JOHANNESBURG (miningweekly.com) – ASX-listed gold miner Ramelius Resources has reported a 71% jump in after-tax profit to A$27.5-million in the 2016 financial year, owing to a strong operational performance.

The Western Australia-based miner on Friday reported a 61% increase in earnings before interest, taxes, depreciation and amortisation to A$75.6-million, up from A$46.9-million reported in the prior year.

This increase was owing to gold production increasing by 28% to 110 839 oz in the financial year, paired with greater gold production sold, up 23% to 108 711 oz, from 88 706 oz in 2015.

This was also met by a higher average realised gold price of A$1 596/oz, up 9% from the previous corresponding period, which was offset in part by lower silver sales, down 49% from $0.47-million to $0.24-million.

The company reported a 33% increase in sales revenue to A$173.7-million driven by the greater gold sales.

All-in sustaining costs dropped to A$1 157/oz and are expected to decrease even more in 2017, to A$1 050/oz.

Ramelius has reaffirmed its gold production target for 2017 of 135 000 oz.

During 2016, the company managed to increase cash and gold to A$49.7-million, after A$26.4-million was spent on capital development and A$5.9-million on exploration.

Ramelius has taken advantage of the recent increase in gold price by locking away an additional 30 000 oz of forward sales at an average price of A$1 830/oz in July.

In the 2017 financial year, Ramelius will continue its mining and gold production activities at Mount Magnet by transitioning from the Perseverance pit to the Titan pit.

Mining activities will also continue at the Vivien gold mine, while mining at the Kathleen Valley gold mine is expected to be completed in the first half of the 2017 financial year.

Exploration activities are mainly expected to be carried out at Mount Magnet and Vivien where further drilling is planned, and on the greenfield opportunity in the Tanami region in the Northern Territory.