Ramelius Resources sheds 15% on Mount Magnet guidance
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The news: Shares in Ramelius Resources tanked by around 15% in morning trade after the gold miner outlined lower-than-expected production guidance for its Mount Magnet mine in Western Australia.
The numbers: Ramelius shares were down 14.5% to $2.39 at 12:20pm AEDT, making it the second worst performing stock across the ASX 200 index.
The miner set out FY26 production guidance of 200,000 ounces, behind consensus estimates of 225,000 ounces. FY27 guidance of 136,000 ounces was also short of average estimates of 185,000 ounces and prior 2024 guidance of between 155,000 and 175,000 ounces.
The context: RBC Capital Markets analyst Alex Barkley noted that as well as missing production forecasts, grade and output is also more back-ended than expected, with production peaking between FY33 and FY35.
Unit costs are consequently "broadly higher" than expected, Barkley said, though the site life has been extended to FY44 from FY34.
The sources: ASX, RBC Capital Markets research
