Gold miner Ramelius Resources (ASX:RMS) has revised its full-year cost projections upward, citing a combination of surging diesel prices and increased royalty obligations.
Despite the mounting fiscal pressures, the company remains steadfast in its commitment to meeting previously established production targets for the current financial year.
The producer revealed that its all-in sustaining costs are now expected to sit between $1,900 and $2,050 per ounce. This represents a jump from the prior guidance of $1,700 to $1,900.
While the expenditure ceiling has shifted, Ramelius is still aiming for the midpoint of its 185,000 to 205,000-ounce production goal.
The revised outlook is largely attributed to three primary factors: a $100 per ounce impact following the earlier-than-anticipated commercial production at Dalgaranga, a $35 per ounce increase driven by volatile diesel prices, and an additional $40 per ounce attributed to higher gold-linked royalties.
The figures highlight the tightening margins facing mid-tier miners in the current economic climate.
Performance for the March quarter saw the company produce 38,093 ounces at an AISC of $2,211 per ounce.
While this yielded an impressive $171.3 million in operating cash flow, total cash and gold holdings dipped to $606.5 million from the previous quarter’s $694.3 million.