Ramelius’ Bold Growth Plan Hinges on Spartan Integration Success

Record Production and Financial Performance

Ramelius Resources Ltd has reported a standout financial year for FY25, delivering record gold production of 302,000 ounces, a 3% increase on the prior year. This was achieved despite a 63% reduction in ore tonnes mined, reflecting a strategic shift towards higher-grade ore bodies, particularly at the Cue pits within the Mt Magnet operation. The company’s focus on grade over volume paid off, with milled grades rising 129% to 5.70 grams per tonne.

Financially, Ramelius posted a 36% jump in revenue to A$1.2 billion, driven by both higher production and a 32% increase in the realised gold price to A$3,963 per ounce. Earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 81% to A$818.6 million, with an EBITDA margin reaching a record 68%. Net profit after tax (NPAT) more than doubled to A$474.2 million, while earnings per share climbed 111% to 41.1 cents.

Operational Highlights and Cost Efficiency

The Mt Magnet operation was the standout contributor, increasing gold production by 54% to 248,000 ounces and delivering an exceptional EBITDA margin of 80.1%. Operational efficiencies pushed mill throughput up 3%, while the all-in sustaining cost (AISC) was held steady at a sector-leading A$1,551 per ounce, down 2% year-on-year. This cost discipline was critical in maximising margins amid volatile market conditions.

Meanwhile, the Edna May mine transitioned to care and maintenance in March 2025 after producing 54,000 ounces at a higher AISC of A$2,608 per ounce. Despite this, Edna May contributed meaningful cash flow of A$122.6 million before closure costs, with stockpiles performing above expectations.

Strategic Growth and Integration Plans

Ramelius’ strong balance sheet was bolstered by the acquisition of Spartan Resources Limited, with cash and gold holdings rising 81% to A$809.7 million post-transaction. The company is now focused on integrating Spartan’s Dalgaranga assets with the Mt Magnet hub, with detailed integration studies underway and a comprehensive 5-year plan targeted for release in December 2025.

Looking ahead, Ramelius plans to double its exploration expenditure to A$100 million in FY26, targeting high-grade resource definition and new discoveries. This aggressive investment underscores the company’s ambition to grow production and extend mine life across its portfolio.

Dividend Growth and Shareholder Returns

Reflecting its robust cash flow generation, Ramelius declared a fully franked final dividend of 5 cents per share, bringing total dividends for FY25 up 60%. The payout ratio stands at a conservative 29% of free cash flow, supporting a dividend yield of 3.2%. The company’s dividend reinvestment plan saw a 23% take-up for the interim dividend, signalling strong shareholder confidence.

Ramelius continues to position itself as a high-margin, long-life gold producer with a clear vision to become a 500,000-ounce per annum producer by FY30. However, this remains an aspirational target pending further feasibility and integration work, particularly around the Dalgaranga restart and capacity upgrades at Mt Magnet.