Saracen Mineral Holdings (ASX:SAR) has provided a corporate update and the company seems to be ahead of schedule at the development of the Thunderbox gold project in Australia. As the open pit mining is ahead of schedule, Saracen now expects to start mining its first ore in the current quarter.
Other parts of the development timeline have also moved up, and instead of commissioning the project in Q2 CY 2016, Saracen is now aiming to start commissioning the project in the first quarter of next year with first gold production shortly thereafter in the first half of 2016. That’s great news and Saracen might become a darling of the market on the back of this update.
The company has also announced it closed an additional hedge to sell 40,000 ounces gold at a fixed price of A$1600/oz, and that’s a very prudent thing to do. It protects the operating margins and as 40,000 ounces is just a minimal amount of the total consolidated production rate, there still is plenty of upside potential for Saracen’s shareholders.
Go to Saracen’s website
The author holds no position in Saracen Mineral Holdings. Please read the disclaimer
