Ramelius Resources (ASX:RMS) announced that it has achieved record gold production of 293,033 ounces for its fiscal year 2024, which ended June 30. The company operates mines in Western Australia
The achievement was well above its original guidance of 250,000 to 275,000 ounces set in July 2023, and came at the top end of its upgraded guidance, which ranged from 285,000 to 295,000 ounces. Ramelius' quarterly gold production totalled 82,058 ounces.
During the quarter, the company also generated an underlying free cash flow of AU$137.3 million, made a strategic investment of AU$87.7 million in Spartan Resources (ASX:SPR,OTC Pink:GYYSF) and paid AU$10.1 million for the Musgrave acquisition stamp duty.
This strong financial position builds on a recent syndicated facility agreement entered with several major banks, providing Ramelius with a revolving corporate facility of AU$175 million for a four-year term. The company has the option to extend for an additional year.
“While Ramelius has a strong balance sheet and we generate significant operating cash flow, we feel it is important to have the added financial flexibility which this low-cost revolving debt facility provides us,” Managing Director Mark Zeptner said in the press release about the facility.
The company plans to release its full FY25 gold production and all-in sustaining cost (AISC) guidance later this month.
Strong performance amidst slowing Australian gold production
The company’s production success comes at a time when Australia, one of the world's top gold producers, is experiencing a slight decrease in annual gold production.
According to recent figures, Australia's gold production tallied 310 tonnes for 2023, a slight decrease from the 314 tonnes from the year before. The country's production reached an all-time high of 325 tonnes in 2019.
In 2024, Australia is expected to see even lower production, which would mark the fourth straight year of declines due to multiple mines being put on care and maintenance.
Despite the decline, Australia remains a key player in the global gold market, ranking second in global gold production behind China. In 2023, China led global gold production with 370 tonnes, followed by Australia and Russia, which both produced 310 tonnes.