AI assistant
RAMELIUS RESOURCES LIMITED — Capital/Financing Update 2015
Feb 17, 2015
65718_rns_2015-02-17_044c8b83-729b-4f6a-84bc-ba548d40cd64.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
18 February 2015
For Immediate Release
GOLD SALES LOCKED IN FOR MT MAGNET PRODUCTION
-
Forward gold sales contracts locked in for 47,200 ounces of gold at an average price A$1,582 per ounce;
-
Attractive profit margin secured for ~40% of two-year forecast Mt Magnet production volumes;
-
Provides cash flow certainty to progress new development projects in line with corporate growth strategy.
The Directors of Ramelius Resources Limited (ASX: “RMS”) are pleased to advise the Company has sold forward 47,200 ounces of gold at an average price of $A1,582 per ounce.
The forward program represents approximately 40% of the forecast production of the Company’s Mt Magnet operation in Western Australia over the next two years, and approximately 20% of total planned group production for the same period.
The gold price achieved under the hedging program assists Ramelius to secure a compelling profit margin for the Mt Magnet operation. The program also delivers a level of certainty for future cash flows from this key strategic asset as the Company moves into an expansion phase with the proposed near-term development of its two new high grade WA gold projects, Vivien and Kathleen Valley.
Ramelius Chief Executive Officer, Mark Zeptner, today said:
“Our new hedging strategy delivers a number of medium-term benefits to the Company, particularly in executing our growth strategy, at a time of high gold price volatility.
With a clear view to profitability, the Company can progress further pit cut-backs at our Mt Magnet operation, whilst still retaining exposure to gold price upside. The underpinning of future cash flows also forms a crucial element in reaching a final decision on our two high grade, high margin gold development projects at Vivien and Kathleen Valley.”
For further information contact:
Mark Zeptner Chief Executive Officer Ramelius Resources Limited Ph: 08 9202 1127
Duncan Gordon
Executive Director, Adelaide Equity Partners Ph: (08) 8232 8800 or 0404 006 444 Email: [email protected]