Ramelius’ Cash Flow Surge Highlights Reliance on High-Grade Ore and Project Execution

Strong Operational Performance Drives Cash Flow

Ramelius Resources (ASX: RMS) has reported a standout December 2024 quarter, highlighted by a record underlying free cash flow of A$174.5 million. The company produced 85,311 ounces of gold at an all-in sustaining cost (AISC) of A$1,491 per ounce, with the Mt Magnet hub delivering 67,050 ounces at a notably lower AISC of A$1,277/oz, driven by the introduction of high-grade ore from the Cue open pits and improved grades from Penny underground.

The Edna May hub contributed 18,261 ounces at a higher AISC of A$2,209/oz, reflecting the processing of lower-grade stockpiles as operations near completion. Year-to-date, Ramelius has produced 147,755 ounces at an AISC of A$1,699/oz, excluding a non-cash stockpile drawdown adjustment at Edna May, which would reduce the AISC to A$1,551/oz.

Rebecca-Roe Project Advances with Strong Economics

The December quarter saw the release of a Pre-Feasibility Study (PFS) for the Rebecca-Roe Gold Project, located 150km east of Kalgoorlie. The PFS outlines a 9-year mine life with average annual production of 130,000 ounces and robust financial metrics, including an undiscounted pre-tax cash flow of A$688 million at A$3,500/oz gold price and a net present value (NPV) of A$322 million at a 5% discount rate.

Based on these results, the board has approved progressing to a Definitive Feasibility Study (DFS) with a Final Investment Decision (FID) targeted for the September 2025 quarter. The project is expected to commence mining in September 2026, with first gold production by July 2027.

Exploration Success Fuels Growth Potential

Ramelius continues to build on its exploration momentum, particularly at the Eridanus deposit within the Mt Magnet project. Recent drilling has confirmed continuous mineralised stockwork veining below the A$2,500/oz pit shell, with high-grade intercepts such as 1.5m at 254g/t Au and 0.5m at 192g/t Au. An updated resource model incorporating these results is expected in the March 2025 quarter.

Similarly, the Penny West underground mine delivered impressive drill results, including 2.0m at 51.0g/t Au and 0.6m at 144g/t Au, supporting ongoing high-grade production. Resource definition drilling at the Lena trend and Big Sky prospects within the Cue project also returned encouraging grades, underpinning future mine plan updates.

Financial Strength and Strategic Investments

Ramelius ended the quarter with a strong balance sheet, holding A$501.7 million in cash and gold bullion, up from A$438.6 million in the prior quarter, alongside listed investments valued at approximately A$360 million. The company increased its stake in Spartan Resources Limited to 19.9% through participation in a capital raise, reflecting a strategic investment approach.

Gold sales for the quarter reached 80,226 ounces at an average price of A$3,683/oz, generating revenue of A$295.4 million. The company maintains full-year production guidance of 270,000 to 300,000 ounces at an AISC range of A$1,500 to A$1,700 per ounce.

Management Enhancements to Support Growth

In line with its growth ambitions, Ramelius has expanded its executive team, appointing a new Chief Operating Officer, Chief Development Officer, Executive General Manager – Human Resources, and General Manager – Projects. These changes aim to strengthen operational oversight and project delivery, particularly focusing on the Rebecca-Roe project and potential expansions at Mt Magnet.

Managing Director Mark Zeptner highlighted the strong quarterly performance and the promising outlook, noting that high-grade ore from Cue is exceeding expectations and that ongoing geological model reconciliations will refine future production profiles.