Ramelius Resources Shares Up after Record Production (ASX:RMS)
The Ramelius Resources Ltd [ASX:RMS] shares are slightly up today after releasing their June 2021 quarterly report.
Ramelius is an ASX-listed gold producer. They own and operate several gold mines in Western Australia.
Ramelius hits record production
For the June 2021 quarter, Ramelius produced 61,840 ounces at an all-in sustaining cost (AISC) of $1,394 an ounce. Of those, 35,208 ounces came from Mt Magnet and 26,632 ounces from Edna May.
This was lower than the expected 65,000 to 70,000 ounces Ramelius had tipped in April, which could be why shares went down slightly on earlier trade. The dip came mainly from Edna May, where production was expected to come in at a higher 31,500 ounces for the quarter.
Wet weather restricted the transport of ore into Edna May, which meant that by the end of June, there were still 360,000 tonnes of ore stockpiled waiting to be transported and processed. As a result, mill production came in lower for the quarter. The total material milled was 714,099 tonnes at 1.27 g/t for 27,110 recovered ounces.
For the quarter, Ramelius sold 64,194 ounces of gold for total revenue of $144.7 million, fetching an average gold price of $2,254 an ounce.
For the full year, Ramelius hit record production of 272,109 ounces at an AISC of $1,317 an ounce. This is an 18% increase in production from the previous year’s 230,426 ounces.
Gold sales for the full year were 277,450 ounces for revenue of $633.1 million at an average price of $2,282 an ounce.
Ramelius expects their production for FY 2022 to be between 260,000 and 300,000 ounces at an AISC of $1,425 and $1,525 per ounce. Production will be quiet even with 140,000 ounces expected to come in from Mt Magnet and another 140,000 from Edna May.
The share price was slightly down this morning after the quarterly results. Yet, at time of writing the share price is up 1.5% and trading at $1.64.
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