Saracen Mineral Holdings (SAR) delivered a strong March Q with group production of 158.1koz gold at an all-in sustaining cost (AISC) of A$1,133/oz (+32% on production and +3% on costs QoQ). To date, SAR has remained unscathed by the COVID-19 crisis, with production tracking ahead of unchanged FY20 guidance of +500koz. However, the Company remains prepared having restructured its operations to minimise personnel travel and interaction whilst maintaining significant ore inventories to mitigate any potential cessation of mining activities. Mine stocks at 31 March equated to 6-months of processing at Carosue Dam, 11-months at Thunderbox and ~25-months of low grade stocks at KCGM. SAR also drew down $45m post-quarter from its revolver facility to increase balance sheet liquidity (total debt est. $405m). Cash and equivalents at 31 March were $340m. BUY recommendation with a revised target price of $4.60ps (from $4.45ps).
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