Ramelius Resources (RMS) H1 2025 earnings summary

Executive summary

• Achieved record financial and operational results in H1 FY25, with revenue up 46% to AUD 508 million and net profit after tax up 313% to AUD 170.4 million, driven by high-grade ore, increased production, and strong gold prices.

• Gold production reached 148,000 ounces, up 19% year-over-year, with significant contributions from Mt Magnet, Penny, and Cue.

• Mt Magnet became the primary earnings driver as Edna May operations wind down, with strong cash generation supporting increased shareholder returns and growth investment.

• Maiden, fully franked interim dividend of AUD 0.03 per share declared, reflecting robust cash flow and commitment to shareholder returns.

• Strategic investment in Spartan Resources increased to 19.9%, valued at AUD 165.6 million at cost and AUD 359 million at period end.

Financial highlights

• Revenue for the period was AUD 508 million, up 46% year-over-year, with EBITDA up 119% to AUD 307.6 million and a margin of 61%.

• Net profit after tax was AUD 170.4 million, up 313% year-over-year; basic EPS rose 287% to 14.8 cents.

• Operating cash flow reached AUD 320.9 million, with free cash flow of AUD 81.2 million and cash and gold holdings at AUD 501.7 million.

• Net assets increased to AUD 1,524.7 million.

• Free cash flow per share up 409% to 22.9 cents; free cash flow per ounce produced at AUD 1,787.

Outlook and guidance

• FY25 gold production guidance maintained at 270,000–300,000 ounces at AISC of AUD 1,500–1,700/oz, with revenue on track to exceed AUD 1 billion.

• All-in sustaining margin expected to expand from 52% in H1 to 61% for the full year, assuming current spot prices.

• Mt Magnet production targeted to increase ~50% on FY24, with further growth from Penny and Cue.

• New Mt Magnet mine plan and Rebecca-Roe DFS to be released in March 2025 quarter; Edna May to be placed into care and maintenance in June 2025.

• Capital expenditure for growth and exploration budgeted at AUD 40–50 million.