Earnings call transcript: Ramelius Resources reports record cash flow in Q3 FY2024

Ramelius Resources Ltd (RMS) reported a record underlying free cash flow of A$223 million in its third-quarter earnings for fiscal year 2024. The company also achieved its second consecutive quarterly record cash flow, with total sales revenue of A$358 million. According to InvestingPro data, the company’s strong performance is reflected in its impressive free cash flow yield of 18% and P/E ratio of 8.38. The stock saw a modest increase of 1.2% following the announcement, closing at A$2.49, though it has delivered a robust year-to-date return of 21.95%.

Key Takeaways

• Ramelius Resources achieved record cash flow for the second consecutive quarter.
• Total sales revenue reached A$358 million, with gold sales of 84,000 ounces.
• The company’s stock price increased by 1.2% after the earnings release.
• Future guidance includes a production target of up to 300,000 ounces for FY2025.

Company Performance

Ramelius Resources demonstrated strong financial performance in Q3 FY2024, driven by robust gold sales and effective cost management. The company sold 84,000 ounces of gold at an average realized price of A$4,251 per ounce, contributing to a total sales revenue of A$358 million. This performance reflects the company’s ability to capitalize on favorable market conditions, including an 18% quarter-on-quarter increase in the Australian gold price.

Financial Highlights

• Record underlying free cash flow: A$223 million
• Total sales revenue: A$358 million
• Gold sales: 84,000 ounces at A$4,251 per ounce
• All-in sustaining cost (AISC): A$14.92 per ounce
• Closing cash and gold position: A$657 million

Outlook & Guidance

Looking ahead, Ramelius Resources provided a production guidance of 280,000 to 300,000 ounces for FY2025, with an AISC guidance of A$15.50 to A$16.50 per ounce. The company is also targeting 350,000 ounces from its Mount Magnet mine by FY2030. InvestingPro data shows analysts maintain a Strong Buy consensus on the stock, with EPS forecast to reach $0.23 in FY2025. The company’s excellent Financial Health Score of 4.0 out of 5 suggests strong fundamentals supporting these growth targets. Strategic initiatives include the completion of the Spartan scheme of arrangement by late July or early August.

Executive Commentary

Mark Zepner, Managing Director, emphasized the potential synergies from the Spartan transaction, stating, "We believe the rationale behind the transaction is strong with significant real synergies to be unlocked." CFO Darren Millman highlighted the rapid return on investment from the Kew project, noting, "Kew is now very close to recouping its initial acquisition and development costs after only six months."

Risks and Challenges

• Market volatility in gold prices could impact revenue and profitability.
• Transitioning of the Edna May mine to care and maintenance may affect production levels.
• Potential delays in exploration and development projects due to mine sequencing adjustments.

Ramelius Resources continues to focus on exploration and resource definition, with ongoing projects at Penny, Kew, and Hesperus. The company’s diverse asset portfolio and strong free cash flow generation position it well to navigate market challenges and capitalize on growth opportunities.

Full transcript - Ramelius Resources Ltd (RMS) Q3 2025:

Conference Operator: I would now like to hand the conference over to Mr. Mark Zepner, Managing Director.

Thank you. Please go ahead.

Mark Zepner, Managing Director, Ramelius Resources: Thank you, Jodie. Good morning, everyone. Thank you for taking the time to dial in this morning. In addition to the full quarterly activities report, we have also released a presentation this morning, which we will largely speak to during the call. Both documents are being uploaded on the ASX and will be available on the website shortly.

Joining me again this morning is our CFO, Darren Millman. Darren will provide some details on the financials after I run through the highlights and touched on operational performance, our development projects and some exciting exploration results, but would like to point out that further detail on all three areas that we don’t cover today can be found within the detailed quarterly report itself. Usual, there will be an opportunity for listeners to ask any questions at the end. For those that have downloaded the presentation deck, I’ll initially be speaking to Slide three. Operationally and financially, it’s very pleasing to see the business build further on the strong December with record underlying free cash flow of A223 million dollars This is our second consecutive quarterly record cash flow result and lays Remedias again in a sector leading position on this metric.

