Top member reports
Company Report
Last edited 3 weeks ago
PerformanceCommunity EngagementCommunity Endorsement
ranked
#4
Performance (70m)
11.3% pa
Followed by
1301
Straws
Sort by:
Recent
Content is delayed by one month. Upgrade your membership to unlock all content. Click for membership options.
#Quarterly Reports
stale
Added 3 years ago

27-Oct-2020:  September 2020 Quarterly Activities Report

That's directly from the RMS website (https://www.rameliusresources.com.au/) so does NOT contain the ASX's "FOR PERSONAL USE ONLY" over the top of everything.

I consider this to be a good report, although I note that not too many stocks are rising today, even when they have good announcements.  [I hold RMS shares.]

#Production Reports
stale
Last edited 4 years ago

01-July-2020:  RAMELIUS EXTENDS LIFE OF MINE PLAN BY 34% TO 1.45Moz & JUNE 2020 QUARTER RECORD PRODUCTION

JUNE 2020 QUARTER RECORD PRODUCTION of 86,517 ozs

HIGHLIGHTS

  • Quarterly gold production of 86,517oz (Guidance >80,000 oz)
  • FY2020 gold production of 230,426 oz (Guidance 225 – 230,000oz)
  • Cash and gold balance of A$185.5M (Net cash of A$161.1M)
  • Takeover Offer for Spectrum Metals has completed, with Ramelius now 100% owner of the Penny Gold Project

Ramelius Resources Limited (ASX: RMS) is pleased to advise that it has achieved the recently upgraded June 2020 Quarter Production Guidance with a record 86,517 ounces of gold produced. For the full FY2020 year, record production was also achieved with 230,426 ounces produced. Further, the Company’s balance sheet remains strong with cash and gold of A$185.5M and a reduced debt figure of A$24.4M as at the end of the Quarter, giving a net cash position of A$161.1M. A provisional update on operational, corporate, finance and the Company’s response to COVID-19 follows.

OPERATIONS

Group Quarterly gold production of 86,517 ounces (Guidance: >80,000 ounces): • Mt Magnet (incl. Vivien) – 61,161 ounces • Edna May (incl. Marda) – 25,356 ounces

CORPORATE DEVELOPMENT

On 23 June 2020, Ramelius achieved the acquisition of 100% of Spectrum Metals Ltd (ASX: SPX) (“SPX”), pursuant to its off market takeover offer announced on the ASX on 10 February 2020 (“Offer”).

FINANCE & FORWARD GOLD SALES

Cash and gold on hand was A$185.5M at the end of the Quarter (Mar 2020 Qtr.: A$125.4M) after planned capital and exploration expenditure, funding the final A$9.1M cash component of the SPX acquisition, a scheduled A$8.1M debt repayment and payment of A$1.2M in a provisional income tax instalment. Underlying cash and gold, which excludes the debt repayment, SPX related costs and income tax, increased by A$78.5M over the Quarter. The Company finished the Quarter with a net cash position of A$161.1M. Ramelius continues to deliver gold into its forward sales book as the current schedule requires, with an end of year position of 247,350 ounces at an average price of A$2,135/oz.

COVID-19

Ramelius has, like many of its peers, begun to relax some of the processes previously implemented at the start of the pandemic, mainly related to physical distancing. The Company continues to carry out pre-commute and pre-return to work screening processes.

Further details will be available in the full Quarterly Report later this month.

--- ends ---

They're travelling well, and with the US$ gold futures price going over US$1,800/oz briefly overnight (a 7-year high) and the A$ gold price having hit an ALL-TIME record high of A$2,748/oz in March and then almost reaching that level again on May 15th (less than 7 weeks ago, got to A$2,724) and sitting at around A$2,588/oz as I type this, it's a very good time to be hitting your straps as an Australian gold miner with all of your gold mines located here in Australia. 

While I don't currently hold RMS shares, I view them as one of the better mid-tier Australian gold producers.  They have excellent management and they work their assets hard.

