Ramelius Resources produced 48,839 ounces in the September quarter and generated A$60.2 million in underlying free cash flow, keeping it on track for FY27 guidance. The gold miner also ended the period with A$768.0 million in cash and gold after progressing its Mt Magnet expansion, Rebecca-Roe approvals and share buyback.
- 48,839 ounces of gold produced in the September quarter
- A$60.2 million in underlying free cash flow
- A$768.0 million cash and gold balance at quarter-end
- FY27 production guidance of 205,000 to 225,000 ounces retained
- A$159 million of the A$250 million buyback completed since inception
Quarterly production absorbs wet-weather disruption
Ramelius Resources Limited (ASX:RMS) has kept its FY27 production target intact after wet weather temporarily disrupted haulage from the high-grade Penny mine to the Mt Magnet mill. The company produced 48,839 ounces in the September quarter and said the timing impact is not expected to affect its full-year guidance of 205,000 to 225,000 ounces.
Haulage has now restarted, with 27,680 tonnes of ore grading 4.78 grams per tonne, or 4,254 contained ounces, stockpiled at Penny at quarter-end. That stockpile provides an operational buffer, although the full Quarterly Activities Report will be needed to show how production, costs and recoveries moved across the individual operations.
Cash generation strengthens funding position
Underlying free cash flow was A$60.2 million for the quarter, while Ramelius reported a cash and gold balance of A$768.0 million at 30 September, up from A$649.6 million at the end of June. The balance came despite A$131 million of stamp duty associated with the Spartan transaction and A$6.9 million in income tax payments during the period.
The company continued its A$250 million on-market share buyback, completing A$18 million of purchases during the quarter and A$159 million since the program began. That capital return is running alongside a sizeable growth program rather than replacing it, leaving execution and spending discipline as important variables for the next phase of the story.
Mt Magnet expansion moves from plan to construction
The September update puts physical work at the centre of Ramelius's growth case. Circuit 1 works at Mt Magnet, including a new crusher and gravity tower, are being installed during a planned mill shutdown, while Primero has been appointed as EPC contractor for the new 3Mtpa Circuit 2. The expansion supports the 600,000-ounce Mt Magnet outlook previously outlined by the company, with Ramelius now targeting more than 600,000 ounces of production by FY30.
Ramelius said its fully funded plan is supported by Resources and Reserves for similar production levels into the late 2030s. Exploration has already displaced low-grade material from the FY29 and FY30 plans, and the company is targeting further displacement in FY27 through an Exploration Target of 14 million to 21 million tonnes grading 1.9 to 2.4 grams per tonne, containing an estimated 0.85 million to 1.6 million ounces of gold. That target is conceptual, however, and is not a Mineral Resource; the company cautions that further drilling may not result in a resource estimate or realise the target.
Rebecca-Roe approvals clear another hurdle
Rebecca-Roe also moved closer to development after the Department of Water and Environmental Regulation granted a Works Approval under Part V of the Environmental Protection Act. Ramelius said only routine Mining Act approvals remain for Roe, while Rebecca already has its environmental and mining approvals.
The company has completed the Edna May sale for total consideration of A$300 million, including A$210 million in cash, and said it is bringing forward some capital expenditure at Rebecca-Roe as approvals near completion. The next test is whether the construction timetable and Mt Magnet commissioning progress can match the production ambitions now embedded in the FY27 and FY30 plans.
Bottom Line?
The quarter preserved guidance and added financial capacity, but the investment case is increasingly tied to delivering several large operating and development projects at once.
Questions in the middle?
- Will Penny’s recovered haulage schedule translate into a clean production contribution in the December quarter?
- How quickly will the Mt Magnet circuit works convert capital spending into higher throughput and ounces?
- What additional Mining Act approvals and expenditure are still required before Rebecca-Roe can move into full development?