After considering our final FY24 income tax payment of $67,600,000 our closing cash and gold position was just over $657,000,000 Our quarterly gold production was 80,455 ounces, which was slightly down on the prior quarter with the lower grades and tonnages coming through at Edna May as that operation transitions to care and maintenance. Importantly, production from our lower cost flagship Mount Magna operation was in line with the prior quarter. The all in sustaining cost for the quarter was at the group level largely unchanged from the December with lower costs from Mount Magna being offset by the higher cost at Edna May, as Edna May continued processing lower and lower grade stockpiles. Considering our results to date and the three quarters of the year now past, we’ve been able to narrow our FY 2025 guidance to the upper range of production and tighten the all in sustaining costs within the original range. We look forward to finishing the year strongly in what has been an exceptional year for Remedias so far.

During the quarter, our technical team also completed as promised the reconciliation of our initial resource model at Kew, which resulted in an additional 13,710 ounces of production, which is a 31% increase on what was expected. This significantly positive reconciliation for breaker day was attributed to an unprecedented amount of coarse gold in the weathered portions of that deposit. This weathered zone at breaker day was virtually depleted, whilst we still have some on stockpiles by the end of the quarter. The next phase of mining is within the fresh rock portion of the ore body, which we have pointed out previously is expected to perform more in line with the model predictions and grade control drilling is confirming them. On the corporate and project side of things, another busy quarter for the team here with the release of our seventeen year Mount Magnet mine plan and the announcement of the transformational combination of Remedias and Spartan.

We believe that the rationale behind the transaction is strong with significant real synergies to be unlocked and continuing overwhelming support from our shareholders. During the quarter, we did draw on our operational team’s expertise as part of the due diligence process around Spartan. They provided valuable input into our processes, but at the same time remain focused on achieving strong operational results as we have demonstrated with today’s numbers together with the guidance upgrade announced. The process around the transaction is well underway, including the integration planning, which will effectively supersede the current Mount Magnet mine plan. The expected implementation date, as a reminder, remains late July, early August.

On exploration, our increased focus since the start of 2025 is already starting to bear fruit. The quarter has delivered some exciting results at our three highest grade projects and also uncovered significant potential below the Hesperus Pit at Mount Magna. We have some slides on this later in the presentation, but it’s worth mentioning that these results are all outside current resources. And the 6.2 meters at 60 grams per ton at Kew and 23 meters at 10.2 grams at Hesperus by themselves would otherwise be potential company makers at Edinger Explorer. On to Slide four, just draw your attention to the chart on the left, which breaks down the quarterly production for the last twelve months.

What is evident here and not unexpected is the reducing production from Edna May, the flagship Magnet Hub continued at quarterly production just above 67,000 ounces with Kew making the largest contribution in both production and cash flow generation. Slide five, which references the company’s quarterly production statistics to stand out here again is the mine grade for the quarter at 6.15, which was marginally down in the prior quarter is still a fantastic grade to be mining at, particularly at current gold prices. This high grade mining for the quarter was attributable mainly to the breaker day, which had a mine grade of 10.5 for the quarter. In terms of ore tons milled for the quarter, that was down on the prior quarters with the depletion of the stockpiles across Edna May, whilst the milled grade increased with less of the lower grade in the main material in the overall mix. On the Slide six, our Mount Magnet’s highlights for the quarter.

Production from Mount Magnet totaled 67,464 ounces at an all in sustaining cost of AUD1226 per ounce. Now that’s an exceptionally low cost and possibly in our view anyway not appreciated by the market. And now that we’ve shown Mt. Magna to have a long mine life, Mt. Magna has potential to become a much higher ranked asset in the WA gold space along with our vision to be producing 350,000 ounces from this asset alone by FY ’thirty.

