Ramelius Resources delivered 192,182 ounces of gold in FY26, meeting guidance for the sixth straight year, boosted production by 40% in the June quarter, and progressed major projects including Mt Magnet upgrades. The company also announced the $300 million sale of the Edna May hub, positioning itself as a significant shareholder in Forrestania Resources.
- FY26 gold production of 192,182 ounces within guidance
- June quarter production up 40% to 53,466 ounces
- Underlying free cash flow of A$138.3 million before dividends and buybacks
- Edna May hub sale for A$300 million to Forrestania Resources
- Mt Magnet plant upgrades and hybrid power projects advancing
Consistent Production Delivery and Cash Flow Strength
Ramelius Resources (ASX:RMS) maintained its impressive operational consistency by hitting its FY26 gold production guidance for the sixth consecutive year, producing 192,182 ounces within the 185,000 to 205,000-ounce target range. The June 2026 quarter was particularly strong, with gold output surging 40% quarter-on-quarter to 53,466 ounces, reflecting a significant ramp-up in haulage rates, especially at the Dalgaranga site.
This production strength translated into robust underlying free cash flow of A$138.3 million before accounting for dividends, share buybacks, and tax instalments. The company held a combined cash and gold balance of A$649.6 million as of 30 June 2026, underscoring its strong liquidity position heading into the new financial year.
Project Advances Signal Growth and Efficiency Gains
Operationally, Ramelius advanced key projects on multiple fronts. The Never Never underground mine continued its planned production ramp-up, with four stopes mined during the quarter and extensions to both incline and decline development. Meanwhile, the Never Never open pit deepened to 25 metres below surface, preparing for higher-grade ore access in the coming quarters.
At Dalgaranga, surface infrastructure projects progressed steadily, including paste borehole completions and upgrades to the paste plant, mine offices, camp, and workshop. The commissioning of the main pump station for the underground mine marked a key milestone.
The Mt Magnet site is undergoing a major transformation with Stage 1 works underway, including relocating the plant laboratory and clearing for a refurbished second ball mill. The front-end engineering design (FEED) for Circuits 2 and 3 is nearing completion, with engineering, procurement, and construction (EPC) contracts expected to mobilise in the September quarter. The camp expansion will add 236 rooms and new facilities, while the hybrid power project has completed foundations for two 7MW wind turbines, signalling a push towards sustainable energy use.
Edna May Hub Sale Realises Value and Strategic Positioning
On the corporate front, Ramelius moved decisively by announcing the sale of its Edna May hub to Forrestania Resources (ASX:FRS) for A$300 million, consisting of A$200 million cash and A$100 million in FRS shares. Shortly after, Forrestania exercised its rights to increase the cash component to A$210 million and reduce the share consideration to A$90 million. The transaction is expected to close in the September quarter, upon which Ramelius will hold an approximate 9.6% stake in Forrestania.
The Edna May hub, which includes Edna May, Tampia, and Symes, has generated nearly A$600 million in value for Ramelius shareholders since 2017 through cash flow and sale proceeds. This sale not only crystallises significant value but also positions Ramelius to benefit from Forrestania’s regional consolidation strategy, a model Ramelius knows well.
Shareholder Returns and Future Outlook
Ramelius continues to prioritise shareholder returns, having paid a fully franked interim dividend of A$57.3 million (3 cents per share) in April, with a modest 6% take-up of the dividend reinvestment plan. The company has completed A$140.7 million in share buybacks, representing 56% of its previously announced A$250 million program.
Looking ahead, the company flagged that the All-In-Sustaining-Cost (AISC) figures for the quarter will be finalised in the full quarterly report due later in July. Additionally, an exploration update is expected, which could shed light on further growth opportunities across its portfolio, including the EPA-authorised Roe area of the Rebecca-Roe Project.
Bottom Line?
Ramelius solidifies its growth trajectory with steady production, strategic asset sales, and infrastructure upgrades, but investors will watch closely for upcoming cost metrics and exploration results.
Questions in the middle?
- How will the completion of Mt Magnet’s plant upgrades impact production efficiency and costs?
- What exploration results can be expected from the Roe Project and other targets later this month?
- How will Ramelius’ 9.6% stake in Forrestania influence its future growth and capital allocation?