Silver Lake Resources reports increase in gold and copper sales for March quarter

Company News

by Glenn Dyer

Silver Lake Resources (ASX:SLR), a prominent player in the gold and copper mining sector, has announced a rise in gold and copper sales for the March quarter. However, investors will have to wait until late April to access comprehensive data on production, costs, and prices.

In a routine update, the company disclosed that gold sales for the quarter reached 64,463 ounces, marking an increase from 62,852 ounces in the same period last year. Additionally, copper sales surged to 338 tonnes, a significant rise from 262 tonnes in the corresponding quarter.

The cumulative sales for the nine months ending March saw a positive trajectory, with gold sales totaling 187,244 ounces compared to 179,988 ounces in the previous fiscal period. Likewise, copper sales stood at 872 tonnes, slightly higher than the 841 tonnes recorded in the same timeframe.

Most notably, Silver Lake attributed the majority of its gold production, amounting to 179,439 ounces, and all copper sales to its Western Australian operations. The company expressed satisfaction with the robust performance of its Mount Monger and Deflector operations, highlighting their alignment with guidance ranges.

Financially, Silver Lake reported ending the quarter with cash and bullion of $342 million, an increase from $284 million as of December 31, 2023, with no debt. The company's listed investments also saw growth, reaching $166 million compared to $136 million in December 2023, resulting in a net cash, bullion, and liquid investments position of $508 million.

Acknowledging the strong operational performance, Silver Lake emphasized its continuous investment in operations, including earthworks at the Santa open pit and an ongoing drill program at Sugar Zone. The company expressed confidence in its ability to maintain its streak of meeting sales guidance for nine consecutive years.

The detailed report for the March Quarter is slated for release later this month, as per the company's announcement to the ASX. Moreover, Silver Lake is currently undergoing a takeover by Red 5, incorporating the emerging King of the Hills gold mine in a backward merger.

Capricorn Metals Overcomes Challenges, Maintains Production Amidst Adverse Weather

Capricorn Metals, operating in the Western Australian gold mining sector, successfully navigated adverse weather conditions during the March quarter, ensuring consistent production at its Karlawinda mining operation.

Despite facing multiple rain events and nearly 300 mills of rain, Capricorn managed to produce 26,017 ounces of gold for the quarter, aligning with its reduced guidance issued earlier due to inclement weather. The total output for the nine months ending March reached 86,116 ounces.

Capricorn's Executive Chair, Mark Clark, acknowledged the challenges posed by unexpected downpours, emphasizing the resilience of the operation in delivering positive financial results. The company reported ending the quarter with $177.8 million in cash and gold on hand, reflecting a $27.6 million cash and gold build before discretionary capital spend at its Mount Gibson gold project.

While Capricorn anticipates a gradual recovery in production over the current quarter, it remains focused on catching up on missed tonnages and achieving budgeted material movements. Clark emphasized operational improvements aimed at setting the project up for strong performance in the next fiscal year.

Perseus Mining's Takeover of Orecorp Becomes Unconditional

Perseus Mining's off-market takeover bid for Orecorp has reached a significant milestone, becoming unconditional after satisfying the minimum acceptance condition for shares on issue.

In a recent announcement to the ASX, Perseus declared its 57 cents per share cash offer as its best and final bid. To expedite the acceptance process, Perseus assured shareholders of accelerated payment of the offer consideration within seven business days of acceptance.

Additionally, Perseus revealed plans for a smooth transition in management and board leadership at Orecorp, aiming to appoint its representatives, including Jeff Quartermaine as Chairman and Lee-Anne de Bruin as CEO & Managing Director. These changes are expected to ensure a collaborative working relationship between Perseus and Orecorp during the transition period.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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