Ramelius Resources shares slide as Q1 update misses estimates
Make us a preferred source
Make us a preferred source on Google
The news: Ramelius Resources was the worst performer on the ASX 200 in morning trade, after the gold miner's first-quarter update missed market expectations.
The numbers: Ramelius shares were down 4.9% to $3.33 at 11am AEDT, having initially dropped more than 10%.
Gold production of 55,000 ounces were 4% short of consensus forecasts of 57,000 ounces.
All-in sustaining cost — up 37% quarter on quarter to $1,836 per ounce — missed market estimates by 10%.
The context: Ramelius said grades at its Cue gold project have "reverted back closer to ore reserve estimates" following several quarters of outperformance.
The miner also said production grades at its Mount Magnet mine will be "slightly lower" going forward, until "material quantities" of ore from its Dalgaranga project are available in late FY26.
RBC Capital Markets analyst Alex Barkley said lowered grades at Ramelius' Cue and Penny sites could "potentially cap some upside potential for FY26".
"Overall, we find the quarterly result and incremental information on Mt Magnet ex-Dalgaranga to be incrementally negative," said Barkley.
The sources: ASX, RBC Capital Markets research
