The company reported preliminary production of 66,222oz, comprising 37,692oz from Carosue Dam and 28,530oz from Thunderbox.

Production of 127,692oz for the half was also a record.

Guidance for the 2017 financial year is 280,000oz at all-in sustaining costs of $A1250 an ounce, but the company remains on track to exit FY17 at a production rate of 300,000ozpa.

Saracen closed 2016 with $43.9 million in cash and billion, up slightly from the end of September, after spending $8.3 million on exploration, $6.3 million on growth capital and $4.4 million on pre-strip mining at the Thunderbox C Zone pit.

The company is spending $42 million on exploration this financial year and recently secured a $150 million facility to act on any opportunities that arose.

Saracen managing director Raleigh Finlayson said free cashflow would continue to rise as production increased and costs came down due to declining strip ratios and higher grades at Thunderbox.

“Saracen’s strategy to double production and undertake aggressive exploration using internal cashflow is now paying strong dividends, cementing the company’s status as an Australian mid-tier gold producer,” he said.

Saracen will release its full quarterly report, with costs, later this month.

Shares in Saracen increased by 2.7% to $1.135, the highest level since November.