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NEWS

Ramelius on the rebound

by Michael Washbourne

perational stability and improved market conditions have 210,000-230,000oz, has been completed. Capex for property,
Opersuaded Ramelius Resources Ltd to release a three- plant and equipment has been priced at $767 million with
year production outlook for the first time in its history. estimated AISC of $1,200/oz.
Less than six months since Ramelius managing director Mark Zeptner said a decision on whether the company progresses to
Zeptner was left to bemoan the increasing cost of wages, diesel a PFS on the Hill 50 underground would be made in the coming
and consumables across the West Australian gold sector, the months.
company has confidently published production forecasts for “Before we progress to a PFS, further work is required to convert
FY24 and FY25, having already guided 240,000-280,000oz at this exploration target to mineral resources and ideally upgrade
AISC of $1,750-1,950/oz for this financial year. the inferred mineral resources to the indicated category,” he
C
Ramelius also expects its AISC profile to reduce significantly said. “This will either be completed through surface drilling and Charging ahead with Australia’s critical minerals industryharging ahead with Australia’s critical minerals industry
over the next three years, estimating unit costs will fall within the deep diamond holes, or through the rehabilitation of the decline
range of $1,500-1,700/oz in FY24 and even further to $1,400- to a deeper position, followed up by underground diamond
1,600/oz in FY25. This decline has largely been attributed to an drilling.”
increasing contribution of the high-grade, low-cost Penny mine Zeptner described the Symes Find project at Edna May as
towards total group output. “small but relatively lucrative” with recent RC infill drilling helping
Speaking on an investor conference call to discuss the three- to lift resources to 1.4mt @ 1.7 g/t gold for 75,000oz, while a
year outlook, Zeptner suggested there was more to the reducing scoping study indicated capex of just $4.5 million with AISC of
AISC profile than the newly minted Penny mine. $1,650/oz attached to the 500,000-600,000t @ 1.8-2.2 g/t gold
“As one of our analyst friends put it, we are getting a sugar hit for 32,000-40,000oz production target.
from Penny in the next few years, but that probably underplays Additional mining lease applications and approval processes
the excellent work that has been done elsewhere to bring new are under way for Symes Find, about 110km by haul road from
projects into production and keep the processing plants at both the Edna May mill.
Mount Magnet and Edna May as full as possible,” Zeptner said. “The majority of the resources at Symes Find are located on
Ramelius has guided group production of 250,000-290,000oz granted mining leases, but we are applying for some additional
for both FY24 and FY25. The company also expects to spend tenure that will host supporting infrastructure and expenses of
about $145 million on capital projects over the next three the main pit,” Zeptner said.
financial years. “Detailed hydro and geotechnical assessments are under way
The three-year outlook excludes the Stage 3 open pit at Edna and contractor pricing will be chased up shortly.”
May and the Hill 50 and Eridanus undergrounds at Mt Magnet, Ramelius chief financial officer Tim Manners said the three-year
and the Rebecca greenfields exploration project near Kalgoorlie. production outlook further strengthened the company’s balance
Mining contractor pricing for the Stage 3 open pit at Edna May sheet and there were no plans to apply any further hedging.
was to be received and assessed during the December quarter, “I suppose the only point we would make is that the hedging
with all other key sections of the PFS complete and a decision would be there to supplement and add value to Stage 3,”
on development status to be taken thereafter. Manners said.
“According to the mine plan schedule outlined in 2021, “If it’s the hedge book, for example, that got Stage 3 across the
meaningful production from Stage 3 is not required until 2026, line, then I think we would be doing it for the wrong reason. It has
which is obviously outside the three-year plan timeframe,” to be able to stand on its own two feet with cost assumptions
Zeptner said. and gold price assumptions that we typically use across the
A scoping study on the Hill 50 underground, incorporating business. If we can add value by strengthening that with a
a production target of 880,000-960,000t @ 7-8 g/t gold for project-specific hedge, we would certainly look at it.”
To present, exhibit or attend as a delegate please contact Paula Fujita
on (+61) 8 9321 0355 or email paula@paydirt.com.au
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