Red 5, Ramelius Resources and Regis Resources have each unveiled major milestones ahead of company reporting season, as bumper gold prices drive records.
Red 5, Ramelius Resources and Regis Resources have each unveiled major milestones ahead of company reporting season, as bumper gold prices drive records.
Goldminer Red 5 has paid down almost $100 million worth of corporate debt and restructured its hedge book, in a move that leaves the newly consolidated company debt free.
Red 5, which merged with fellow gold producer Silver Lake Resources in June, revealed this morning it had paid down $92.9 million of debt.
Payment of the debt, which was owed to lenders under a legacy facility agreement, leaves Red 5 with no remaining corporate debt.
The consolidated company’s hedge book was also restructured to incorporate forward gold sales held by Silver Lake before the merger took place.
Red 5 has 81,984 ounces of gold hedged at a price of $2,586/oz deliverable in the first half of the 2025 financial year.
In the second half it will be required to deliver 76,700oz at an average price of $2,781/oz.
The hedge book figure decreases slightly in the first half of FY26, to 74,692oz at $2,936/oz, before dipping to 47,319oz at $2,797/oz in the second half of that year.
It falls to 10,223oz at $2,797/oz in the first half of the 2027 financial year.
The Australian dollar gold price averaged $3,347/oz over the first six months of 2024, according to World Gold Council figures.
The hedge book is substantial but appears to leave plenty of room for Red 5 to capitalise on prevalent record gold prices.
Red 5’s merged project book produced 447,454oz across the 2024 financial year, with the King of the Hills, Mount Monger and Deflector operations each exceeding their sales guidance.
The company estimated full-year gold sales of 455,259oz and 1,037 tonnes of copper across its consolidated operations.
Production costs across the project book will be unveiled later in the month.
Red 5 shares rose 8 per cent in early trade, to 40 cents.
Ramelius beefs up Spartan stake
The production figures are starting to flow in from the state’s gold players, ahead of detailed financials expected to come later in the month.
Mark Zeptner-led Ramelius Resources revealed it achieved record gold production last financial year, churning out 293,033oz, placing it at the upper end of upgraded guidance of 285,000-295,000oz.
Ramelius revised its forecast all-in sustaining costs to between $1,550 and $1,650/oz during the financial year and said today that it expected these to come in at the lower end of that range.
It also revealed it had beefed up its strategic stake in Spartan Resources to 17.9 per cent of the company at a cost of $92 million in the first week of July.
Ramelius revealed its initial stake in Spartan late in June, when it spent $87.7 million for just under 9 per cent of the company.
The company said at the time that it had no intention of acquiring control or make a takeover offer for the smaller gold play.
Ramelius shares were trading up 2 per cent this morning, at $1.95. Spartan shares were 1.06 per cent lower at 94 cents.
A Regis record
Regis Resources increased its cash and bullion position to $295 million last quarter, bringing in $109 million over the three months to the end of June.
The increase was a record for the Duketon and Tropicana gold project owner, despite rain-induced production setbacks which meant the latter mine missed its quarterly production guidance.
Regis produced 417,700oz of gold during the financial year and 106,400oz of fully unhedged gold for the June quarter.
Regis shares were 2.5 per cent higher at $1.82 this morning.
