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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.]
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
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$2,135/oz.
COVID-19
Ramelius has, like many of its peers, begun to relax some of the processes previously implemented at the start of the pandemic, mainly related to physical distancing. The Company continues to carry out pre-commute and pre-return to work screening processes.
Further details will be available in the full Quarterly Report later this month.
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They're travelling well, and with the US$ 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).
01-Oct-2020: September 2020 Quarter Production Update
SEPTEMBER 2020 QUARTER GUIDANCE EXCEEDED WITH PRODUCTION OF 71,344 OUNCES
HIGHLIGHTS
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):
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.]
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;
Total Ore Reserves are estimated to be;
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.]
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
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.
27-7-2020: June 2020 Quarterly Activities Report and Guidance
HIGHLIGHTS
PRODUCTION GUIDANCE – FY2021
PRODUCTION GUIDANCE – SEPTEMBER 2020 QUARTER
CORPORATE
--- 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.
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/
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
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.
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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:
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:
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:
To buy a company entirely, you must buy all of the:
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:
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:
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.
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/
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.
Post a valuation or endorse another member's valuation.