Ramelius rakes in record revenue

Gold mining giant Ramelius Resources (ASX:RMS) has upgraded its FY24 production guidance after posting record operating revenue and bolstered profits over the first half of the financial year. 

The $1.65 billion market capitalisation company produced 124,047 ounces of gold over the 6 months to the end of December 2023 — 5% higher than the same period in 2022 — at an all-in sustaining cost (AISC) of $1,899 per ounce.

Ramelius sold 123,736 ounces of gold from its combined processing centres at Mt Magnet and Edna May in Western Australia. 

The sturdy gold sales, combined with climbing gold prices over the half-year, saw Ramelius take in record operating revenue of $348.5 million, up 14% compared to the $304.8 million revenue over the prior corresponding period.

This translated to net profit after tax of $41.2 million, up 42% compared to the same time the year before. 

Ramelius’ half-yearly results have prompted the company to upgrade its FY24 guidance, which now sits at between 265,000 and 280,000 ounces at an AISC of between $1,750 and $1,850. This new AISC is slightly higher than the company’s previously forecast AISC of between $1,550 and $1,750 per ounce. 

Managing Director Mark Zeptner says the results mark the company’s second consecutive half-year period with more than $50 million in free cashflow. 

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

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

Zeptner says Ramelius is in a ‘very strong operational and financial position’ with its suite of assets, particularly at its flagship Mt Magnet mine. 

What’s more, this asset is set to be further complemented by the addition of the Cue Gold Project to the Ramelius portfolio, which the company acquired from Musgrave Minerals during the half-year. 

Ramelius expects to bring the Cue project online during the 2025 financial year. 

“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 for FY24 to 265,000 – 280,000 ounces,” Zeptner says. 

Ramelius Resources ended the December quarter with $281.8 million in net cash and bullion at hand.

Images: Ramelius Resources
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Written By Joshua Smith
Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.