The Saracen Mineral Holdings Limited (ASX: SAR) share price is edging higher today after the gold miner reported record gold production for FY20. Gold production for the full year was 520,414 ounces, above the company's previous guidance of +500,000 ounces. Production of more than 600,000 ounces of gold is slated for the current financial year.
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About Saracen Mineral Holdings
Saracen Mineral Holdings is an Australian gold mining company that operates three mines near Kalgoorlie, Western Australia. These consist of the Carosue Dam, Thunderbox, and 50% of the Super Pit. The Saracen share price has benefitted from the rise in gold prices over 2020. The company's shares have risen from a low of $2.91 in March to their current price of $6.12, at the time of writing. The increasing share price resulted in Saracen joining the S&P/ASX 100 (ASX: XTO) in the most recent quarterly rebalance.
What did Saracen report?
Sarcen released a trading update this morning which revealed its FY20 full year production was above guidance. In the June quarter, Saracen produced 145,830 ounces of gold, contributing to a full year production of 520,414 ounces.
Managing Director, Raleigh Finlayson, commented "We have now met or exceeded guidance for seven straight financial years". He went on to say "We are also meeting our undertakings to continue to drive growth and we expect this to be clearly evident in our strong news flow over the coming months".
Saracen reported gold sales of 148,011 ounces in the June quarter at an average price of $2,280 per ounce. This resulted in sales receipts of $337.5 million. At the end of the June quarter, Saracen had a net cash position of $48 million. This was up from a net debt position of $21 million at the end of the March quarter.
What is the outlook for the Saracen share price?
Like other gold miners, the Saracen share price has been lifted by the increase in the price of gold. This has risen from below $2,300 per ounce in January to nearly $2,600 per ounce currently. Further news is expected out of Saracen in the coming months. This will include detailed information on the performance of its mines as well as the company's full FY20 results. To date, COVID-19 has had a limited impact on the company, which has continued to execute its long-standing strategy to future-proof the business.
