Shares in Ramelius Resources have jumped after the company said it produced a record amount of gold in May.
The Perth-based gold miner said milled production at its Mt Magnet gold mine in central Western Australia reached a record 6,230 ounces in May while total production for April and May was 11,747 ounces.
The company said quality had also improved, with head grades for April and May increasing 20 per cent.
Ramelius is working on reducing operating costs in response to weaker gold prices.
"These initiatives will be detailed in the June 2013 quarterly report," Ramelius said in a statement.
At 1405 AEST shares in the company were 1.5 cents, or 9.7 per cent, higher at 17 cents.
The company's Western Queen South project is on schedule.
The Coogee gold project has now received approval for its mining plans and Ramelius plans to commence operations in July.
The company also expects to produce around 2,000 ounces of gold in the June quarter at its Wattle Dam operation.
Meanwhile, operations at Vivien will start once third party agreements by Gold Fields are finalised.
Ramelius began mining at its Western Queen South project in March in a bid to boost production to 100,000 ounces a year.
In February Ramelius posted a $5.7 million first-half loss, reversing the $16.14 million interim net profit it made the previous year.
