Ramelius Breaks Records and Completes Spartan Deal: What’s Next for 500koz Ambition?
Ramelius Resources delivered record FY25 gold production and free cash flow, surpassing guidance, while finalising its transformative acquisition of Spartan Resources. The company is ramping up exploration and integration efforts to target half a million ounces annual production by FY30.
- Record FY25 gold production of 301,664 ounces at A$1,551/oz AISC
- June 2025 quarter production of 73,454 ounces exceeding guidance
- Completed acquisition of Spartan Resources, expanding asset base
- FY26 exploration budget increased to A$80–100 million targeting high-grade resources
- Record underlying free cash flow of A$694.9 million and maiden fully franked interim dividend declared
Record Production and Financial Strength
Ramelius Resources has reported a landmark financial year, producing a record 301,664 ounces of gold at an all-in sustaining cost (AISC) of A$1,551 per ounce, comfortably exceeding the upper end of its guidance range. The June 2025 quarter alone saw production of 73,454 ounces at an even lower AISC of A$1,339 per ounce, underscoring operational efficiency and cost discipline.
Financially, the company generated an underlying free cash flow of A$694.9 million for FY25, bolstered by strong gold prices and disciplined capital management. At quarter-end, Ramelius held cash and gold bullion valued at A$809.7 million, providing a robust liquidity position to support growth initiatives.
Transformational Spartan Acquisition
A major highlight was the completion of Ramelius’ transformational acquisition of Spartan Resources, approved by Spartan shareholders and the Supreme Court of Western Australia in July 2025. This deal significantly expands Ramelius’ asset portfolio, adding high-grade underground ounces and processing capacity, notably at the Dalgaranga operation.
The integration of Spartan is expected to accelerate development timelines and unlock synergies, with combined mineral resources now estimated at 12.1 million ounces and ore reserves of 2.6 million ounces. The enlarged group aims to increase gold production to over 500,000 ounces annually by FY30, a bold vision that will be detailed further in upcoming integrated studies.
Aggressive Exploration and Project Development
Ramelius is ramping up exploration expenditure to between A$80 million and A$100 million in FY26, focusing on high-grade targets within the expanded Mt Magnet hub and new projects such as Rebecca-Roe. Recent drilling results from key prospects like Penny North, Perseverance South, and Hesperus have returned promising high-grade intercepts, indicating strong potential for resource growth.
Meanwhile, the Definitive Feasibility Study for the Rebecca-Roe Gold Project is underway, with a final investment decision expected in the September 2025 quarter. Integration studies for Mt Magnet and Dalgaranga processing capacity upgrades are progressing, with outcomes anticipated in December 2025.
Corporate and Market Position
Ramelius declared its maiden fully franked interim dividend of A$0.03 per share, reflecting confidence in its cash flow generation and financial strength. The company has also prudently reduced its hedge book to 56,000 ounces at an average price of A$3,283 per ounce, maintaining significant exposure to spot gold prices for FY26.
Safety remains a focus, with a slight uptick in lost time injuries during the quarter prompting enhanced safety leadership and resources, particularly in exploration activities.
Managing Director Mark Zeptner highlighted the company’s achievements and future outlook – “Our operational performance and transformational acquisition set the stage for sustainable growth. With strong cash generation, quality assets, and a talented team, we are well positioned to deliver peer-leading returns and realize our vision of becoming a 500,000 ounce producer by FY30.”
Bottom Line?
Ramelius’ record-breaking year and Spartan acquisition set a powerful growth trajectory, but the market will watch closely as integration and exploration unfold.
Questions in the middle?
- How will the integration of Spartan’s assets impact Ramelius’ cost structure and production profile in FY26?
- What are the key risks and timelines associated with the Rebecca-Roe Definitive Feasibility Study and project development?
- Can the aggressive exploration budget translate into meaningful resource upgrades to support the 500,000 ounce production target?
