Ramelius Faces Integration Challenges After Transformative Spartan Acquisition
Ramelius Resources delivered a landmark FY25 with soaring profits, record gold output, and a transformative acquisition of Spartan Resources, setting the stage for a new growth phase.
- 36% revenue increase to $1.2 billion
- 119% jump in net profit after tax to $474 million
- Record gold production of 301,664 ounces at A$1,551/oz AISC
- Successful integration of Cue Gold Mine and Spartan Resources acquisition
- Executive remuneration adjusted to reflect company growth and performance
Record-Breaking Financial Performance
Ramelius Resources Limited has reported a stellar financial year ended 30 June 2025, posting a 36% increase in revenue to $1.2 billion and a remarkable 119% surge in net profit after tax to $474 million. This performance was underpinned by record gold production of 301,664 ounces, achieved at an all-in sustaining cost (AISC) of A$1,551 per ounce, placing Ramelius firmly among Australia’s leading mid-tier gold producers.
The company’s flagship Mt Magnet production centre delivered a record 248,108 ounces, buoyed by the high-grade ore from the Cue Gold Mine, which transitioned seamlessly from development to operations. Cue’s initial $206 million investment was repaid within eight months, generating $270.6 million in operating cash flow during the year.
Strategic Acquisition and Growth Initiatives
In a transformative move, Ramelius completed the acquisition of Spartan Resources Limited on 31 July 2025, expanding its asset base with the Dalgaranga Operation, which boasts a 2.9 million ounce mineral resource at a high grade of 5.6 g/t. The acquisition, valued at over $2.7 billion including cash and shares, is expected to enhance Ramelius’ production profile and operational scale.
Integration studies for combining Mt Magnet and Dalgaranga operations are underway, with results and updated production guidance anticipated in the December 2025 quarter. Meanwhile, the company is advancing the Rebecca-Roe Gold Project, with a Definitive Feasibility Study scheduled for completion in the September 2025 quarter, following a promising Pre-Feasibility Study that highlighted strong economic returns.
Operational Highlights and Cost Management
Despite processing lower-grade stockpiles at the Edna May hub before placing it into care and maintenance in March 2025, Ramelius maintained disciplined cost control. The Mt Magnet centre’s cost per ounce decreased by 21% year-on-year, reflecting improved ore grades and operational efficiencies. The company also reduced its gold hedge book by 64%, balancing risk management with exposure to rising gold prices.
Ramelius’ commitment to sustainability and community engagement remained strong, with nine out of ten ESG targets met and ongoing efforts to manage environmental and social risks effectively.
Executive Remuneration Reflects Company Growth
Reflecting its expanded scale and complexity, Ramelius announced increases in executive fixed remuneration and incentive opportunities for FY26. The Managing Director’s total fixed remuneration rose nearly 20% to $1.1 million, with corresponding increases for other key executives. The company also introduced a revised short-term incentive structure combining cash and deferred performance rights to enhance retention and align with shareholder interests.
Non-executive director fees were reviewed in light of governance complexities following the Spartan acquisition, with further adjustments expected pending independent advice.
Bottom Line?
With integration studies underway and a robust pipeline of projects, Ramelius is poised for sustained growth, but investors should watch closely for execution risks in merging operations.
Questions in the middle?
- How will the integration of Spartan’s Dalgaranga operation impact Ramelius’ production costs and timelines?
- What are the key risks and opportunities in the upcoming Definitive Feasibility Study for the Rebecca-Roe Gold Project?
- How will the revised executive remuneration framework influence management’s focus on long-term value creation?
