PERTH (miningweekly.com) – Gold miner Ramelius Resources has reported a 396% increase to its statutory net profits after tax for the full year ended June.

The gold miner reported statutory net profits after tax of A$61.6-million, up from the A$12.4-million reported in the 2022 financial year, owing in part to lower non-cash impairments made to the Edna May operation last year.

While gold mined during the full year declined by 10% to 281 000 oz, and production was down 3% to 240 996 oz, gold prices were up by 8% contributing to a 5% increase in revenue to A$631.4-million.

Underlying net profits after tax were up 3% on the previous financial year, to A$75.3-million, while underlying earnings before interest, taxes, depreciation and amortisation were down 6% to A$276.3-million.

“Despite the continued cost pressures faced across the industry, Ramelius has posted another solid set of underlying results for the period and remains in a secure, debt-free financial position. We finished FY23 very strongly generating $42.6-million in operating cashflow in the June quarter. This completed a challenging but nonetheless successful year for the company,” said MD Mark Zeptner.

“Our business is in a very strong operational and financial position with our suite of assets, particularly at our flagship Mt Magnet operation. We are looking to grow further at Mt Magnet with the addition of the Cue gold project which is in the process of being acquired via the takeover of Musgrave Minerals. If the takeover is successful, the Cue project is set to complement Penny as a high-grade source of feed for our Checkers processing facility at Mt Magnet.

“The Penny underground itself is now in full swing delivering high-grade ore to the mill and it will be one of the key sources of production and cashflow for FY24, albeit with a greater weighting to the second half of the year.”

Guidance for FY24 is set at 250 000 oz to 275 000 oz at an all-in sustaining cost of A$1 550/oz to A$1 750/oz. Both production and costs are expected to be positively impacted by the increased contribution from high-grade, high-margin Penny ore as the year progresses.

“While FY24 continues to present some uncertainty in terms of local and global inflationary pressures, we expect both our production centres to generate positive operating cashflows, which will fund the exciting prospects we see at the Rebecca and Roe sites as well as at Mt Magnet, where the development pipeline continues to expand,” Zeptner said on Monday.

Meanwhile, Ramelius has also declared its takeover offer for Musgrave Minerals to be unconditional, with the company currently holding a 47.36% interest.

The gold miner is offering one of its own shares for every 4.21 Musgrave shares held, as well as a 4c-a-share cash payment. The offer valued Musgrave at A$201-million and valued the company’s shares at 34c each.

The takeover offer will close on September 15.