Back to the quarter, open pit mining at Mount Magnet continued to focus on break of days we’ve mentioned, but also the Waratah and White Heat pits at Kew. Material movement was marginally down in the prior quarter as the depth of these pits increased across the quarter. On the underground side of things, operations continue to focus at Galaxy, at Magna and Penney. At Galaxy, mining was down on the prior quarter due to stope availability, given some ventilation upgrades and development work on the Saturn side of the mine. At Penney, both tonnages and grade were down compared to the prior quarter, although it should be pointed out that the prior quarter’s performance was exceptional.

As a reminder, we mined 48,000 tonnes of ore at 17,800 last quarter, so it was a pretty high bar. Production this quarter was impacted by a lack of stoping areas, hanging wall failure in one stope and some long hole driller availability, which are all in the process of being addressed for quarter four. On the Slide seven, and Penny as mentioned above, not a stronger quarter at Penny this quarter, but still mined and milled ore with grades above nine grams per tonne. The mine still generated $35,000,000 of free cash flow at an all in sustaining cost just above $1,500 an ounce. As I mentioned, we expect a better Q4 from Penny and we are now in the progress process of accessing our first ore drive in Penny West from the recently completed incline from Penny North.

It’s a little hard to say, but we have completed and we are on the level of the first ore drive in Penny West. On Slide eight is Penny exploration. We have followed up the previous 0.55 meters of 22.5 grams with 0.7 meters of 14 grams. The first intercept is 50 meters down plunge from Port Penny North and the second hole is 40 meters below that. Now whilst we did also have an intercept of 0.5 at seven grams above the conceptual third shoot area to the north, we are now focused on following the down plunge position as a priority.

At this stage, from a mining engineer’s point of view, it looks more like Penny West than Penny North at the moment, but it definitely has our geologists excited and following up and moving the rig back to that area. On to Kew, a total of 148,000 tons was mined at Kew in the quarter at a grade of 7.2 grams, which is only slightly below the mined grade from Kew last quarter. Once again, selective stockpiling and processing has allowed us to mill Q ore at almost 12 grams a ton, which in turn produced $120,000,000 of free cash flow and an all in sustaining cost at a sort of an unheard of $610 per ounce. Now as discussed, you can see on the image where mining is pretty much progressed down to the top of fresh rock indicated by the squiggly dotted line and the outperformance in the oxide zones compared to the resource model that we’ve seen so far is expected to now normalize going forward once we have processed some relatively modest sized stockpiles of the oxide material that remain. On Slide 10, we see an image of the current planned pit at Broker Dave, the underground mine design and recent deeper drilling that has returned 6.2 meters of 60 grams from what appears to be an extension to the left hand load, which is the twilight load, The right hand one being the starlight load.

There’s excellent potential for us to extend that twilight load some 80 meters below where it’s currently modeled, which will in turn increase the depth of the mine and also the life of the underground mine at Kew, which is great news for us. On to Mount Magnet Hesperus 11 And 12, we’ve shown some exploration highlights here from Mount Magnet, Hesperus and Saturn. The Hesperus pit sits only a few hundred meters from the Saturn pit and was mined largely in granodiorite geology, which is similar to Eridanus and other pits like Stella West. Recent drilling is not only exposed to deeper section of Ganadirite with the 98 meters at 1.79, but has also identified some high grade potential only two fifty meters below surface with the 23 meters at 10.2 gram result. On Slide 12, this is more focused on satin.

Looks like we have both shallow BIF and intrusive potential right adjacent to where we are developing the satin ore body. In summary, Mount Magna has plenty of untapped potential. We just need to do the drilling, which will obviously be our continued focus for the remainder of this year and into next year. Edna May, one slide here, show the operating highlights for the quarter. Gold production, almost 13,000 ounces at a respectable all in sustaining cost given the grades at $2,800 an ounce, as you can appreciate.

