Ramelius Resources rises from challenging month

The company produced a record 272,109 ounces for the 2021 financial year, which is at the midpoint of its original 260,000-270,000-ounce guidance.

Ramelius’ latest guidance for the 2021 financial year is between 275,000 to 280,000 ounces, which the company narrowly missed following a below guidance June quarter.

The company’s June 2021 quarter performance was below the guidance range of 65,000 to 70,000 ounces at 61,840 ounces of gold.

This included 35,208 ounces at the Mt Magnet gold mine and 26,632 ounces from the Edna May gold mine in Western Australia.

According to Ramelius, there were multiple impacts that prevented the company from performing at its full potential in June.

“In particular, numerous rainfall events in the region reduced haulage volumes from the Marda operation, periodic personnel shortages impacted production from the Edna May underground operation, and the COVID-19 related lockdown at the end of the month limited the company’s ability to over-achieve late in the quarter,” Ramelius stated.

According to Ramelius managing director Mark Zeptner, the company’s Tampia gold mine has offset the June impacts.

“In terms of rainfall impacts, the recent commencement of the Tampia gold mine, gives us an alternate ore source that is essentially on sealed bitumen route meaning it is less impacted by rain and we can switch haulage operations when required,” he said.

The company commenced ore haulage from the Tampia gold mine to the Edna May processing facility on July 1.

In June, the company started ore mining at Tampia for the first time since it acquired the project in 2019.

Ramelius stated the haul route to Tampia is sealed and does not face the same impacts from rainfall as the Marda route near Edna May.

According to Ramelius, the company’s full year all in sustaining cost (AISC) will remain within its latest guidance of $1280 to $1330 per ounce of gold produced.

Zeptner said Ramelius’ production has increased by 18 per cent from the 2020 financial year.

“The record result was achieved through continued solid production at Edna May and with an outstanding year from Mt Magnet,” he said.

“New projects such as Greenfinch and Marda (both feeding into Edna May) contributed significantly in the 2021 financial year.

“The result continues the Ramelius growth story and provides an excellent foundation for the 2022 financial year and beyond, with an experienced management team and strong balance sheet in place.”