One of Australia’s most consistently profit generating gold producers says it will achieve a return to annualised production rates in excess of 100,000 oz by September this year – but wants government and the industry to take a more realistic approach to exploration activities. Ramelius’ Managing Director, Ian Gordon: “For Australia to maintain a viable gold industry, it needs mid-tier independents and juniors to maintain exploration momentum. That momentum will stagnate and shrivel unless there is some urgent re-writing of tax relief or investment incentives – whether just for the gold sector or broader minerals exploration activity.”

The milestone comes as Ramelius Resources Limited celebrates its 10th year as what it describes as “one of Australia’s most successful gold explorers and developers, having generated in excess of A$400 million in gold sales revenue since first production in 2006 after listing on the ASX in 2003. Ramelius’ 10 year highlights:

• Gold production 326,000 oz
• Total gold sales revenue A$446 million
• Total accumulated full year profits A$88.5 million
• Total cash returns to shareholders A$33 million
• ASX listing 31 March, 2003
• Current market capitalisation ~ A$100 million
• Current cash and gold on hand ~ A$47 million
• Production outlook 150,000 oz/y by 2016

The company held the mantle for most of that period as the country’s highest grade gold producer thanks to its bonanza style open pit and underground mining operations at the recently completed Wattle Dam gold mine, 25 km west of Kambalda in Western Australia.

Ramelius has retained its foundations in Western Australia’s goldfields in addition to exploration forays into Queensland and Nevada in the USA. The company is currently moving from a one mine operation to multiple gold mines centred around its ownership of the Mt Magnet gold project and associated infrastructure in central WA.

“It is important that the company springboards off its historic strong performance in discovery and mine development. We intend to build a solid and sustainable project pipeline for a second decade of gold exploration and mine development, primarily in Australia but potentially also in select overseas areas such as Nevada offering an early return on investment,” Gordon, said. “Australia’s pool of pure gold producers is rapidly dwindling through a combination of resource exhaustion, low levels of exploration and a high level of merger and acquisition activity.”

“We are very proud of Ramelius’ achievement in a long track record of profitability – something achieved against current market trends that places us in a strong position to grow organically via exploration success.

“We will also be able to add to our project portfolio via strategic acquisitions should the right opportunities become available.”