Shares of ASX 200 gold miner Ramelius Resources Ltd (ASX:RMS) (ASX: RMS) are soaring once again today following the announcement of record quarterly gold production. Closing at AU$1.81 yesterday, the stock surged to AU$1.95 on Wednesday, marking a remarkable 7.73% increase.
In contrast, the ASX 200 itself is down by 1.37% at the same time. However, the S&P/ASX All Ordinaries Gold Index (INDEXASX: XGD), which includes smaller miners alongside ASX 200 gold stocks, has seen a 1.02% increase amidst another rise in the gold price to US$2,282 per ounce.
Ramelius Resources' shares have experienced a staggering 48.2% surge since hitting recent lows on February 23rd.
March quarter update
The miner's achievement of an all-time high gold production of 86,928 ounces in the March quarter has been the driving force behind investor enthusiasm. This figure surpasses the implied production guidance of 70,000 to 77,500 ounces for the quarter and significantly exceeds the previous record quarterly production of 86,516 ounces in the June 2020 quarter.
Notably, the Mt Magnet project, including Penny, contributed 45,927 ounces, while Edna May, incorporating Tampia, Marda, and Symes, produced 41,001 ounces.
Outlook
Ramelius Resources' H2 FY2024 production guidance currently stands at 140,000 to 155,000 ounces at an all-in-sustaining cost (AISC) of AU$1,700 to AU$1,800 per ounce. The company anticipates its AISC for the quarter to be substantially below this guidance, with expectations ranging between AU$1,375 to AU$1,475 per ounce.
The company's balance sheet has also seen significant improvement, with record free cash flow of AU$125.3 million reported for the quarter, surpassing the previous record of AU$69.4 million in the June 2020 quarter. This has bolstered Ramelius Resources' net cash and gold holdings to AU$407.1 million.
Furthermore, the company plans to provide additional details in its upcoming quarterly report, including a review of how the March quarter's outperformance will positively impact its full-year FY 2024 gold production and AISC guidance.