The Saracen Mineral Holdings Limited (ASX: SAR) share price has been a solid performer on Tuesday.
In morning trade the gold miner's shares are up over 2% to $5.74.
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Why is the Saracen share price shooting higher?
As well as getting a boost from a jump in the spot gold price overnight, the Saracen share price was given a lift by a positive announcement this morning.
That announcement revealed its new seven-year production outlook which will culminate in Saracen achieving 800,000 ounces a year in FY 2027.
This compares to the annual production of 520,414 ounces it achieved in FY 2020, representing a 53.7% increase.
This follows a separate announcement with its joint venture partner, Northern Star Resources Ltd (ASX: NST), in relation to its KCGM project.
That announcement reveals JORC compliant reserves of 9.7M ounces at 30 June 2020, compared to a non-JORC compliant estimate of 6.3M ounces at 31 December 2019.
How will it get there?
The first step to achieving this will be growing its production to between 600,000 ounces to 640,000 ounces in FY 2021. It expects to achieve this with an all-in sustaining cost (AISC) of A$1,300 an ounce to A$1,400 an ounce.
It will also be underpinned by FY 2021 growth capital investment of A$429 million. Management advised that this is anticipated to be the peak year for investing in growth. It will also invest A$55 million into exploration activities in FY 2021.
A new era of growth.
Saracen's Managing Director, Raleigh Finlayson, believes the company is on track to continue the its long record of growing its production and expanding its inventory.
He commented: "Saracen's strategy of making opportunistic acquisitions and then unlocking their full value through exploration and development has created substantial value for shareholders for many years."
"This same strategy is now underpinning a new era of growth for the Company, as shown by the impressive growth in the Resources and Reserves and the forecast production at our recently-acquired KCGM project," Mr Finlayson added.
Once again, the company's focus remains in Western Australia.
The managing director explained: "As in the past, our next round of substantial growth will come totally from within Western Australia, ensuring our future-proofing strategy continues to benefit from the certainty which comes from operating solely in a tier-1 location."
"We are in a superb position given the strong gold price, our growing production profile, our outstanding working relationship with Northern Star Resources at the world-class KCGM project and 17Moz of Resources in WA," he concluded.
