Ramelius meets guidance

RAMELIUS Resources has achieved its September quarter production guidance and ramped up investment in new projects.
Ramelius meets guidance Ramelius meets guidance Ramelius meets guidance Ramelius meets guidance Ramelius meets guidance

Ramellius' Mt Magnet plant

Staff reporter

The miner produced 44,182 ounces of gold, in line with guidance of 43,000-47,000oz.

Mt Magnet contributed 17,504oz, Edna May 15,151oz and Vivien 11,527oz.

Cash and gold on hand fell from A$106.8 million at the end of June to $92.8 million at September 30.

The company spent $7.6 million on exploration and $19.1 million on project development, comprising $7.4 million for the Eridanus open pit at Mt Magnet, $7.1 million for the Shannon and Hill 60 undergrounds at Mt Magnet, $3.8 million for the Edna May underground, and $800,000 for Marda pre-development work.

The Marda development proposal was approved late last month, while the clearing permit for the Greenfinch pit at Edna May was approved after a two-year process.

"The operations team continues to deliver consistent results, with production guidance achieved once again and a number of project milestones also attained," Ramelius managing director Mark Zeptner said.

"We continue to have a sharp focus on investing for the future via exploration and capital development across both production centres.

"Extension of mine life at Vivien and first ore development at Shannon were part of an active quarter at Mt Magnet whilst Edna May continues to produce strongly with the underground operations moving into stoping production and our Marda project receiving mining proposal approval late in the quarter."

Ramelius shares rose 0.8% today to $1.397, not far off the stock's eight-year high of $1.44 reached two months ago.

"In a sector that continues to screen as fully priced on our estimates, Ramelius continues to screen as inexpensive for investors willing to look down the curve," RBC Capital Markets analyst Paul Hissey said.