Silver Lake Resources (ASX:SLR) share price slides 9% on quarterly results

The gold explorer and producer has updated investors this morning.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Silver Lake Resources Limited. (ASX: SLR) share price has slipped into the red this morning after the company released its quarterly results.

Silver Lake shares are now exchanging hands at $1.60, a 9% drop from the market open.

Let's comb over Silver Lake's results in finer detail.

Quick recap on Silver Lake Resources

Silver Lake is in the gold exploration and production business. It produces gold bullion and gold-copper concentrate.

The company has three major projects located in Western Australia at Mount Monger, Deflector and Rothsay.

Silver Lake has a market capitalisation of $1.5 billion at the time of writing.

Silver Lake's quarterly results

Silver Lake reported quarterly production of 62,126 ounces of gold and 445 tonnes of copper. This translated to gold and copper sales of 60,617 ounces and 516 tonnes, respectively.

Overall, gold sales were down about 1% this quarter, whilst copper sales increased 85% from the previous quarter.

Gold sales were realised at a higher price of $2,275 and at all-in sustaining costs (AISC) of $1,478 an ounce.

Progress this quarter propped FY21 sales of 248,781 ounces of gold and 1,724 tonnes of copper. Silver Lake realised an average gold price of $2,315 on this volume, which is in line with previous guidance.

Specifically, Mount Monger produced the most gold at 36,757 ounces. Deflector produced 25,369 ounces of gold.

The company also allocated about $34 million in capital expenditure towards exploration during the quarter. This is balanced by a $10 million increase in cash and bullion to $330 million.

Silver Lake also mentioned it had a 17,000 ounce increase in ore stockpiles to 115,000 ounces at Mount Monger. The company said this "provides project scheduling optionality for FY22" amid a tough labour market.

The company also provided some colour on guidance and expectations for FY22 in the report.

Silver Lake sees a FY22 gold sales volume of 235,000 – 255,000 ounces, with AISC of $1,550 – $1,650 an ounce.

It also foresees copper sales of 600 – 1,000 tonnes within the same AISC ranges over the next year.

Silver Lake share price snapshot

The Silver Lake share price has underperformed the broad index in 2021 with a loss of 16.5%. This extends the previous 12 month loss to 38% in total.

Meantime, the S&P/ASX 200 Index (ASX: XJO) has gained 10.5% in 2021 and 21% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Share Market News

ASX shares in April: 8 key takeaways according to Macquarie

Here are eight key takeaways from April, according to a new note from the broker.

Read more »

Woman looking at a phone with stock market bars in the background.
Share Market News

Market outlook: Should I 'sell in May and go away'?

May is the time to sell... If you believe in fairytales.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Boss Energy, Capstone, Dimerix, and Platinum shares are storming higher today

These shares are having a good finish to the week. Let's find out why.

Read more »

A shocked man holding some documents in the living room.
Broker Notes

Macquarie's take on Judo Capital shares after suddenly falling 19% yesterday?

Judo Bank was the ASX's top-performing banking stock in 2024.

Read more »