Tag: Silver Lake Resources

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Silver Lake Ninth Consecutive Sales Guidance Met

Silver Lake Resources has released its FY23 Sales Result and has shown to have met sales guidance for the ninth consecutive year.

The strong result is off the back of a record quarterly sales result of 83,540 ounces. This has been driven by the performance of the Deflector and Mount Monger operations. Operations delivered a FY23 sales amount of 260,370 ounces. This is 3% higher year on year for Silver Lake.

There was an impact to the company from forest fires in northern Ontario which impacted the June production result at the Sugar Zone operation. Yet, the company were able to deliver for the year.

Silver Lake are also debt free and with cash and bullion at $331 million up $63 million from March 31 2023. According to the announcement this morning “The strong fourth quarter performance is consistent with Silver Lake’s “invest and yield” strategy and reflects the investment through the first half to establish access to new higher grade mining areas at both Deflector and Mount Monger”

 

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Morning News Bites – August 19

In the Morning News Bites – August 19

ANZ posts cash profits of $1.49 billion with around 84,000 home loan deferrals and around 22,000 business loans deferred. Dominoes Pizza has increazsed its sales in Australia and New Zealand by 4% to $1.2 billion. While The Reject Shop posts a net profit after tax of $1.1 million after a $16.9m loss in previous corresponding period.

Silver Lake Resources has posted an increase in gold production of 64% to 273,071 ounces gold equivalent and a 54% increase in gold sales. The company also posted a 3,852% increase in statutory profit after tax of $257 million. The hedge book for Silver Lake Resources is also totals 155,568 ounces at A$2,147/oz for delivery over FY21 – FY22 as of June 30.

Saracen Resources has made the big league according to Managing Director Ral Finlayson as the company announced a record underlying net profit after tax. Mr Finlayson said “These results show Saracen has successfully made the transition to the big league of ASX gold producers,” Production for Saracen is set to reach around 700,000oz pa in FY24, before climbing to around 800,000ozpa in FY27 “Our production rate is now running at +600,000oz a year and our cost base is still tight. This means we are perfectly positioned to capitalise on the strong gold price and continue generating strong growth in our cashflow. And all our operations are based in the Tier-1 location of Western Australia which, in conjunction with our future-proofing strategy, adds further certainty to the outlook for our business.” he said.

Production volume for Mineral Resources has increased for the 20FY by 65%. The Koolyanobbing Iron Ore operation June run rate was at 12.7Mtpa, while Mt Marion lithium production up 17% year-on-year. MRL have initiated a comprehensive COVID-19 screening process for employees and visitors and includes WA’s largest private PCR screening facility 7 sites – 2 in Perth metropolitan area and 5 in regional areas, More than 40 nurses and collectors trained for swab screening and they process test everyone prior to entering a site. Managing Director Chris Ellison said “MRL has entered FY21 with a strong balance sheet and positive momentum in our operations. We remain vigilant to the ongoing threat posed by COVID-19, as well as opportunities for which we can quickly and efficiently deploy the Mining Services capabilities that are the hallmark of our Company.”

Drill sites for Castillo Copper’s Big One Deposit have been pegged and preparations for the upcoming drill program are in place. Managing Director Simon Paull thanked his geology team and is looking to move forward on the drilling “Thanks to the dedicated hard work of our geology team, we are now clearly across logistics and regulatory approvals. Importantly, we are now fully prepared to move forward with our planned drilling campaign at the Big One Deposit. Moreover, the fresh geological insights the field team observed at site is extremely encouraging, especially finding high-grade supergene and massive sulphide mineralisation at surface.” he said.

Placement and Institutional Entitlement Offer attracted significant demand from both eligible existing and eligible new institutional investors located in Australia and offshore. Lynas Corp Managing Director Amanda Lacaze said “We are delighted by the level of demand for the Institutional Offer from eligible existing and new institutional investors, both in Australia and overseas. This is a clear indication of institutional support for our Lynas 2025 growth vision and our strengthened balance sheet will enable Lynas to mitigate global economic uncertainties and continue to progress with our Lynas 2025 foundation projects. We look forward to the participation of our retail shareholders when the Retail Entitlement Offer opens on Monday, 24 August.”

 

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Morning News Bite – July 21

Job support for Australians extended at a reduced rate, Western Australia Premier Mark McGowan says mining companies need to stop relying on FIFO and face mask purchases restricted at major supermarket chains.

