Saracen Mineral Holdings (SAR) reported FY18 financials with strong results across the board. Revenue of $511m, EBITDA of $199m and NPAT of $76m were up 21%, 75% and 166% respectively. This was largely in-line with Argonaut’s forecasts listed in Table 1 below. Underlying NPAT was $76m after deferred exploration costs (-$1.4m), a profit on the King of the Hills asset (+$10.6m) and an impairment on asset sales ($-0.9m) SAR retains a strong balance sheet with $118m cash and liquid assets and $150m undrawn debt. Higher production, lower operating costs and only a marginal drop in the realised gold price led to margin expansion with free cashflow increasing from $8m in FY17 to $66m in FY18.
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