Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ramelius Resources Ltd (RMLRF) reported a 46% increase in revenue compared to the prior period, reaching EUR500 million.
• The company achieved a significant improvement in gold production, with a 9% increase to 148,000 ounces.
• All-in sustaining costs were reduced to just under $700 per ounce, enhancing profitability.
• The EBITDA for the period more than doubled, reaching $307.6 million, representing a strong margin of 6%.
• A maiden, fully franked interim dividend of $0.03 per share was declared, reflecting a payout ratio of 43% of free cash flow.

Negative Points

• The company recorded its first Lost Time Injury (LTI) since May 2023, which, although not serious, is a setback in safety performance.
• Operations at Edna May are winding down, resulting in lower margins due to processing remaining low-grade stockpiles.
• Despite the positive financial results, the company faces potential challenges with income tax payments expected to be in the range of 80 to 100 million.
• The company is still in the process of winding down its hedge positions, which could impact future financial flexibility.
• There is uncertainty regarding the continuation of high-grade performance at the Q2 pit, with further assessments needed to confirm ongoing results.

Q & A Highlights

• Warning! GuruFocus has detected 3 Warning Sign with RMLRF.

Q: Can you clarify if the pending study on the Q pit will affect the FY 25 guidance? A: Max Aetna, Managing Director: It's too early to make a call. We didn't want to jump the gun and increase guidance based on a small amount of data. We'll reassess after March and provide updates in the quarterly report. There's potential for changes, but we'll wait for more data before making any decisions.

Q: With the CapEx cycle at all-time highs, are there any plans for the Edna May expansion? A: Darren Millman, CFO: We have higher priorities currently, but we are finalizing the trucking and tidying up the mill care and maintenance. We'll reassess once we release plans for other projects that currently generate higher returns.

Q: What is the outlook for the all-in sustaining margin for FY 25? A: Darren Millman, CFO: We expect further growth for the remainder of FY 25. The all-in sustaining margin was 50.2% for the first half, and we anticipate it to expand to 61% for the full financial year, assuming current spot prices and reducing hedge book commitments.

Q: Can you provide more details on the interim dividend declared? A: Max Aetna, Managing Director: We declared a fully franked interim dividend of $0.03 per share. This represents a payout ratio of 43% of free cash flow based on H1 numbers. The dividend reflects our strong cash generation and commitment to rewarding shareholders.

Q: What are the key focus areas for Ramelius Resources in FY 25? A: Max Aetna, Managing Director: We are progressing the updated Mount Magnet plan, incorporating potential open pit or underground studies, and the Mount Magnet mill expansion. Additionally, we are advancing the DFS for the Rebecca road project, with a final investment decision targeted for the September 2025 quarter.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.