Saracen leads new generation of local gold miners
Saracen Mineral Holdings is bucking industry trends to organically grow its portfolio and to ensure sustainable gains for its shareholders
As one of the world’s top gold producing countries, Australia has endured and thrived through various commodity cycles. In the past three years, investors have been flocking to the mineral-rich nation to witness the extraordinary renaissance of the gold mining industry. Modelling the success of Australia’s new generation of gold miners, Saracen Mineral Holdings is bucking industry trends to organically grow its portfolio and to ensure sustainable gains for its shareholders.
The debt-free gold miner is successfully balancing open pit and underground mining activities, and investing close to A$42 million (HK$246 million) on exploration using internal cash flows. Through the Carosue Dam Gold Mine and Thunderbox Gold Mine in Western Australia, Saracen is in the final throes of doubling its gold production to 300,000 ounces per year.
Armed with unparalleled engineering know-how, Saracen gathers and applies technical data to find different ways of efficiently mining. The longevity of its reserves coupled with declining costs and increased production profiles places the company in an ideal position to expand its portfolio.
“We want to grow organically, and that is something rare in our industry, so we are doubling our exploration plans,” says Raleigh Finlayson, managing director. “Our projects sit on a relatively immature belt of mineralisation, so the probability of reserve increases and the discovery of new deposits is very high.”
“In terms of mergers and acquisitions, Saracen is open for business. We know our Australian backyard very well, have an outstanding team, and are willing and able to grow, as long as it makes sense for shareholders.” Joining the Australian Securities Exchange’s Top 200 list last year, Saracen welcomes investors from Hong Kong, Singapore and beyond.