A$25m raising sets Ramelius on path to 150 000 oz/y by 2018
JOHANNESBURG (miningweekly.com) – Gold miner Ramelius Resources has set a production target of 150 000 oz/y by 2018, after receiving strong support from institutional investors for a A$25-million capital raising.
The company, which produced 110 839 oz in the 2016 financial year and aims to increase that to 135 000 oz in the 2017 financial year, will use the funds from the placement to fast-track multiple project developments at its Mt Magnet mine, in the Murchison region of Western Australia.
The accelerated development would be undertaken without compromising Ramelius’s ability to move on current and future opportunities, MD Mark Zeptner said on Tuesday.
Ramelius will accelerate the Water Tank Hill and Milky Way developments at Mt Magnet and increase resource extension drilling of brownfield targets with a focus on improving the overall resource and associated mine life at the Mt Magnet and Vivien mines.
“We are very pleased with the support received for our new four-year mine plan and the possibilities of increased production going forward. This has transferred directly into demand for the placement, which was heavily oversubscribed, and Ramelius welcomes the addition of some of the world’s most respected general and precious metals funds as shareholders of the company,” added Zeptner.
The placement of 50-million new shares to institutional investors at A$0.50 a share will help Ramelius to increase its institutional investor representation from about 10%, which is considered relatively low to its peers, to closer to 20%. Zeptner said that the company would grow this further over time.
“It is important to note, whilst always recognising our current shareholder base, that greater institutional investor representation should enable Ramelius to go to the next level.”
Besides Mt Magnet and Vivien, Ramelius also owns the Kathleen Valley gold mine, near Vivien in the Leinster district. The Burbanks treatment plant is located south of Coolgardie and is on care and maintenance.
Ramelius reported gold production of 32 752 oz in the June quarter, exceeding its guidance range of 28 000 oz to 32 000 oz at an all-in sustaining cost of A$1 145/oz.
The Mt Magnet mine produced 12 577 oz, Vivien 5 430 oz and Kathleen Valley 14 745 oz in the three-month period.
Group production for the September quarter is expected to be in the 31 000 oz to 35 000 oz range.
The group’s 2017 financial year production will comprise 65 000 oz from Mt Magnet, 55 000 oz from Vivien and 15 000 oz from Kathleen Valley.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation