Ramelius Approves A$250M Buyback, Raises Dividend to 2 Cents Per Share

Ramelius Commits to Shareholder Returns

Ramelius Resources Limited (ASX, RMS) has announced a major capital management initiative with the approval of up to A$250 million in share buybacks, set to commence around late December 2025. Alongside this, the company has increased its minimum dividend to 2 cents per share per annum, doubling the previous payout. These moves form part of Ramelius’ updated capital allocation pillars for fiscal years 2026 and 2027, underscoring a strategic shift towards enhancing shareholder returns while maintaining a strong balance sheet.

Strategic Capital Allocation Pillars

The company has outlined three clear priorities for capital deployment, reinvestment into the business, increasing shareholder returns, and preserving financial strength. This marks a transition from earlier years where reinvestment dominated, including acquisitions such as Cue and Spartan. Now, with a fully funded growth pipeline and a rising production profile, Ramelius is confident in its ability to generate robust free cash flow, enabling it to reward shareholders more generously.

Growth and Exploration Outlook

Ramelius is actively advancing its operations at key sites including the Never Never underground mine at Dalgaranga and the Mt Magnet hub. The company plans to ramp up processing capacity at Mt Magnet from around 2 million tonnes per annum to 4.3 million tonnes by late 2027, alongside commencing the Eridanus Stage 3 cutback. Exploration remains a core focus, with a substantial drilling program underway targeting extensions at multiple deposits such as Penny North, Saturn, Mars, and others. Results from the December 2025 quarter’s exploration activities are expected early next year, potentially unlocking further value.

Management’s Confidence and Market Implications

Managing Director Mark Zeptner emphasized the board’s directive to maintain and grow shareholder returns, highlighting the company’s track record of consistent free cash flow generation. The buyback program offers flexibility to return capital above the increased dividend, with timing and scale to be responsive to market conditions. This balanced approach aims to sustain growth investments while delivering tangible benefits to shareholders.

Looking Ahead

As Ramelius’ capital investments begin to yield results, the company anticipates further increases in free cash flow and shareholder returns. The board plans to revisit payout ratios from FY28 onwards, potentially raising the combined dividends and buybacks beyond the current 30% free cash flow cap. Investors will be watching closely for upcoming exploration results and operational milestones that could validate this optimistic outlook.