Provisional tallies show the miner produced 51,825 ounces for the quarter, within its target band of 50,000-55,000oz

 

Mount Magnet again dominated with 38,891oz, while the Edna May operation produced 12,844oz.

 

Full year guidance is 205,000-225,000oz at all-in sustaining costs of A$1225-1325/oz.

 

Ramelius remains confident in its guidance, with the disclaimer that depends on the impact of COVID-19 on its operations.

 

The coronavirus has had only a minimal impact on production so far, and Ramelius said it was prepared for any outbreak among its workers.

 

As part of its measures, it was "rationalising" non-essential exploration activities to reduce its workers' travel requirements and interactions. 

 

The company was also preparing for tighter restrictions, having "positive" discussions with its hedge counterparties on ways to restructure its short-term contracts in the event of a complete lockdown in Australia. 

 

Ramelius has also drawn down A$32.5 million from its syndicated facility, describing it as a "prudent approach to capital management".

 

It increased estimated cash and bullion from the start of the year from $87.7 million to $122.9 million at the end of March, and has net cash of $90.4 million in the bank, plus 95,000oz of gold-in-circuit or run-of-mine stockpiles.

 

Some $15.7 million of that cash is earmarked for the cash component of the Spectrum Metals takeover, where it has acceptances of 72% and a month left to run.

 

"Ramelius is well-placed to accommodate both future mine development decisions and other acquisition opportunities while providing a significant buffer during the evolving COVID-19 pandemic," the gold miner said.

 

The miner's stock was off 3.5% this morning to 97.5c, valuing it at $642 million.