Ramelius Resources Limited

FY '26 underlying EBITDA was $765 million from the sale of 192,000 ounces at a record 74% margin, with EBITDA per ounce over $4,000. Underlying NPAT was just shy of $320 million. The business generated over $700 million in operating cash flow, with underlying free cash flow of $393 million and overall free cash flow of $149 million after acquisition-related cash taxes and hedge management. Closing cash and gold was $650 million, and liquidity was $1.1 billion including the undrawn credit facility. FY '26 shareholder returns totaled $256 million. The company declared a $0.03 per share fully franked final dividend, taking total FY '26 dividends to $0.06 per share. For FY '27, management said it is targeting an update in the week commencing 21 September, including full-year production and cost guidance. It flagged inflationary pressure, higher royalty charges from stronger gold prices, higher fuel costs, and about $30 million of additional FY '27 sustaining capital at Galaxy, equivalent to around $130 an ounce. Management also said the FY '27 8% cost trend includes both operating cost inflation and assumptions tied to a higher gold price and diesel around $1.25.

Mark Zeptner framed FY '26 as a year of consolidation and transformation, with the company increasing shareholder returns while moving toward a >500,000 ounce per annum production base by FY '30. He emphasized the strategic shift to high-grade, high-margin assets, especially Dalgaranga/Never Never and the Mt Magnet hub, and highlighted long-life growth options at Rebecca-Roe and Galaxy. His tone was confident but pragmatic, repeatedly noting rising costs, upcoming EPC finalization, and that the full FY '27 outlook would come in September.

Ben Ringrose focused on the cash generation and balance sheet strength. He highlighted $765 million of underlying EBITDA, just shy of $320 million underlying NPAT, over $700 million of operating cash flow, $393 million of underlying free cash flow, and closing liquidity of $1.1 billion with $650 million in cash and gold. He also broke out key adjustments: $133 million of Spartan acquisition costs, $55 million of private royalty fair value adjustments, and $28.4 million to close remaining FY '27 gold forward contracts. On capital allocation, he said $255 million cash was returned to shareholders via dividends and buybacks, and capital investment rose 19% to $390 million.

Analysts focused on FY '27 cost inflation, the shape of the Dalgaranga and Galaxy ramp-ups, Mill expansion capex escalation, and whether the dividend is now a sustainable base. Management said the FY '27 8% cost trend reflects wages, diesel, royalties and other inflationary items, while also including the impact of a higher gold price assumption and added sustaining capital at Galaxy. On production timing, they said Never Never will be more second-half weighted in FY '27, Galaxy should reach its sustaining level around FY '29, and Dalgaranga ramp-up is already aggressive with little obvious upside versus the current plan. On capital allocation, management said the board’s framework remains to “maintain and grow,” with $0.02 per share per year described as the minimum dividend and buybacks/dividends to be adjusted based on gold price and best use of capital.