Full Year 2026 Ramelius Resources Limited Earnings Call Transcript
Key Points
- Ramelius Resources Ltd (RMLRF) delivered a record 74% EBITDA margin and underlying EBITDA of $765 million, showcasing strong operational efficiency.
- The company maintained and grew shareholder returns, returning $256 million (65% of underlying free cash flow) through dividends and a $250 million share buyback program.
- The maiden Never Never Underground Ore Reserve of 1.6 million ounces at 7.3 g/t and a PFS with an NPV of AUD3.5 billion (at AUD4,500/oz) highlight the world-class potential of the Dalgaranga asset.
- The company has a credible pathway to grow production by 170% to over 500,000 ounces per annum by FY30, underpinned by the Mount Magnet Hub and Rebecca-Roe projects.
- Ramelius Resources Ltd (RMLRF) has a strong track record of reliability, having met production and cost guidance for the sixth consecutive year.
- The balance sheet remains robust with $1.1 billion in liquidity, leaving the development pipeline fully funded without drawing on its credit facility.
- Exploration success extended the life of the Galaxy mine from 2028 to 2032, with plans to increase production rates to 800,000 tons per annum.
- The company faces significant inflationary pressures on costs, including higher royalty charges from elevated gold prices and increased fuel costs due to the ongoing Iran conflict.
- FY27 all-in sustaining costs are expected to trend approximately 8% higher, with additional development at Galaxy adding roughly $30 million (or $130/oz) to costs.
- Capital expenditure for the Mount Magnet mill expansion is seeing cost escalation of at least 10% to 15%, which could pressure future returns.
- The company incurred notable one-off costs in FY26, including $133 million in Spartan acquisition costs (mostly stamp duty) and $28.4 million to close out gold forward contracts.
- Production dropped in FY26 due to the completion of operations at Edna May, and the company is in a period of heavy capital investment, which reduced free cash flow.
- The Rebecca-Roe project remains subject to environmental approvals, creating potential delays or uncertainties for the project timeline.
- The company expects FY27 production to be materially second-half weighted, indicating a slower start to the year.
Thank you for standing by and welcome to the Ramelius Resources FY26 financial results conference call. (Operator Instructions)
I would now like to hand the conference over to Mr. Mark Zeptner, Managing Director and Chief Executive Officer.
Thank you, Harmony. Good morning, everyone. Thank you for taking the time to dial into our FY26 results conference call. Alongside me this morning is our General Manager of Finance Ben Ringrose, who will drill down into the numbers after I've covered off on the highlights. Darren Millman our CFO; and Tim Hewitt, our COO, are also both in the room for any Q&A that might come up after our initial comments.
We have uploaded to the ASX platform along with our website a number of documents this morning, including our FY26 financial results summary, our audited statutory financial report and a presentation that we'll be speaking to today.
So if we start on slide 3 and look back at the year for Ramelius
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