Ramelius Resources has lifted its FY30 production outlook to as much as 610,000 ounces while committing up to A$570 million of growth capital in FY27. The plan puts a larger Mt Magnet processing hub at the centre of the company’s expansion, but also raises the execution and cost stakes.
- FY30 production outlook lifted to 560,000-610,000 ounces
- FY27 guidance set at 205,000-225,000 ounces
- FY27 growth capital forecast at A$480-A$570 million
- Mt Magnet plant estimate rises to A$280 million before contingency and infrastructure
- Primero appointed to build the 3Mtpa second processing circuit
FY30 Production Outlook Rises to 610,000 Ounces
Ramelius Resources (ASX:RMS) has reset its medium-term ambitions sharply higher, targeting FY30 gold production of 560,000 to 610,000 ounces at an all-in sustaining cost of A$2,100 to A$2,400 an ounce. The upper end represents an 11% increase on the company’s October 2025 plan and a 205% increase on FY26 production. Ramelius says the growth is underpinned by its Mt Magnet hub, with the operation expected to have a mine life extending to 2043.
The company has also set FY27 production guidance at 205,000 to 225,000 ounces, with AISC of A$2,150 to A$2,350 an ounce. Those figures are based on a gold price assumption of A$5,500 an ounce, which also increases royalty costs in the plan. Ramelius says it expects to maintain its low-cost position despite industry-wide cost pressure, but the guidance remains exposed to gold prices, diesel costs, grades, recoveries and plant performance.
Mt Magnet Expansion Moves into Construction
The expansion is becoming materially more expensive. FY27 growth capital is forecast at A$480 million to A$570 million, while the Mt Magnet plant component has risen from A$223 million in the previous pre-feasibility study to A$280 million before contingency. Including contingency and associated infrastructure, the total estimate is approximately A$350 million.
Ramelius has appointed Primero as engineering, procurement and construction contractor for a new 3 million tonne per annum second processing circuit. The circuit is targeted for completion in the December 2027 quarter, with commercial production expected in the March 2028 quarter. It will reuse selected equipment from the Dalgaranga plant, while new crushing, milling, leach and tailings infrastructure is designed to support a combined Mt Magnet throughput potentially exceeding the planned 4.3Mtpa.
The revised plan also includes a larger camp capable of accommodating 500 personnel, additional water infrastructure, a longer sealed haul road and upgrades to the site’s power network. These additions are intended to support construction and future operations, but they help explain why the capital programme is broader than a simple processing-plant upgrade. Eridanus Stage 3 development costs have also risen to A$458 million from A$374 million, with mining scheduled to begin in November 2026.
Exploration Replaces Lower-Grade Feed
Ramelius attributes part of the higher production outlook to exploration and mine-plan changes. The updated schedule replaces lower-grade material in FY29 and FY30 with 0.8 million tonnes grading 2.10 grams per tonne and 1.3 million tonnes grading 2.16 grams per tonne respectively. Galaxy is now expected to operate through FY32, with production rising to 800,000 tonnes per annum by FY28, while the Cue underground complex is planned to include Lena and extend to FY31.
Rebecca-Roe is another important moving part. About A$50 million of early works spending has been brought forward into FY27 for a camp, airstrip, access roads and borefield, with Roe Part V environmental approvals expected in the December 2026 quarter. Ramelius says the project outlook is otherwise unchanged apart from higher royalty costs under the higher gold-price assumption.
Underground Studies Add Longer-Dated Options
The announcement also adds preliminary underground opportunities at Gilbey’s and Lena. Gilbey’s has a nine-year scoping-study mine plan targeting 250,000 to 300,000 ounces of contained gold and estimated production of 220,000 to 260,000 ounces. Lena has a 4.5-year study targeting 120,000 to 160,000 contained ounces and estimated production of 90,000 to 120,000 ounces.
Both are early-stage studies rather than firm development commitments. Gilbey’s includes 75,000 ounces from Inferred Mineral Resources, while Lena includes 74,000 ounces, and both studies require further drilling, geotechnical work, metallurgical analysis and technical assessment. Lena also requires environmental permitting. The projects therefore add potential mine-life flexibility, but their production targets carry materially lower geological confidence than the FY27 guidance.
Funding Capacity Meets a Larger Execution Test
Ramelius says its growth plans are fully funded and that current cash, gold and investment holdings exceed A$1 billion. It forecasts the potential to generate up to A$1.5 billion of free cash flow in FY30 at a gold price of A$5,500 an ounce. FY27 cash flows will include the A$131 million stamp duty payment for the Spartan acquisition, made in July 2026, and about A$50 million of tax linked to the Edna May hub sale.
The central question is now less about whether Ramelius has identified a larger production pathway than whether the pathway can be delivered at the proposed cost and schedule. The next hard evidence will come from Mt Magnet construction, Roe permitting, FY27 exploration and the conversion of the Gilbey’s and Lena targets into more advanced studies.
Bottom Line?
Ramelius has created a larger gold-growth blueprint, but the higher Mt Magnet capital bill means delivery discipline will matter as much as the headline production target.
Questions in the middle?
- Can the Mt Magnet expansion reach commercial production in the March 2028 quarter without further capital escalation?
- Will Roe approvals arrive in time to support the revised Rebecca-Roe spending profile?
- How much of the Gilbey’s and Lena underground production targets can be converted into higher-confidence resources and reserves?