Gold, News, Production

Ramelius pushes gold production to new record

Gold price
Ramelius Resources has achieved record gold production for the 2021 financial year even though it fell short of reaching forecasted guidance.

The gold miner produced 272,109 ounces in the 2021 financial year, which was within the range of its original guidance of 260,000 to 280,000 ounces.

However, Ramelius was below an updated guidance of 275,000 to 280,000 ounces for the 2021 financial year.

Ramelius increased its cash and gold on hand at the end of the June 2021 quarter to $234 million, up from $230.6 million in the previous quarter.

The company’s forward sales at the end of the June quarter are positioned at 206,000 ounces at an average price of $2335 per ounce of gold.

Ramelius expects its all-in sustaining costs (AISC) to remain within its updated guidance of $1280 to $1333 per ounce of gold.

The company stated that its June quarter production (61,840 ounces) was below guidance due to haulage impacts, worker shortages and COVID-19 travel bans in June.

This included 35,208 ounces at the Mt Magnet gold mine (including the Vivien gold mine) and 26,632 ounces from the Edna May gold mine (including the Marda gold mine) in Western Australia.

“In particular, numerous rainfall events in the region reduced haulage volumes from the Marda operation, periodic personnel shortages impacted production from the Edna May underground operation, and the COVID-19 related lockdown at the end of the month limited the company’s ability to over-achieve late in the quarter,” Ramelius stated.

The company also commenced ore haulage from the Tampia gold mine to the Edna May processing facility on July 1. It mined first ore at Tampia in June after acquiring the site in 2019.

Ramelius managing director Mark Zeptner said Tampia provided the company with an alternate ore source while it dealt with rainfall impacts.

“In terms of rainfall impacts, the recent commencement of the Tampia gold mine, gives us an alternate ore source that is essentially on sealed bitumen route meaning it is less impacted by rain and we can switch haulage operations when required,” Zeptner said.

According to Zeptner, the company’s record production puts it on track for the 2022 financial year.

“The company is very pleased to achieve a further 18 per cent production growth from the 2020 financial year result result (230,426 ounces), despite the weaker performance in the June 2021 quarter,” Zeptner said.

“The record result was achieved through continued solid production at Edna May and with an outstanding year from Mt Magnet. New projects such as Greenfinch and Marda (both feeding into Edna May) contributed significantly in the 2021 financial year.

“The result continues the Ramelius growth story and provides an excellent foundation for the 2022 financial year and beyond, with an experienced management team and strong balance sheet in place.”

Ramelius’ share price is $1.68 per share at the time of writing.

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