Silver Lake shares are now exchanging hands at $1.60, a 9% drop from the market open.
Let’s comb over Silver Lake’s results in finer detail.
Quick recap on Silver Lake Resources
Silver Lake is in the gold exploration and production business. It produces gold bullion and gold-copper concentrate.
The company has three major projects located in Western Australia at Mount Monger, Deflector and Rothsay.
Silver Lake has a market capitalisation of $1.5 billion at the time of writing.
Silver Lake’s quarterly results
Silver Lake reported quarterly production of 62,126 ounces of gold and 445 tonnes of copper. This translated to gold and copper sales of 60,617 ounces and 516 tonnes, respectively.
Overall, gold sales were down about 1% this quarter, whilst copper sales increased 85% from the previous quarter.
Gold sales were realised at a higher price of $2,275 and at all-in sustaining costs (AISC) of $1,478 an ounce.
Progress this quarter propped FY21 sales of 248,781 ounces of gold and 1,724 tonnes of copper. Silver Lake realised an average gold price of $2,315 on this volume, which is in line with previous guidance.
Specifically, Mount Monger produced the most gold at 36,757 ounces. Deflector produced 25,369 ounces of gold.
The company also allocated about $34 million in capital expenditure towards exploration during the quarter. This is balanced by a $10 million increase in cash and bullion to $330 million.
Silver Lake also mentioned it had a 17,000 ounce increase in ore stockpiles to 115,000 ounces at Mount Monger. The company said this “provides project scheduling optionality for FY22” amid a tough labour market.
The company also provided some colour on guidance and expectations for FY22 in the report.
Silver Lake sees a FY22 gold sales volume of 235,000 – 255,000 ounces, with AISC of $1,550 – $1,650 an ounce.
It also foresees copper sales of 600 – 1,000 tonnes within the same AISC ranges over the next year.
Silver Lake share price snapshot
The Silver Lake share price has underperformed the broad index in 2021 with a loss of 16.5%. This extends the previous 12 month loss to 38% in total.
Meantime, the S&P/ASX 200 Index (ASX: XJO) has gained 10.5% in 2021 and 21% over the past year.