KALGOORLIE (miningweekly.com) – Gold miner Ramelius Resources will need a third gold project to meet its stated production target of 300 000 oz/y.
Speaking on the sidelines of the Diggers & Dealers conference, Ramelius MD Mark Zeptner noted that Ramelius’ Mt Magnet and Edna May production centers were expected to deliver a combined 250 000 oz/y of production.
“To go to our plus-300 000 oz/y, which we have said is our stated goal, we probably will need a third asset.
“I think in the next six to 12 months going forward, we will be more keen to do merger and acquisition activity, because our production is in good hands and we have a good balance sheet.
“But it is still necessary to find the right opportunity. We won’t do [M&A] for growth’s sake, we have to have value and we have to see value for shareholders. There is no point adding ounces if we don’t make money,” Zeptner said.
Ramelius recently released an updated life plan for its Western Australian assets, which has seen production targets increase over the next seven years by some 27%.
Group gold production in the 2022 financial year is now predicted to be higher at around 280 000 oz, up from the previously estimated 265 000 oz. For 2023, production is expected to reach between 245 000 oz and 285 000 oz, before increasing to between 250 000 oz and 290 000 oz in 2029.
For 2025, production estimates have been placed at between 245 000 oz and 284 000 oz, before falling to between 180 000 oz and 220 000 oz in 2026. Between 2027 and 2030, production will average between 160 000 oz/y and 215 000 oz/y.