Ramelius Resources Limited

June 2018 Quarterly Activities Report & Guidance for FY 19:Ramelius Resources Limited (ASX:RMS) stock traded flat after falling 0.90% on July 30, 2018 after the company released the activities report for the June 2018 quarter, and gave the guidance for the September quarter and FY 19. For the June 2018 quarter, the company produced 58,285 ounces of gold at an AISC of A$1,176/oz. As a result, RMS has delivered annual group gold production of 208,118 ounces at an AISC of A$1,191/oz compared to the production of 125,488 ounces at an AISC of A$1,169/oz in FY 17. The company’s cash & gold on hand is at 30 June 2018 of A$95.5M compared to A$75.4M in March 2018 Qtr. Further, RMS had announced increase of Edna May Resource and Reserve in June 2018 quarter. The company has made significant progress of resource drilling at Mt Magnet’s Eridanus project and mining studies at both Shannon and Hill 60 underground projects. Moreover, for September quarter, RMS expects Group gold production to be between 50-54,000 ounces at an AISC of ~A$1,250/oz, that includes production of 30,000 ounces at an AISC of A$1,300/oz for Mt Magnet & Vivien and production of 22,000 ounces at an AISC of A$1,200/oz for Edna May. In September quarter, capital & Project development expenditure is expected to be of approximately A$8.6M. Additionally, for FY 19, annual group gold production is expected to be between 200-220,000 ounces at an AISC of A$1,150-A$1,250/oz. The capital development, including Exploration expenditure of A$13.5M, for FY 19 is expected to be A$33.0M. In addition, for the June quarter 2018, the quarterly gold sales have been 52,165 ounces for total revenue of A$89.1M from an average gold price of A$1,708/oz. Meanwhile, RMS stock has risen 4.72% in three months as on July 30, 2018  and is trading at a P/E of 15.99x with a market capitalisation of $ 293.32m. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $ 0.555.
 

FY 19 Group Production Profile (Source: Company Reports)

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