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W
hen what came to be known as the “Arab summer”
began rolling out early in 2011 across northern
Africa, bringing amid its chaos, generational
change to a raft of countries including Egypt
and Libya, it was simply the start of a meltdown
in global confidence that saw over ensuing months, massive
swings in commodity prices, and in equity and consumer market
sentiment in almost every corner of the globe – a mood that
persisted for most of the year.
The phrase “safe haven” became the catchcry for private and
public investors alike, spooked by the lack of direction, leadership
and certainty at business, political and government levels alike.
Amid this almost rudderless maelstrom, the “safe haven”
once again became gold – but in a record-breaking manner the
like of which has never been seen before. The global volatility not
only fuelled the gold price but sustained it at record levels circa
US$1,800 an ounce and higher.
Enter Australia’s highest grade gold producer, Ramelius
Resources – not only pumping out record full year production
in excess of 100,000 ounces from its Wattle Dam underground
gold mine in Western Australia’s eastern goldfields – but doing so
at cash costs averaging below A$350 an ounce.
Little wonder – on net margins ranging in excess of $1,000
an ounce at times – that Ramelius turned in a record net profit
of $62.4 million for the year to June 30, 2011, on the back of an
equally strong and record revenue stream of $148 million.
And this at a time when many of its peers in the Australian gold
industry were grappling with costs more in the range of $700-900
an ounce – cushioned only by gold’s stellar price push towards
$2,000 an ounce.
Ramelius has used this fire in gold’s belly to aggressively drive
its own expansion – adopting a new mine plan that pushes Wattle
Dam’s production life out until at least 2013 – and powering
on with restarting production at its latest acquisition – the former
Mount Magnet gold mine in Western Australia’s central region.
The company embedded a six year mine plan for Mount
Magnet that saw production restarted in the final half of calendar
2011 with first gold pours expected in the opening quarter of
calendar 2012.
Ramelius has set a target of 520,000 ounces of production over
IAN GORDON
MANAGING DIRECTOR
RAMELIUS RESOURCES LTD
as global confidence plummets
RAMELIUS SOARS ONGOLDENWINGS
RAMELIUS PRODUCES AUSTRALIA’S
HIGHEST GRADE GOLD
RAMELIUS ESTABLISHED A NEW
MINING CAMP AT MOUNT MAGNET
MINESITE 2011
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