Strong September quarter production of 32,799oz underpins improving financial position for Dacian
• Production of 32,799oz for the September quarter tracking well against FY2021 guidance of 110,000-120,000oz
• Repaid $25 million in debt during the quarter – total debt now stands at $39.1 million
• Cash and gold-on-hand at 30 September 2020 totals $38.5 million for a net debt position of $0.6 million
• Reduced hedge commitments by a further 23,101oz as planned with total remaining of 61,488oz at an average price of $2,114/oz
Dacian Gold Ltd (Dacian Gold or the Company) (ASX: DCN) is pleased to provide the following preliminary operating and corporate update for the September quarter.
Managing Director, Leigh Junk commented: “This is a great start to the financial year and positions Dacian favourably to meet its annual targets during FY2021. The strong operating performance has translated into a much-improved financial position with total debt and hedge commitments further reduced. I’d like to thank the
team for their excellent effort and look forward to continuing the momentum at Mt Morgans.”
MT MORGANS GOLD OPERATION
Production for the September quarter totalled 32,799oz with ore sourced predominantly from the Heffernans sub-pit as planned at the Jupiter open pit mine area.
Stripping activities continued during the quarter at the Doublejay open pit with total material movement rates performing in line with planned levels.
The Westralia underground completed stoping activities at the end of August as previously stated. Ore contribution from the Mt Marven open pit commenced during the quarter and is forecast to increase throughout the remainder of the financial year.
CORPORATE AND FINANCE
The Company repaid $25 million in debt during the quarter with total debt now standing at $39.1 million.
Hedge commitments reduced significantly by 23,101oz as planned to a total of 61,488oz at an average price of $2,114/oz, which sees the average hedge price also increase versus the previous outstanding hedge position.
Total cash and gold-on-hand at 30 September 2020 was $38.5 million for a net debt position of $0.6 million, a continued improvement from the June quarter and positions Dacian strongly to support its capital and exploration plans during FY2021.