Ramelius predicts $90M profit for 2011 FY

OUT AND ABOUT: Diggers & Dealers marquee players Ramelius Resources has told the Australian Securities Exchange that its profit for the full financial year ending 30 June 2011 is expected to be much higher than what achieved in the previous financial period.

Ramelius said it expects its un-audited consolidated total profit before Income Tax for the year to be approximately $90 million.

This is a substantially higher number, compared the a consolidated total profit the company earned, before Income Tax, the year before of $28.7 million.

“The expected pre‐tax profit is based on gross gold sales revenue of $147.6 million arising from gold production in excess of 100,000 ounces milled during the year from the company’s 100 per cent-owned Wattle Dam underground gold mine located in the Eastern Goldfields of Western Australia,” Ramelius said in its announcement.

The company said the increase in profitability was driven by increased production from Wattle Dam and improved Australian dollar gold prices.

Ramelius Managing Director, Ian Gordon, said,

“This exceptional result is a reflection of the quality of the Wattle Dam orebody which has not only delivered excellent grades but is also likely to be mined well into the future as we continue to delineate extensions to the resource at depth,” Ramelius Resources managing director Ian Gordon said.

In the release Ramelius pointed out that this profit guidance is only approximate and is based on internal draft management accounts.

The final result is still subject to the completion of the company’s 2010‐11 financial report and audit.