Ramelius Resources (RMS) H1 2026 earnings summary

Executive summary

• H1 FY26 saw gold production decrease to 100,623–101,000 oz, mainly due to Edna May being on care & maintenance and lower mined grades, but first ore from Never Never at Dalgaranga was delivered to Mt Magnet, marking a key milestone post-Spartan acquisition.

• The acquisition of Spartan Resources was completed, significantly increasing net assets, providing substantial tax losses, and resulting in one-off transaction costs and changes to capital structure.

• Production is on track to meet FY26 guidance of 185,000–205,000 oz, with higher output expected in Q4 FY26 as Dalgaranga high-grade ore is processed and aiming for 500,000 oz by FY30.

• Strong balance sheet and liquidity, with cash and gold at A$694.3M, and a new undrawn A$500M credit facility enhancing financial flexibility.

• Fully franked interim dividend of 3.0cps (A$57.7M) declared, exceeding the minimum annual commitment.

Financial highlights

• Revenue was A$485.6M (down 4% YoY), with gold sales of 100,304 oz; underlying EBITDA rose 13% to a record A$347.7M (72% margin), and underlying NPAT was A$160.0M (down 6%).

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

• Operating cash flow was A$311.6M (down 3%), and underlying free cash flow was A$183.7M (down 30%).

• AISC increased 12% to A$1,901/oz, reflecting lower grades and higher costs; realised gold price surged 36% to A$4,822/oz.

• Closing cash and gold balance at A$694.3M.

Outlook and guidance

• FY26 production guidance is 185,000–205,000 oz at AISC of A$1,700–1,900/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 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 projected cash on hand of A$700M by June 2026.