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FINALIST: MINER

Recognition at

last for Ramelius

by Michael Washbourne
Ramelius is eyeing another record-breaking year in FY2021

espite being one for the best part of the last 14 years, so you won’t be surprised that this year’s target is 270,000oz,
DRamelius Resources Ltd is only now being recognised as a which is yet another record,” Zeptner said.
gold producer – and a very successful one at that. “We do have a stated aim of being a sustainable plus-300,000
Whichever way you look at it, 2020 was comfortably the best ozpa producer. Our growth history of about a 20% increase
year in the company’s history with records posted across all in production on average year-on-year shows we’re working
key metrics, including full-year group production (230,426oz at towards that.
$1,041/oz AISC), net profit before tax ($149.5 million) and after “By no means are we happy with the current production levels.
tax ($113.4 million) and gold sales of 228,210oz generating We’re looking to grow and we think we’re one of the few genuine
revenue of $460.6 million. growth stories out there in the market.”
Those results reaped a number of benefits for Ramelius and Those growth stories include the impending addition of the
its shareholders, such as the 2c/share fully-franked dividend, high-grade Penny gold project – acquired via the takeover of
double the 2019 payout. The company also entered the ASX200 Spectrum Metals during the first half of 2020 – to the Mt Magnet
for the first time as its share price hit a new high of $2.53/share production profile.
and its market cap broke through $2 billion.
The Ramelius board recently approved the development of
Capping a memorable 2020 for Ramelius was winning the Penny following completion of a feasibility study which reduced
prestigious Digger of the Year at the annual Diggers & Dealers AISC to $633/oz despite increasing the upfront capital to $34.5
Mining Forum in Kalgoorlie. And while the company narrowly million. NPV for the project is estimated at $301 million (assuming
missed out on adding the GMJ Miner of the Year to its long list of a $2,300/oz gold price) with an IRR of 240% and payback within
awards and achievements from the past 12 months, the pride in 26 months.
managing director Mark Zeptner’s voice cannot be understated.
Mining activities at Penny (current resource of 620,000t @ 15
“Winning the Digger of the Year was for me personally, being g/t gold for 300,000oz and reserve of 500,000t @ 14 g/t for
someone originally from Kalgoorlie, a real career highlight,” 250,000oz) are set to begin towards the end of the June quarter.
Zeptner said.
“It’s a no brainer project,” Zeptner said. “It’s got excellent metrics,
“In saying that, it is a company award and reward for a team that some of the lowest AISCs in the ASX gold space, so essentially
has persevered and persisted. It wasn’t so easy back in 2014 we need to get that into production as soon as possible.
and 2015, I can tell you, but we persevered and 2020 is really the
“We think we’ve shaved a couple of months off the start date,
culmination of all that groundwork in the years prior.
we haven’t adjusted our FY2022 production which is when first
“Not so long ago Ramelius was not really well known, but I production comes from Penny West just yet, we’ll do that closer
think we’ve established our brand and a track record now and to the start of FY2022.
because of that our name is out there among some of the bigger
“It’s a high-grade project and we believe the approvals and
names in the gold space.”
permitting, etc will be reasonably straightforward, so we see no
Ramelius expects to better production from its Mt Magnet real impediments between now and getting started, other than
and Edna May mining centres in FY2021 with guidance set at just setting the site up, performing the cutback on the existing
260,000-280,000oz within an AISC range of $1,230-1,330/oz. Penny West pit and getting the decline in for the access to the
FY2021 has already started on a positive note with group Penny North orebody which is the higher grade orebody that
production of 71,344oz at $1,241/oz AISC for the September drives a lot of the financials.”
quarter exceeding guidance. The company’s cash and gold FY2022 could also see four different ore sources being fed
stocks also increased to an all-time high of $221.9 million, with into the Edna May processing facility as multiple development
only $16.3 million of debt remaining on the books. projects start taking shape. This includes the Stage 3 open pit
With more ounces being produced at costs lower than ever and bulk underground, with studies on both options due at the
before in the company’s 17-year history, Zeptner is setting the time of print.
bar even higher for his Ramelius colleagues in the years to come. The Marda satellite deposit is now in full swing with more than
“In this game last year’s records are pretty quickly forgotten and 300,000t of ore stockpiled on site and ready to be trucked along
often you can only be as good as your last quarter’s performance, the new 170km haul road to Edna May for processing.

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