Ramelius Resources (ASX: RMS) – Dominant in Mt Magnet
ABOUT COMPANY
Ramelius Resources (RMS) (https://www.rameliusresources.com.au/) is a gold producer in WA which operates in two mining centres namely Mt Magnet and Edna May. It owns the Mt Magnet, Edna May, Vivien, Marda, Tampia, and Penny gold mines, and the recently acquired Rebecca Gold Project from AOP.
In March 2023, the company acquired BRB by script (1:2.82), which implied the takeover price of 40c a share for BRB. Combined with AOP acquisition, RMS has spent some $220m in the Lake Rebecca area.
In August 2023, the company also acquired MGV by script of 1:4.21 plus 4c cash, implying a total undiluted equity value of $201m for 250koz ore reserve (2.7Mt@2.9g/t). The PFS indicated NPV6 of $266m@A$3,000.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| RMS | 1.875 | 1142937164 | 2143007182.5 | 146/524 |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 15639 | 72.07% | 70.43% | 0.4% | 11420770 |
FLAGSHIP ASSETS
Bryah and Murchison Gold Mine
Project Data
The high-grade UG Vivien operation and future Penny operation help the company lower the ASIC below $2,000 oz.
Based on its 3 years production guidance on 14 November 2022, the company wouldn’t make more than $350m cash flow on its existing 1.1m ore reserves at gold price of $2,600.
In January 2023, the company decided to delay Edna May Stage 3 (31Mt@1.0g/t for 990kt) development because of $220m high CAPEX and $1,977 high AISC.
Below are the company’s reserves 2023:
SUMMARY
Compared with WGX, the company has a better hedge book, better stockpiles, and lower sustaining costs.