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Highlights
- Shares of Emerald and Ramelius have defied the broader equity market index by a substantial margin in the last 12 months
- In FY23, Ramelius acquired the Roe Gold Project from Breaker Resources NL
- Emerald delivered a record profit after tax of US$66.2 million in FY23 and focused on ramping up the group’s gold production
Two ASX-listed gold stocks, Emerald Resources NL (ASX: EMR) and Ramelius Resources Limited (ASX: RMS), have recorded gains of 158.30% and 185.95%, respectively, in the past one year, while the Australian equity benchmark index, S&P/ASX 200 registered a gain of 2.53% in one year.
Peers of EMR and RMS have also registered a significant share price rise during the stated period. For instance, the share price of Capricorn Metals Ltd (ASX: CMM) increased by 54.167%, the share price of Gold Road Resources Ltd (ASX: GOR) surged by 51.64%, and the share price of Northern Star Resources Ltd (ASX: NST) grew by 53.54% in the past 12 months.
Worth mentioning here is that both stocks are gold stocks, and in the past one year, the S&P/ASX All Ordinaries Gold (XGD) index, the benchmark index for Australian gold companies, appreciated 53.18%. XGD has outperformed the broader market index by a wide margin.
Let’s delve deeper into these gold stocks.
Ramelius Resources Limited (ASX:RMS)
Rameliusis is an ASX-listed gold mining, production and exploration firm which owns and manages multiple gold mines in Western Australia.
During the financial year 2023 (FY23), the company delivered a 5% YoY growth in revenue to AU$631.3 million and a 3% YoY growth in NPAT to AU$75.3 million. Its gold production was 240,996 oz at an AISC of AU$1,895/oz.
The key highlight of the year was the acquisition of the Roe Gold Project from Breaker Resources NL. The mineral resource of the Roe Gold project is 32Mt at 1.6g/t for 1.7 million ounces of contained gold. Moreover, the company announced a bid for Musgrave Minerals Limited, which owns the Cue project near Mount Magnet.
In the financial year 2024, the company expects to deliver gold production of 250,000 – 275,000 ounces at an AISC of AU$1,550 – 1,750 per ounce.
RMS shares closed 0.289% up at AU$1.730 apiece on 20 October with a market cap of AU$1.93 billion.
Emerald Resources NL (ASX:EMR)
Headquartered in Perth, Western Australia, Emerald is an explorer and developer of gold projects.
During the financial year, the company delivered record profit after tax of US$66.2 million, and net profit attributable to equity holders stood at US$68.56 million. Gold revenue last year zoomed by 45% to US$299.47 million, and gold sales increased by 14% YoY to 108,901 ounces.
At the Okvau gold mine, the gold production guidance is 100-110koz on an annual basis, and production guidance for FY24 is 25-30k oz per quarter. The cash costs are expected to increase to US$780-850/oz.
Presently, the company is focused on ramping up the group’s gold production, growing the reserve of Okvau Gold Mine and advancing its Memot Project into a mineable reserve. Also, it wants to see the North Laverton Gold project move towards development.
EMR shares closed 2.127% up at AU$2.880 apiece on 20 October 2023 with a market cap of AU$1.75 billion.
