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Ramelius Resources Ltd (ASX:RMS) delivered exceptional results in its June quarter and full-year 2025 presentation released on July 29, highlighting record gold production, industry-leading margins, and substantial cash generation as the company prepares to integrate Spartan Resources.
Quarterly Performance Highlights
Ramelius reported gold production of 73,454 ounces for the June 2025 quarter at an all-in sustaining cost (AISC) of A$1,339 per ounce, representing a 10% cost reduction from the March quarter. The company achieved a sector-leading AISC margin of A$3,103 per ounce (70%), benefiting from both operational efficiency and favorable gold prices.
The quarter generated operating cash flow of A$228.9 million and underlying free cash flow of A$207.8 million, despite A$28.3 million in income tax payments and A$26.9 million for the company’s maiden interim dividend.
As shown in the following quarterly performance summary:
Gold sales for the quarter reached 76,000 ounces at a realized gold price of A$4,442 per ounce, contributing to the strong financial results as illustrated in this financial summary:
Full-Year Financial Analysis
For the full 2025 financial year, Ramelius achieved record gold production of 301,664 ounces, exceeding the upper end of its upgraded guidance range of 290,000-300,000 ounces. The company maintained disciplined cost control with an AISC of A$1,551 per ounce, at the bottom of its guidance range of A$1,550-1,650 per ounce.
The company’s annual performance is summarized in the following slide:
This operational excellence translated into record financial results, with FY25 operating cash flow of A$770.5 million and underlying free cash flow of A$694.9 million. The company sold 303,000 ounces of gold at an average realized price of A$3,963 per ounce, as shown in the annual financial summary:
The substantial cash generation strengthened Ramelius’ balance sheet, with cash and gold holdings increasing from A$446.6 million to A$809.7 million during the year, as detailed in this cash flow breakdown:
Operational Performance by Asset
Mt Magnet, including the Penny and Cue operations, was the primary driver of Ramelius’ strong performance. Mt Magnet produced 248,108 ounces for FY25, up 54% from FY24, at an AISC of A$1,314 per ounce. The operation generated A$661.1 million in operating cash flow.
The Penny underground mine delivered exceptional results, with June quarter production of 25,410 ounces at an industry-leading AISC of A$809 per ounce, generating A$92.5 million in free cash flow. For the full year, Penny produced 76,418 ounces at an AISC of A$1,003 per ounce with free cash flow of A$221.1 million.
The following slide details Penny’s performance and exploration potential:
The Cue project also performed strongly in its first full year of production, delivering 96,720 ounces at an AISC of A$794 per ounce and generating A$287.7 million in free cash flow for FY25.
Meanwhile, the Edna May operation transitioned to care and maintenance in mid-April 2025 after producing 53,556 ounces for the year at an AISC of A$2,608 per ounce.
Exploration and Growth Projects
Ramelius reported positive exploration results across multiple sites. At Penny, drilling returned high-grade intercepts including 0.60m at 33.1g/t and 1.24m at 7.80g/t, with exploration continuing to target down-plunge extensions of the Penny North Lode. The company has allocated up to A$12 million for Penny exploration in FY26.
At Mt Magnet, drilling at Perseverance South yielded significant results including 13.2m at 6.95g/t, 8.9m at 13.45g/t, and 8.0m at 7.62g/t, while Hesperus drilling returned 18m at 5.35g/t.
The company also highlighted progress on the Rebecca-Roe project, with Pre-Feasibility Study results showing strong potential returns:
Strategic Outlook
Ramelius is focused on several key strategic initiatives for the remainder of 2025, including the integration of Spartan Resources, with implementation expected by July 31, 2025. The acquisition creates significant synergies between Spartan’s excess processing capacity at Dalgaranga and Ramelius’ large mineral resource base at Mt Magnet.
The company plans to release a five-year guidance in December, targeting production of 500,000 ounces per annum by FY30, according to the earnings call transcript.
Ramelius also continues to reduce its hedged position, increasing exposure to spot gold prices while maintaining a strong balance sheet. The company paid total fully-franked dividends of A$0.08 per share during FY25, including its maiden interim dividend.
CEO Mark Zeptner emphasized during the earnings call that the company’s "strategy of focusing on high grade ore sources is proving its worth," while CFO Darren Millman highlighted that Ramelius is "generating key leading margins per ounce."
The market has responded positively to Ramelius’ performance, with the stock price increasing 1.54% following the earnings announcement, contributing to an impressive year-to-date return of 96%.
Full presentation:
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