AAP Finance

Saracen profit up, to pay first dividends

By AAP Newswire

Mid-tier goldminer Saracen Minerals has reported record full-year profit of $92.5 million, up 22 per cent from the previous financial year.

Saracen said it mined 355,077 ounces of gold from its Carosue Dam and Thunderbox operations in Western Australia, 12 per cent more than last year.

It all-in sustaining cost was $1,030 an ounce, down from $1,139 an ounce, and its revenue was up 9.0 per cent to $555.6 million.

Saracen managing director Raleigh Finlayson said the company would pay dividends for the first time this fiscal year as long as it held its cash balance above $150 million.

It had $154.5 million in cash and equivalents as of June 30 and no debt but wants to spend at least $50 million on exploration this fiscal year.

RBC Capital Markets mining analyst Paul Hissey said the dividend policy "still leaves significant wiggle room and investors should not (in our view) factor in significant capital returns any time soon", but said overall the result was "slightly better than our estimates, owing mainly to lower costs".

Saracen shares were down 4.4 per cent to $3.74 at 1321 AEST, on a day when many goldminers were lower.

Another mid-tier goldminer, Regis Resources, announced it made $163.1 million in profit for the year ended June 30, down 6.3 per cent from last year.

Regis produced 363,418 ounces of from its three WA mines at an all-in sustaining cost of $1,029 an ounce, up 14 per cent from last year.

Its revenue was up 8.0 per cent to $654.8 million.

Regis announced an eight cents per share dividend, fully franked, unchanged from last year.

Mr Hissey called the results "broadly in line with our estimates" and not likely to move the market.

Regis shares were down 5.0 per cent to $5.35. at 1321 AEST.