PERTH (miningweekly.com) – Gold miner Ramelius Resources has reported a 193% increase in earnings before interest, taxes, depreciation and amortization (Ebitda) and a 297% increase in net profits after tax for the half-year ended December.

The ASX-listed miner reported a 57% increase in gold production for the half-year, which was up from the 92 084 oz delivered in the first half of the 2020 financial year, to 144 240 oz, resulting in sales revenue for the period increasing by 116% to A$342.2-million.

Ramelius reported that Ebitda for the period under review increased from A$65.9-million to A$192.8-million, while net profits after tax increased from A$20.5-million to A$81.3-million.

“The company’s profitability has increased significantly in the December 2020 half and continues the solid earnings from the second half of the 2020 financial year,” said MD Mark Zeptner.

“This profitability has been achieved as a result of strong cost controls, improving grades and an improving gold price. Both our production centers contributed to the increasing Ebitda and underlying profitability over the corresponding period last year.

“At Mt Magnet, the additional high-grade feed from the undergrounds and continued solid performance from Eridanus has resulted in nearly a three-fold increase in production centre earnings.

“Ebit from Edna May increased five-fold with the plant operating at full capacity feeding ore from the Greenfinch and Marda as well as the Edna May underground. Both the increase in earnings and cashflow highlight the strength of our balance sheet which will allow us to develop our own growth projects with confidence and continue to assess external growth opportunities as they arise,” said Zeptner.

For the full 2021 financial year, Ramelius’ guidance has remained at between 260 000 oz and 280 000 oz, with all-in sustaining costs estimated at between A$1 230/oz and A$1 330/oz.