Ramelius Reports FY26 Gold Production of 192,182 Ounces at A$1,983 AISC

Production Steady Amid Strategic Expansion

Ramelius Resources Limited (ASX:RMS) maintained its production momentum in FY26, delivering 192,182 ounces of gold at an all-in sustaining cost (AISC) of A$1,983 per ounce. This marked the sixth consecutive year Ramelius met its production guidance, underscoring operational consistency despite a lower mill grade and the integration of new assets. The company’s Mt Magnet production centre remained the sole contributor to earnings following the cessation of operations at the Edna May hub in 2025.

Gold sales for the year totaled 190,261 ounces, down from 302,882 ounces in FY25, reflecting the Edna May exit and lower grades at Mt Magnet. However, a 36% increase in the average realised gold price to A$5,400 per ounce cushioned revenue, which reached $1.03 billion. The higher gold price also lifted EBITDA margins per ounce to $4,275, a 35% increase on the prior year.

Dalgaranga Acquisition Accelerates Growth

The standout strategic move was the acquisition of Spartan Resources Limited, completed on 31 July 2025, bringing the Dalgaranga gold mine into Ramelius’ fold. Dalgaranga boasts a maiden Ore Reserve of 7.0 million tonnes at 7.3 grams per tonne for 1.6 million ounces of gold. Following acquisition, the Never Never underground mine transitioned to commercial production three months ahead of schedule in March 2026, benefiting from better-than-modelled grades and a supportive gold price environment. Underground mining yielded 181kt at 5.06g/t, while open pit mining commenced early with 79kt at 2.10g/t stockpiled awaiting haulage.

Ramelius is advancing a $223 million Mt Magnet processing plant upgrade to integrate Dalgaranga ore, featuring two comminution circuits designed to optimise recoveries and throughput. The refurbishment of Circuit 1 is underway, with an Engineering, Procurement, and Construction contract for Circuit 2 expected to be awarded in the September 2026 quarter. An updated 4-year production outlook will follow.

Rebecca-Roe Project Advances with Environmental Nod

Ramelius released a Definitive Feasibility Study (DFS) for the Rebecca-Roe Gold Project in October 2025, revealing robust economics with an after-tax NPV5% of $692 million and average production of 130,000 ounces per annum at an AISC of A$2,625 per ounce. The project holds an Ore Reserve of 25 million tonnes at 1.4g/t for 1.1 million ounces, including a maiden underground reserve at Bombora (Roe).

In June 2026, the Western Australian Environment Protection Authority authorised the Roe component to proceed under a streamlined Part V works approval process, aligning with prior Rebecca approvals. This milestone clears the way for combined development and early works expected to commence in late 2026.

Edna May Hub Sale and Capital Returns

In a significant portfolio reshuffle, Ramelius agreed to sell the Edna May Hub, including Edna May, Tampia, and Symes mines, to Forrestania Resources Limited for $300 million, comprising $210 million in cash and $90 million in Forrestania shares. The transaction is anticipated to close in the September 2026 quarter, positioning Ramelius as a 9.6% shareholder in Forrestania.

The Edna May hub contributed nearly $600 million in value to shareholders since 2017 through operations and prior sales. Meanwhile, Ramelius returned a record $255.1 million to shareholders in FY26 through dividends and share buy-backs, with $141.8 million spent on buy-backs representing 57% of the announced $250 million program.

Financial Performance and Outlook

Underlying net profit after tax (NPAT) was $319.9 million, down 33% on the prior year, impacted by the Edna May exit, lower production volumes, and increased amortisation related to new assets. Despite this, EBITDA remained resilient at $765.4 million, only 7% below FY25, supported by a higher gold price and reduced hedge commitments.

Ramelius closed FY26 with a solid cash and gold position of $649.6 million, down from $809.7 million in FY25, reflecting ongoing investments in development and exploration. The company has hedging arrangements in place for approximately 22,500 ounces of FY27 gold production via zero premium collars and 40,000 ounces of FY28 production via put options, alongside diesel price hedges covering about 20–25% of expected usage.

Executive Remuneration Reflects Company Growth

The Board approved increases in fixed remuneration for key executives to reflect the company’s expanded scale and complexity following the Spartan acquisition and growth initiatives. Managing Director Mark Zeptner’s fixed remuneration rose 19.6% to $1.1 million in FY26, with further increases planned for FY27. Short-term incentives were awarded at around 59% of maximum for the MD, reflecting strong operational performance and strategic progress, while long-term incentives vested at 50% based on total shareholder return and ore reserve growth metrics.

Climate Risk Governance and Reporting

Ramelius disclosed its first climate-related financial report aligned with AASB S2 standards, highlighting governance structures with Board and Risk and Sustainability Committee oversight. The company identified key physical and transitional climate risks, including increased heat and precipitation, regulatory changes, and diesel price volatility, but assessed current financial impacts as immaterial. Mitigation strategies include operational controls, renewable energy projects such as wind turbines at Mt Magnet, and diesel hedging. Ramelius continues to monitor emerging climate risks and opportunities as part of its enterprise risk management framework.

The independent auditor Deloitte issued an unqualified opinion on both the financial statements and the remuneration report, affirming the integrity of Ramelius’ disclosures and accounting practices.

What to Watch Next

Investors should keep an eye on the upcoming Mt Magnet plant upgrade contract award and the September quarter update on the 4-year production outlook, which will provide clarity on capital expenditure and production trajectories. The progress of the Rebecca-Roe project through environmental permitting and early works will be a key catalyst for growth. The completion of the Edna May sale will also reshape Ramelius’ asset base and shareholder structure. Meanwhile, exploration results from high-grade targets at Dalgaranga and Mt Magnet could provide upside to the company’s 500,000-ounce production ambition by FY30.