Ramelius Faces Regulatory Hurdles as Spartan Deal Nears July Deadline
Ramelius Resources has delivered a record-breaking 301,664 ounces of gold in FY25, surpassing guidance and generating robust free cash flow, while advancing its strategic acquisition of Spartan Resources.
- FY25 gold production hits 301,664 ounces, exceeding upgraded guidance
- Underlying free cash flow reaches A$694.9 million for full year
- Fifth consecutive year meeting or exceeding production and cost guidance
- Cash and gold balance stands at A$809.7 million as of June 30
- Transaction with Spartan Resources progressing towards completion by July 31
Record-Breaking Production
Ramelius Resources Limited (ASX, RMS) has announced a landmark achievement for FY25, producing 301,664 ounces of gold; surpassing even the upper limit of its upgraded guidance range of 290,000 to 300,000 ounces. This milestone marks the company’s second consecutive year of record gold output and underscores its operational consistency.
Alongside this production feat, Ramelius reported a quarterly underlying free cash flow of A$207.8 million, contributing to a full-year total of A$694.9 million. These figures reflect a strong cash-generating capability that supports both ongoing operations and strategic initiatives.
Sustained Operational Discipline
The company expects its all-in sustaining costs (AISC) for the year to settle at the lower end of the guidance range of A$1,550 to A$1,650 per ounce. Achieving this cost discipline alongside record production highlights Ramelius’s operational efficiency and financial prudence. Notably, this marks the fifth consecutive year Ramelius has met or exceeded both its production and cost guidance, a testament to its management and operational teams.
As of June 30, Ramelius held a combined cash and gold balance of A$809.7 million, positioning it well for future investments and potential growth opportunities.
Strategic Growth via Spartan Resources Acquisition
Looking ahead, Managing Director Mark Zeptner emphasized the company’s focus on completing its previously announced transaction with Spartan Resources. This acquisition is expected to bring valuable exploration expertise and access to one of Australia’s highest-grade undeveloped gold projects, located near Ramelius’s existing operations.
Integration efforts are well underway, with the company anticipating shareholder and regulatory approvals by July 31. This strategic move could significantly enhance Ramelius’s resource base and growth trajectory.
Further details will be disclosed in the upcoming June 2025 Quarterly Report, which investors will be watching closely for additional insights into operational performance and the Spartan deal progress.
Bottom Line?
Ramelius’s record production and strong cash flow set a robust foundation as it moves to finalize a transformative acquisition.
Questions in the middle?
- What are the detailed terms and valuation metrics of the Spartan Resources transaction?
- How will the integration of Spartan’s assets impact Ramelius’s production profile and costs?
- What risks remain around regulatory approvals and shareholder acceptance for the acquisition?
