Gold miner Ramelius Resources expects to return to profit due a higher gold price and increased production.
Ramelius has forecast a pre-tax profit of $5.7 million for the six months to December 31, and revenue of $67 million.
The West Australian miner suffered a loss of $85.5 million in the 2013/14 financial year, and a $50.8 million loss in the prior year.
The company recently lifted its full year production guidance for 2014/15 after increasing its output in the three months to December.
Chief executive Mark Zeptner said the upgraded production guidance and improved margins had strengthened the company's balance sheet.
"The company's robust cash position is very pleasing particularly given the recent increases in the Australian dollar gold price, which augurs well for our plans to increase the overall production profile above 100,000 ounces per annum," he said.
Ramelius' updated full year production guidance is 83,000 ounces of gold at a cost of $1,150 per ounce.
Gold is currently trading at around $US1,258 ($A1,613) per fine ounce.
The miner's financial forecast remains subject to the completion of its half year financial report and an audit review.
Ramelius shares were down half a cent at 13 cents at 1235 AEDT.
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