Solid year for gold-focused Ramelius

Ramelius Resources has enjoyed a fruitful year, with profit up 71 per cent on the back of increased production and lower costs.

The Perth-based gold miner told the market today it had achieved a net profit of $27.5 million for the 2016 financial year, up from its FY15 result of $16.1 million.

Revenue increased 33 per cent, from $130.4 million to $173.7 million, with earnings before interest, tax, depreciation and amortisation up 61 per cent to $75.6 million.

The result was achieved on the back of a 28 per cent increase in gold production to 110,839 ounces at an all-in sustaining cost of $1,157/oz.

“This reflected the benefits of the gold forward sales program, which insulated revenues to a significant degree from movements in the spot gold price,” Ramelius said in a statement.

“During the year, the company managed to increase cash and gold to $49.7 million after $26.4 million was spent on capital development and $5.9 million on exploration.

“This puts Ramelius in an outstanding position for a pivotal FY17 as it progresses the Vivien and Water Tank Hill underground mines.”

Ramelius paid no dividends in FY16.

Shares in Ramelius were 1.4 per cent lower to 55.2 cents each at the close of trade.