05-Oct-2020:  Update:  I found this today saved as a "private" straw, so made it public, but forgot to mention I do now hold RMS in my SMSF.  I bought them a couple of months ago, and they've had a decent run up until September 18th - when they closed at $2.47/share.  They've dropped -17% in the past couple of weeks however, and they closed at $2.05 today.  They're one of Australia's top 10 pure-play Australian-based gold producers, and I'm happy to be holding them.  My brother recently did a shutdown at RMS's Mt Magnet gold mine (in WA) and reported that they seem to be well run, with a good culture, and a good site.  He couldn't find any negatives, and he usually can, so I'm taking that as positive feedback.  Everything other than this last paragraph was written back on July 1st (2020).

#Production Reports
stale
Last edited 4 years ago

01-Oct-2020:  September 2020 Quarter Production Update

SEPTEMBER 2020 QUARTER GUIDANCE EXCEEDED WITH PRODUCTION OF 71,344 OUNCES

HIGHLIGHTS

  • Quarterly gold production of 71,344oz (Guidance: 65 - 70,000oz)
  • Cash and gold balance of A$221.9M (Net cash of A$205.7M)

Ramelius Resources Limited (ASX: RMS) is pleased to advise that it has exceeded the September 2020 Quarter Production Guidance with 71,344 ounces of gold produced.  The Company’s balance sheet remains strong with cash and gold of A$221.9M and a reduced debt figure of A$16.25M as at the end of the Quarter, giving a net cash position of A$205.7M.  A provisional update on operational, finance and the Company’s ongoing response to COVID-19 follows.

OPERATIONS

Group Quarterly gold production of 71,344 ounces (Guidance: 65 - 70,000 oz):

  • Mt Magnet (incl. Vivien) – 41,064 ounces
  • Edna May (incl. Marda) – 30,280 ounces

FINANCE & FORWARD GOLD SALES

Cash and gold on hand was A$221.9M at the end of the Quarter (Jun 2020 Qtr: A$185.5M) after planned capital and exploration expenditure, a scheduled A$8.1M debt repayment, stamp duty payment on the 2019 Explaurum acquisition of A$3.6M and a A$1.1M income tax instalment.  Underlying cash and gold, which excludes the debt repayment, increased by A$44.6M over the Quarter.  The Company finished the Quarter with a net cash position of A$205.7M.

Ramelius continues to deliver gold into its forward sales book as the current schedule requires, with a Quarter end position of 238,750 ounces at an average price of A$2,223/oz.

COVID-19

Ramelius continues to maintain certain procedures, related to physical distancing and pre-commute screening.  The Company continues to carry out swab testing and/or wearing of clinical masks on aircraft where required, as well as carry out temperature testing and screening processes prior to commuting to sites.

Further details will be available in the full Quarterly Report later this month.

[I hold RMS shares in my SMSF.]

#Resources & Reserves
stale
Added 4 years ago

28-Sep-2020:  Resources and Reserves Statement 2020

Ore Reserves up 32%

Ramelius Resources Limited (ASX: RMS) is pleased to announce new estimates of Mineral Resources and Ore Reserves as at 30 June 2020, with Mineral Resources up 15% and Ore Reserves up 32% for the year, after mining depletion.

Total Mineral Resources are estimated to be;

  • 90 Mt at 1.6 g/t Au for 4.7 Moz of gold

Total Ore Reserves are estimated to be;

  • 17 Mt at 2.1 g/t Au for 1.1 Moz of gold

Increases were achieved at Ramelius’ gold projects in Western Australia via drilling and resource additions at Eridanus, Shannon and Vivien, plus the acquisition of the Penny project. As in previous years, the Company’s ability to consistently meet production guidance has been underpinned by realistic resource modelling and deliverable reserve estimates. Growth in both Mineral Resources and Ore Reserves has accelerated in recent years as illustrated below.

[I can not replicate that chart referred to above - at the end of that last paragraph - but you'll see it if you click on the link above.  I hold RMS shares in my SMSF.]

