Another guidance beat for Ramelius

RAMELIUS Resources is in a strong position heading into the second half of the financial year.
Another guidance beat for Ramelius Another guidance beat for Ramelius Another guidance beat for Ramelius Another guidance beat for Ramelius Another guidance beat for Ramelius

Ramelius' Mt Magnet gold mine in WA

December quarter gold production was 72,896 ounces, exceeding guidance of 67,000-72,000oz and 6% ahead of Macquarie's forecast.

Production comprised 43,055oz from Mt Magnet, including Vivien, and 29,841oz from Edna May, including Marda.

Half-year production was 144,240oz, ahead of the targeted 132,000-142,000oz of gold.

Cost figures will be released later this month with the company's full December quarter report.

Ramelius finished December with cash and gold of A$221.5 million, in line with the end of September.

Debt more than halved to $8.1 million, while the company paid $16.1 million in dividends and $10.7 million in stamp duty relating to the Spectrum Metals acquisition.

Net cash increased by $7.7 million to $213.4 million, or by $34.5 million excluding the dividend and stamp duty.

The company had a hedging position of 229,750oz at $2288 an ounce at the end of the quarter.

Macquarie lifted its earnings per share forecast for Ramelius for FY21 by 5% to 18.7c based on the result.

"While Ramelius beat our production expectations in 2QFY21 we look to the upcoming quarterly report for more detailed operational performance and cost details," analysts said.

"After a strong start to the year we model flat production from the group in 2HFY20 with Tampia to come online at Edna May towards the end of FY21."

Macquarie maintained a neutral rating and $1.90 price target.

Ramelius shares closed 3.8% lower yesterday at $1.77.