Ramelius shares rocket on record gold production
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More news: Shares in Ramelius Resources surged in early trading on the ASX after the gold miner reported record production in the March quarter.
Ramelius shares were up 10.2% to $2.00 by 10:55am AEDT.
Ramelius lifts March quarter gold production
The news: Gold miner Ramelius Resources has notched up record production in the March quarter, helping push costs much lower than expected.
The numbers: The West Australian miner said output jumped to 86,928 ounces in the three months to March, far above the implied guidance of 70,000 to 77,500 ounces for the quarter. This included nearly 46,000 ounces from its Mount Magnet mine and 41,000 ounces at Edna May. It has maintained second-half guidance of 140,000 to 155,000 ounces.
The context: As a result of the higher production, all-in sustaining cost (AISC) for the quarter is expected to be in the range of $1,375 to $1,475 per ounce, well below the second-half guidance of $1,700 to $1,800 an ounce, the company said.
Ramelius held net cash and gold worth $407.1 million at March-end, following record free cash flow of $125.3 million.
The strong result comes just days after Ramelius ended talks to acquire Toronto-listed WA gold miner Karora Resources, in a deal that would have consolidated its position in the region.
The source: ASX announcement
