Ramelius Resources reports a statutory loss for H1 FY26 driven by Spartan acquisition expenses, yet underlying EBITDA rises on higher gold prices. Integration of Dalgaranga and progress on Rebecca-Roe signal growth ahead.
- Statutory net loss of $11.7 million due to Spartan acquisition costs
- Underlying EBITDA up 13% to $347.7 million despite 4% revenue decline
- Dalgaranga gold mine acquisition completed, ore haulage to Mt Magnet commenced
- Mt Magnet plant upgrade underway with $223 million capital budget
- Rebecca-Roe DFS completed; financial investment decision pending environmental permits
Financial Results and Acquisition Impact
Ramelius Resources Limited reported a statutory net loss after tax of $11.7 million for the half-year ended 31 December 2025, a sharp reversal from the prior corresponding period’s $170.4 million profit. This loss primarily reflects significant acquisition-related costs linked to the takeover of Spartan Resources Limited, including stamp duty and fair value adjustments on royalties.
Despite this headline loss, the company’s underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) improved 13% to $347.7 million, supported by a stronger average realised gold price of A$4,822 per ounce, up from A$3,541 in the prior period. Revenue declined slightly by 4% to $485.6 million, reflecting lower production volumes and the absence of output from the Edna May hub, which remains in care and maintenance.
Strategic Acquisition and Operational Integration
The acquisition of Spartan Resources, completed in July 2025 for approximately $2.8 billion, added the Dalgaranga gold mine to Ramelius’ portfolio. Dalgaranga boasts a maiden ore reserve of 7.0 million tonnes at 7.3 grams per tonne for 1.6 million ounces of gold, significantly enhancing Ramelius’ resource base. Ore haulage from Dalgaranga to the Mt Magnet processing plant began in February 2026, marking a key milestone in operational integration.
Ramelius is advancing a $223 million upgrade and expansion of the Mt Magnet processing plant to handle combined ore from Mt Magnet and Dalgaranga. The plan includes two comminution circuits tailored to optimise recovery from each ore source, with full operation expected by the September 2027 quarter. This integration is expected to reduce operating costs per tonne and improve overall processing efficiency.
Project Development and Exploration Progress
The Rebecca-Roe Gold Project’s Definitive Feasibility Study, released in October 2025, demonstrated robust economics with an after-tax net present value of $692 million and average annual production of 130,000 ounces at an all-in sustaining cost (AISC) of A$2,625 per ounce. The Ramelius Board has approved a financial investment decision subject to environmental permitting, with the Rebecca permit already secured and Roe pending.
Exploration activities remain focused on high-grade targets across the Mt Magnet, Dalgaranga, Cue, Penny, and Rebecca-Roe projects, with $24.8 million invested in the half-year. Notably, resource definition drilling at Dalgaranga’s Never Never underground deposit has yielded promising results, supporting an 11-year mine life and strong cash flow projections.
Capital Management and Hedging Strategy
Post-period, Ramelius expanded its revolving credit facility from $175 million to $500 million, extending tenure and enhancing financial flexibility to support growth initiatives. The company also closed out its FY27 hedge book early at a cost of $28.4 million, eliminating forward gold hedging from April 2026 and positioning itself to fully benefit from any future gold price upside. Protective collars and put options remain in place for FY27 and FY28 production, balancing risk and opportunity.
Ramelius declared a fully franked interim dividend of 3.0 cents per share, payable in April 2026, reflecting confidence in ongoing cash flow generation despite near-term earnings volatility from acquisition costs.
Bottom Line?
Ramelius’ strategic acquisition and project developments set the stage for growth, but integration costs and permit approvals will be key to watch.
Questions in the middle?
- How will the integration of Dalgaranga impact Ramelius’ cost structure and production profile over the next two years?
- What is the timeline and likelihood for obtaining the environmental permit for the Roe component of Rebecca-Roe?
- How will the closure of the hedge book affect Ramelius’ exposure to gold price volatility in FY27 and beyond?