Ramelius Resources Limited (ASX: RMS), headquartered in East Perth, Australia, is engaged in the exploration, mine development, production and sale of gold. The company’s current properties include the Mt Magnet, Edna May and Vivien gold mines, all located in Western Australia.
On April 30th, 2019, the company released March 2019 Quarterly Activities Report, informing that it has achieved the prescribed guidance (45,000 - 50,000 ounces) and produced 45,286 ounces of gold during the three months to March 31st, 2019 at an all-in sustaining cost (AISC) of AUD 1,210 per oz.
The quarterly gold sales amounted to around 47,420 ounces for a total revenue of AUD 83.4 million from an average gold price of AUD 1,758 per oz.
At the Mt Magnet & Vivien mines, 27,542 ounces of gold was produced at an AISC of AUD 1,139 per oz while at the Edna May mine, 17,744 ounces at an AISC of AUD 1,309 per oz. The acquisition of the Marda Gold Project was accomplished in February 2019, when the offer to acquire all the issued capital of Explaurum Limited also closed at which point Ramelius held a relevant interest of 95.58%.
In April 2019, the company completed the compulsory 100% acquisition of Explaurum which owns the Tampia tenements.
During the period, infill drilling was carried out at both Marda and Tampia, with positive results confirming previous resource modelling.
|Tenement||Infill Drill Results|
|Tampia||10m at 35.9 g/t Au from 40m|
|Marda||26m at 6.27 g/t Au from 30m|
|Marda||37m at 8.07 g/t Au from 11m|
|Source: ASX announcement on 1 May’19|
Besides, excellent results were obtained from exploration drilling at Eridanus and Lone Pine (Mt Magnet) and Symes’ Find (Edna May), with deeper Vivien drilling also underway.
|Tenement||Exploration Drill Results|
|Eridanus||43m at 4.17 g/t Au from 27m|
|Eridanus||15m at 4.10 g/t Au from 385m|
|Lone Pine South||6m at 13.67 g/t Au from 200m|
|Symes’ Find||14m at 5.31 g/t Au from 51m|
|Source: ASX announcement on 1 May’19|
With the end of the quarter, the cash & gold on hand stood at AUD 104.7 million (December 31st, 2018: AUD 109.8 million), following some major investments into the future development of Ramelius’ portfolio, including AUD 6.2 million on exploration & AUD 26.4 million in asset acquisition & project development costs. The bank debt was at nil.
Moreover, at March 31st, 2019, forward gold sales consisted of 203,250 ounces of gold at an average price of AUD 1,790 per oz covering the period to May 2021. During the Quarter, contracts for 34,250 ounces of gold at AUD 1,731 per oz were delivered into and new contracts for 64,750 ounces at AUD 1,864 per oz were entered into.
According to Ramelius Resources, the production guidance for the full year FY2019 is estimated to remain between 190k-210k ounces at an AISC of AUD 1,175 – 1,225 per oz. This includes 115,250 ounces at an AISC of AUD 1,150 – 1,200 per oz for the Magnet & Vivien tenements and 81,750 ounces at an AISC of AUD 1,200 – 1,250 per oz for Edna May.
With a current market valuation of around AUD 492.28 million and ~ 656.37 million outstanding shares, the RMS stock is trading at a price of AUD 0.775, up 3.33% on May 1st, 2019 at 01:39 PM AEST.
Recently, Vinva investment Management and Van Eck Associates Corporation became substantial shareholders in the company with 5.01% and 6.54% of voting powers respectively.
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