Key Highlights

• The FY26 Annual Report shows FY27 all-in sustaining costs (AISC) guided at A$2,150 to A$2,350 per ounce.

• In FY26 (year to 30 June 2026) the average realised price was A$5,400 per ounce, against A$3,963 in FY25, and AISC was A$1,983 per ounce, within revised guidance of A$1,900 to A$2,050.

• Ramelius is building a new 3 million tonne a year circuit, with Primero appointed as EPC contractor in the September quarter, and installing a new crusher and gravity tower in Circuit 1 during a planned mill shutdown.

• The definitive feasibility study shows an after-tax NPV (5%) of A$692 million at A$4,500 per ounce, an after-tax IRR of 34% and average annual production of about 130,000 ounces at AISC of A$2,625 per ounce.

How is Ramelius Resources (ASX:RMS) paying for a major expansion while still returning cash to shareholders? The September 2026 quarter update, released on 8 October 2026, offers a direct answer. Ramelius reported underlying free Cash Flow of A$60.2 million, even after paying A$131 million of stamp duty on the Spartan transaction, and ended the quarter with A$768.0 million in cash and gold, up from A$649.6 million at 30 June 2026. The completed sale of the Edna May mine added cash, and management says its Mt Magnet growth plan is fully funded.

The central development: cash rebuilt, growth plan intact

Ramelius produced 48,839 ounces of gold in the September 2026 quarter and said it is on track for FY27 production guidance of 205,000 to 225,000 ounces. The FY26 annual report shows FY27 all-in sustaining costs (AISC) guided at A$2,150 to A$2,350 per ounce.

The Edna May sale to Forrestania Resources was completed on 4 September 2026 for A$300 million, comprising A$210 million in cash and A$90 million in Forrestania shares, according to the annual report. Ramelius said the Mt Magnet plan is fully funded and targets production of more than 600,000 ounces by FY30, with resources and reserves supporting similar levels into the late 2030s. The annual report gives a narrower FY30 outlook of 560,000 to 610,000 ounces at AISC of A$2,100 to A$2,400 per ounce. These are company targets, not results.

Business model and Revenue drivers

Ramelius is a gold producer, so revenue is the product of ounces sold and the Australian dollar gold price. In FY26 (year to 30 June 2026) the average realised price was A$5,400 per ounce, against A$3,963 in FY25, and AISC was A$1,983 per ounce, within revised guidance of A$1,900 to A$2,050. That left an AISC Margin of A$3,417 per ounce, or 63%, up from A$2,412 in FY25.

Underlying EBITDA was A$765.4 million (FY25: A$825.6 million), statutory net profit after tax A$118.8 million, and underlying NPAT A$319.9 million. Operating Cash Flow was A$702.1 million. Gold produced was 192,182 ounces, compared with 301,664 ounces reported for FY25, and the annual report says production met guidance for the sixth consecutive year.

Operations and recent announcements

Mt Magnet is the hub. Ramelius is building a new 3 million tonne a year circuit, with Primero appointed as EPC contractor in the September quarter, and installing a new crusher and gravity tower in Circuit 1 during a planned mill shutdown. The annual report describes a plant of up to 5 million tonnes a year with estimated Capital of A$223 million.

The Never Never underground reached commercial production in March 2026, three months ahead of schedule, and the prefeasibility study shows an after-tax NPV (5%) of A$3.5 billion at A$4,500 per ounce with an 11-year initial mine life. These are study outputs.

The September quarter had one operating setback. Wet weather disrupted haulage from the Penny mine to the Mt Magnet mill, leaving a stockpile of 27,680 tonnes at 4.78 grams per tonne, or 4,254 contained ounces. Haulage has resumed, and the company expects a minor timing impact with no change to full-year guidance.

Rebecca-Roe and exploration

The Rebecca-Roe project received a Works Approval under Part V of the Environmental Protection Act in September 2026. Roe needs only routine Mining Act approvals and Rebecca has all environmental and mining approvals, with some capital spending being brought forward. The definitive feasibility study shows an after-tax NPV (5%) of A$692 million at A$4,500 per ounce, an after-tax IRR of 34% and average annual production of about 130,000 ounces at AISC of A$2,625 per ounce. The board approved a final Investment decision subject to permits.

Ramelius also reported a conceptual Exploration Target of 14 to 21 million tonnes at 1.9 to 2.4 grams per tonne for 0.85 to 1.6 million ounces. Drilling has not been sufficient to estimate a Mineral Resource, and it is uncertain whether the target will be realised. The FY27 exploration budget is A$90 to A$110 million.

Reserves, resources and capital returns

At 30 June 2026, Mineral Resources were 260 million tonnes at 1.7 grams per tonne for 14 million ounces, up 17%, and Ore Reserves were 70 million tonnes at 1.9 grams per tonne for 4.3 million ounces, up 79%.

For shareholders, FY26 dividends were 6.0 cents per share fully franked (3.0 cents interim and 3.0 cents final), totalling A$114.0 million. Buy-backs under the A$250 million programme announced on 10 December 2025 reached about A$142 million at year-end and A$159 million by 30 September 2026. Total FY26 returns were about A$255 million.

Sector position

As a mid-tier producer, Ramelius competes for ounces, labour and equipment with larger Western Australian operators, and its Earnings are highly sensitive to the gold price. Spartan completed on 31 July 2025 for consideration of A$2,808.1 million, including 752.9 million new shares.

Risks and what to monitor

Key risks include gold price and exchange-rate movements, grade and recovery variability, equipment failure and cost overruns, as the company's forward-looking statements note. Some Rebecca-Roe permits remain outstanding.

Items to watch include the full quarterly activities report, due later in October 2026, any further disclosure on the Forrestania shares, buy-back progress against the A$250 million programme, and the first operating results from the new Mt Magnet circuit. Subsequent quarters will test whether costs stay within the A$2,150 to A$2,350 per ounce range.