In key news on Australian stocks, Ramelius Resources Limited (AU:RMS) gained over 3% after it ended its merger talks with Canada-based Karora Resources Inc. (TSE:KRR). After completing its standard due diligence process, Ramelius announced that no final agreement had been reached. Earlier in March, both Ramelius and Karora confirmed their discussions regarding a potential merger. Karora further stated that it is exploring a potential merger with a third party.
Ramelius is a gold mining and exploration company in Australia. Following this announcement, Ramelius shares surged to their highest level since June 2021, resulting in a year-to-date gain of 10%.
Ramelius’ H1 FY24 Results
Last month, Ramelius reported strong results for the first half of FY24. The company’s half-year revenue grew by 14% to AU$348.5 million compared to the previous year. The revenue growth was driven by a 5% increase in gold production, supported by a higher realized gold price. The NPAT (net profit after tax) reached AU$41.2 million, marking a 42% jump from the comparable period last year.
The company also raised its full-year guidance, backed by stronger projected gold production, especially from the Edna May hub. For the full-year FY24, the company expects its gold production to be between 265,000 and 280,000 ounces, up from the earlier outlook range of 250,000 to 275,000 ounces.
Is Ramelius Resources a Good Investment?
According to TipRanks consensus, RMS stock has been rated a Moderate Buy, backed by three Buy and two Hold recommendations. The Ramelius share price forecast is AU$2, which implies a growth rate of 8.19% from the current level.
