Ramelius Sources rises from difficult month

The open pit stellar mine at Mt Magnet. Image: Ramelius Resources

Ramelius Resources has hit record gold production for fiscal 2021 despite the brunt of the transportation impact, labor shortage and COVID-19 travel bans in June.

The company produced a record 272,109 ounces for fiscal 2021, which is in the middle of its original forecast of 260,000 to 270,000 ounces.

Ramelius’ latest guidance for fiscal 2021 is between 275,000 and 280,000 ounces, which the company just missed after a quarter below its guidance in June.

The company’s quarterly performance in June 2021 was below the forecast range of 65,000 to 70,000 ounces at 61,840 ounces of gold.

These included 35,208 ounces at the Mt Magnet Gold Mine and 26,632 ounces at the Edna May Gold Mine in Western Australia.

According to Ramelius, there were several impacts that prevented the company from reaching its full potential in June.

“In particular, numerous rains in the region reduced the transport volumes from the Marda plant, periodic staff shortages impaired the production of the Edna May underground plant and the COVID-19-related lockdown at the end of the month restricted the company’s ability to reach the end of the quarter” said Ramelius.

Ramelius’ managing director, Mark Zeptner, said the company’s Tampia gold mine offset the effects of June.

“In terms of the effects of rainfall, the recent commissioning of the Tampia gold mine gives us an alternative ore source that is essentially on a sealed bitumen route, which means it is less affected by rain and we can switch modes of transport if necessary.” , he said.

The company began moving ore from the Tampia gold mine to the Edna May processing facility on July 1.

In June, the company commenced ore mining in Tampia for the first time since acquiring the project in 2019.

Ramelius stated that the transportation route to Tampia is sealed and does not experience the same effects from rainfall as the Marda route near Edna May.

Ramelius said the company’s full year total cost of ownership (AISC) will stay within its most recent forecast of $ 1,280 to $ 1,330 per ounce of gold produced.

According to Zeptner, Ramelius production has increased by 18 percent from the 2020 fiscal year.

“The record result was achieved through continued solid production at Edna May and an outstanding year at Mt Magnet,” he said.

“New projects such as Greenfinch and Marda (both fed by Edna May) made a significant contribution to this in the 2021 financial year.

“The result continues the growth story of Ramelius and, with an experienced management team and a strong balance sheet, provides an excellent basis for financial year 2022 and beyond.”