Silver Lake Resources (ASX:SLR) share price slides 9% on quarterly results

The gold explorer and producer has updated investors this morning.

| More on:
miner holding gold nugget

Image source: Getty Images

The Silver Lake Resources Limited. (ASX: SLR) share price has slipped into the red this morning after the company released its quarterly results.

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.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

ANZ Bank share price 2021 man attempting to pull tired woman over finish line in running race
Bank Shares

The ANZ share price is ‘trading at its largest discount to its peers in 15 years’: Is this justified?

ANZ finds itself in a similar position to NAB three years ago before Ross McEwen took the reins.

Read more »

ASX bank shares buy A young boy in a business suit giving thumbs up with piggy banks and coin piles
Share Market News

Could now be a great time to start investing in ASX shares?

Is it a good time to start investing in ASX shares? There has been a lot of volatility in 2022.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Share Market News

ASX 200 midday update: Appen crashes, lithum shares jump

The ASX 200 is ending the week strongly...

Read more »

An ASX200 market analyst holds his hand to his chin and looks closely at his computer screens watching share price movements
Share Market News

‘We’re close to the bottom’: Expert flags share market sectors to buy before the rally

It's been a rough year for investors. Luckily, this expert believes global markets are about to rally.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Friday

The ASX 200 looks set to end the week on a high...

Read more »

Computer key - Top 10 ASX today
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Thursday.

Read more »

A woman with a loudhailer turns up the volume on her office co-workers
Share Market News

Here are the 3 most traded ASX 200 shares on Thursday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

Woman looks puzzled as she types on laptop and uses phone.
Share Market News

What’s going on with the Australian Vanadium share price today?

Investors may be wary about unspecified additional share dilution from the open-ended share purchase plan.

Read more »