Layout 1
Ramelius Resources Limited
2015
Annual Report
In 2015 Ramelius returned to profit, recording a profit before tax of $20.5 million, a significant turnaround from last year.
Contents
Chairman's Report 1
Chief Executive Officer's Report 5
Review of Operations 6
Glossary of Terms 27
Native Title Statement 31
Sustainability Statement 32
Diversity Statement 33
Corporate Governance Statement 34
Annual Financial Report 35
-
Directors' Report 36
-
Auditor's Independence Declaration 55
-
Income Statement 56
-
Statement of Comprehensive Income 57
-
Statement of Financial Position 58
-
Statement of Changes in Equity 59
-
Statement of Cash Flows 60
-
Notes to the Financial Statements 61
-
Directors' Declaration 106
-
Independent Auditor's Report 107
Shareholder Information 110
Corporate Directory (Back Cover)
RAMELIUS RESOURCES LIMITED
ACN 001 717 540
ABN 51 001 717 540
ANNUAL GENERAL MEETING
The Annual General Meeting of
Ramelius Resources Limited will be held at Australian Institute of Management SA, Centre for Management Development,
180 Port Road Hindmarsh South Australia 5007 on Thursday 26 November 2015
at 11.00 am Adelaide time.
STOCK EXCHANGE
The Company is listed
on the Australian Securities Exchange Limited.
ASX CODE
Shares: RMS
COVER IMAGE
Mars open pit blasting at Mt Magnet
RIGHT
Saturn Pit - Mt Magnet
Chairman's Report
Dear fellow shareholders,
On behalf of the Board of Directors, I present to you the 2015 Annual Report of Ramelius Resources Limited.
It is my pleasure to report that in 2015 Ramelius returned to profit, recording a profit before tax of $20.5 million, a significant turnaround from last year's $102.5 million loss. Net profit after tax was $16.3 million compared to a loss of $85.5 million in the prior year. The result reflects significant measures taken by your Company to cut costs and improve operating efficiencies at the Mt Magnet gold project.
Industry conditions during 2014/15 continued to be difficult with ongoing market volatility and low sentiment for gold producers. However the depreciation of the Australian dollar resulted in an improvement in the gold price which commenced the financial year at A$1,396 per ounce and rose to A$1,521 per ounce at 30 June 2015.
Cash generated from gold sales during the year was $129.9 million from 88,706 ounces of gold compared to $130.4 million from 92,830 ounces of gold in 2013/14. Ramelius achieved an average gold sales price of $1,464 per ounce for 2014/15 compared to $1,404 per ounce in the previous year.
Mining activities during the year focussed on the Mt Magnet Gold Project where the cutback operation on the Galaxy pits (Saturn and Mars) accessed the high grade ore zones below the base of the historic open pits and the commencement in January 2015 of the Perseverance open pit cutback.
After preliminary surface preparation works from March 2015, the decline at the Vivien gold mine was commenced in May 2015 which will enable Ramelius to access the high grade under- ground gold deposit over a 3 year period.
In June 2015 the Company also commenced open pit mining at the Kathleen Valley gold mine. This development consists of 3 shallow high grade gold deposits with first ore and gold production expected in the first half of 2015/16.
The new Vivien and Kathleen Valley mining operations represent an exciting phase for your Company in its quest to leverage off the economies of scale presented by the processing capacity at Mt Magnet where the high grade gold ore from these projects will be processed.
After placing the Burbanks Mill near Coolgardie in Western Australia on care and maintenance, ongoing milling activities were centred at the Company's 'Checkers' processing plant, located at Mt Magnet in Western Australia which processed approximately 1.63 million tonnes of ore at a recovered average grade of 1.55g/t to produce 81,683 ounces of fine gold. This represented a significant increase on the 73,980 ounces of gold produced in 2013/14 from 1.60 million tonnes of ore at a recovered average grade of 1.43g/t.
Despite the Company's mining activities and gold production during the financial year, Ramelius maintained its Mineral Resource and Ore Reserve gold ounces position with the following estimates reported as at 30 June 2015.
-
Total Mineral Resources of 28.152 million tonnes at 2.5g/t for 2,227,000 ounces of gold (2014: 28.702 million tonnes at 2.4g/t for 2,250,000 ounces of gold); and
-
Total Ore Reserves of 4.854 million tonnes at 2.7g/t for 424,000 ounces of gold (2014: 5.579 million tonnes @ 2.4g/t for 427,000 ounces of gold).
>
Ramelius Resources Limited 2015 Annual Report 1
Your directors continue to look for new opportunities to build on the Company's strategy of securing high yielding positive cash flow projects.
2 Ramelius Resources Limited 2015 Annual Report The Checker Gold Mill at Mt Magnet