Ramelius Resources delivered solid June quarter results, hitting 53,466 ounces at an AISC of A$1,973/oz and generating A$138.3 million in underlying free cash flow. The company met full-year guidance for the sixth consecutive year, advanced key projects, and progressed a major asset sale.
- June quarter gold production of 53,466 ounces at A$1,973/oz AISC
- FY26 gold production of 192,182 ounces meeting guidance
- Underlying free cash flow of A$138.3 million in June quarter
- Edna May hub sale agreement for A$300 million progressing
- Mt Magnet plant upgrade and Never Never mine ramp-up advancing
Strong Production and Cash Flow Amid Cost Pressures
Ramelius Resources Ltd (ASX:RMS) closed out the 2026 financial year with a solid operational and financial performance, producing 192,182 ounces of gold at an all-in sustaining cost (AISC) of A$1,983 per ounce. This marks the sixth consecutive year the company has met its production guidance, a noteworthy achievement in a sector often challenged by cost inflation and operational disruptions.
The June 2026 quarter alone saw gold production rise to 53,466 ounces at a slightly lower AISC of A$1,973/oz, supported by improved mill throughput and higher grades from the ramping Never Never underground mine at Dalgaranga. Operating cash flow for the quarter reached A$191.2 million, translating to an underlying free cash flow of A$138.3 million after growth capital and exploration investments.
Never Never Underground Mine Accelerates Mt Magnet Hub
Processing at Mt Magnet’s hub included the first full quarter of ore from the Never Never underground mine, with 146kt processed at an impressive grade of 5.37g/t. The mine’s development exceeded expectations, reaching commercial production three months ahead of schedule with initial metallurgical recoveries outperforming the model. This early success has prompted a reclassification of certain costs from growth to sustaining capital, which inflated the AISC by approximately A$143/oz for FY26.
Capital works at Dalgaranga included construction of a paste plant and mine infrastructure, while the Mt Magnet plant upgrade progressed with engineering and site works underway. The company plans to increase processing capacity from 1.9Mtpa to 4.3Mtpa by FY28, with an engineering, procurement, and construction (EPC) contract for Stage 2 targeted in the September quarter.
Exploration and Project Development Drive Growth
Ramelius maintained a robust exploration program, investing A$33.9 million in the June quarter alone, focused on extending mine life at existing operations. The high-grade exploration strategy continues to yield exceptional drilling results, particularly at Mt Magnet and Dalgaranga, supporting the company’s ambition to exceed 500,000 ounces annual production by FY30.
Meanwhile, progress at the Rebecca-Roe Gold Project advanced with key environmental approvals secured from the WA Environmental Protection Authority, facilitating early works and infrastructure planning. The project’s definitive feasibility study was completed in October 2025, with a financial investment decision pending final environmental permits.
Corporate Moves: Share Buybacks and Edna May Sale
On the corporate front, Ramelius completed A$30.5 million in share buybacks during the quarter, bringing the total for FY26 to A$140.7 million; 56% of its A$250 million buyback program. The company also paid a fully franked interim dividend of A$0.03 per share, exceeding its minimum dividend policy for the year.
Significantly, Ramelius agreed to sell its Edna May gold hub to Forrestania Resources (ASX:FRS) for A$300 million, comprising A$210 million in cash and A$90 million in shares. The transaction, expected to close in the September quarter, will leave Ramelius with an approximate 9.6% stake in Forrestania. The sale is expected to generate an income tax liability of A$45–55 million payable in December 2026.
Safety and Environmental Stewardship
Safety metrics improved with the Total Recordable Injury Frequency Rate (TRIFR) dropping to 9.69, reflecting the positive impact of a new proactive safety initiative across key sites. Environmental and heritage management remained steady, with no significant incidents reported. The company completed 35 hectares of rehabilitation across Mt Magnet and Edna May, underscoring its commitment to progressive land restoration and stakeholder engagement.
Outlook and Strategic Focus Areas
Ramelius plans to issue FY27 production guidance and a four-year outlook in the September quarter. Operationally, the Penny mine is expected to continue into the December 2026 quarter, while exploration potential remains strong at Cue’s Lena prospect and down-dip extensions at the Galaxy mine.
The company remains focused on four priorities: ramping up Never Never underground to full production, expanding Mt Magnet hub capacity, capitalising on high-grade exploration success, and advancing Rebecca-Roe towards development. Diesel price hedging and gold price protection strategies are in place to mitigate cost volatility, with zero premium collars covering 11% of FY27 production and put options secured for FY28.
Ramelius’ strong cash position of A$649.6 million in cash and gold bullion, alongside listed investments valued at approximately A$100.8 million, provides a solid foundation for growth and shareholder returns in the year ahead.
The company’s ability to meet guidance amid rising costs and to accelerate project milestones will be closely watched, particularly as it navigates the completion of the Edna May sale and the Mt Magnet plant upgrade.
Bottom Line?
Ramelius has delivered on its FY26 targets with robust cash flow and project progress, but upcoming guidance and Edna May sale closure will be key to sustaining momentum.
Questions in the middle?
- Will the Mt Magnet plant upgrade meet its targeted capacity increase by FY28?
- How will the reclassification of Never Never mine costs affect future AISC guidance?
- What impact will the Edna May sale and Forrestania stakeholding have on Ramelius’ strategic focus?