Super Pit owners Saracen and Northern Star have reported positive gold production for the June quarter, with Saracen reaching record output for the financial year.
Kalgoorlie Super Pit owners Saracen Mineral Holdings and Northern Star Resources have reported positive gold production for the June quarter, with Saracen reaching record output for the financial year.
The Perth-based company said it had produced 520,414 ounces of gold in the 2020 financial year, including 132,595oz from its 50 per cent-stake in the Super Pit, exceeding its guidance of more than 500,000oz.
Its Carosue Dam mine in the Northern Goldfields contributed 203,281oz towards Saracen's total gold output, while its Thunderbox operation produced 184,538oz.
The company said COVID-19 had a “limited impact” on operations, with Saracen producing 145,840oz of gold in the three months to June 30 and selling 148,011oz at an average price of $2,280/oz, generating revenue of $337.5 million.
Its cash and bullion stood at $369.3 million at June 30, up from $338.8 million at March 31.
Managing director Raleigh Finlayson said the company has exceeded its production guidance for seven straight financial years.
“We are also meeting our undertakings to continue driving growth and we expect this to be clearly evident in our strong news flow over the coming months,” Mr Finlayson said.
Saracen is due to post its full-year results along with its June quarter report, as well as updates for the Carosue Dam, Thunderbox and Super Pit operations.
Its shares closed up 2.3 per cent to trade at $6.14.
Meanwhile, fellow Super Pit owner Northern Star said it would bring back its $50 million interim payout to July 16 – previously deferred until October – in light of solid production in FY20.
The company reported a 2 per cent rise in its full-year output, having produced 905,177oz compared with 900,268oz in FY19, including a 111,961oz contribution from its 50 per cent stake in the Super Pit.
However, the full-year result is about 1.6 per cent below the lower end of Northern Star’s FY20 production guidance, which the company withdrew in March due to uncertainties stemming from COVID-19.
Chief executive Bill Beament said the company had adopted a “prudent approach” to managing its balance sheet, which prompted its decision to drawdown additional debt and postpone the 7.5 cents per share interim dividend.
Northern Star said its cash, bullion and investments had risen by 40 per cent to $769.5 million at June 30, up from $551.4 million at March 31.
Shares in the company closed up 6.9 per cent to trade at $14.90.