#FY20 Results
stale
Last edited 4 years ago

24-Aug-2020:  FY20 Financial Results and Dividend   and   FY20 Financial Results Presentation   plus   Appendix 4E and FY20 Annual Financial Report

RAMELIUS DELIVERS 420% INCREASE IN NET PROFIT AFTER TAX AND DECLARES 2.0cps DIVIDEND

FY2020 HIGHLIGHTS

  • Gold production of 230,426 ounces (FY19: 196,679oz), up 17%
  • AISC* of A$1,164/oz (FY19: A$1,192/oz), down 2.4%
  • Revenue from ordinary activities of A$460.6M (FY19: A$352.8M), up 31%
  • EBITDA** of A$256.0M (FY19: A$112.2M), up 128%
  • EBITDA** margin of 56% - one of the highest amongst peers
  • Net profit before tax (NPBT) of A$149.5M (FY19: A$30.4M), up 392%
  • Net profit after tax (NPAT) of A$113.4M (FY19: A$21.8M), up 420%
  • Cash and bullion of A$185.5M (FY19: A$106.8M), with A$24.4M debt
  • Net Cash of A$161,1M
  • FY2021 Guidance 260,000–280,000oz at an AISC of A$1,230–$1,330/oz^ [one of the lowest cost gold producers in Australia]
  • Dividend of 2.0 cents per share fully franked

Ramelius Managing Director, Mark Zeptner, today said:

“This is the sixth consecutive year that Ramelius has posted a net profit after tax, which demonstrates the operating and financial strength of the Company, its quality assets and the success of our growth strategy. It is very pleasing to also announce a 2.0c per share fully franked dividend after our record breaking year, building on the 1.0c per share dividend paid in October 2019.

Ramelius is proud of the fact that it is now rewarding shareholders with a dividend yield, in addition to the significant share price growth achieved over the last 12 months.”

--- click on links above for more ---   [I hold RMS shares - in my SMSF.]

Notes:

*All-in Sustaining Cost (AISC) includes cash costs, plus royalty expenses, sustaining capital, general corporate and administration expenses on a per ounce sold basis.

** EBITDA is earnings before interest, tax, depreciation, and amortisation and is calculated from continuing operations. EBITDA is a financial measure which is not prescribed by the International Financial Reporting Standards (IFRS) and represents the profit under IFRS adjusted for specific significant items. EBITDA has not been subject to any specific review procedures by the auditor but has been extracted from the company’s financial statements.

^ Refer ASX Announcement “Ramelius Extends Life of Mine by 34% to 1.45Moz” released on 30 June 2020.

#Production Reports
stale
Last edited 4 years ago

27-7-2020:  June 2020 Quarterly Activities Report and Guidance

HIGHLIGHTS

  • Record quarterly group gold production of 86,517 ounces at an AISC of A$1,041/oz (Original Guidance 65,000 – 70,000 ounces at an AISC of A$1,000 – A$1,100/oz):
    • Mt Magnet (incl. Vivien) – 61,161 ounces at an AISC of A$867/oz
    • Edna May (incl. Marda) – 25,356 ounces at an AISC of A$1,488/oz
  • Record full year production for FY2020 of 230,426 ounces at an AISC of A$1,164/oz
  • Cash & gold of A$185.5M (Mar 2020 Qtr: A$125.4M) after A$14.4M capital expenditure and A$10.4M on the Spectrum Metals Limited (“Spectrum”) takeover
  • Net cash & gold increased A$68.2M across the Quarter
  • Takeover of Spectrum completed on 23 June 2020
  • Publication of 1.45Moz Mine Plan, primarily across six years to FY2026

PRODUCTION GUIDANCE – FY2021

  • Group gold production for FY2021 is expected to be a new record of between 260,000 – 280,000 ounces at an AISC of A$1,230 – A$1,330/oz. Production is expected to be sourced as follows:
    • Mt Magnet (incl. Vivien) – 155,000 ounces
    • Edna May (incl. Marda) – 115,000 ounces

PRODUCTION GUIDANCE – SEPTEMBER 2020 QUARTER

  • Group gold production for the September 2020 Quarter is expected to be between 65,000 – 70,000 ounces at an AISC of A$1,250 – A$1,350/oz:
    • Mt Magnet (incl. Vivien) – 43,000 ounces
    • Edna May (incl. Marda) – 24,500 ounces
  • Capital & project development expenditure of approximately A$25.9M, including:
    • Eridanus & Brown Hill open pits (Mt Magnet) - A$14.9M
    • Marda open pit roadworks - A$1.3M
    • Tampia open pit pre-development - A$2.9M
    • Exploration (all projects) - A$6.8M

CORPORATE

  • Quarterly gold sales of 89,345 ounces for total revenue of A$198.6M from an average gold price of A$2,223/oz
  • Cash & gold on hand of A$185.5M (Mar 2020 Qtr: A$125.4M). This is after repayment of $8.1M in debt and further investment into the development of Ramelius’ portfolio, including A$6.9M on exploration, A$7.5M in project development costs, and $10.4M on the acquisition of Spectrum.
  • Cash & gold on hand, net of debt, was A$161.1M (Mar 2020 Qtr: A$92.9M), representing an increase of A$68.2M.
  • As at the end of June 2020, forward gold sales consisted of 247,350 ounces of gold at an average price of A$2,135/oz, covering the period to December 2022.

--- click on link above for the full report ---

While I don't currently hold any RMS shares, I consider Ramelius to be an excellently managed gold producer, one of our top 10 ASX-listed producers now, with a great net cash position (over $160m net cash/gold) with some sensible hedging at an average price of A$2,135/ounce through to December 2022.  While Edna May has higher costs, their AISC for Mt Magnet (including Vivien) was only A$867/oz in the June 2020 quarter, and Mt Magnet has produced - and will continue to produce - more gold than Edna May, so RMS's group AISC (across both mining centres) will remain competitive - with current guidance of AISC between A$1,230 and A$1,330/oz in FY2021.

I think they've once again given themselves scope to beat their own guidance in FY21 (as they have just done in FY20) and I think RMS are going to continue to get positively rerated by the market as they continue to perform well in a very supportive gold-price environment.

#Broker/Analyst Views
stale
Added 4 years ago

23-June-2020:  Hartleys: RAMELIUS RESOURCES LTD (RMS): Lights out quarter

Hartleys have a BUY call on RMS, a $1.85 valuation, and a $2.40 12-month price target.

Other Broker Coverage of Ramelius Resources can be reached here:  https://www.rameliusresources.com.au/broker-coverage/

#Guidance Upgrade
stale
Added 4 years ago

22-June-2020:  Ramelius on track for record quarter FY2020 Guidance upgrade

RAMELIUS ON TRACK FOR RECORD QUARTER OF OVER 80,000oz GOLD PRODUCED, FY2020 GUIDANCE UPGRADED

HIGHLIGHTS

  • June 2020 Quarter production already a new record of 74,371oz (as at today’s date)
  • Full June 2020 Quarter production now expected to exceed 80,000 ounces (Previous Guidance was 65 - 70,000oz)
  • Full FY2020 production Guidance upgraded to record 225 – 230,000 ounces (Previous Guidance 210 – 220,000oz)

Ramelius Resources Limited (ASX: RMS) is pleased to advise that it has exceeded the Production Guidance range for the June 2020 Quarter, with 74,371 ounces of gold produced as of 21 June 2020.

This already represents record quarterly and annual production for the Company with two weekly gold pours remaining and has been achieved as a result of excellent performance from both West Australian production centres, particularly Mt Magnet.  Based on the production figures received to date, Ramelius has upgraded Guidance for both the June 2020 Quarter and FY2020 as highlighted above.

Ramelius Managing Director, Mark Zeptner today said:

“We are obviously delighted by the operational performance in achieving records in both quarterly and annual gold production, particularly against the backdrop of COVID-19 and the additional administrative requirements the pandemic has necessitated.

We remain confident that Ramelius, with its high-performing team, excellent cash generation and enviable balance sheet, is very well positioned for the next stage of growth.”

Further details will be available in the Production Update and full Quarterly Activities Report, both due in July 2020.

--- ends ---

Gotta love upgrades!  The RMS share price was up +16.76% today on the back of this one.  They now have a market cap of AU$1.44 billion, and are firmly within our top 10 pure-play gold producers that are based here in Australia with their primary listing on the ASX.

The goldnerds.com.au spreadsheet lists the top 15 like this:

  1. NCM, Newcrest Mining
  2. AGG, AngloGold Ashanti *
  3. KLA, Kirkland Lake Gold *
  4. NST, Northern Star Resources
  5. EVN, Evolution Mining
  6. SAR, Saracen Mineral Holdings
  7. RRL, Regis Resources
  8. AQG, Alacer Gold *
  9. SBM, St Barbara
  10. OGC, OceanaGold
  11. SLR, Silver Lake Resources
  12. RMS, Ramelius Resources
  13. GOR, Gold Road Resources
  14. PRU, Perseus Mining
  15. RSG, Resolute Mining

After RSG, which has a market cap of $1.23 billion, there's a big step down to #16, which is WGX (Westgold Resources) with a market cap of only $853 million.

* However, #2, #3 and #8 (AGG, KLA & AQG) are secondary listings here by companies that are based in South Africa, Canada and the USA respectively.  If you filter those three out, you are left with the following top 12:

  1. NCM, Newcrest Mining
  2. NST, Northern Star Resources
  3. EVN, Evolution Mining
  4. SAR, Saracen Mineral Holdings
  5. RRL, Regis Resources
  6. SBM, St Barbara
  7. OGC, OceanaGold
  8. SLR, Silver Lake Resources
  9. RMS, Ramelius Resources
  10. GOR, Gold Road Resources
  11. PRU, Perseus Mining
  12. RSG, Resolute Mining

RMS is now only 3.2% behind SLR's market cap, ($1.706b vs $1.760b), so RMS could easily overtake SLR if they have another day even half as good as today was.

GoldNerds works out the market cap a little differently - as explained below:

Market Capitalization = The value the stock market is currently putting on the entire company.

The market capitalization ("market cap") of a company is all of the following:

  • The value of the company as determined by its recent share price and share structure. 
  • How much it would cost you to buy the entire company, at the recent share price. 
  • The value of all the company's assets, both financial and physical, including liabilities as negative assets.

To buy a company entirely, you must buy all of the:

  • Fully-paid shares (both quoted and unquoted on the stock exchange);
  • Shares that could be issued to holders of in-the-money options and warrants; and
  • Shares that could be issued to holders of in-the-money partly-paid shares.

Out-of-the-money options and warrants and out-of-the-money partly-paid shares are worthless if someone were to buy all of a company at the current share price, because their holders would pay more than the recent share price to convert them into a fully-paid share.

The market cap is therefore calculated as the sum of:

  • The number of fully-paid shares multiplied by the recent share price;
  • The number of in-the-money options and warrants multiplied by the differences between their strike price and the recent share price (for each series of options or warrants); and
  • The number of in-the-money partly-paid shares multiplied by the amount owing on each partly paid share (for each series of partly-paid shares). 

Which is equal to the current share price multiplied by the combined number of shares and in-the-money options, warrants, and partly-paid shares, less the cost of exercising the in-the-money options and partly paid shares (the option cost).

Market cap is of interest in our analysis only because it usually roughly equal to the enterprise value (EV) of the company (because the financial net assets of a company are usually small compared to the physical assets of the company).  The EV is the value the stock market is currently putting on the physical (non-financial) assets of the company.

