Saracen Mineral Holdings Limited (ASX: SAR) was the top gainer on the ASX200 on Tuesday, with its shares up 5.57% to a 52-week high of $1.90 after the release of a quarterly update showing how the gold miner's growth plan is well under way.
Saracen produced 80,000 ounces of gold in the March 2018 quarter at a stable all-in sustaining costs (AISC) of $1,181 per ounce, while selling the metal at $1,584 per ounce. Solid sales revenue allowed the company to increase its cash balance to $102 million, 24% up from the previous quarter.
In light of the positive quarterly result, the company upgraded its production guidance for FY2018 from 300,000 ounces to a range of between 310,000 and 315,000 ounces, at a declining AISC of $1,100 to $1,150 per ounce.
The upgrade is the first result of Saracen's seven-year programme of development and exploration activities aimed at increasing production and mine life at the two company's projects of Carosue Dam and Thunderbox. Saracen expects total production to grow to 350,000 ounces per annum by FY2022 in the base case, and to 400,000 ounces per annum in the best case.