Still highly cash generative with the operations generating $30,000,000 in free cash flow for the quarter. The all in sustaining cost was higher than the previous quarter with the stockpile grades progressively lower as the mine transitioned to care and maintenance. This transition occurred in mid April with a small amount of gold production between the end of the quarter and that point in time as the circuit was drawn down and the site cleaned up. With that, I’ll hand over

Darren Millman, CFO, Ramelius Resources: to Darren. Thank you, Mark, it’s a pleasure to be here with you today. I’ll be initially speaking to Slide 14. On Slide 14, we note our guidance for FY ’twenty five, which has been updated to thousand to 300,000 ounces at an all in sustaining cost of AUD $15.50 to $16.50 per ounce. Individually amount of magnets for FY 2025 is 238,000 to 245,000 ounces an all in sustaining cost of AUD $13.50 to $14.50, while Edna May is expected to close out this year at 54,000 ounces at an all in sustaining cost of AUD 2,600.

As expressed by Mark earlier, we do not expect the key geological model over performance to continue as we mine fresh rock material. I’d like to highlight Revere’s track record of recording of generating value through M and A, which is illustrated on Slide 15. Followers of the company will be familiar with this chart, but there are two points I think worth highlighting. Firstly, the Edema Group of assets has moved to the left and out of production. Across the Edema Hub, Ramirez has generated $512,000,000 in cash flow paying back the initial acquisition cost of $153,000,000 over three times.

Whilst these figures can be dwarfed with the current gold price, they represent an important part of the journey to which Ramess is today. Secondly, Kew is now very close to recouping its initial acquisition and development costs after only six months from the commencement of operations, generating 130,000,000 in free cash flow for the quarter. On slide 16, we show financials for the quarter. From a financial point of view, it was another exceptional strong quarter for Ramelius with $223,000,000 of free cash flow being generated, our second consecutive record on this metric. This demonstrates the increasing margins of our business not only due to the gold price, but also lowering operating costs across Mount Magnet.

These highly cash generated ounces will not only continue for the remainder of FY 2025, but into FY 2026. During the quarter, sold 84,000 ounces at an average realized price of AUD 4,251 per ounce, which included a mix of spot and committed forward sales. This resulted in total sales revenue for the quarter of $358,000,000 The Australian gold price continued to increase over the quarter reporting an 18% increase from December of twenty twenty four and a 43% increase from the start of the financial year. We further unwound our forward contract hedge book, which now sits at 81,000 ounces at an average of $3,216 per ounce. The all in sustaining cost for the quarter was $14.92 dollars per ounce, which was in line with the prior quarter, with the lower cost at Mount Magnum offsetting the higher cost at Edna May.

The resulting all in sustaining cost of $2,759 per ounce represents an all in sustaining cost margin of 65%. Looking at Mav Magna in isolation, the all in sustaining cost was $12.26 dollars per ounce, which was 4% down in the prior quarter with a positive downtrend across the financial year. At Edna May, the all in sustaining cost was $2,802 per ounce, which is an increase from the prior quarter with the progressing lower grade being processed as stockpiles were depleted. What’s higher cost at these gold price, these ounces are cash generative and is reflective in the results for the quarter. On Slide seventeen and eighteen, we show a breakdown of free cash flow metrics for the quarter and historically.

Gold sales of 84,000 ounces generated operating cash flow of $236,800,000 with $206,800,000 coming from Mount Magnet and $30,000,000 from Edna May. A total of $18,000,000 was reinvested in mine development, resource definition and expirations in the quarter, which focused on Eridanus, Kew and Penny West. The resultant free cash flow for the quarter was $223,000,000 or $2,500 per ounce sold. During the quarter, we paid income tax of $67,600,000 which related to the final payment final income payment for FY ’twenty four. Remus is now required to make monthly installments for FY ’twenty four and future income tax years.

The resulting cash and gold position was $257,100,000 which coupled with $175,000,000 debt facility leaves us with over $800,000,000 of available liquidity. With that, I’ll now pass back to Mark.

