Saracen Mineral Holdings is on course to meet its 2020 financial year production guidance of more than 500,000 ounces of gold.
This includes a seven-month contribution from the Super Pit since acquiring the Kalgoorlie-based open pit gold mine in November.
The Super Pit has already contributed to a 22 per cent rise in gold production for Saracen, leading to a record 216,452 ounces during the December quarter.
Saracen managing director Raleigh Finlayson said these results were reflective of the company’s growth phase for its business.
“The key message from these results is that Saracen has continued to grow and will continue to grow,” Finlayson said.
“We are growing production and our inventory through a financially-rewarding combination of aggressive near-mine exploration and prudent acquisition, all within 300 kilometres of Kalgoorlie.”
Saracen invested $84.2 million in growth and exploration during the December quarter.
The company’s net profit after tax rose by 84 per cent to $80.2 million, while the earnings before interest, taxes, depreciation and amortisation (EBITDA) also had an increase of 71 per cent to $178.6 million.
“Saracen has shifted to another level in the league of global gold producers with the key benefits that brings for scale, asset diversity and cashflow,” Finlayson said.
“But we still have a desire to maintain a conservative balance sheet and therefore we are placing a strong emphasis on debt reduction.
“As part of this strategy, we have made the decision not to pay a dividend in relation to this half year.”
Saracen will further increase its growth by expanding the Carosue Dam mill south of Laverton, Western Australia which will start commissioning during the December quarter this year.