Ramelius Resources shareholders got a double treat this morning: Another takeover target and confirmation of FY23 guidance!

Nick Sundich Nick Sundich, July 7, 2023

Ramelius Resources (ASX:RMS) had two pieces of good news this morning. First, that it would be growing its portfolio by acquiring Musgrave Minerals (ASX:MGV). And second, that it had met its FY23 guidance.




Ramelius had a strong FY23

Ramelius finished FY23 having produced 240,996oz gold, thus meeting FY23 guidance, and sold 243,263. The WA gold miner produced 68,752oz in Q4 alone and closed with a cash (and gold on hand) balance of A$272.1m. This was up from $154.4m just three months earlier.

Ramelius delivered positive cash flow of $42.6m after accounting for the $75.1m acquired from the Breaker acquisition. This was due to an increase in forecasted production from the high-grade, high-margin penny mine.


And it could be better in FY24

Ramelius announced the worst kept secret on the ASX. It was buying out Cue Gold project owner Musgrave Minerals (ASX:MGV). Cue is a solid deposit with 12.3Mt @ 2.3g/t for 927,000 ounces of gold.

The Musgrave board opted to cash out rather than try and develop it themselves, arguing a takeover now was a win-win for all parties.

If Musgrave shareholders accept, they’ll get 1 RMS share for each 4.21 MGV shares held along with $0.04c in cash for each MGV share held. This deal values Musgrave at $201m, equating to $0.34 per share.

This was only a modest 19% premium to Friday’s closing price but was 27% higher than an indicative offer from Westgold (ASX:WGX) barely a month earlier.


Stocks Down Under Concierge is here to help you pick winning stocks!

The team at Stocks Down Under have been in the markets since the mid-90s and we have gone through many ups and downs. We have written about every sector!

Our Concierge BUY and SELL service picks the best stocks on ASX. We won’t just tell you what to buy – we give you a buy range, price target, a stop loss level in order to maximise total returns and (of course) we tell you when to sell. And we will only recommend very high conviction stocks where substantial due diligence has been conducted.

Our performance is well ahead of the ASX200 and All Ords.

You can try out Concierge for 3 monthsfor FREE.




There’s no credit card needed – the trial expires automatically.


Stocks Down Under
Average rating:  
 0 reviews

Recent Posts

raise capital at a discount

Why do cash burning ASX companies raise capital at a discount?

Why do ASX companies raise capital at a discount? This is a question many investors ask when they are diluted…

airline stocks and fuel prices

Airline stocks and fuel prices: Air New Zealand (ASX:AIZ) and Qantas (ASX:QAN) investors just got a painful reminder about the aviation industry’s biggest cost

The relationship between the performance of Airline stocks and fuel prices has seemingly been forgotten in the past couple of…

african mining countries

4 African mining countries that ASX resources investors should avoid

African mining countries offer a lot of potential for ASX resources companies and their investors, but also a lot of…