Ramelius said a higher tax expense in the current year was because of a large tax benefit in the prior year, with $10 million of previously unrecognised tax losses being realised in 2016.

Ramelius is flagging broadly similar-to-slightly- higher production in the current year of 125-135,000 ounces with similar costs expected in the range of $1120-1220/oz.

The debt free miner had cash and bullion of $90 million at the start of July, putting it “in a strong financial position to take advantage of any corporate opportunities that may arise”.

Ramelius mines gold around Mt Magnet and Leinster in Western Australia, with ore from the latter’s Vivien mine trucked to the company’s processing facilities at the former.

Ramelius spent $38.4 million on capital last financial year in and has budgeted to spend $39 million the current period.

Shares in Ramelius were down 2.5% to 38c in afternoon trade, capitalising the company at $200 million.

The stock was trading about 20% higher this time last year.