Ramelius Resources Limited (ASX:RMS) has exceeded its gold production guidance for the March quarter.
The company’s production of 58,671 ounces in the March 2018 quarter from its three projects in Western Australia was a record.
The Edna May project accounted for more than 24,000 ounces with Mt Magnet contributing 20,600 ounces and Vivien nearly 14,000 ounces.
On track for 200,000 ounces in fiscal 2018
Having produced 150,000 ounces in the nine months to March 31, 2018, the company is well-placed to meet financial year guidance of between 200,000 ounces and 210,000 ounces.
Analysts at Hartley’s are forecasting production of 211,000 ounces, which based on their metrics should generate operating cash flow of $122 million.
The broker believes the company is on track to increase its cash and bullion reserves to between $90 million and $100 million by June 2018.
Company seen as undervalued
Hartleys sees the company as undervalued, but this morning’s news has prompted investor support and it is now trading at 54 cents, just shy of the broker’s target price of 58 cents.
However, the broker made the point that it has not factored in the potential production upside from the stage III development of the open pit Edna May project.