The West

Silver Lake s Mt Monger operation. Picture: Mary Mills/ Kalgoorlie Miner.
Silver Lake's Mt Monger operation. Picture: Mary Mills/ Kalgoorlie Miner.

UPDATE 1.15pm: Shares in Silver Lake Resources rallied strongly after the gold miner announced record quarterly production, lifted its full-year output guidance and slashed its debt.

The stock was also bolstered by a rally in gold prices to the highest level in almost six weeks on signs of increasing demand and positive analysts' commentary around the sector.

Silver Lake lifted gold production from 59,902 ounces in the September quarter to 61,152 ounces in the December quarter and lifted its full year production guidance from a range of 180,000-200,000 ounces to 205,000-220,000 ounces.

Gold bullion sold for the quarter was 62,265 ounces at an average realised price of $1371 an ounce for revenue of $85.3 million.

The company also said it had reduced its debt from $20 million to $8 million and held cash and bullion worth $17 million at the end of the period.

Silver Lake's Mt Monger operation was the standout performer with quarterly gold sales of 49,120 ounces, up from 47,457 ounces in the previous quarter.

Unaudited all in sustaining cash costs (before non-cash items) for the quarter was $1002 an ounce compared to $1030 an ounce in the previous quarter.

Quarterly gold sales from the company's Murchison project dipped from 13,453 ounces in the September quarter to 13,246 ounces in the December quarter.

Unaudited all in sustaining cash costs (before non-cash items) for the quarter was $2042 an ounce, down from $2119 an ounce in the previous quarter, but still uncomfortably high.

The company also lowered its full-year production guidance for Murchison from between 60,000-70,000 ounces to 45,000-50,000.

Silver Lake said its guidance for Murchison could change pending a full strategic review of the operation, the results of which would be announced in the March quarterly report.

Silver Lake shares closed up 11 cents, or 18.97 per cent, at 69 cents after hitting an intraday high of 70.5 cents.

The West Australian

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