Saracen Mineral Holdings (SAR) provided an operations update with commentary on its preparedness in case the business incurs disruptions from the COVID-19 pandemic. Production for the March Q is forecast at 150-155koz gold and cash and billion at 31 March is expected to be $325-330m. This is in line with Argonaut’s prior forecast of 151koz and $326m in cash and bullion. Guidance of +500koz for FY20 has been maintained, but the Company issued caution over potential impacts from further restrictions relating to COVID-19. In our Gold Report released yesterday (link to report), we ranked SAR as the one of the best placed ASX producers if the government was to isolate mines or restrict operations to processing only. There is at least 9 months of stockpiled material at each of SAR’s sites and the Company has a number of locally based employees if flights to sites were cancelled.
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