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Ramelius beats output guidance

Growing gold producer Ramelius Resources (ASX: RMS) has posted record quarterly production, exceeding its own target.
Ramelius beats output guidance Ramelius beats output guidance Ramelius beats output guidance Ramelius beats output guidance Ramelius beats output guidance

Saturn pit at Ramelius' Mt Magnet gold operations in Western Australia

Staff reporter

Group quarterly production for December was 58,012 ounces of gold, well above guidance of 51,000-55,000oz.

The quarter included the first contribution from the newly acquired Edna May operation, which produced 21,377oz. The output was in line with its previous quarter of 21,639oz under previous owner Evolution Mining.

Ramelius announced the acquisition of Edna May in September for A$40 million cash and up to $50 million of contingent payments.

The company's existing Mt Magnet and Vivien mines contributed 23,352oz and 12,283oz, respectively, in the December quarter.

Ramelius said all-in sustaining costs were being finalised, but were expected to be below guidance of $1,250 an ounce.

Ramelius Mark Zeptner said he was pleased the company had reached its targeted run-rate of 200,000oz per annum.

"This record quarter exceeded guidance due to the hard work and focus by our operations teams across our three sites, including the newly acquired Edna May gold mine," he said. "I look forward to continuing this positive trend and solidifying our position as a growing mid-tier gold producer."

Development is advancing at Mt Magnet on a number of fronts, while stage one decline development at Edna May was complete with underground drilling underway.

Drilling results for the Shannon deposit at Mt Magnet and the new Jupiter project in Nevada are pending.

Ramelius had A$61.8 million at the end of December, down from $96.1 million three months earlier, with the company paying Evolution $38 million and spending $13.2 million on exploration and development.

At the end of December, Ramelius had 142,500 ounces of gold sold forward at an average price of $1,713/oz for delivery between now and October 2019.

Shares in Ramelius rose by 6.25% today to A42c, valuing the company at about $224 million.

The stock is down from 74.5c in February last year.

 

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