Your capital is at risk. CFDs can result in losses that exceed your initial deposit. Please ensure you fully understand the risks involved. Your capital is at risk. CFDs can result in losses that exceed your initial deposit. Please ensure you fully understand the risks involved.

Saracen share price: Q1 production report in focus

We examine the key details behind Saracen's latest production results.

Saracen welcomes record production

Saracen Mineral Holdings shares rose before falling away after the gold miner beat its quarterly production guidance despite Covid-19 restrictions.

Saracen produced 158,132/oz from its Australian operations in Q1, a record for its Australian business, at an average all-in-sustaining cost of $1,133/oz.

The company reported gold sales netted revenue of $369 million, as it booked an unaudited net profit after tax of $65 million to $70 million.

‘These results highlight the growth Saracen is enjoying at all levels of its business,’ Chief Executive Raleigh Finlayson said.

‘Our strategy of growing through a combination of exploration and production has resulted in record production, low costs and strong new cash flow.’

Shares in Saracen responded immediately. The stock was up 3.7% to $4.73 in early trading, up from its close of $4.50 yesterday. However the shares lost their lustre after the morning session and were changing hands at $4.50, below yesterday’s close, at 12:05 AEDT.

Negativity in the gold sector could have been behind the swing in sentiment. Fellow gold miner Newcrest Mining, Australia’s largest miner that reports its results on Thursday, was 2.8% down to $27.67. Another gold miner Evolution Mining, one of the best performers lately, was sitting a $5.31, down 0.4%.

This was against a flat morning session from the benchmark ASX 200 index, which was basically unchanged at 5,325.80 points.

Wild ride before Q1 results

Since 23 March, it’s been a wild ride for Saracen shareholders. Perhaps investors have ebbed and flowed between its safe haven status as a gold miner and its dividend status.

Back on 20 February, the company set the tone for investors before the magnitude of Covid-19 had hit home. Chief Executive Raleigh Finlayson said the miner wanted to keep its options open for growth and reduce its debt before paying its first dividend.

The company had just invested US$750 million ($1.115 billion) for a half share in the Superpit gold operations. But having told investors back in August that it would pay dividends of 20-40% net profit once its cash balance topped $150 million, shareholders were in the mood for a payout.

On 10 March, its shares were sitting at $4.07, before they crashed 28.5% to $2.91 on 16 March, then rallied back up 25.8% to $3.66 on 18 March, then back down to $2.79 by 20 March.

Practise trading indices, currencies and equities like Saracen Minerals with an IG demo account now.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get commission from just 0.08% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.