Join our daily newsletter At The Bell to receive exclusive market insights
- Ramelius Resources (RMS) will not reach its gold production guidance for the 2022 financial year and says it expects costs to land in the higher end of its predicted range
- The company blames issues such as persistent rain, COVID-19-induced staff shortages, and lower head grades from its Tampia mine for the lower-than-expected production rates
- Ramelius has now lowered its FY22 production guidance to between 255,000 and 260,000 ounces from between 260,000 and 265,000 ounces,
- Meanwhile, the company says it expects its FY22 all-in sustaining costs to land at the higher end of its guidance of between $1475 and 1525 per ounce
- Shares in Ramelius Resources are down 3.9 per cent to $1.05 at 10:24 am AEST
Ramelius Resources (RMS) will not reach its gold production guidance for the 2022 financial year and said it expected costs to land in the higher end of its predicted range.
The company’s FY22 gold production guidance sat between 260,000 and 265,000 ounces, but Ramelius today said production would likely fall marginally short due to a “challenging” operating environment.
RMS highlighted issues such as persistent rain, COVID-19-induced staff shortages, and lower head grades from its Tampia mine, which all contribute to the lower-than-expected production rates.
As such, the company has now adjusted its production guidance to between 255,000 and 260,000 ounces.
Ramelius added that while it was still too early to determine all-in sustaining costs for the 2022 financial year, the company was expecting costs to land in the higher end of its range of between $1475 and 1525 per ounce.
The company will confirm its actual FY22 results and provide guidance for FY23 in its June quarterly report, slated for release in July.
Shares in Ramelius Resources were down 3.9 per cent to $1.05 at 10:24 am AEST.
