Ramelius Resources locks in forward gold sales

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) has sold forward 47,200 ounces of gold at an average price of $1,582 per ounce.

The company explained the forward program represents approximately 40 per cent of its forecast production of the Mt Magnet operation in Western Australia over the next two years, and approximately 20 per cent of total planned group production for the same period.

Ramelius said the gold price it achieved under the hedging program will assist the company in securing a satisfactory profit margin for the Mt Magnet operation.

The program also delivers a level of certainty for future cash flows from Mt Magnet as the company moves into an expansion phase with a proposed near-term development of its two new high-grade WA gold projects, Vivien and Kathleen Valley.

“Our new hedging strategy delivers a number of medium-term benefits to the company, particularly in executing our growth strategy, at a time of high gold price volatility,” Ramelius Resources chief executive officer Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“With a clear view to profitability, the company can progress further pit cut-backs at our Mt Magnet operation, whilst still retaining exposure to gold price upside.

“The underpinning of future cash flows also forms a crucial element in reaching a final decision on our two high-grade, high-margin gold development projects at Vivien and Kathleen Valley.”

Email: info@rameliusresources.com.au

Website: www.rameliusresources.com.au