How Ramelius Resources (ASX:RMS) Is Using Its Dividend Reinvestment Plan Alongside Its Growth Strategy

Anjali Anand

28 September 2026 05:46 PM AEST

How Ramelius Resources (ASX:RMS) Is Using Its Dividend Reinvestment Plan Alongside Its Growth Strategy

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Ramelius Resources Limited (ASX:RMS) is operating its Dividend reinvestment plan for its FY26 final dividend, allowing eligible shareholders to reinvest their dividend entitlement in additional Ramelius shares instead of receiving the entire distribution in cash. The company declared a fully franked final dividend of 3 cents per share.

Together with the 3 cent Interim Dividend paid during FY26, the final distribution takes total dividends for the financial year to 6 cents per share. The company’s dividend framework forms part of its broader capital-management approach alongside its share buy-back program and investment in growth projects.

Latest developments

Ramelius produced approximately 190,000 ounces of gold during FY26 at an All-In Sustaining Cost of AUD 1,983 per ounce. Underlying EBITDA was AUD 765.4 million, while statutory net profit after tax was AUD 118.8 million.

The company finished FY26 with cash and gold of AUD 649.6 million while continuing its capital-management program. During the year, Ramelius deployed AUD 141.7 million through share buy-backs as it balanced Shareholder returns with investment in its growth portfolio.

Ramelius subsequently updated its multi-year production outlook, setting FY27 production guidance at 205,000 to 225,000 ounces of gold with an all-in sustaining cost of AUD 2,150 to AUD 2,350 per ounce.

Key numbers

Ramelius has forecast FY27 growth Capital expenditure of approximately AUD 480 million to AUD 570 million as it progresses major development and processing projects across its portfolio.

The company increased the budget for the Mt Magnet processing plant expansion to AUD 280 million. The project includes a new processing circuit with planned capacity of approximately 3 million tonnes per annum and forms a key part of the company’s longer-term production strategy.

Ramelius also completed the sale of the Edna May operation, receiving AUD 210 million in cash and AUD 90 million in shares. Following the transaction, the company reported that its combined cash, gold and investments exceeded AUD 1 billion.

About the company

Ramelius Resources is a Western Australian gold producer with operating mines, development projects and exploration activities centred principally on the Mt Magnet hub and the Rebecca-Roe project.

The Mt Magnet hub incorporates several Mining areas, including Cue and Galaxy. Ramelius also added the Dalgaranga operation through its Acquisition of Spartan Resources, providing the group with additional high-grade ore sources and development opportunities.

The company is also developing Rebecca-Roe as part of its longer-term growth strategy. Its portfolio is structured around extending mine life, expanding processing capacity and increasing production through both existing Assets and new development projects.

How the DRP works

Ramelius’ dividend reinvestment plan allows eligible shareholders to reinvest all or part of their dividend entitlement in additional ordinary shares rather than receiving the entire payment in cash.

Under the plan rules, the allocation price is determined using the average of daily volume-weighted average prices over a pricing period of at least five trading days, less any discount determined by the board.

For the FY26 final dividend, the pricing period runs from 23 September to 29 September 2026. The dividend Record Date was 16 September, while payment and DRP allocation are scheduled for 13 October 2026.

The company’s dividend notice indicates that the shares allocated under the FY26 final dividend DRP will not be newly issued shares. Eligible participation is available to shareholders with registered addresses in Australia and New Zealand.

Why the DRP matters

The DRP gives participating shareholders an alternative way to receive eligible dividends by applying the payment toward additional Ramelius shares.

For the FY26 final dividend, the use of existing shares rather than newly issued Equity means the DRP allocation itself is not expected to increase the number of shares on issue. This operates alongside the company’s share buy-back program, which has been used as another component of its capital-management strategy.

Future dividend amounts, franking levels, DRP discounts and the method used to source shares remain subject to board decisions and the company’s financial position.

What comes next

Ramelius is targeting FY27 production of 205,000 to 225,000 ounces as it advances the next stage of its growth program. The Mt Magnet processing expansion is expected to play a central role in lifting future throughput and supporting additional ore sources across the hub.

The company has also increased its longer-term production ambitions, with its updated outlook targeting substantially higher production by FY30. Delivery will depend on the development of Dalgaranga, expansion of Mt Magnet processing capacity and progression of Rebecca-Roe.

The Mt Magnet expansion is targeted for completion during the December 2027 quarter. Ramelius is also progressing permitting and development activities at Rebecca-Roe as it prepares the project for a future contribution to group production.

Risks and context

Ramelius’ Earnings and cash flows remain sensitive to the Australian-dollar gold price, production volumes, ore grades, recoveries and operating costs. Higher gold prices can support Revenue and margins, while lower prices or rising costs can reduce cash generation.

The company is also entering a period of significant growth expenditure. The higher Mt Magnet expansion budget highlights the potential for project costs to change as engineering, procurement and construction activities progress.

Execution risks include completing the processing expansion within revised capital expectations, integrating Dalgaranga into the wider production strategy, obtaining required approvals at Rebecca-Roe and achieving planned production and recovery rates.

Key Insights

Ramelius Resources is operating its DRP for a fully franked FY26 final dividend of 3 cents per share, bringing total FY26 dividends to 6 cents per share. The plan gives eligible shareholders an option to receive additional shares instead of taking their full dividend entitlement in cash.

At the same time, Ramelius is progressing a substantial growth program centred on Mt Magnet, Dalgaranga and Rebecca-Roe. FY27 production guidance, higher growth expenditure and an expanded longer-term production outlook place project execution, operating costs and capital management among the key factors to monitor.

FAQs

Q: What is Ramelius Resources’ FY26 final dividend?

A: Ramelius declared a fully franked final dividend of 3 cents per share, taking total FY26 dividends to 6 cents per share.

Q: Is the Ramelius DRP operating for the FY26 final dividend?

A: Yes. Eligible shareholders can participate in the dividend reinvestment plan for the FY26 final dividend in accordance with the company’s DRP terms.

Q: Will Ramelius issue new shares under the FY26 final dividend DRP?

A: No. The dividend notice indicates that shares allocated under the FY26 final dividend DRP will not be newly issued shares.

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