WA’s wet autumn and early winter has been blamed for Ramelius Resources missing its June quarter and its upgraded financial year gold production guidance.
The miner’s shares fell 5.4% at $1.67 on Tuesday.
Ramelius reported its Edna May production centre at Westonia had been affected by several minor issues over the last month.
In particular, heavy rain in the region reduced haulage volumes from the Marda operation, while periodic labour shortages and a COVID-19 related lockdown at the end of the month limited the company’s ability to boost output late in the quarter to make guidance.
Ramelius told investors ore haulage from the Tampia gold mine to the Edna May started on July 1, with the route predominantly sealed and therefore will be impacted less than the Marda route by heavy rain.
June quarter production came in at 61,840 ounces – well under the target of 65,000 to 70,00 ounces.
This included 35,208 ounces at its Mt Magnet gold mine and 26,632 ounces from the Edna May gold mine in Western Australia.
The company says it will post a record full-year gold production of 272,109 ounces, but that will be short of its upgraded guidance of 275,000 to 280,000 ounces.
It had originally guided for 260,000 to 280,000 ounces at the start of the 2021 financial year, so the outcome will be at the mid-point of that range.
The company said its full year AISC (All In Sustaining Cost) is expected to remain within the latest Guidance of $A1,280 – $A1,330/oz.
Ramelius said cash and gold on hand increased to $A234.0 million as at the end of the Quarter up from $A230 .6 million at the end of March quarter.
