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Key points
- The Ramelius share price sank 8% today
- Investors did not warm to the company's quarterly results
- Gold production at its Western Australian mines was at the lower end of the guidance
The Ramelius Resources Ltd (ASX: RMS) share price finished in the red after the company released its quarterly report today.
The company's shares were swapping hands at $1.32 at the close of trade, down 8.04%. This is its lowest level since late September 28, 2021.
Let's take a look at what the gold miner reported today.
Ramelius share price falls amid quarterly results
The company released its 2021 quarterly report for the period ending 31 December 2021. Highlights included:
- Cash and gold on hand fell 39.9% on the previous quarter to $164.5 million
- Gold production of 66,919 ounces at an all-in sustaining cost (AISC) of $1,493 per ounce
- The miner produced 31,552 ounces at Mt Magnet mine and 35,367 at Tampia mine, both in Western Australia
- Total revenue was $182 million from 77,225 ounces of gold sales at an average price of A$2,357 per ounce.
What else happened in the quarter?
Ramelius owns and explores the Edna May, Vivien, Marda, Tampia and Penny gold mines in Western Australia.
The company said overall production targets were at the lower end for the quarter. There was a slight fall in the grade and throughput at its Mt Magnet project.
This was due to a shortage of oxide, and workforce shortage impacting the company's ability to haul as much ore as it would have liked.
However, Ramelius said there was an increase in ore stocks at the Tampia and Marda mines, with 785,000 tonnes of ore that could generate up to $60 million in cash flow.
The company completed plenty of diamond drilling during the quarter and received assay results. Ramelius also acquired the Rebecca Gold Project from Apollo Consolidated Limited.
Capital and project development spending for the 2022 financial year remains at about $70 million.
What's next for the company?
Ramelius Resources said the impact of the WA border closure and any COVID-19 infections at the mine site were too hard to predict. Supply disruptions could also be impacted.
Gold production guidance for FY2022 remains at 260,000 to 300,000 ounces at an AISC of A$1,425-$1,525 per ounce
Ramelius share price recap
The Ramelius share price has fallen 16.24% since the start of 2022, and 10.85% over the past 12 months.
In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned just over 5% in the past year.
The company has a market capitalisation of about $1.1 billion based on its current share price.
