The best performer on the ASX 200 on Monday has been the Silver Lake Resources Limited (ASX: SLR) share price.
In afternoon trade the gold miner's shares are up 7% to $1.51. This leaves Silver Lake's shares just a single cent away from a multi-year high.
Why is the Silver Lake share price racing higher?
Investors have been buying the company's shares after the release of its December quarterly update.
According to the release, during the December quarter Silver Lake delivered record production of 68,519 ounces of gold and 691 tonnes of copper.
This was driven by strong production at both its Mount Monger and Deflector operations.
The Mount Monger operation reported production of 39,854 ounces of gold at an all-in sustaining cost (AISC) of A$1,371 an ounce.
Over at the Deflector operation the company achieved record production of 28,665 ounces of gold and 691 tonnes of copper. This was achieved at an AISC of A$939 an ounce.
This led to Silver Lake's cash and bullion increasing $31 million during the quarter to $186 million. It continues to have no debt on its books.
Outlook.
In light of this strong quarter, management has upgraded its sales guidance.
It now expects its FY 2020 sales to be between 240,000 ounces and 250,000 ounces of gold equivalent. This is up from its previous guidance of 215,000 ounces to 230,000 ounces.
In addition to this, the company has lowered its costs guidance for the full year.
Silver Lake is now expecting an average AISC in the range of A$1,300 an ounce to A$1,350 an ounce. This compares to its previous guidance for an AISC in the range of A$1,375 an ounce to A$1,450 an ounce.
Management advised that its upgraded guidance "reflects increased sales guidance from both operations after incorporating the strong first half results and the continuation of mining at the Daisy Complex in the second half."
Also on the rise in the industry today are the shares of Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR). They have pushed higher after the spot gold price rose on Friday night.
