Ramelius beats production forecasts

PERTH (miningweekly.com) – Gold miner Ramelius Resources has exceeded its September quarterly production target of between 28 000 oz and 32 000 oz, producing 33 150 oz of gold in the three months to the end of September.

The company on Tuesday noted that the Mt Magnet operation contributed 20 127 oz during the quarter, while the Vivien mine produced 13 023 oz.

The September quarter production was also up from the 29 859 oz produced in the previous quarter.

MD Mark Zeptner told shareholders that the continued excellence by the operations teams at both mines, which resulted in Ramelius exceeding its guidance for the quarter, placed the company in a great position to transition the newly acquired Edna May gold mine into the company’s portfolio.

Ramelius earlier this month acquired the Edna May operation from fellow-listed gold miner Evolution Mining for A$40-million cash up-front. The sales agreement also included up to A$50-million of contingent payments, comprising royalties and cash, or Ramelius shares.

The Edna May mine achieved an earnings before interest, taxes, depreciation and amortisation margin of 18% during the 2017 financial year, producing 70 188 oz of gold, or some 8% of Evolution’s total gold production of 844 124 oz.

“I look forward to growing our annualised production rates in the coming quarter to the 200 000 oz/y level,” Zeptner said.