BA-Merrill Lynch 13-May-13 Saracen has announced a review of all...

BA-Merrill Lynch 13-May-13

Saracen has announced a review of all operations. Carosue Dam expansion will be suspended indefinitely and the Deep South underground development is on hold. Cost savings will be achieved through reduced exploration budget and lower operating mining costs.

The new plan will produce fewer ounces but requires less capital and generates more cash flow. The company has de-risked exposure to debt and the prospect of lower gold prices, in the broker's view.

The price target 25c