Ramelius Resources (ASX:RMS) as confirmed that the 2023-24 financial year was a ‘golden year’ for the miner, with expectations of another strong year ahead, as it revealed record revenues and earnings for the 12 months to June.
The company had already explained the impact of record gold prices on its performance in its 2023-24 production and sales report in July. On Monday, it revealed record dividends and anticipations of a repeat performance in 2024-25.
A notable aspect of the 2023-24 year was Ramelius's ability to maintain tight cost control despite widespread inflationary pressures. The company plans to apply the same cost control measures in the newly started financial year.
Ramelius reported a statutory net profit after tax of $216.6 million, up 252% compared to the previous year. EBITDA jumped 76% to $451.3 million, driven by a 40% increase in revenue to $882.6 million.
Gold sales totalled 293,966 ounces, at the top end of its upgraded guidance range of 285,000 to 295,000 ounces. The all-in sustaining cost (AISC) of A$1,583 per ounce was at the lower end of its guidance range of A$1,550 to A$1,650 per ounce.
The board declared a record dividend for the year of 5 cents per share, marking a 150% increase from the previous year.
Ramelius also confirmed expectations of production between 270,000 and 300,000 ounces of gold in the 2024-25 year, with an AISC of $1,500 to $1,700 per ounce.
The company has reported higher gold sales from both its Mount Magnet and Edna May operations in WA. This increase was largely due to mining 'better ground' at Mount Magnet with higher-than-expected grades, as well as smoother operations and higher haulage capacity at the Edna May hub.
"The second half of the financial year was particularly strong, with 80% of our NPAT for the year coming in this period as we realised the substantial benefits of our disciplined investments from prior years. This is not only true of Penny, where multiple stoping areas are now available, but also Eridanus, where grades improved notably in the last quarter of the year," the company stated.
Ramelius CEO Mark Zeptner commented in Monday’s release, "Our financial position leaves us well placed to fund our exciting organic pipeline of projects."
