Ramelius (ASX:RMS) reports highest production in June quarter, shares surge

July 28, 2022 12:11 PM AEST | By Sonal Goyal

Ramelius (ASX:RMS) reports highest production in June quarter, shares surge — Image source: © Tepic | Megapixl.com

Production during the June quarter and FY22

Image source: © Mihalcin | Megapixl.com

In the June quarter, Ramelius recorded gold production of 67,418 ounces at an all-in sustaining cost (AISC) of AU$1,564 per ounce. The company delivered the highest quarterly production in FY22 despite encountering Covid-19-related impacts.
In three months, the company sold 67,632 ounces of gold at an average price of AU$2,508 per ounce, registering sales revenue of AU$169.6 million.
The company ended the quarter with AU$147.7 million in cash and AU$25.2 million in gold bullion.
After exploration and development expenditure, the company generated cash flow of AU$11.9 million from operations.
The forward gold sales stood at 196,000 ounces at an average price of AU$2,512 per ounce for the period September 2022 to December 2024.
The group production in FY22 was 258,625 ounces at an AISC of AU$1,523 per ounce.

Production guidance for FY23

Ramelius expects group gold production of 240,000 to 280,000 ounces in FY23 at an AISC of AU$1,750 to AU$1,950 per ounce. The estimated gold production at Mt Magnet is 150,000 ounces and at Edna May is 110,000 ounces.

The estimated project development and capital expenditure are around AU$58 million. The company expects to spend AU$24 million on underground mine development at Penny, AU$22 million on galaxy underground mine development at Mt Magnet and AU$12 million at Marda.

About Ramelius

Western Australian gold explorer and producer Ramelius Resources was listed on ASX in 2003. The company owns Penny, Tampia, Marda, Vivien, Edna May, and Mt Magnet gold mines. It also operates Rebecca gold project, which was acquired in January 2022.

As per the ASX announcement, the Penny project would move to production with the first ore at the beginning of FY23.

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