Ramelius secures $175m debt facility from big four lenders
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The news: Ramelius Resources has announced a $175 million debt facility agreement with a syndicate of lenders comprising ANZ, Commonwealth Bank, NAB, Westpac and Natixis.
The numbers: The deal provides Ramelius with a revolving corporate facility of $175 million over a four-year term, with the option to extend by a further year. The new facility is an upsized replacement to the previous $100 million facility.
Ramelius noted that for the three months ending 30 June, the company generated underlying free cash flow of approximately $137 million.
As of 2 July, Ramelius had $352.5 million in cash and gold on hand. This was after the company's recent strategic investment of $180.4 million in Spartan Resources, leaving Ramelius with over $500 million in liquidity.
The context: Perth-based Ramelius upgraded its full-year production guidance earlier this year after notching record quarterly gold production for the March quarter.
Since then, it has raised its outlook on its Mount Magnet project and lifted its holdings in smaller Western Australian rival Spartan Resources.
What they said: Ramelius managing director Mark Zeptner said: "We are very pleased to enter into this facility with our syndicate of lenders who are also considered to be our business partners".
"While Ramelius has a strong balance sheet and we generate significant operating cash flow, we feel it is important to have the added financial flexibility which this low cost revolving debt facility provides us," he said.
The source: ASX announcement
