This article first appeared on GuruFocus .
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Underlying EBITDA:$765 million from the sale of 192,000 ounces, with a record 74% margin.
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Underlying NPAT:Just shy of $320 million, impacted by higher depreciation and amortization charges from increased tonnages mined at Dalgaranga, Penny, and Cue.
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Operating Cash Flow:Over $700 million generated.
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Underlying Free Cash Flow:$393 million, or over $2,000 per ounce.
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Overall Free Cash Flow:$149 million after considering the net cash to acquire Spartan, income tax, and hedge book management.
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Closing Cash and Gold Position:$650 million, with total liquidity of $1.1 billion including undrawn credit facility.
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Shareholder Returns:$256 million returned to shareholders, representing 65% of underlying free cash flow, including $142 million in share buybacks.
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Dividends:Total FY26 dividends of $0.06 per share, fully franked, including a final dividend of $0.03 per share.
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Capital Investment:Growth capital, exploration, and the Spartan acquisition grew 19% to $390 million.
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EBITDA per Ounce:Over $4,000.
Release Date: August 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ramelius Resources Ltd ( RMLRF ) delivered a record 74% EBITDA margin and underlying EBITDA of $765 million, showcasing strong operational efficiency.
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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.
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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.
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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.
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Ramelius Resources Ltd ( RMLRF ) has a strong track record of reliability, having met production and cost guidance for the sixth consecutive year.
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The balance sheet remains robust with $1.1 billion in liquidity, leaving the development pipeline fully funded without drawing on its credit facility.
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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.
Negative Points
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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.
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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.
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Capital expenditure for the Mount Magnet mill expansion is seeing cost escalation of at least 10% to 15%, which could pressure future returns.
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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.
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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.
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The Rebecca-Roe project remains subject to environmental approvals, creating potential delays or uncertainties for the project timeline.
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The company expects FY27 production to be materially second-half weighted, indicating a slower start to the year.
Q & A Highlights
Q: What is the expected impact of inflationary pressures, higher royalties, and fuel costs on FY27 cost guidance, and what assumptions are being used for diesel prices? A: Darren Millman (CFO) confirmed that FY27 costs are trending approximately 8% higher than the previous five-year outlook, which was based on a $4,500 gold price. The updated guidance factors in a gold price assumption leaning toward $5,500 and a diesel price assumption of around $1.25 per liter, up from the previous plan. The 8% increase also incorporates wage inflation of 6%-7% and higher costs for explosives and other inputs. Additionally, the company flagged that sustaining capital costs, particularly the $30 million investment to extend Galaxy's mine life to 2032, could push AISC higher than the 8% operating cost increase.
Q: With the Mount Magnet mill expansion, what level of cost escalation are you seeing on the mill CapEx given the final EPC tenders are in hand? A: Mark Zeptner (MD & CEO) indicated that cost escalation on the mill expansion is landing at around 10%-15% above previous estimates. The company is working through a competitive feed process to manage costs, but the escalation is consistent with what peers are experiencing in the current environment. The final EPC contract for stage two of the mill upgrade is close to being finalized, and the company will provide a full four-year production outlook and FY27 guidance in September.
Q: Should we expect Never Never production to be materially second-half weighted in FY27? A: Tim Hewitt (COO) confirmed that Never Never production will indeed be weighted toward the back half of FY27. The decline being driven down will expand production areas in the second half of the year, leading to a stronger production profile in H2 FY27 compared to H1.
Q: Is there any upside to the 600,000-ton ramp-up rate at Dalgaranga, potentially reaching the 1.1 million-ton run rate quicker? A: Mark Zeptner (MD & CEO) stated that the company expects to be in line with the previously outlined ounces profile, ramping from zero in March to around 600,000 tons in FY27 and reaching 1 million tons thereafter. He noted that this is already an aggressive ramp-up and there is limited upside to accelerate the timeline at this point.
Q: Can you confirm the stamp duty payment for Spartan and the expected net proceeds from the Edna May sale after tax? A: Ben Ringrose (GM of Finance) confirmed that the $131 million stamp duty on the Spartan acquisition has been paid in July. For Edna May, the cash component of the sale is $210 million, with expected tax of $40 million-$45 million to be settled around December this year. The tax payable is already reflected on the balance sheet.
Q: What is the timing for the ramp-up in volumes at Galaxy towards 800,000 tons per annum? A: Tim Hewitt (COO) advised that Galaxy is expected to reach the sustaining production level of 800,000 tons per annum around FY29. This will require a couple of ventilation upgrades and additional capital investment to open up more mining levels, which is part of the $30 million sustaining capital investment planned for FY27.
Q: How should we think about the sustainability of the $0.06 per share dividend and the mix between base dividend and buybacks going forward? A: Darren Millman (CFO) explained that the board's philosophy is to "maintain and grow" shareholder returns. The minimum dividend remains $0.02 per share per year, with the board able to pivot between dividends and buybacks based on the best use of capital. The $250 million buyback was set based on a $4,500 gold price assumption, and the board will revisit the dividend policy once the gold price assumption is updated to $5,500 for the next four years. The working assumption for analysts should remain at the $0.02 minimum dividend.
Q: Does Ramelius have enough indicated and inferred resources, spare plant capacity, and labor availability to ramp up production if gold prices were to move significantly higher? A: Mark Zeptner (MD & CEO) highlighted that the upcoming Resources and Reserves Statement will underpin a very long mine life, with Mount Magnet currently extending out to 2043. The company has flexibility in processing capacity, with the Mount Magnet plant targeted at 4.3 million tons per annum initially but with capacity to expand to 5 million tons. Additionally, the Dalgaranga plant retains an approved tailings dam footprint and a large proportion of the plant in place for potential future use if exploration success continues. Higher gold prices would primarily translate into stronger cash flows given the company's low-cost position.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
