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the Silver Lake Resources Limited (ASX:SLR) the stock price is in the red today following the release of its latest quarterly report.
At the time of writing, Silver Lake Resources’ stock price is down 0.99% to $1.80 per share.
Production and costs are improving
For the period ending March 31, 2021, the gold and copper miner achieved higher production with lower all-in sustaining costs compared to the prior quarter. The company recorded an average selling price of A$2,180 per ounce during the quarter. Meanwhile, its all-in sustaining costs (AISC) have been further reduced to A$1,452 per ounce.
Silver Lake Resources produced 60,502 ounces of gold and 411 tonnes of copper. While sales for the quarter were 60,740 ounces of gold and 279 tonnes of copper.
The company maintained its FY21 guidance for gold sales of 240,000 to 250,000 ounces and 1,600 tonnes of copper. He expects the AISC to be between AU$1,400 and AU$1,500 for FY21.
Silver Lake achieved a steady result as the company works to develop its projects in the Deflector region. Projects continued to progress through the construction and development phases during the quarter.
Finances and future
Despite significant investments in investments during the quarter, Silver Lake Resources increased its cash position by $5 million. At the end of March, the miner held $320.5 million in cash and bullion – while remaining debt-free.
Major cash movements included $17.9 million from the Mount Monger mine, $23.6 million from the Deflector mine and $7.8 million from the proceeds from the disposal of the Andy Well and Gnaweeda gold projects.
For cash outflows, Silver Lake spent $26.8 million on its Deflector project upgrade and Rothsay underground development. An additional $3.4 million was spent on exploration activities.
Rediscover the Silver Lake Resources stock price
Silver Lake Resources’ share price has been overtaken by the weakness in the price of gold over the past 6 months. Shares of the miner have been thrown into the mud, falling 20% during this time. During this time, the company continued to increase revenue, in part due to higher production.
The contradictory patterns resulted in a compression of its price-to-earnings (P/E) ratio. As a result, the company is now trading on a multiple of 5.5 times its earnings.