Northern Star Resources and Saracen Mineral Holdings report operational records.
During the December quarter, Saracen recovered record gold, with nearly 310 000 ounces reported. This achievement was also replicated at its Carosue Dam operation in Western Australia.
Saracen’s Mill expansion was commissioned earlier than expected and contributed to Carosue Dam’s record. Saracen sold more than 150,000 ounces of gold during the quarter at an average price of $2322 an ounce. This is up from $2138 that was realised in the 2020 financial year.
The company had met or exceeded all its operational, financial and corporate objectives for the quarter, said Raleigh Finlayson, Saracen Managing Director.
“Our production centres performed extremely well, resulting in record production for the six months,” he said. “We also continued to invest in our growth and future-proofing strategy. This will help ensure the Saracen assets meet the targets set as part of the merger with Northern star. “This is the last quarterly report for Saracen but it also marks the start of a new chapter which will see shareholders benefit handsomely from the increased scale, synergies, flexibility and outstanding growth opportunities which will stem from our unique merger.”
On Feburary 12th, Saracen is expected to execute its merger with Northern Star. This merger has been backed by 98 per cent of approving shareholders.
The Northen Star ended the quarter on a high, producing a total of 252,899 ounces. This is an 11% increase on the prior quarter. It is also at the pointy end of its 226,000 to 254,000 ounces goal.
The company sold 71,731 ounces at an all-in sustaining cost (AISC) of $1968 per ounce at Kalgoorlie, and 58,565 ounces from Yandal at an AISC of $1203.
Bill Beament, Northern Star Executive Chair said the operational high meant a significant debt reduction.
“Our Australian operations, including (the Super Pit) performed very well. The results at Yandal were once again exceptional and further progress was made in our push to increase production and lower costs at our Kalgoorlie operations.”
Beament confirmed that preparations for the Saracen merger were “proceeding to plan”.
“I am very confident that the combined group is on tack to meet the production and financial targets we have outlined,” he said.
“The potential productivity gains and growth opportunities are immense.”