Mark Zepner, Managing Director, Ramelius Resources: Thanks, Darren. On the last slide, Slide 19, we’ve summarized our key focus areas, not just for FY 2025, but I’ve made it calendar 2025. We will continue to work on our safety performance and obviously be focused to deliver our upgraded FY ’20 ’20 ’5 guidance. We have ticked a few boxes during the quarter with the delivery of Eridanus study, the Mount Magnet mill upgrade study and the updated Mount Magnet mine plan. We do have the Rebecca Rowe combined DFS to be delivered in the September.

And as discussed, we are ramping up exploration expenditure across the board. And finally, we’ve added in there we’re aiming for completion of the Spartan scheme of arrangement in late July, early August. And following that, delivering completed integration studies, are expected in the December 2025 quarter, if not earlier, if we can. We’ll now open the line up for questions, please,

Conference Operator: Jodi. Thank Your first question is from Andrew Bowler from Macquarie.

Andrew Bowler, Analyst, Macquarie: Just on Slide eight, just talking about that conceptual third suit at Penny. I’m just wondering how that concept came about. Is that literally just a repeat sort of concept from Penny West to Penny then on to the sort of Penny North, if you’d like to call it? Or is that based on some geophysical data that you have? And then I guess the second part to the question is, I think I heard you say that geos are getting excited about it, and it’s probably more of a penny west than a penny.

Can you just expand on that? What are you seeing in those through holes that are awaiting assay? Is it structure? Or is it or structure and mineralization? Or what’s it sort of look like compared to the current penny deposits?

Mark Zepner, Managing Director, Ramelius Resources: Yes. Thanks, It’s Mark. On the conceptual third shoot, it’s probably a combination of both, position, but also there is some downhole geophysics that has been carried out that’s given some indications and I believe our AGM of exploration, Peter Rozeca has shown that particularly in these RIU Explorers conferences with some of that work. So it’s a combination of two. And the reason and I’d point out that I think it looks more like Penny West than Penny North and I’m basing that primarily on the widths.

At the moment those widths look more like Penny West rather than the four or five meter widths that you get in Penny North. But in an ideal world it is down plunge and on the so precisely down plunge of Penny North which is important. In an ideal world we’re on the edge of another shoot that does turn into a Penny North but at the moment I’m just making alignment’s comment based on those widths and grades, if that answers your question.

Andrew Bowler, Analyst, Macquarie: Yes, copy that. Obviously, still early days. Penny West is still pretty good, if you could repeat that. And maybe just one for Darren as well. I think I saw somewhere, yes, that you’ve just reduced your D and A expectation for this year.

Was just wondering if you could just run through the reasons behind that.

Darren Millman, CFO, Ramelius Resources: Yes. Thanks, Andrew. So it’s primarily resulting in our mine plan sequencing on Penny. So that’s the mine itself that has a higher attribute of depreciate allocated to it. We’ve got the high class problem of having high grade both at Penney and Kew.

So we’ve made the decision to focus more on Kew for the last three months of the quarter or the year and hence more depreciation will likely be allocated in FY 2026 versus FY 2025. It’s just really an allocation for this year.

Conference Operator: Your next question is from Hayden Bairstow from Arganoort. Just

Hayden Bairstow, Analyst, Arganoort: just back on Penny. Just those drilling results on the sort of the extensions down dip. Is that sort of what you’re looking for in terms of what you think this thing would extend or was it more chasing some wider sort of hits like you were talking about in sort of Penny as opposed to these more narrow things?

Mark Zepner, Managing Director, Ramelius Resources: Yes, ideally we get some wider intercepts we’re sitting on the top of another load and that was the question that we posed after the first hole. If we get a large area of similar hits then it looks like a penny west and at the moment we’ll be mining narrow widths like this potentially in some areas higher grade, some areas very similar to these numbers. If it grows it looks like a penny west repeat at the current widths and grades, but hopefully below we do some wider intercepts. There’s only two holes there we’ve got the rig positioned to add some more as soon as we can.

Hayden Bairstow, Analyst, Arganoort: Okay. And then just a break with that. So you’re talking about the underground sort of on Page 10 of this present. Is that sort of implying that the pits pretty well done and the economic cutoff now benefits going underground from here?

