Join our daily newsletter At The Bell to receive exclusive market insights
- Ramelius Resources (RMS) has reached its March 2020 quarter production guidance by producing more than 51,000 ounces of gold
- This result falls right in the company’s predicated guidance of 50,000 to 55,000 ounces
- Ramelius’ takeover of Spectrum Metals is also progressing well, with the company owning 72 per cent
- Due to COVID-19 having minimal impact on operations and production, the company is maintaining its full-year guidance of between 205,000 and 225,000 ounces of gold
- Ramelius shares are down a slight 5.94 per cent and are trading for 95 cents each
Ramelius Resources (RMS) has reached its March 2020 quarter production guidance by producing 51,825 ounces of gold.
Additionally, the company’s balance sheet remains strong, with more than $90 million in net cash stowed away.
Ramelius has also provided updates on its takeover of Spectrum Metals and its response to COVID-19.
Operations
Ramelius’ gold production fall right in its guidance of between 50,000 and 55,00 ounces and comes from its Mt Magnet and Edna May deposits.
Both Mt Magnet and Edna May are located within Western Australia’s Yilgarn Craton and respectively produced 38,981 and 12,844 ounces of the total 52,825 ounces.
The takeover of Spectrum Metals
First announced in February, Ramelius offered to purchase Spectrum Metals as Ramelius’ Managing Director, Mark Zeptner, believed that it was the next step in the company’s growth strategy and it would benefit both companies.
Ramelius would ultimately receive Spectrum’s high-grade Penny West Gold Project which is one of the highest underdeveloped gold assets in Australia.
Under the purchase offer, Spectrum shareholders received one Ramelius share for every 10 Spectrum shares held, Spectrum shares were valued at 15 cents each.
On March 18, Ramelius announced that it had obtained a 50.5 per cent ownership of Spectrum.
Since then, interest is continuing and as of today, Ramelius holds a 72 per cent beneficial ownership in Spectrum.
Beneficial ownership is when specific property rights belong to one party even though the legal title belongs to another. So in this case, Ramelius holds an additional 21.5 per cent in Spectrum even though it still legally belongs to Spectrum.
COVID-19
Like many other exploration companies, Ramelius has put a number of measures in place to maintain the health and safety of its employees.
These measures include stricter hygiene practices, testing and screening of employees, and social distancing.
The company has also put processes in place should any employees be affected by the virus.
Presently, COVID-19 has had minimal impact on Ramelius’ production and operations, however, the company is aware that this may happen in the future.
At this stage, Ramelius is maintaining its full-year guidance of between 205,000 and 225,000 ounces of gold. The company will update the market should this figure change.
Ramelius shares are down a slight 5.94 per cent and are trading for 95 cents each at 1:02 pm AEDT.
