Saracen Boosts Gold Reserves and Updates Guidance (ASX:SAR)
Saracen Mineral Holdings Ltd [ASX:SAR] is an Australian gold company with all of their projects located in Western Australia.
Their ‘Flight to 400’ plan aimed to increase mine life and gold production to 400,000oz per year from 2021 at both, Carosue Dam and Thunderbox Operations. I mean, it’s a good idea considering that gold prices have been making record highs throughout the pandemic. At time of writing, gold in US dollars is trading at US$1,974 an ounce.
Today, Saracen said they’ve made some headway on their Flight to 400 plan.
What did Saracen announce today?
In a 422-page update, the company announced they have increased their reserves by 12%, to 3.7 million ounces. This is up from 3.3Moz on 30 June 2019, and a four-time increase since 2013.
Saracen also updated their FY21 production guidance to 380,000–400,000oz at an all-in sustaining cost of $1,200–1,300 per ounce.
The company said they expect that production will increase to 450,000oz per annum from FY23, with 250,000 ounces per year coming from Carosue Dam and 200,000 ounces per year coming from Thunderbox.
Saracen Managing Director Raleigh Finlayson said: ‘These robust Reserves ensure we have long-term, sustainable production in what is almost certainly the best place in the world to be a gold miner.’
The company will also be investing $43 million in exploration during this financial year.
Following the announcement, Saracen shares moved higher early in the day but…
…at time of writing the SAR share price has lost 2.57% from yesterday and are trading at $6.03.
It’s not the only gold miner recording loses today. Evolution Mining Ltd [ASX:EVN] shares are also down by 2.64% and Northern Star Resources Ltd [ASX:NST] is down by 0.44%.
Still the S&P /ASX 200 is trading close to 2% higher even with the announcement of more restrictions in Victoria that will increase unemployment. Investors seem to be ignoring risk.
But there’s certainly plenty of risk around.
Gold feeds on uncertainty. It’s one of the reasons why so far this year gold has increased by over 30%.
One way to get exposure to the gold rally is by owning physical gold.
To find out more about how to do this check out Shae Russell’s step-by-step guide ‘Best Way to Buy, Sell and Store Gold’ here.
To read this free report, click here .