Mark Zepner, Managing Director, Ramelius Resources: There’s two stages to the current pit. Pit you would have said well people would have seen when they’ve gone to site is Stage one. Currently, we have a two stage pit and then go underground. Whether we revise that, I think the intercept, the 6.2 meters of 60 could really add to that twilight load, which is the left hand load, which currently is modeled to stop at 200 meters below surface, but obviously there’s some pretty serious legs there with that sort of intercept. I suppose to answer your question, cutoff between the current design pit and when the underground starts, it can be relooked at.

Usually if you don’t get it from the pit, you’ll get it from underground and the guys would have done some optimization work at let’s say $3,000 an ounce or thereabouts. So we may or may not need to revisit that, but we’re pretty excited about the fact that we’re getting this sort of grade at depth on a load that we basically hadn’t modeled to go that day. So to add two loads to go down to an area where the mine will already be designed to pick up the starlight load, which is the primary load at breaker days, which is a real nice bonus for us.

Hayden Bairstow, Analyst, Arganoort: And the Hesperus pit, is that in the current plan, when does that sort of come in, in terms of

Mark Zepner, Managing Director, Ramelius Resources: the base at the moment? It is in the plan, but you have to really look for the data. I think it’s like in year 10. So it’s modest grade like a lot of the porphyries are. Darren is just trying to find it.

But my understanding is that there’s 100,000 ounces there, which is a cut back to the current pit in the ground IRO producing about one gram in about ten years’ time. But given what we’ve so the drilling was primarily to convert indicated sorry inferred to indicated and to see what was below and it looks quite interesting and not only the broader zones, but the higher grade is probably more interesting for me. Because you’ve got a mix of geology, you’ve got granodiorite and Hesperus sits in an area where you have banded irons, which is the traditional geology at Mount Magnet, but also the granodiorite and you’ve got a lot of faulting and thrusting and mixed up geology there, which can produce some high grade. So we’ve got some numbers there. We probably didn’t expect to see 20 meters of 10.

So it’s a fair way out in the mine plan at the moment, but it might come forward if we keep getting those sorts of results. And it just means that we need to be spending more on exploration as we said. There’s a lot of exploration results in the report. There’s pages and pages and lots of the solar we’re not spending it. But I think we really need to be hitting magnet harder given that the last two years or so we’ve spent drilling Araudaima.

There’s plenty of other places for us to be drilling that, be adding resources and Hesperus is just one of them.

Darren Millman, CFO, Ramelius Resources: Hesperus was only assuming an open pit. These are pre pre at depth

Mark Zepner, Managing Director, Ramelius Resources: too, for the potential for underground in this. The pit show you see there that 3200 is the pit that will be in that mine plan in 02/1935 or something like that.

Conference Operator: Thank you. Our next question is from Ashley Chan, shareholder. Go ahead. Thank you.

Ashley Chan, Shareholder: Just for congratulations again on another excellent quarter. It’s very impressive, and thanks for your hard work. Just got a question two questions. The first one is on Rebecca Rowe. Do you see there opportunities to improve the economics by acquiring additional land packages around the area?

Or is this Rebecca Rowe pretty much okay on a standalone basis?

Mark Zepner, Managing Director, Ramelius Resources: I’ll answer that one. I assume you got another question coming actually, but at the moment on a standalone basis, it’s got robust economics We’ve got a slide there. I’ve said also publicly that I think that area is right for Rabilius’ up and spoke model. So there will be opportunities for smaller resources around there to add mine life and if it comes in a higher grade to also boost grade and throughput, especially in the early years. So I

Hayden Bairstow, Analyst, Arganoort: think

Mark Zepner, Managing Director, Ramelius Resources: both, it’s solid project currently, but it can be improved with opportunities in that region, which I think are pretty plentiful.

Ashley Chan, Shareholder: The only other question I had was more requests for when you do the DFS and anything published publicly, are you able to also update the sensitivity analysis for, say, different discount rate, like a 10% discount rate and also the 5,000 or 509,000 spot gold price? Just update the MPVs and paybacks, that gives a good idea of sort of work out on different gold prices and discount rates.

