Ramelius Resources Limited (RMS) Conference Transcript

Ramelius Resources Limited (RMS) Conference Summary Company Overview - Company: Ramelius Resources Limited (RMS) - Market Capitalization: Approximately $2.8 billion as of last week [3] - Cash and Gold Reserves: Over $800 million with no debt, leading to an enterprise value of $2 billion [3] Financial Performance - Record Gold Production: Achieved 301,000 ounces for FY '25, following a record year in FY '24 [3] - All-in Sustaining Cost: Ranged from $15.50 to $16.50, positioned at the lower end of the range [3] - Underlying Free Cash Flow: - FY '24: $315 million - FY '25: Nearly $700 million, significantly surpassing the previous year [7] - Total over the last two years: Over $1 billion [8] - Dividend Potential: Capability to pay over $400 million in fully franked dividends in the future due to strong franking credit position [7] Production Goals and Strategy - Future Production Target: Aim to be a 500,000-ounce producer by FY '30, maintaining sector-leading all-in sustaining costs [5] - Hedge Book Management: - Reduced hedge book since March 2023, with 56,000 ounces of forward sales at an average price of $3,002.83 [11] - Exposure to spot gold price expected to increase to around 70% this year, becoming effectively unhedged by FY '27 [11] M&A and Integration - Upcoming Combination with Spartan: - Implementation date set for July 31, with a smooth transition planned [14] - Integration work ongoing, including mine design and processing options [16] - Dalgaranga Asset Development: - Ongoing diamond drilling and surface drilling to enhance production capabilities [15][20] Exploration Initiatives - Increased Exploration Spend: Significant increase in exploration budget compared to last year, targeting high-quality drilling sites [17] - Key Drilling Projects: - Follow-up drilling at Penney and Kew, with promising results [17][18] - Surface and underground drilling at Mount Magna, with plans for Hesperus drilling [18] Investment Case - Reliable Operator: Consistent delivery on production and cost guidance over the last five years [10] - Sector-Leading Free Cash Flows: Highest free cash flow margin per ounce among peers [8] - Dividend Yield: Paid approximately $190 million in dividends over the last five years, with a competitive yield compared to peers [21] - Exploration Upside: Significant potential in combined assets post-Spartan acquisition [22]