Ramelius surprises with $29m profit

Ramelius Resources has announced an "unexpected substantial increase" in its profits to $28.7 million for the 2010 financial year.

Last year the gold miners profit before income tax was $7.1 million.

In a statement Ramelius said, "Significantly, the unaudited consolidated Profit before Income Tax and prior to a $9.1 million write down in capitalised exploration costs, is expected to be approximately $37.8 million a record result for the Company."

The profit guidance is based on internal draft management accounts and is subject to completion of the 2009-10 financial report and audit.

The expected pre‐tax profit result is based on gross gold sales revenue of $58.2 million arising from significantly higher gold production during the year from the Wattle Dam underground gold mine compared to $19.8 million in 2009.

See full company statement below:

The Directors of Ramelius Resources Limited (ASX: "RMS") advise shareholders and investors of an expected substantial increase in the Company's profit for the full year to 30 June 2010 compared to the previous corresponding period.

Ramelius advises that its unaudited consolidated total Profit before Income Tax for the year to 30 June 2010 is expected to be approximately $28.7m compared to a consolidated total Profit before Income Tax of $7.1m for the previous financial year.

Significantly, the unaudited consolidated Profit before Income Tax and prior to a $9.1m write down in capitalised exploration costs, is expected to be approximately $37.8m ‐ a record result for the Company.

Ramelius advises that the above profit guidance for the year to 30 June 2010 is only approximate, based on internal draft management accounts and is subject to completion of the 2009-10 financial report and audit.

The expected pre‐tax profit result is based on gross gold sales revenue of $58.2m arising from significantly higher gold production during the year from the Wattle Dam underground gold mine in Western Australia compared to $19.8m in 2009.

The Company's annual financial report will be lodged with ASX as soon as possible following completion of the audit.