THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) proved being a gold producer is fun at the moment by announcing it has exceeded production Guidance for the June 2016 Quarter.
Ramelius has produced 32,752 ounces of gold from the company’s operations in Western Australia, as follows:
Group quarterly production of 32,752 ounces (Guidance: 28-32,000oz)
Mt Magnet contribution of 12,577 ounces (Guidance: 12,500oz)
Kathleen Valley contribution of 14,745 ounces (Guidance: 12,500oz)
Vivien contribution of 5,430 ounces (Guidance: 5,000oz).
Group annual production for FY2016 of 110,839 ounces (Guidance: 110,000oz)
Given that gold production exceeded the Guidance range, the unit costs (AISC/oz) are expected to be significantly lower than Guidance of $1,175/oz (US$881/oz)
The company also informed the market it had also exceeded previously Upgraded Guidance for FY2016 with a total of 110,839 ounces of gold produced.
Ramelius indicated group gold production for FY2017 is expected to increase to 135,000 ounces, consisting of:
Mt Magnet contribution of 65,000 ounces;
Kathleen Valley contribution of 15,000 ounces; and
Vivien contribution of 55,000 ounces.
“An excellent quarter from the operations teams, bouncing back strongly after a slightly lower March 2016 Quarter,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.
“We have finished the 2016 financial year above 110,000 ounces of gold production and will further build on this with 135,000 ounces in FY2017.
“Our Vivien mine is now commencing stope production and will have a significant impact on our gold production and bottom line margins going forward.
“On the exploration front, we have effectively doubled our budgeted total expenditure to $10 million, in order to further grow the mine life of our existing assets and also accelerate work on our newly granted tenements in the Tanami.”