Ramelius Resources managing director Mark Zeptner has said shareholders can expect bumper returns as the company’s Mt Magnet gold mine in Western Australia enters its next phase.
“We look forward to creating value and increasing returns for our shareholders with $4.3 billion (at $4500/oz) in cash generation alone expected from our new Mt Magnet plan,” Zeptner said.
“We have the financial capacity, an experienced team in place and a proven track record to turn plans into production and cash flow.”
Located immediately adjacent to the town of Mt Magnet, 500km north-east of Perth in the Murchison region, Mt Magnet has formed part of the Ramelius portfolio since 2010 when the company acquired its tenements from Harmony Gold.
While shuttered at the time, Ramelius restarted operations in 2011. Traditionally focused primarily on open pit ore sources, Ramelius commissioned the Vivien underground mine in late 2015 and the Water Tank Hill underground mine in late 2017.
Production at the site’s Eridanus open pit commenced in 2019. Under Ramelius’ new mine plan, Eridanus will become the third one-million-ounce pit at Mt Magnet, joining Hill 50 and Morning Star.
An investment decision is also underway for a mill upgrade, with construction expected to begin by the end of 2026 if all goes to plan.
The new plan will see a full mill over the next 17 years producing 2.1 million ounces, with ongoing exploration focused on extending high-grade sources further.
“The planned Mt Magnet mill upgrade to 3Mtpa (from 2Mtpa) capacity will cost $95 million with both the benefit of increasing capacity and reducing our milling costs by over 15 per cent over the mine plan on all ore sources,” Zeptner said.
“The Mt Magnet hub continues to perform at its highest level of production and cashflow generation in FY25 with cost forecasts at an industry leading AISC of $1600 per ounce for the next 2.5 years.”
