RMS: Gold Soars in Full Year Result
The month of June 2010 has proven another milestone for Ramelius Resources Limited with production and sales of gold from its Western Australian operations higher than in any previous month in the Company’s history as a successful gold miner.
In its full June quarterly report ‐ released on Friday night ‐ Ramelius ( “RMS”) said gold in ore production for the month of June rose to a record 20,430 tonnes. The production @ 19.6 grams per tonne (g/t) gold produced 12,860 ounces, also a record for any month.
The June milestone took gold in ore production for the final quarter of 2009‐2010 to a record 50,000 tonnes mined @ 18 g/t for gold output of 28,650 ounces. Full‐year gold production up 273% These achievements in turn took Ramelius’ full‐year gold production to a peak of 60,780 ounces, which was up 273% from 16,283 ounces in the previous financial year.
Following a similar record‐breaking trend was the value of the Company’s gold sales which jumped to $24.4 million in the latest June quarter at an average price of A$1,294.00 per ounce. This propelled gold sales 194% higher to a record $58.2 million (up from $19.8 million) for the full year to 30 June 2010. The full 2009‐2010 quarterly report showed that Ramelius entered the new financial year debt free and with cash and gold in hand of $94.3 million. As previously announced, the Company’s shareholders recently approved a capital return of 5 cents per fully paid ordinary share, totalling $14.5 million.
On Friday, Directors advised the ASX that a record date for the return of capital had been set at the close of business on 6th August 2010. Ramelius shares will trade “ex‐entitlement” on the ASX on Friday 30 July 2010, with the money being paid to shareholders on 20th August 2010 subject to the receipt of the final Australian Taxation Office Class Ruling, for which a draft Class Ruling has now been received by the Company.
The new financial year will see Ramelius focusing on a new gold project in addition to its Wattle Dam mining operations in WA. Since the end of 2009‐2010, the Company has announced the purchase of the Mt Magnet gold project, also in WA, for $40 million from Harmony Gold. Ramelius said it believed there is potential to lower the initial capital cost estimates for Mt Magnet and to reconfigure the project, which could have a positive effect on the project economics. “A program of expenditure of A$5 million is planned for 2010‐2011, which includes significant reverse circulation and diamond drilling,” the Company said. “A decision to proceed with production from the project will be made once Ramelius has completed that work.”
Ian Gordon Chief Executive Officer Ramelius Resources Limited Mob: 0448 330 160 Duncan Gordon Adelaide Equity Partners Limited Mob: 0404 006 444.
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