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Highlights

  • Ramelius Resources to acquire Spartan Resources in an AUD 2.4 billion deal.
  • The company recorded gold production of 147,775 ounces in 1HFY25 and NPAT growth of 313%.
  • FY25 gold production target set between 270,000–300,000 ounces.

Ramelius Resources Limited (ASX:RMS) is an ASX-listed Western Australian gold production company. It reported 119% YoY increase in EBITDA in the half-year ended 31 December 2024 (1HFY25). Additionally, the company has entered into a binding takeover agreement with Spartan Resources Limited, an ASX-listed company.

Ramelius to Acquire Spartan Resources in AUD 2.4Bn Deal

Ramelius has signed a Transaction Implementation Deed (TID) to acquire all remaining shares of Spartan Resources. Under the agreement, Spartan shareholders will receive AUD 0.25 in cash and 0.6957 new RMS shares per Spartan share. This values Spartan at AUD 1.78 per share, with an overall equity value of AUD 2.4 billion.

Once the transaction is completed, Spartan shareholders will own 39.5% of the enlarged Ramelius group.

Half-Year Financial Performance

In 1HFY25, Ramelius reported:

  • Operating revenue of AUD 508.0 million, reflecting a 46% increase on YoY basis.
  • EBITDA of AUD 307.6 million, up 119% from 1HFY24.
  • Operating cash flow reaching AUD 327.3 million, a 177% YoY jump.

During the reported period, the company recorded gold production of 147,775 ounces, with an All-In Sustaining Cost (AISC) of AUD 1,699 per ounce. Net profit after tax (NPAT) for the period soared to AUD 170.4 million, marking a 313% YoY increase from the previous period (1HFY24: AUD 41.2 million).

Ramelius declared a fully franked interim dividend of 3.0 cents per share.

Outlook for 2HFY25 and Beyond

Ramelius Resources is set to meet its FY25 production guidance of 270,000–300,000 ounce, supported by increased output from Mt Magnet in 2HFY25.

Exploration efforts in 2HFY25 will focus on greenfield projects at Penny, Cue, and the Galaxy mine, aiming to expand resources. The company remains committed to maintaining margins through lower AISC and higher production efficiency.

Share performance of RMS

RMS shares closed at AUD 2.19 per share on 18 March 2025. Over the past year, RMS’ share price has increased by nearly 35% and in six months, it has risen by approximately 1.15%.

52-week high of RMS is AUD 2.815, recorded on 10 March 2025 and 52-week low is AUD 1.57, recorded on 18 March 2024.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 18 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

 

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.