Silver Lake Resources (ASX: SLR) shares have climbed 57% since the $0.555 low around a month ago on 26 June 2013, as a climbing gold price, falling Australian dollar and cost cutting initiatives have provided positive price re-rating catalysts.
This is highlighted by this morning’s 3.59% increase to $0.865 as gold futures soared 3.3% Monday to settle at $1,336 an ounce on Comex – the biggest one-day gain for the yellow metal in over one year.
Silver Lake has continued to increase gold production from its operations in the Eastern Goldfields and Murchison districts of Western Australia, with full year gold sales of 151,060 ounces for financial year 2013.
This consists of 135,282 ounces from Mount Monger and 15,778 ounces from Murchison Gold.
Production in the June 2013 quarter accounted for more than a third of this at 56,450 ounces, indicating that gold production in the 2014 financial year will be higher.
Silver Lake’s current JORC Resource and Reserve of 6.6 million ounces of gold, 10 million ounces of silver and 140,000 tonnes of copper also offer considerable room to grow production further.
However, the company is not standing still and is continuing work to grow its Resources to 10 million ounces of gold.
It is also finalising its Financial Year 2014 budget, which will take into account the decline in A$ gold price, and will focus on deferring capital, reducing costs across the business and maximising cashflow.
This includes a decision to defer the development of the underground Caustons mine for about 12 months, which will not have an impact on this year's coming production.
proactiveinvestors.com.hk
This is highlighted by this morning’s 3.59% increase to $0.865 as gold futures soared 3.3% Monday to settle at $1,336 an ounce on Comex – the biggest one-day gain for the yellow metal in over one year.
Silver Lake has continued to increase gold production from its operations in the Eastern Goldfields and Murchison districts of Western Australia, with full year gold sales of 151,060 ounces for financial year 2013.
This consists of 135,282 ounces from Mount Monger and 15,778 ounces from Murchison Gold.
Production in the June 2013 quarter accounted for more than a third of this at 56,450 ounces, indicating that gold production in the 2014 financial year will be higher.
Silver Lake’s current JORC Resource and Reserve of 6.6 million ounces of gold, 10 million ounces of silver and 140,000 tonnes of copper also offer considerable room to grow production further.
However, the company is not standing still and is continuing work to grow its Resources to 10 million ounces of gold.
It is also finalising its Financial Year 2014 budget, which will take into account the decline in A$ gold price, and will focus on deferring capital, reducing costs across the business and maximising cashflow.
This includes a decision to defer the development of the underground Caustons mine for about 12 months, which will not have an impact on this year's coming production.
proactiveinvestors.com.hk
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