PERTH (miningweekly.com) – Gold miner Silver Lake Resources has reported a 1 117% increase in profits after tax for the first half of 2020, on the back of a near doubling in gold production and higher gold prices.

Silver Lake on Monday reported that gold production for the half-year ended December increased by 98% on the previous corresponding period, to 132 8790 oz, with gold sales up by 82%, to 127 459 oz.

Revenue for the period was up by 116%, from A$119.8-million to A$258.8-million, as the average realised gold price also increased by 23% during the period under review, to A$2 108/oz.

Normalised profits after tax for the half-year reached A$48.7-million, up from the A$4-million reported in the first half of 2019, while cash flow from operations increased by 232%, from A$29.7-million to A$98.6-million, and earnings before interest, taxes, depreciation and amortization (Ebitda) increased by 372%, from A$24.7-million to A$116.8-million.

Silver Lake told shareholders that the results for the first half of 2020 reflected the benefits of the nil-premium acquisition of Doray Minerals, which was completed in April last year, and the full period of contribution from the Deflector operation, in Western Australia, for the first time.

The acquisition underpinned the headline increase in gold sales and significant Ebitda and Ebitda margin growth of 372% and 119% respectively, and was consistent with the company’s strategy to maximise the value of its existing assets while pursuing external opportunities, which enhanced its asset portfolio.

All-in sustaining costs (AISC) for the period were down 17%, on the higher production, reaching A$1 223/oz during the six months under review.

For the full 2020, Silver Lake is targeting group sales of between 240 000 oz and 250 000 oz, up from the previous guidance of between 215 000 oz and 230 000 oz, while AISC estimates have been lowered to between A$1 300/oz and A$1 350/oz, from the previous estimate of between A$1 375/oz and A$1 450/oz.