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Ramelius hits record annual production

Ramelius Resources is in exclusive discussions with Karora Resources regarding a potential acquisition.

Ramelius Resources has achieved record gold production for the 2023­–24 financial year (FY24).

The gold miner produced 293,033 gold ounces (oz) within an upgraded guidance of 285,000–295,000oz for the full year, as well as 82,058oz for the June 2024 quarter within an upgraded guidance of 75,000–85,000oz.

“Given the outstanding production performance, the company expects the full year all-in sustaining costs will be at the lower end of the upgraded guidance range of $1550–1650/oz,” Ramelius said.

During the June quarter, Ramelius generated underlying free cash flow of $137.3 million and paid $10.1 million for the Musgrave acquisition stamp duty, allowing the company to conclude the quarter with $446.6 million in cash and gold.

The company also boosted the mineral resource at its Eridanus gold project in Western Australia by 64 per cent, where it now stands at 1.2 million ounces, and the Department of Energy, Mines, Industry Regulation and Safety approved Ramelius’ mining proposal for the Cue gold project in WA.

In late June, Ramelius purchased 98.5 million shares in Spartan Resources, a gold company currently developing the Dalgaranga gold project in Western Australia. This represented 8.9 per cent of Spartan’s ordinary shares on issue.

Prior to the June quarter ending, Ramelius purchased another group of Spartan shares worth $92 million, equalling a 17.9 per cent stake in the company.

When Ramelius purchased its first lot of Spartan shares, it said it had no intention of making an M&A bid for Spartan like it attempted with Westgold Resources in May.

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