Ramelius Posts A$474M Net Profit, Declares 5c Dividend Amid Growth Push
Ramelius Resources has reported a record FY25 net profit of A$474.2 million, driven by strong gold production and operational efficiency, while declaring a 5-cent fully franked final dividend. The company is advancing its strategic acquisition of Spartan Resources to support ambitious growth plans.
- FY25 net profit after tax surges 119% to A$474.2M
- Record gold production of 301,664 ounces achieved
- EBITDA climbs 81% to A$818.6M with 68% margin
- Fully franked final dividend of 5.0 cents per share declared
- Strategic integration with Spartan Resources underway targeting 500,000oz annual production by FY30
Record Financial Performance
Ramelius Resources Limited (ASX – RMS) has delivered a standout financial year ending June 30, 2025, with net profit after tax soaring 119% to a record A$474.2 million. This leap was underpinned by a combination of robust gold production, operational efficiencies, and favourable market conditions. EBITDA rose 81% to A$818.6 million, reflecting a strong margin of 68%, a significant improvement over the previous year.
The company’s earnings per share more than doubled to 41.1 cents, while operating cash flow nearly doubled to A$856.4 million, highlighting the strength of Ramelius’ cash-generating capabilities. These results were supported by record gold production of 301,664 ounces, with high-grade ore from Cue and improved grades at Penny complementing the steady base load from Mt Magnet.
Dividend and Shareholder Returns
In recognition of its strong performance, Ramelius declared a fully franked final dividend of 5.0 cents per share, bringing the total dividend for FY25 to 8.0 cents per share, an increase of 60% from FY24. This payout represents a balanced approach, with a 29% free cash flow payout ratio, reflecting the company’s commitment to rewarding shareholders while retaining capital for growth initiatives.
Strategic Growth and Spartan Resources Integration
Ramelius is actively implementing its transformational acquisition of Spartan Resources Limited, completed on July 31, 2025. This strategic move brings the Dalgaranga high-grade deposit into Ramelius’ portfolio, which Managing Director Mark Zeptner highlighted as a key growth driver. The integration is expected to enhance the Mt Magnet hub’s production profile and unlock significant exploration upside.
Looking ahead, Ramelius plans to release a comprehensive 5 Year Plan in the December 2025 quarter. This plan will focus on optimising combined operations, including potential capacity upgrades at Mt Magnet, the restart of Dalgaranga’s processing plant, and cost efficiencies through economies of scale. The aspirational target is to reach 500,000 ounces of gold production annually by FY30, a substantial increase from current levels.
Strong Balance Sheet and Financial Flexibility
The company’s balance sheet remains robust, with net cash and bullion holdings of A$809.7 million, up 81% year-on-year, and an undrawn A$175 million debt facility providing additional financial flexibility. This strong liquidity position supports Ramelius’ growth ambitions and provides a buffer against market volatility.
Operationally, Mt Magnet was the dominant profit contributor, accounting for 90% of group gross profit, while Edna May contributed meaningfully through stockpile processing before its care and maintenance status late in the year.
Bottom Line?
Ramelius’ record FY25 results set a strong foundation, but the success of its ambitious growth hinges on the seamless integration and optimisation of Spartan’s assets.
Questions in the middle?
- How will the integration of Dalgaranga impact Ramelius’ cost structure and production profile?
- What are the key risks and timelines associated with achieving the 500,000-ounce production target by FY30?
- How might fluctuations in gold prices and operating costs affect Ramelius’ free cash flow and dividend policy going forward?