  • Downer EDI is starting trade in July 21 in a trading halt as an acquisition is on the cards. The company made the announcement about the acquisition and fully underwritten accelerated non-renounceable entitlement offer of ordinary shares on a pro-rata basis to existing eligible shareholders of the Company. The trading halt is expected to last until the earlier of either the Company making an announcement to the ASX in relation to completion of the institutional component of the Entitlement Offer or the commencement of trading on Wednesday, 22 July 2020.
  • BHP has released is quarterly report with Iron Ore in Western Australia achieving record production. Increased petroleum production at Bass Strait due to higher seasonal demand, partially offset by lower volumes at Atlantis due to planned maintenance and preparation work for Phase 3 project commissioning, and lower demand in Trinidad and Tobago was the difference in Mar – Jun Qtr reports. Other highlights included Olympic Dam completing a quarter of higher production due to improved operating sustainability, Higher volumes at Queensland Coal including record production at Poitrel mine and higher nickel volumes due to the ramping of full capacity at the Kwinana refinery and Kalgoorlie smelter during the prior quarter. BHP Chief Executive Officer, Mike Henry also commentated on the impact of COVID19 in its operations  “BHP safely delivered a strong operational performance in the 2020 financial year, achieving record production in a number of our operations, and an improved cost base. This performance, achieved in the face of COVID-19 and other challenges, is a result of the outstanding effort of our people and the support of our communities, governments, customers and suppliers. We have sought to support those who rely on BHP through the pandemic with increased hiring, shorter payment terms for small, local and indigenous suppliers, support for contract workers and community funding for health and social services” He said. “We expect to continue to generate solid cash flow through the cycle and we remain confident in the outlook for demand for our products over the medium to long-term. We continue to focus on becoming even safer, delivering exceptional operational performance, maintaining disciplined capital allocation, creating and securing more options in future facing commodities and building social value. We have learned new ways of working, both internally and with others, through the COVID-19 pandemic. We will seek to embed these in a way that helps to reinforce these priorities.” according to Mr Henry.
  • An expanded drilling program for Gateway Mining is set to be undertaken after a $7m capital raising. Gateway are set to embark on a program of 5,000m of Reverse Circulation (RC) and 10,000m of air-core (AC) drilling to be completed at priority targets around the Montague Dome. CEO at Gateway Mining Peter Langworthy commented on the drill program by saying “We have positioned the Company to the point we can effectively accelerate our drilling programs to unlock the true potential of what we believe to be an emerging large-scale gold system. Having sufficient funding in place means that we can maintain a fast pace of drilling activity, with drill programs set to be maintained continuously right through to the end of the year and into 2021.” “The current program of RC drilling is making excellent progress and already approaching the halfway point of the expanded 4,500m of drilling. This will be followed by one of our biggest programs of air-core drilling to date, before we embark on what will be a crucial program of RC and diamond drilling through to the end of the year.” he said

 

Silver Lake Resources – Rothsay Mine (pic via Silver Lake Resources LinkedIn)

  • Quarterly group production was a record 71,291 ounces gold and 494 tonnes copper with sales of 64,593 ounces gold and 416 tones copper at a sales price of A$2,300/oz and AISC of A$1,344/oz for SilverLake Resources. Mount Monger mining camp produced 45,333 ounces and 42,331 ounces recovered, of this 38,017 ounces were sold at an AISC of A$1,471/oz with record annual sales from Randalls of 154,900 ounces at an AISC of A$1,414/oz. Deflector has a record quarterly gold production of 28,960 ounces and 494 tonnes of copper with record annual gold production of 104,376 ounces gold and 2,356 tonnes copper. Average mill grades at Deflector were also higher for the quarter. Meanwhile the Box Cut for Rothsay has commenced this month as significant approvals progress has taken place with mining camp and occupation taking place on July 1.
  • Image Resources has reported a strong quarter at its high-grade, zircon-rich Boonanarring mineral sands project, located 80km north of Perth. Image has increase to production  in the June quarter of 83kt, on pace with guidance Heavy Minerals Concentrate sales increased substantially quarter on quarter to 65kt and sales volumes are expected to further increase in the second half to achieve guidance. Managing Director and CEO of Image Resources Patrick Mutz said “In the first half of 2020 Image has demonstrated strong operational performance with production of 167kt Heavy Mineral Concentrate, despite the significant adjustments to daily work practices aimed at minimising the potential spread of COVID-19. The June quarter represents a turning point for our sales volumes which were up sharply from the prior quarter. It was therefore particularly pleasing, subsequent to period end, to receive a sales agreement with our off-take partners for 100kt of HMC to be delivered over the next 3-5 months to monetise our HMC inventory, while keeping open the opportunity to sell additional material to others outside of the off-take agreements. The Company remains in a very strong position to achieve our original guidance and we have a strong balance sheet, solid underlying assets and exciting opportunities for future growth.” he said.