Ramelius forecasts strong FY21

Gold producer Ramelius Resources is anticipating record output in the next financial year from its Mt Magnet and Edna May operations in Western Australia.

Ramelius said it had achieved record gold production in the three months to June 30 of 86,517 ounces, comprising 61,161oz from its Mt Magnet operations and 25,356oz from Edna May.

Ramelius’ June quarter production contributed to a record output in FY20 of 230,426oz gold at an all-in sustaining cost of $1,164/oz.

The company said it expected even higher volumes in FY21, between 260,000oz and 280,000oz at an AISC of $1,230-$1,330/oz.

Ramelius has forecast Mt Magnet to produce 155,000oz next financial year and Edna May 115,000oz.

Its net cash and gold position stood at $161.1 million at the end of the June quarter.

That includes a strong AISC margin of $88.2 million, Ramelius said, which was in part invested into the development of its asset portfolio, counting the $10.4 million set aside to complete its acquisition of Spectrum Metals in June.

Ramelius also said last month it had extended the life-of-mine plan for Spectrum’s Penny West gold project by 34 per cent to 1.45 million ounces across six years. Average AISC is expected to be $1,250-$1350/oz.

Shares in Ramelius closed up 3 per cent today to trade at $2.30 each.