Ramelius Resources boosts profit, dividend as gold prices soar
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The news: Ramelius Resources recorded a jump in profit in the 2024 financial year, as a strong gold price helped the gold miner to record sales, cash flow, earnings and dividends.
The numbers: Ramelius reported statutory net profit after tax of $216.6 million, up 252% compared to last year. EBITDA grew 76% to $451.3 million while revenue rose 40% to $882.6 million.
Gold sales of 293,966 was at the top end of its upgraded guidance of 285,000 to 295,000, while all-in sustaining cost (AISC) of $1,583 per ounce was at the lower end of its $1,550 to $1,650 guidance range.
The board declared a dividend of 5 cents per share, a 150% increase on a year earlier.
Ramelius expects production between 270,000 and 300,000 ounces of gold at AISC of $1,500 to $1,700 per ounce.
The context: The gold miner said FY24 was a record year for the company in terms of gold sales, cash flow, earnings and dividends. Gold sales increased at both of its operations of Mount Magnet and Edna May in Western Australia, mainly as a result of improved grades at Mount Magnet grades and increased haulage capacity across the Edna May hub.
Ramelius, which has built up a 18.35% "strategic" stake in smaller rival Spartan Resources, said it remains committed to investing in renewable energy solutions at Mount Magnet, having signed a power purchase agreement for hybrid power supply with PWR Hybrid earlier this month.
What they said: "The second half of the financial year was particularly strong with 80% of our NPAT for the year coming in this period as we converted the substantial benefits of our disciplined investments from prior years," said Ramelius managing director Mark Zeptner.
"Our financial position leaves us well placed to fund our exciting organic pipeline of projects," he said.
"Project evaluations for the Eridanus underground/open pit options are now being modelled with the Mount Magnet mill expansion and separately, the pre-feasibility on Rebecca-Roe, with both targeted for the December 2024 quarter."
The source: ASX announcement
