Ramelius Resources (RMS) H1 2026 earnings summary

Executive summary

• Half year results to December 2025 saw gold production at its lowest in recent years, with a 32% decrease to 100,623–101,000 ounces, mainly due to Edna May entering care and maintenance and lower mined grades; higher production is planned for Q4 FY26 as Dalgaranga high-grade ore is processed.

• Completed acquisition of Spartan Resources, adding Dalgaranga mine and significant tax losses, increasing net assets and providing substantial reserves and resources.

• First ore from Never Never Deposit at Dalgaranga was hauled to Mount Magnet, and a Pre-Feasibility Study confirmed strong economic returns and an 11-year mine life.

• Production is on track to meet FY26 guidance just below 200,000 oz, aiming for 185,000–205,000 oz at AISC A$1,700–1,900/oz, and targeting 500,000 oz by FY30.

• Strong balance sheet and liquidity, with improving production outlook and leverage to robust gold prices.

Financial highlights

• Revenue was AUD 485.6 million (or $483.7 million), down 4% year-over-year due to lower gold production.

• Underlying EBITDA rose 13% to AUD 347.7 million (72% margin), a record for H1.

• Underlying NPAT was AUD 160 million, down 6% from prior period's AUD 170 million.

• Statutory net loss after tax was AUD 11.7 million, impacted by AUD 133.2 million in Spartan acquisition costs and AUD 46.6 million in royalty fair value adjustments.

• Operating cash flow was AUD 311.6 million, largely in line with prior period.

• Free cash flow was an outflow of AUD 40 million, reflecting the Spartan acquisition, higher exploration, and final FY25 tax payment.

• Closing cash and gold balance at AUD 694.3 million.

Outlook and guidance

• FY26 production guidance remains just below 200,000 oz, with higher-grade ore from Never Never to be introduced in June 2026 quarter and significant increases in tonnes and grade from FY28.

• Mt Magnet plant upgrade to 5Mtpa capacity expected by September 2027.

• No forward contract hedging in place from April 2026; collars and put options remain for FY27–FY28.

• Dividend policy to be reassessed as production and cash flows ramp up.

• Return to free cash flow generation forecast for FY27, with cash on hand projected at AUD 700 million by June 2026.