COVID Immune? RMS Share Price Pushes Higher on Gold Guidance
Shares in gold mining company Ramelius Resources Ltd [ASX:RMS] are up on news that the company is on track to beat its June quarter gold production guidance.
RMS likewise noted it is also upgrading its full-year gold production guidance.
At time of writing, the RMS share price is up 13.41% or 24 cents to trade at $2.03 per share.
The gold price has also moved higher overnight, perhaps spurring some of the excitement around RMS.
With COVID-19 cases spiking in some places again, the price of gold has responded positively and is up 1.56% in USD terms.
Meaning it is almost back to its 2011 peak:
USD gold price (blue), AUD gold price (red)
Record quarter keeps momentum for RMS share price
Specifics contained in the announcement this morning reveal gold production for the current quarter has set a new record of 74,371 ounces.
And that’s before the quarter has ended.
RMS predicts production is now expected to exceed 80,000oz.
Previous guidance was 65,000–70,000oz.
Subsequently, the miner has also upgraded its full-year guidance to a record 225,000–230,000oz.
This is up from 210,000–220,000oz.
RMS Managing Director Mark Zeptner had this to say:
‘We are obviously delighted by the operational performance in achieving records in both quarterly and annual gold production, particularly against the backdrop of COVID-19 and the additional administrative requirements the pandemic has necessitated.’
The RMS share price has performed strongly in the second quarter of this year, returning around 110% since April.
The rise has been helped, in part, by a series of strong gold finds at some of their key projects.
RMS has been successful in acquiring several highly prospective gold sites and further exploring the gold resource.
Gold could be poised to move higher
We won’t know the financial benefit of RMS’s record production until we see the production update and full quarterly activities report next month.
But if worries about economic recovery begin to re-emerge, the gold price might finally breakout of its current range.
This would obviously be good news for RMS and other gold producers.
It’s also good news for investors that have moved into gold in order to protect themselves.
Buying gold could be a great way to protect your wealth from a recession in Australia.
Earlier this month, the RBA called the current state of affairs in Australia an economic depression, Australia’s first since the 1930s.
For The Daily Reckoning Australia