Ramelius tips $15m H1 profit

WA gold miner Ramelius Resources expects to report a $15 million net profit for the first half of 2009/10, a turnaround from the $1 million loss from the previous corresponding period.

The Adelaide-based company said the projected pre-tax profit result was based on gross gold sales revenue of $20.6 million, which was on the back of higher gold production during the December quarter including the milling of 15,632 tonnes of ore at an average gold grade of 41 grams per tonne.

Ramelius mines the Wattle Dam underground gold mine in Western Australia.

The company is also locked in a takeover battle for gold miner Dioro Exploration, with its all-scrip offer due to close on Monday afternoon.

Perth-based miner Avoca Resources is also after Dioro, opening its takeover offer late last month.