Production

Santos Delivers Record Production, Sales

Santos Managing Director and Chief Executive Officer, Kevin Gallagher said the strong production combined with higher commodity prices delivered record quarterly free cash flow of US$865 million, an increase of 186 per cent from the corresponding period last year.

“By designing our portfolio to provide strong cash flows throughout the commodity price cycle, our disciplined, low-cost operating model has positioned us to take full advantage of the increase in commodity prices,” Mr Gallagher said.

Queen Emma Chocolate ramps up production

“We have identified the five main strategic growth drivers of the entire business and structured the operating companies to best achieve this, along with identifying new market segments we can enter using our combined strength. The existing categories of Biscuits, Cooking Oil, Ice Cream, Snacks, and Bottled Water have plenty of head space for growth, whilst our specialist chocolate factory is showing remarkable growth.”

Alluvial mining production decreases

Production has continued to fall from the historic high of 120 ounces of gold in 2014 which netted in K373.3m, to 133 ounces in 2015 generating K356.3m.

This year MRA expects that 90 ounces of gold will be produced on the production aspect.

However, because the gold price increased substantially earlier in the year to an average $US1340/oz, and remained stable at that price for almost 6 months (only recently dropping below $US1200/oz), the revenue side is holding against the 2015 figures of K356.3 million.