Ramelius Resources Share Price Hits Record Net Profit (ASX:RMS)

Ramelius Resources Share Price Hits Record Net Profit (ASX:RMS)

The Ramelius Resources Ltd [ASX:RMS] share price are slightly down today after releasing their full-year financial results.

Ramelius is an ASX-listed gold producer that owns and operates several assets in Western Australia.

Ramelius delivers record net profit after tax

For the full year ending on 30 June 2021, Ramelius hit record production of 272,109 ounces. This is an 18% increase in production from the previous year, which was at 230,426 ounces.

All-in sustaining costs (AISC) came in at $1,317 an ounce, 13% higher than last year’s $1,164 an ounce. Revenue was also up 38% at $634.3 million.

Ramelius delivered a record net profit after tax of $126.8 million, up 12% from last year’s $113.4 million. This figure takes into account a one-off $3.9 million tax loss benefit and $3.5 million in exploration asset write-downs.

Ramelius results came off the back of record gold production, mainly from Edna May, but also from higher realised gold prices.

Ramelius Managing Director, Mark Zeptner, had this to say:

Once again Ramelius has posted a fantastic result for the year with record gold production and a record net profit after tax which further builds upon last year’s results. This is a testament to the growth strategy pursued by the Company and the continual focus on delivering on our plans.

FY22 is shaping up to be another record year, based on the mid-point of our production guidance, and with the introduction of ore from the Tampia Gold Mine and development of the very high grade Penny underground, the next few years are looking very solid.

Ramelius expects to produce between 260,000­–300,000 ounces at an AISC of between $1,425­1,525 for FY22.

What’s next for the RMS Share Price?

Ramelius has declared a fully franked dividend of 2.5 cents per share to be paid on 4 October.

Ramelius’ share price was down around 0.3% at time of writing after releasing the results, with shares trading at $1.54.

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 Selva Freigedo

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