Shares in the Aussie miner are under pressure on Thursday.
The post Ramelius (ASX:RMS) share price slips despite record earnings appeared first on The Motley Fool Australia. –
At the time of writing, the Ramelius share price is trading flat at $1.537 after spending most of the day in the red.
Ramelius share price edges lower despite smashing records
Some of the key takeaways from the gold miner’s financial year 2021 (FY21) results include:
Revenue up 38% on the prior corresponding period (pcp) to A$634.3 million
Earnings before interest, tax, depreciation and amortisation (EBITDA) up 33% on pcp to A$341.0 million
Net profit after tax up 12% on pcp to A$126.8 million
Final dividend of 2.5 cents per share (FY20: 2.0 cents per share)
Despite record numbers for each of these metrics, the Ramelius share price has failed to fire up on Thursday afternoon.
What happened in FY21 for Ramelius?
Ramelius reported a 22% increase in gold sold to 277,450 ounces at an average realised price of A$2,282 per ounce.
The group’s all-in sustaining cost (AISC) jumped 13% from FY20 to A$1,317 per ounce. Ramelius’ AISC margin was steady on FY20 figures at 42%.
Earnings per share fell 5% lower in FY21 due to a higher number of shares on issue in FY21. Higher gold prices helped offset increased production costs at the Mt Magnet site and boosted EBITDA numbers higher.
What did management say?
Ramelius managing director Mark Zeptner was positive about today’s results:
Once again Ramelius has posted a fantastic result for the year with record gold production and a record net profit after tax which further builds upon last year’s results. This is a testament to the growth strategy pursued by the company and the continual focus on delivering on our plans.
FY22 is shaping up to be another record year, based on the mid-point of our production guidance, and with the introduction of ore from the Tampia Gold Mine and development of the very high grade Penny underground, the next few years are looking very solid.
What’s next for Ramelius and its share price?
Ramelius is targeting FY22 guidance of 260,000 to 300,000 ounces of gold at an AISC of A$1,425 to A$1,525 per ounce.
The Ramelius share price is down 13.7% in 2021 and underperforming the S&P/ASX 300 Index (ASX: XKO) this year.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.