As Northern Star Resources and Ramelius Resources work to finalise their acquisitions of De Grey Mining and Spartan Resources respectively, both companies have delivered solid production results for the March 2025 quarter.
Northern Star Resources Northern Star sold 385,441 ounces (oz) at an all-in sustaining cost (AISC) of $2246/oz during the March quarter, with its Kalgoorlie production centre in Western Australia performing the strongest with 196,623oz sold……….……/ ……///// … Ramelius Resources
Ramelius produced $80,455oz at AISC of $1492/oz during the March quarter, bringing the gold miner’s total year-to-date production to 228,210oz at an AISC of $1622/oz.
The Mt Magent hub led the charge, producing 67,464oz at an AISC of $1226/oz, while the Edna May hub produced 12,991oz at an AISC of $2802/oz.
In recognising Mt Magnet’s potential to increase gold production for Ramelius, the company unveiled an updated 17-year mine plan that would see 2.1Moz produced, averaging 140,000oz per annum for the first 10 years.
“The March 2025 quarter has delivered our second consecutive quarter of record underlying free cash flow, with $223 million generated in the period and $487 million year-to-date,” Ramelius managing director Mark Zeptner said.
“Cue was the star performer in the quarter generating $120 million in free cash flow alone with Penny continuing to impress generating $35 million.
“Our geological and operational teams have reconciled actual performance against our initial geological model of Cue including both tonnes and grade mined and milled in the March 2025 quarter, resulting in 31 per cent or 13,710 more ounces produced than initially modelled.
“As a result of excellent year-to-date performance, full year guidance has been refined, resulting in full year guidance at the higher end of the production range, while AISC has been tightened within the original range.”
Ramelius’ FY25 production guidance is now 290,000–300,000oz at an expected AISC of $1550–1650/oz.
“Our efforts to ramp up exploration are already starting to pay off, with positive extensional drilling results at Penny North, Cue, Hesperus and Saturn East (Galaxy), further demonstrating that our most important, high-grade deposits within the Mt Magnet portfolio still have significant exploration upside,” Zeptner said.
In March, Ramelius announced its intention to acquire Spartan Resources for approximately $2.4 billion. The transaction is progressing to plan, with the implementation expected to take place in late July or early August.
“Ramelius looks forward to integrating Spartan into our business with activities associated with the transaction proceeding to plan,” Zeptner said.
“Feedback on the proposed combination from shareholders continues to be overwhelmingly positive.”
Ramelius closed the quarter with $657.1 million in cash and gold.
RMS Price at posting:
$2.56 Sentiment: None Disclosure: Held
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