Ramelius Resources Limited (ASX: RMS) shares have jumped 6.45% higher to 50 cents after reporting a record net profit after tax of $30.8 million, representing a 74% increase.
The small-cap gold miner reported that gold production was up 66% in the period to a record 208,118 ounces. Revenue grew 73% to a record $341.8 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 50% to $127 million, which Remelius says was boosted by increasing gold prices, lower operating costs
and the acquisition of the Edna May Gold Mine.
Managing Director, Mark Zeptner said: “This is the fourth consecutive year that Ramelius has posted a net profit after tax which demonstrates the operating and financial strength of the Company and its assets. The addition of Edna May in October last year has made us a highly profitable 200koz per annum producer with the capability, resource base and desire
to be Australia’s next mid-tier gold producer. Further, our strong balance sheet gives Ramelius the flexibility to pursue growth opportunities as and when they arise.”
The company did not announce any dividends for the period.
Ramelius provided FY2019 guidance of 200–220,000koz at an all-in-sustaining-cost of A$1,150–$1,250/oz.
Since the beginning of 2018, the Ramelius Resources Limited share price has climbed 28.57% higher, compared to the S&P/ASX 200 Index which has gained 4.88% in the period.