Production slide all part of plan: Ramelius

Gold production from the Ramelius Resources portfolio fell last quarter, but the company remains on track to meet its full-year target.

Ramelius trailed some of its WA gold producer peers when reporting December quarter production figures this morning, saying it produced 45,610 ounces in the three months to December 31.

This figure was derived from the Penny and Cue gold mines through the Mt Magnet hub and is almost 10,000 ounces lower than Ramelius’ production of 55,013 ounces in the September quarter.

The shift comes as the producer prepares to integrate new ore from the Dalgaranga project, which it acquired in a $2.4 billion deal with Spartan Resources last year.

High-grade ore from the Never Never deposit at Dalgaranga is on track to be delivered from Ramelius’ Mt Magnet hub this quarter.

Ramelius’ cash and gold balance fell $133.4 million on a quarterly basis to $694.3 million at December 31, despite cash flow of $67 million due to income tax payments of $118.2 million and dividend returns to shareholders of $60.3 million.

Ramelius announced in December that it would begin a $250 million share buyback program and raise its minimum dividend to 2 cents annually.

Operations chief Tim Hewitt said Ramelius was on track to meet its fiscal year target of 185,000 to 205,000 ounces, producing 100,623 ounces in two quarters.

“Mt Magnet produced 45,610 ounces in the quarter in line with our plan, with strong contribution from Penny and Cue mines,” he said.

“Importantly, the development of the Dalgaranga mine is on time and on budget, with the first ore from Never Never delivered to the Mt Magnet processing facility in the March 2026 quarter.”

The integration of the Dalgaranga ore will be decisive in Ramelius’ plan to increase its production profile to more than 500,000 ounces per annum from fiscal 2030.

Ramelius shares were down 1.5 percent at $4.19 at 8:30 a.m.