Ramelius looking for new gold record

RAMELIUS Resources has reported a record year of gold production from its Western Australian mines, despite rain issues in the June quarter, and it is looking to top that in the current financial year.
Ramelius looking for new gold record Ramelius looking for new gold record Ramelius looking for new gold record Ramelius looking for new gold record Ramelius looking for new gold record

Tampia began production in June

Haydn Black


The miner produced of 272,109 ounces at all-in sustaining costs of A$1317/oz earlier this month, just shy of its revised guidance, and is hoping to better the past year with guidance of 260,000-300,000oz at $1425-1525/oz for 2021-22.
Ramelius is due to announce a new mine strategy, but has outlined expectations it can produce around 140,000oz each at the Mt Magnet and Edna May operations next year, driven by the addition of new ore sources at Penny, Marda and Tampia operations.
Tampia and Marda commenced operations in the June quarter, while Penny's underground mining contract is due to be issued within weeks.
Production should be evenly split between both halves of the year, with production in the current half targeted at 130,000-150,000oz at $1450-1550/oz, with 70,000oz targeted at each hub.
Managing director Mark Zeptner hopes to see improvements in the spring.
"It feels like it has rained every day this year," he said.
Zeptner is looking forward to the rains easing up, so the company can start whittling down the 360,000 tonne ore stockpile that is struck at Marda due to the wet.
Assuming a grade of 1.9 grams per tonne, that could be up to A$50 million of gold mined and destined for the Edna May processing plant.
Zeptner noted the company was able to truck more ore on sealed roads from Tampia to help compensate, and there is some upside at Tampia, as its trucking estimates have been conservative, given the need to tread carefully around the town of Narembeen.
Tampia commenced mining in June, and is the first mine in the area.
Recoveries have also been conservative, but the early feed has delivered a kick in grade without impacting discoveries.
"So far, so good," Zeptner said.
Ramelius ended the year with cash and gold of $234 million. 
Ramelius shares were up 2.5% to $1.65, valuing it at $1.3 billion. The stock has traded between $1.18-2.53 over the past year.