Ramelius Confirms FY26 Production Guidance as Dalgaranga and Cue Support a Stronger June Quarter

About Ramelius Resources Limited

Ramelius Resources Limited (ASX: RMS) is an Australian gold producer with operations and growth projects centred around its Mt Magnet production hub in Western Australia. In this quarterly update, the company highlighted continued production, strong underlying cash generation, ongoing project development at Dalgaranga and Mt Magnet, and continued shareholder returns through buybacks and dividends. Ramelius also said it remains focused on growth across Dalgaranga, Cue, Penny and the broader Rebecca-Roe and Mt Magnet pipeline.

Production remains on track despite March interruptions

Ramelius’ latest quarterly update points to a business that continues to track toward its full-year production target despite operational disruption late in the quarter. Gold production of 38,093 ounces for the March period took year-to-date output to 138,716 ounces, and the company said full-year production remains on track for the mid-point of guidance. This is notable because it follows a period in which Mt Magnet experienced a planned six-day mill shutdown as well as haul road closures caused by significant rainfall associated with Cyclone Narelle. Those events weighed on March output, but also resulted in the build-up of significant high-grade mine stockpiles at quarter end.

Those stockpiles appear important for the near-term outlook. Ramelius said quarter-end stockpiles included 56,000 tonnes at 3.70g/t gold from Dalgaranga and 8,000 tonnes at 3.36g/t gold from Penny. It also said the Cue Break of Day cutback is moving into higher-grade ore zones during the June 2026 quarter. Taken together, these factors support management’s expectation of a stronger June quarter and help explain why production guidance has been maintained despite the March disruption.

Managing Director Mark Zeptner said significant contributions from Dalgaranga and Cue are planned in the June quarter, reinforcing the company’s view that output is still tracking to plan. In practical terms, the combination of existing high-grade stockpiles and better ore exposure at key assets gives Ramelius a clearer pathway to stronger short-term production momentum.

Cash generation remains strong, even after buybacks and hedge management

The quarter also underlined Ramelius’ capacity to generate meaningful cash. The company reported underlying free cash flow of A$101.9 million before several corporate and hedge-related items, including A$28.4 million spent to close out FY27 forward gold contracts, A$30.6 million of reduced spot exposure from early delivery of June 2026 quarter forward contracts, A$110.2 million in executed share buybacks, and A$20.5 million in income tax instalments and stamp duty. Even after those items, the company ended the period with a cash and gold balance of A$606.5 million at 31 March 2026.

That cash balance remains a key feature of the investment case because it provides operational flexibility, supports capital returns and underpins development activity across the broader asset base. On page 2, the company also noted that it had completed A$110.2 million of buybacks during the quarter, representing 44 per cent of its previously announced A$250 million buyback program. Ramelius described this as one of the largest buyback programs by value among Australian gold producers currently undertaking buybacks.

The balance sheet has also been strengthened through a larger undrawn corporate facility. Ramelius said it replaced its existing A$175 million revolving facility with a A$500 million revolving corporate facility in February, and that the new facility is currently undrawn. A fully franked interim dividend of A$0.03 per share was also declared during the period, above the annual minimum dividend of A$0.02 per share to be paid in FY26. These measures together point to a company that is continuing to return capital while preserving financial flexibility.

Dalgaranga and Mt Magnet development continue to progress

The project update provided further evidence that Ramelius is continuing to build out its growth profile. At Dalgaranga, mine production was reported to be on budget, with first Never Never ore delivered to the Mt Magnet processing plant in March, a month ahead of schedule. The first stope at Never Never was fired at 40,926 tonnes grading 7.41g/t gold, while the open pit advanced to 10 metres below surface. Surface projects including the paste plant, paste boreholes, mine offices and workshop, as well as underground works including the pump station, also progressed during the quarter.

Fuel resilience and stockpiles help reduce operating risk

One of the more relevant operational disclosures in the update related to fuel supply and contingency planning. Ramelius said Mt Magnet operations are not currently affected by diesel supply chain disruptions, with fuel sourced directly from a global oil major under a long-term contract. The company has also developed Trigger Action Response Plans for operations and exploration in case restrictions on fuel supplies increase.

Its preliminary assessment for a Level 4 impact scenario is that the Mt Magnet mill would continue to operate and process existing stockpiles because around 98 per cent of power generation is sourced from solar and natural gas, with only about 2 per cent coming from diesel. Ramelius also noted that stockpiles at the Mt Magnet hub stood at 3.0 million tonnes at 0.89g/t gold at 31 March 2026, representing more than 12 months of mill feed. That provides an additional layer of resilience should supply conditions worsen.

The main cost sensitivity remains diesel pricing. FY26 cost guidance had been based on a net diesel price assumption of A$0.95 per litre, representing about 10 per cent of total costs, while current diesel prices were around A$2.10 per litre net of fuel tax credits. Ramelius said updates to FY26 cost guidance, for both AISC and capital, would be provided in line with disclosure obligations and in any event in the March 2026 quarterly report due later in April.

Outlook

Looking ahead, Ramelius appears well placed for a stronger June 2026 quarter, supported by high-grade stockpiles, improving ore exposure at Cue and the early outperformance of Never Never at Dalgaranga. Production remains on track for the mid-point of FY26 guidance, while strong underlying cash generation and a A$606.5 million cash and gold balance continue to underpin capital returns and development spending. Although diesel pricing remains a cost watchpoint, the company’s fuel planning, stockpile position and diversified power mix at Mt Magnet suggest it is relatively well positioned operationally as it advances near-term production and broader project growth.