PRECIOUS METALS

Softer quarter for WA gold miner

Silver Lake Resources has signed off on a softer headline quarter, but says it remains on track to meet full-year production guidance.

Mining at Silver Lake Resources' Karonie South pit, part of the Mt Monger operation in Western Australia

Mining at Silver Lake Resources' Karonie South pit, part of the Mt Monger operation in Western Australia

Group production by the Western Australia gold miner of 57,566 ounces gold and 410t copper was achieved in the December period, with sales of 59,824oz gold and 492t copper coming at all-in sustaining costs of A$1592/oz. 

The latter included Mount Monger's AISC being $1807/oz, a result the miner said was a function of lower gold sales "due to the timing of gold pours at quarter end", and the introduction of Santa underground costs for the first time.

Cash and bullion increased by $12 million to $315 million, versus an increase of $34 million the previous quarter.

However, some of that disparity was accounted for by Silver Lake making a stamp duty payment of $6.8 million in the December quarter - relating to the acquisition of Doray Minerals.

While Silver Lake is maintaining guidance of 240,000-250,000oz at AISC of $1400-1500/oz, copper output is now pegged to be nearly 50% higher at 1600t.

Shares in Silver Lake were down 0.6% to $1.67 in early trade, capitalising the company at $1.47 billion.

The stock is down about 24.5% over the past three months, versus falls for peers Westgold Resources and Ramelius Resources of 13.5% and 22%, respectively.

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