This report is an updated version of the report published on 24 February 2026 at 11:45 AM AEDT.

Ramelius Resources Limited (ASX: RMS)

Ramelius Resources Limited is a Western Australian gold producer with operations dating back to 2006. The company owns and operates several key assets, including the Edna May, Marda, Mt Magnet, Penny, Symes, and Tampia gold mines. Ramelius is committed to growth through exploration and development, maintaining a portfolio of gold projects across Western Australia.  

Recommendation Rationale – SELL at AUD 5.16

• Technical Standpoint: RMS’ share price has surpassed the R2 level recommended on 18 February 2026. The 14-day RSI currently stands at approximately 63.14, nearing the overbought zone. This upward move raises the risk of short-term consolidation or downside retracement.
• Earnings Deterioration: Net profit before tax declined by 83% YoY in H1 FY26, reflecting a significant reversal in profitability.
• Weaker Operating Cash Flow: Net cash provided by operating activities decreased to AUD 171.18 million in 1H FY25 from AUD 327.34 million in 1H FY24, indicating reduced cash generation.
• Production Risk: Recent production performance reflects operational pressure, as increased mining volumes were offset by a significant decline in ore grades, resulting in lower contained gold output. The deterioration in grade profile indicates reduced production quality and potential margin compression.
• Overvalued Multiples: On a forward 12-month, key valuation multiples (EV/EBITDA, Price/Earnings, and Price/Cash Flow) are higher than average of the Basic Materials’ sector. 

RMS Daily Chart 

Daily Technical Chart, Data Source: REFINITV

Valuation Methodology: Price/Cash Flow Multiple Approach (FY Jun'27E) (Illustrative)

The stock might trade at a slight premium to peers, higher production is planned for 2H FY26, supported by high-grade Dalgaranga ore, increased material movement at the Cue pits following the introduction of a third excavator fleet, and the scheduled introduction of higher-grade Never Never ore in the June 2026 quarter. For conducting the valuation, peers  Iluka Resources Ltd (ASX: ILU), South32 Ltd (ASX: S32), and BHP Group Ltd (ASX: BHP) have been considered.

Given the stock has surpassed its R2 level, and risks associated, commodity price volatility, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 5.160, as of 24 February 2026, at 11:05 AM AEDT.  

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

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

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 24 February 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices