Ramelius ups output guidance for 2014
PERTH (miningweekly.com) – Gold miner Ramelius has flagged a 34% increase in gold production for the financial year, with the miner forecasting production at 107 500 oz.
The company stated that production from the Mt Magnet operation would increase to 90 000 oz, up by some 54% on the previous financial year.
The board also recently approved the start of mining at the Coogee pit, which was expected to deliver a further 17 500 oz during the financial year, after mining starts in August.
In an effort to counter the recent drop in gold prices, Ramelius also instituted a number of cost-cutting measures, including a reduction in the mining rates at Mt Magnet, and the introduction of high-grade ore from the Western Queen South pit.
However, despite these measures, the miner told shareholders that the company would likely report an impairment of some A$58-million on the carrying value of its assets.
The impairment, along with a previously reported A$6.5-million write-down in carrying amounts for the December half year, would result in a loss before tax of around A$70-million for the full year, Ramelius said.
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