PERTH (miningweekly.com) – Higher gold grades and higher achieved sales prices have seen gold miner Ramelius Resources report a 329% increase in net profits after tax for the six months ended December.
The miner on Monday reported that net profits after tax for the interim period had increased from the A$4.8-million reported in the first half of 2019, to A$20.5-million, while earnings before interest, taxes, depreciation and amortization (Ebitda) increased from A$50-million to A$65.9-million.
“The company’s profitability has increased significantly on the December 2018 half-year and continues the solid earnings from the second half of 2019,” said Ramelius MD Mark Zeptner.
“This profitability has been achieved as a result of strong cost controls, improving grades, and improving gold prices. Both our production centers contributed to the increasing Ebitda and underlying profitability, however, the Mt Magnet operation has been the main driver with grades increasing by 18% from both the underground and openpit mines.”
Zeptner noted that earnings from the Edna May operation were marginally lower than those from the previous corresponding period, which was pleasing given the increased reliance on the milling of the low-grade stockpiles to supplement the high-grade Edna May underground development ore, owing to delays in approval for the Greenfinch project.
Gold production for the half-year declined slightly from 104 051 oz to 92 084 oz, with revenues for the half-year reaching A$158.5-million, compared with the A$181.9-million reported in the previous corresponding period.
Looking ahead at the full year, Ramelius’ production guidance has been estimated at 205 000 oz to 225 000 oz, with all-in sustaining costs estimated at between A$1 225/oz and A$1 325/oz.