Those same 12 gold producers in order of Enterprise Value (EV) is similar, except RMS moves up one position (leapfrogs SLR) and RSG also moves ahead of PRU:

  1. NCM, Newcrest Mining
  2. NST, Northern Star Resources
  3. EVN, Evolution Mining
  4. SAR, Saracen Mineral Holdings
  5. RRL, Regis Resources
  6. SBM, St Barbara
  7. OGC, OceanaGold
  8. RMS, Ramelius Resources
  9. SLR, Silver Lake Resources
  10. GOR, Gold Road Resources
  11. RSG, Resolute Mining
  12. PRU, Perseus Mining

Of these 12, I currently hold NST, EVN, SAR, RRL and SBM.  From outside of those lists, I also hold PNR (Pantoro) which comes in at #19 on the EV list, and at #16 on the Market Cap list.  The Producers list - with minimum 70% gold production - vs all other metals, and all companies headquartered here in Australia, so not including AGG, KLA or AQG - runs to 25 companies according to GoldNerds.  The lower 13 - in EV order (biggest to smallest, continuing from PRU above) - are WGX, RED, DCN, PNR, TBR, BLK, BCN, MML, TRY, RND, WWI, AUL & KRM.  

I also hold a couple of Developers and Explorers, being BGL and YRL - who are both still considered explorers because neither has reached FID - Final Investment Decision - to develop their respective projects into operating mines.

On top of the 25 Gold Producers, there are another 41 Gold Project Developers at various stages of project development, and another 99 Gold Explorers for a total of 165 companies.  And that's using those filters - they must be 70% or more in gold, and headquartered in Australia with their primary stock exchange listing here.  Remove those filters and the 165 becomes 222 companies.

As of tonight, there are a grand total of 2,127 companies listed on the ASX - you can view the complete list here - and 10.4% of those companies (222) are either gold miners, gold project developers or companies exploring for gold.  That's quite a large proportion of the market when you think about it.  Of course, many of those companies are very, very small, and most of them will go broke before they find something worth mining - or they'll change into a different type of company with a different focus, like a small biotech or fintech with another wonderful story.  Remember the dot com bubble?  So many of those new start-ups were ex-precious-or-base-metals-explorers.  

Anyway, the point is, you can afford to be choosy.  There are many gold companies to choose from, so choose wisely.  

RMS looks like one of the better ones.  I've held them before and I like their management.  I will probably hold them again.

#Drilling Results
stale
Added 4 years ago
#Broker/Analyst Views
stale
Added 4 years ago

03-Apr-2020:  Hartleys:  RAMELIUS RESOURCES LTD (RMS):  Mine plan preview

Hartleys has a "Buy" on RMS with a $1.22 valuation and a $1.40 PT (price target).

For RMS coverage by other brokers, including RBC Capital Markets, Morgans & Taylor Collison, see here:  https://www.rameliusresources.com.au/broker-reports/

#Broker/Analyst Views
stale
Last edited 4 years ago

19-Aug-2019:  https://www.taylorcollison.com.au/wp-content/uploads/2019/08/RMS-August-2019-Final.pdf

TC's PT for RMS is $1.31.  RMS closed yesterday at $1.135 (and $1.16 the day before).  There is a handy peer comparison chart at the top of the 3rd page, which compares RMS with SLR, RSG, SBM, RRL, SAR, NST & EVN in terms of FY20 Production Guidance, AISC (A$/oz), Net Cash/Gold and Maket Cap.  RMS' AISC ("All-In Sustaining Costs") is in the more expensive half of those 8, and they are forecast to produce the least amount of gold of the 8, but they do have the lowest market cap, and they also have more cash (A$106.8m of cash/gold vs their A$838.8m market cap) than both RSG and EVN.

I don't see Ramelius as a screaming BUY myself, but they do look like better value than some of their higher quality peers.  You are certainly paying up for companies like EVN, NST & SAR at current levels.

Of those 8, I currently hold NST, EVN and SBM.  I have held RMS in the past, and may do so again in the future.