The Ramelius Resources Limited (ASX: RMS) share price is storming higher on Tuesday following the release of its quarterly update.
At the time of writing, the gold miner's shares are up 6.5% to $1.89.
Image Source: Getty Images
How did Ramelius perform in the second quarter?
For the three months ended 31 December, Ramelius outperformed its quarterly guidance range of 67,000 ounces to 72,000 ounces.
The company delivered quarterly production of 72,896 ounces, which comprises 43,055 ounces at Mt Magnet and 29,841 ounces at Edna May.
This brought its first half production to a total of 144,240 ounces, which compares favourably to its guidance of 132,000 ounces to 142,000 ounces.
At the end of the period the company's balance sheet was in a very strong position. Ramelius had cash and gold of $221.5 million and a reduced debt figure of $8.1 million.
This left it with a net cash position of $213.4 million. Which, excluding dividend payments and stamp duty, was a $34.5 million increase since the end of September.
Looking ahead, management advised that the company continues to deliver gold into its forward sales book. At the end of the quarter, it had 229,750 ounces forward sold at an average price of A$2,288 ounce.
What else is lifting the Ramelius share price?
Also giving the Ramelius share price a boost on Tuesday has been a rise in the gold price overnight.
According to CNBC, the spot gold price rose 2.7% to US$1,946.70 an ounce. This followed a selloff on Wall Street and weakness in the US dollar.
In light of this, fellow gold miners Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) are also on the rise today and helping drive the S&P/ASX All Ordinaries Gold index higher. The gold miner index is up 2.2% at the time of writing.
