Ramelius Resources Q3 FY25 presentation: Record cash flow and upgraded guidance

Introduction & Market Context

Ramelius Resources Limited (ASX:RMS) delivered strong operational and financial results for the March 2025 quarter, as detailed in the company’s quarterly presentation released on April 29, 2025. The gold producer benefited from robust gold prices and operational efficiency, particularly at its Cue project, which contributed significantly to the quarter’s performance.

The company’s stock closed at A$2.49 on April 28, 2025, trading well above its 52-week low of A$1.785 but below its 52-week high of A$2.96, indicating investor confidence in the company’s performance and growth prospects.

Quarterly Performance Highlights

Ramelius reported gold production of 80,455 ounces for the March 2025 quarter at an All-In Sustaining Cost (AISC) of A$1,492 per ounce. This strong operational performance, combined with favorable gold prices, enabled the company to generate record operating cash flow of A$236.8 million and sector-leading underlying free cash flow of A$223.0 million for the quarter.

As shown in the following chart of quarterly gold production:

The company’s production has remained relatively stable over recent quarters, with the March 2025 quarter (80,455 ounces) showing a slight decrease from the December 2024 quarter (85,311 ounces) but significantly higher than the September 2024 quarter (62,444 ounces).

Based on the strong year-to-date performance, Ramelius upgraded its FY25 guidance to 290,000-300,000 ounces at an AISC of A$1,550-1,650 per ounce, as illustrated in this guidance table:

Operational Performance

The Mt Magnet operation, including Cue, continued to be the primary production center for Ramelius, contributing 67,464 ounces during the quarter at an AISC of A$1,226 per ounce. The operation’s strong performance is detailed in the following breakdown:

The Cue project has been a standout performer, with exceptional grades and low costs. During the quarter, Cue mined 168,000 tonnes at 7.19 g/t for 38,747 ounces and produced 36,745 gold ounces at an AISC of just A$610 per ounce, generating A$119.7 million in free cash flow. The project has significantly outperformed expectations, with reconciliation showing 13,710 additional ounces, representing a 31% outperformance against the resource model.

The following image illustrates the Cue project’s performance:

Meanwhile, the Penny underground mine contributed 12,592 gold ounces to the quarter’s production and generated A$35 million in free cash flow. Year-to-date, Penny has generated A$130 million in free cash flow, with the acquisition and capital development costs nearly recouped after just six months of production.

The Edna May operation produced 12,991 ounces at a higher AISC of A$2,802 per ounce. The company noted that Edna May transitioned to care and maintenance in mid-April 2025, which should improve the overall cost profile going forward.

Financial Analysis

Ramelius continued to strengthen its financial position during the quarter, with cash and gold holdings increasing to A$657.1 million. The company achieved gold sales of 84,000 ounces at a realized gold price of A$4,251 per ounce, contributing to the strong financial performance.

The key financial metrics for Q3 FY25 are summarized in the following chart:

Year-to-date, the company has generated underlying free cash flow of A$487.1 million, with the Mt Magnet and Edna May hubs contributing A$436.3 million and A$105.3 million in operating cash flow, respectively. This strong cash generation has positioned Ramelius well for future growth initiatives and potential shareholder returns.

The following chart illustrates the company’s consistent cash flow generation:

Strategic Growth Initiatives

Ramelius continues to advance several strategic growth initiatives. The company signed a binding Transaction (JO:NTUJ) Implementation Deed with Spartan on March 17, 2025, with the process well underway, including integration planning. The implementation is expected in late July or early August 2025.

The transaction timetable outlines key milestones:

The integration of Spartan’s operations presents significant opportunities, particularly between Mt Magnet and Dalgaranga, combining Spartan’s excess processing capacity with Ramelius’ large mineral resource base.

Additionally, the company is advancing the Rebecca-Roe project, with the Pre-Feasibility Study (PFS) showing promising economics. At a base case gold price of A$3,500 per ounce, the project has an after-tax NPV5% of A$332 million, which increases to A$610 million at a gold price of A$4,000 per ounce.

The company has received board approval to commence the Definitive Feasibility Study (DFS) for Rebecca-Roe, with a final investment decision targeted for the September 2025 quarter.

Forward-Looking Statements

For the remainder of calendar year 2025, Ramelius has outlined several key focus areas, including:

1. Continuing to improve safety performance group-wide

2. Completing Eridanus underground/open pit studies at Mt Magnet

3. Completing the Rebecca-Roe Definitive Feasibility Study leading to a Final Investment Decision

4. Increasing exploration drilling programs

5. Completing the Spartan Scheme of Arrangement

The company also highlighted ongoing exploration success, with promising results from drilling at Penny, Cue, and Mt Magnet. At Hesperus (Mt Magnet), recent drilling returned impressive intercepts including 23.14m at 10.2g/t from 274m and 98.0m at 1.79g/t from 182m, indicating significant potential below the existing pit.

With its strong operational performance, robust cash generation, and multiple growth opportunities, Ramelius appears well-positioned to continue its growth trajectory and deliver value to shareholders in the coming quarters.

Full presentation:

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