Saracen Mineral Resources boss makes no promises on maiden dividend

Saracen Mineral Resources boss Raleigh Finlayson says the company is in no hurry to pay a maiden dividend because shareholders were getting better bang for their buck from the company’s exploration success
9th August 2019
Resources Rising Stars

Saracen Mineral Resources boss Raleigh Finlayson says the company is in no hurry to pay a maiden dividend because shareholders were getting better bang for their buck from the company’s exploration success (reports The West Australian).

Queried on the company’s dividend policy at the annual Diggers and Dealers Mining Forum in Kalgoorlie, Mr Finlayson said the company was discovering gold at $30 per reserve ounce versus merger and acquisition that was $300 to $400 per ounce.

“Saracen has been number one among 20 of its peers over the past three years on a total shareholder returns basis, which takes into account everything,” he said.

“So for right now, we’re happy to invest in our business.

“That said, as our growth capex rolls off and particularly where the gold price is at the moment, we can absolutely do both as we move forward, so that’s something to look forward to.

“But I won’t say exactly what we’re going to do and when we are going to do it.”

Mr Finlayson said whatever the company did on the dividend front had to be sustainable.

He said the company expected to have a dividend policy in place by the time it releases its full-year results later this month.

Last week, the company announced a 32 per cent jump in its reserves to 3.3 million ounces, which it said would underpin production of 400,000oz a year from full-year 2021 for the next seven-plus years.

Saracen expects to produce 350,000oz-370,000oz in full-year 2020 at costs of between $1025/oz and $1075/oz.

The company has no debt and unlike some of its peers has favoured incremental buys of small companies and ore bodies near its existing operations over bigger merger and acquisitions offshore.

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