Ramelius Resources (ASX: RMS) reported gold production of 38,093 ounces for the March 2026 quarter, maintaining FY26 guidance at the midpoint. The company progressed key projects including early Never Never ore delivery and completed A$110.2 million in share buybacks.
- March quarter gold production of 38,093 ounces
- FY26 production guidance confirmed at midpoint of 185,000 to 205,000 ounces
- Early delivery of Never Never ore ahead of schedule at Dalgaranga
- A$110.2 million completed in share buybacks, 44% of A$250 million program
- Diesel supply chain risks monitored but currently not impacting operations
Quarterly Production and Operational Impact
Ramelius Resources Limited (ASX:RMS) reported gold production of 38,093 ounces for the March 2026 quarter, bringing the fiscal year-to-date total to 138,716 ounces. The company confirmed that FY26 production remains on track to meet the midpoint of its guidance range of 185,000 to 205,000 ounces. Production in March was affected by a planned six-day shutdown of the Mt Magnet mill and haul road closures due to significant rainfall from Cyclone Narelle, which led to the accumulation of high-grade mine stockpiles at quarter end.
The stockpiles comprised 56,000 tonnes at 3.70 grams per tonne (g/t) at Dalgaranga and 8,000 tonnes at 3.36 g/t at Penny. The Cue Break of Day cutback is expected to move into higher-grade ore zones in the June 2026 quarter, supporting a strong production forecast for that period. Final All-In-Sustaining-Cost (AISC) figures for the quarter will be reported in the full Quarterly Activities Report due on 29 April 2026, along with any updates to full-year AISC guidance.
Project Developments and Exploration
Key project milestones include the early delivery of Never Never ore to the Mt Magnet processing plant in March, a month ahead of schedule. The first stope at Never Never was fired, involving 40,926 tonnes at a grade of 7.41 g/t. The open pit has advanced to 10 metres below surface, with ongoing progress on surface infrastructure such as the paste plant, boreholes, mine offices, and workshop, as well as underground pump station projects.
Mt Magnet plant expansion activities are focused on engineering works, preliminary site preparations, and establishing the execution team. The company submitted an Environmental Protection Authority (EPA) referral for the Roe portion of the Rebecca-Roe Project, with an initial pathway assessment expected in the June 2026 quarter.
Exploration efforts continue at Penny, Cue, Galaxy Mine Area, and Dalgaranga, with particular attention on the Gilbeys underground mine potential at West Winds and Four Pillars during the second half of FY26. Surface targets including Sly Fox, Plymouth, and the Never Never to Golden Wings trend are also under review. Ramelius plans to provide a dedicated Dalgaranga exploration update later in April 2026.
Financial Position and Corporate Actions
Ramelius reported underlying free cash flow of A$101.9 million before adjustments for forward gold contract settlements, share buybacks, and tax payments. The company completed A$110.2 million in share buybacks during the quarter, representing 44% of the previously announced A$250 million program. This buyback amount is among the largest by value for Australian gold producers currently undertaking such programs.
On 19 February 2026, Ramelius replaced its existing A$175 million revolving corporate facility with a new A$500 million facility, which remains undrawn. The company declared a fully franked interim dividend of A$0.03 per share on 28 February 2026, exceeding the annual minimum dividend guidance of A$0.02 per share for FY26.
Operational Risks and Fuel Supply
Management reported no current disruptions to diesel supply for Mt Magnet operations, with fuel sourced under a long-term contract from a global oil major. The company has developed Trigger Action Response Plans (TARP) to address potential fuel supply restrictions, ranging from Level 2 (Keep Australia Moving) to Level 4 (Protect Critical Services for All Australians). A preliminary assessment suggests that even under Level 4 restrictions, the Mt Magnet mill could continue operations by processing existing stockpiles, supported by 98% solar and natural gas power generation.
At quarter end, Mt Magnet hub stockpiles stood at 3.0 million tonnes at 0.89 g/t, sufficient for over 12 months of mill feed. However, diesel prices have risen to approximately A$2.10 per litre (net of fuel tax credits), compared to the FY26 cost guidance assumption of A$0.95 per litre. Ramelius indicated that updates to cost guidance, including AISC and capital expenditure, will be provided in the upcoming quarterly report as required.
Management Commentary
Managing Director Mark Zeptner noted that production remains on track despite weather-related impacts and highlighted the strong start at the Never Never orebody, which is reconciling better than expected. He emphasised that operations have not been affected by fuel supply chain issues to date and that the company is well positioned to manage potential risks. Zeptner reaffirmed Ramelius’s commitment to shareholder returns through ongoing buybacks and dividends and expressed anticipation for upcoming exploration updates demonstrating upside potential at the Mt Magnet hub.
Bottom Line?
Ramelius maintains FY26 production guidance amid operational challenges and advances key projects, while monitoring fuel cost risks and executing significant share buybacks.
Questions in the middle?
- How will rising diesel prices affect Ramelius’s full-year cost guidance and profitability?
- What are the exploration results expected from Dalgaranga’s Gilbeys underground targets later in FY26?
- How might the Environmental Protection Authority’s assessment of the Roe project influence development timelines?