Ramelius Resources has updated its FY26 all-in sustaining costs (AISC) guidance to A$1,900-2,050 per ounce, up from the previous A$1,700-1,900 per ounce range. This material revision reflects three primary headwinds facing the gold producer, including the earlier-than-planned declaration of Dalgaranga’s commercial production adding A$100 per ounce to costs, rising diesel prices contributing A$35 per ounce, and higher gold royalties from elevated gold prices adding A$40 per ounce. The company maintained its annual production guidance at 185,000-205,000 ounces, with year-to-date output of 138,716 ounces at an AISC of A$1,987 per ounce tracking toward the midpoint of the annual range.
The cash position reflects the operational intensity of the period. Ramelius reported cash and gold of A$606.5 million at quarter-end, down from A$694.3 million in the December quarter, while generating A$171.3 million in operating cash flow. Underlying free cash flow of A$101.9 million accounts for growth capital investment of A$51.2 million and exploration spending of A$26.4 million. The decline in total cash reflects the company’s commitment to funding two major expansion projects simultaneously: Dalgaranga’s ramp-up to commercial production and Mt Magnet’s plant expansion.
Dalgaranga is advancing on schedule with 49 kilotonnes of ore mined from the Never Never underground at a grade of 3.49 grams per tonne, while 8 kilotonnes processed through Mt Magnet yielded initial metal production. The Never Never open pit added 10 metres of lateral development, with 9 kilotonnes of stockpiled ore at 1.69 grams per tonne awaiting mill capacity. Capital work focused on paste plant civils, mine offices, and underground pump station infrastructure. Mt Magnet’s plant expansion is on track, with the existing mill’s ball mill drive train refurbishment underway and front-end engineering design work progressing for the new 3.0 million tonne per annum circuit, with EPC contract award targeted for early September quarter.
The exploration side offers a counterbalance to near-term cost pressures. Exceptional drilling results at Gilbey’s Underground present the opportunity to establish a second underground mine at Dalgaranga, with Mars and Saturn drilling defining an exploration target of 400,000-600,000 ounces at 2.1-2.6 grams per tonne. The Rebecca-Roe project advanced with its EPA referral submission for the Roe component, with initial pathway assessment expected in the June quarter. Investors should monitor diesel price trends as a key cost driver, track Dalgaranga’s transition to steady-state production, and watch for completion of the Mt Magnet expansion engineering and EPC award, which will define capital requirements and timeline for the next phase of growth. This announcement is price sensitive and has been flagged as material by the ASX.
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About Ramelius Resources Limited (ASX: RMS)
Ramelius Resources Limited is a gold mining and exploration company that engages in the exploration, evaluation, mine development, operation, production, and sale of gold. The company operates through three segments: Mt Magnet, Edna May, and Exploration, with a portfolio of projects in Australia. Based in Perth, Australia, the company was incorporated in 1979 and generates the majority of its revenue from gold mining operations.
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