Ramelius Resources managing director and chief executive officer Mark Zeptner has showcased the company’s strong financial health and strategic growth plans at the Diggers & Dealers Mining Forum in Kalgoorlie.
Zeptner described Ramelius as a “cash generating machine”, emphasising the company’s efficient management of high-grade operations which positions it as “one of the lowest cost producers in the mid-tier gold sector”.
The company has a market capitalisation of $2.2 billion and over $350 million in cash and gold.
The recent procurement of an 18.3 per cent stake in Spartan Resources further strengthens Ramelius’ investment portfolio.
“Our balance sheet is already in excellent shape and (is) expected to strengthen through FY25 (the 2024–25 financial year),” Zeptner said.
Ramelius achieved record gold production of 293,000 ounces in FY24 at an all-in sustaining cost of $1583 per ounce.
Zeptner said he is confident Ramelius can maintain similar production levels in FY25. He also discussed the company’s two major assets: Mount Magnet, with a mine life exceeding 10 years, and Edna May, which will wind down production in third quarter of FY25.
The Rebecca/Roe gold project is also promising, with a 3.1-million-ounce resource and a pre-feasibility study set for completion in the final quarter of 2024.
“We are expanding our margins not only by relying on high gold prices but also being in a unique position where we are reducing our all-in sustaining costs,” Zeptner said.
Ramelius generated $315.5 million in free cash flow for FY24, leading to a solid balance sheet that enables the company to seize new opportunities and potentially provide shareholder returns uncommon among mid-tier gold producers.
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