Ramelius Resources reported a 36 percent decline in FY26 gold production to 192,182 ounces, yet underlying net profit after tax reached $319.9 million, reflecting strength from a higher gold price environment and sharply improved operational margins. The production shortfall was planned, resulting from the closure of the lower-margin Edna May hub in May 2025 and the integration phase of the Spartan Resources acquisition completed in July. Management’s execution during this transition has validated the merger’s strategic logic, demonstrating the ability to invest heavily in growth projects while returning meaningful capital to shareholders.
The Spartan combination brought Dalgaranga, a high-grade underground asset with 2.1 million ounces of mineral resources, into the portfolio. Commercial production was achieved three months ahead of schedule, with first ore reaching the Mt Magnet mill by February 2026. This early ramp-up reflects better-than-modelled mining grades and improved metallurgical recoveries as underground operations scaled. The company subsequently sold Edna May to Forrestania Resources for A$300 million in cash and equity, completing its strategic shift toward longer-life, higher-quality assets.
Exploration delivered substantial results during the year, discovering 1.8 million ounces at an average cost of A$55 per ounce, the largest single-year addition in company history. Mineral resources expanded 17 percent to 14 million ounces, while ore reserves jumped 79 percent to 4.3 million ounces, demonstrating the enlarged resource base can support the planned production growth. The company closed with A$649.6 million in cash and gold, and posted an underlying EBITDA margin of 74 percent, a company record.
Ramelius projects production will reach 560 to 610 thousand ounces by FY30, a 205 percent increase from FY26. This depends on two main developments: completion of the Mt Magnet plant upgrade to 4.3 to 5.0 million tonnes per annum, and advancement of the Rebecca-Roe project, valued at an after-tax NPV of A$692 million at a A$4,500 per ounce gold price by the company’s definitive feasibility study. The board approved a final investment decision for Rebecca-Roe in October 2025, subject to environmental permits, with part V works approval for the Roe underground component received in September 2026.
Investors should monitor the Mt Magnet plant expansion, where an engineering, procurement and construction contract was awarded in the September quarter, and near-mine exploration at Dalgaranga, particularly the Gilbey’s Underground prospect, which management has identified as a near-term opportunity to displace lower-grade mill feed and potentially exceed production guidance.
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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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