are top-shelf, generating outstanding cashflow from strong margins and underpinned by long mine lives.”
The company invested in the future of its assets during the half-year in preparation for the merger; spending $43.2 million on open pit development at the Super Pit; $62.1 million at Carosue Dam on underground, mill expansion, decline and open pit development; $82.9 million at Thunderbox; and $27.4 at exploration across its Western Australian gold assets.
This was funded by a 47 per cent increase in sales revenue to $601.7 million in the six months to December, selling 255,938 ounces of the precious metal at an average sale price of $2343 per ounce.
Saracen received an “overwhelmingly positive” response to its merger-of-equals with Northern Star, which will materialise this week.
Future results for the two companies will be combined from February 12.