Mark Zepner, Managing Director, Ramelius Resources: We

Darren Millman, CFO, Ramelius Resources: will have sensitivities on different

Mark Zepner, Managing Director, Ramelius Resources: metrics as part of the DFS. Excellent,

Ashley Chan, Shareholder: thank you. And then the second question is, you intend to do sustainability report, is there a sustainability report due by renewals?

Mark Zepner, Managing Director, Ramelius Resources: Yes, I think we’re up to number three or four at least. So there will be another sustainability report. They have been separated in recent times. I understand that they’ll actually be put back together with the annual report as part of the new requirements around financial disclosures related to climate, etcetera. So now there will be a sustainability report coming later in the year.

Ashley Chan, Shareholder: Excellent. I guess with sort of today’s environment whether it’s positive or negative, it’s just useful to see how much is that really puts back buyers from the local communities buying from First Nation businesses and contributing in other ways to the community including biotechs?

Mark Zepner, Managing Director, Ramelius Resources: Yes. And that will be all included in there along with our hybrid power purchase agreement at Mount Magnet, which is a fifteen year agreement consisting of solar, battery and wind, 32 megawatts. So there will be things like that in there which ideally provides us with a pathway to reduction of emissions. So we’re working on that stuff now. You’ll see that a bit later in the year actually with all the detail you require.

Ashley Chan, Shareholder: You. Again. Thank you very much.

Mark Zepner, Managing Director, Ramelius Resources: Thank you.

Conference Operator: You. Your next question is from Rob Waugh, Independent. Go ahead. Thank you.

Rob Waugh, Independent: Hi, Mike. Great quarter. I had a couple of questions. Just the first one really is around what Aussie gold price you’re modeling some of the lower grade deposits like Big Sky at Kew for the oxide open pit. And the other one is whether the current gold price sitting above 5,000 Aussie is influencing whether you’re trading mineralized waste differently and what cutoffs are you using at that?

Mark Zepner, Managing Director, Ramelius Resources: Thanks, Rob. That’s obviously a bit of a moving gold post move on an annual basis when the gold price moves like it has. From memory, about $3,500 an ounce is a base case that we’ve used not only to assess Rebecca Rowe, Eridanus, but also to run optimizations as well. And we’d be always conservative on a reserve basis. There’ll be another conversation for mid year when we look to run budgets and run reserves again and I’m sure it’s something that all gold companies face without wanting to push the limit too far.

When it comes to existing stockpiles and it played out with Edna May when you’ve got stockpiles that might be lower grade than your reserve that are in reserves, you’ll use probably something closer to spot given the near term potential to derive cash flow. So you can be tracking and processing material down to 0.3, zero point four grams per ton at current gold prices. The spot gold price plays into those sorts of decisions, but not your longer term decisions.

Rob Waugh, Independent: Okay. That makes perfect sense. Thanks a lot.

Mark Zepner, Managing Director, Ramelius Resources: Thanks, Rob. And you’ll obviously be happy to see how well Q is going. And I didn’t mention it specifically, but we have got a rig drilling to the north on the Salt Lake to the on the breaker day style targets directly north of where we’re currently mining.

Rob Waugh, Independent: Fantastic, Martin. We are looking forward to seeing some of those results when they come through.

Mark Zepner, Managing Director, Ramelius Resources: We only just started, so watch this space.

Conference Operator: Very much.

Mark Zepner, Managing Director, Ramelius Resources: There are

Conference Operator: no further questions at this time. I’ll now hand back to Mr. Zepner for closing remarks.

Mark Zepner, Managing Director, Ramelius Resources: Yes, didn’t want to add too much to what we’ve already talked about. Thanks everyone for listening in. Enjoy the rest of your day.

Conference Operator: Thank you. That does conclude our conference for today. Thank you all for participating. You may now disconnect your lines.

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