JOHANNESBURG (miningweekly.com) – ASX-listed Saracen Mineral Holdings has delivered a 132% increase in net profit after tax to A$25.9-million for the financial year ended June, capping a strong operational and financial performance at its growing Western Australia gold operations.

The profit, which was after allowing for an income tax provision of A$12.4-million, was struck on an 11% increase in sales revenue to A$276.5-million and driven in part by increased gold sales of 188 024 oz, up from the 164 114 oz it reported last year.

Earnings before interest, taxes, depreciation and amortisation also rose by 11% to A$73.5-million, reflecting the higher production levels combined with a 4% reduction in all-in sustaining costs (AISC) to A$1 095/oz.

Owing to the increased production, operating costs increased from A$162.7-million in 2015 to A$178.8-million in the year under review. The charge for amortisation and depreciation decreased from A$49.5-million to A$33.9-million, following completion of the Whirling Dervish openpit.

Operating cash flow rose by 68% to a record A$109.8-million, driven by record production volumes, lower costs and a strong Australian-dollar gold price.

At the end of the year, the company held cash and bullion of $40.3-million with no debt. This was after spending A$97.6-million during the period on capital development and exploration, mainly construction of Saracen’s second gold mine, Thunderbox.

Saracen MD Raleigh Finlayson said the strong financial and operating results had set up the company for exceptional growth in free cash flow.

“The outstanding performance of our operations generated the cash to fund almost A$100-million of mine development and exploration during the year, which has enabled us to remain debt-free with a clear growth path to 300 000 oz/y and a further significant increase in free cash flow.

“It has also allowed us to triple the exploration budget to A$42-million for this financial year. We are confident that this aggressive campaign will underpin the next round of growth in our inventory and mine life, generating a strong return on our investment in the process,” Finlayson added.