Saracen (SAR) reported March Q results with group gold production of 79.7koz at an all-in sustaining cost (AISC) of $1,181/oz versus Argonaut’s forecast of 78koz at $980/oz. The Company’s cash and bullion increased $16.2m Q-on-Q to $91.5m with both Carosue Dam and Thunderbox generating strong free cash flow. Looking forward, SAR is focussed on defining a 7-year production outlook growing to 350-400kozpa. Organic growth through exploration is the key driver for this target and we believe higher production rates will be largely driven by successful Reserve expansion and an uplift in the average milled head grade.
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