Gold miner Ramelius Resources posts record revenue

Gold miner Ramelius Resources Limited?(ASX:RMS) has posted a record half-year revenue of $348.5m as the company benefited from higher prices and lower costs coupled with a 5% increase in gold production over the previous corresponding period (pcp).

The increased gold production, buoyed by contributions from the Penny gold mine as well as the addition of the Symes gold mine at the Edna May hub, saw the company increase its net profit by 42% to $41.2m for the half year.

The reported all-in sustaining costs (AISC) for the half-year was $1,899/oz, 7% lower than the pcp.

The miner expects AISC to decrease further over the second half of FY24.

Ramelius managing directo, Mark Zeptner says “the first half of FY24 followed on from the solid results in FY23 with free cashflow of $52.4m which is the second consecutive half-year period with free cashflow in excess of $50m”.

“We expect this trend to continue over the medium term as production from Penny further increases with multiple stopping areas coming online,” he said.

As at 31 December 2023, the company had cash and gold of $281.8m, an increase of $9.7m over the half-year, according to Ramelius.

“Our business is in a very strong operational and financial position with our suite of assets, particularly at our flagship Mt Magnet operation,” Mr Zeptner said.

“Operations at Mt Magnet will be further complemented with the addition of the recently acquired Cue gold project in FY25.

“I look forward to being able to deliver a new Mt Magnet mine plan, incorporating Cue, in the current March 2024 quarter.

“With both the high-grade Penny ore and Cue providing a source of feed for Mt Magnet, it is indeed an exciting time for that operation.

“The December 2023 quarter was a particularly challenging period for the processing and maintenance team at Mt Magnet, with the CV01 conveyor repairs undertaken.

“It is a testament to our team to have been able to not only meet our production targets for H1 FY24 but also upgrade production guidance.”

Ramelius has increased its production guidance for FY24 to 265,000 – 280,000 ounces.

“Our cost guidance for FY24 has narrowed and increased from an AISC of $1,550 – 1,750/oz to $1,750 – 1,850/oz due to the increased costs associated with the CV01 conveyor repairs and the increased production from Edna May, which, whilst is a higher cost asset, is still highly cash generative, particularly as existing stockpiles are monetised,” Mr Zeptner said.