Ramelius Resources managing director Mark Zeptner. Credit: Michael Wilson/The West Australian
Shares in mid-tier gold producer Ramelius Resources have tanked after the market gave its new plan for a Murchison mining hub the thumbs down.
Ramelius shares finished 17.2 per cent lower to $2.31 on Tuesday, barely a fortnight after hitting a record high of $2.82.
The East Perth outfit unveiled its updated plan for the Mt Magnet operation, which would be more expensive and initially produce less gold than investors were hoping.
Analysts expected the key Eridanus mining pit to cost around $100 million to develop, but the actual figure came in at $351m.
Forecast gold production during the 2026 and 2027 financial years missed predictions by about 75,000 ounces. Maiden gold from the pit is slated for April 2026.
Ramelius said a greater portion of mining would occur at the back end of Mt Magnet’s 17-year life. The mineral resource now stands at 2.1 million ounces of the precious metal, 37 per cent more than the 2024 ore reserve statement.
“We look forward to creating value and increasing returns for our shareholders with $4.3 billion (assuming a gold price of $4,500 per ounce) in cash generation alone expected from our new Mt Magnet plan,” Ramelius managing director Mark Zeptner said.
RMS Price at posting:
$2.31 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)