Ramelius Resources has unveiled an updated Mt Magnet gold mine plan that will significantly boost gold production and cash flow over the next 17 years.
The revised plan will see 2.1 million ounces (Moz) produced at the Western Australian project, helping to push historical production beyond 8Moz.
The expanded mine plan is expected to generate substantial financial returns, with pre-tax cash flow estimated at $2.5 billion at a gold price of $3500 per ounce (/oz) and $4.3 billion at $4500/oz.
Ramelius also forecasts over $270 million in underlying free cash flow for the second half of the 2024–25 financial year (FY25) at a gold price of $4000/oz.
“The Mt Magnet hub continues to perform at its highest level of production and cashflow generation in FY25 with cost forecasts at an industry-leading AISC of $1600 per ounce for the next 2.5 years,” Ramelius managing director Mark Zeptner said.
“The combination of the updated Mt Magnet mine plan and the Rebecca-Roe gold project has increased our consolidated gold production profile from FY26 to FY35 at an average annual production of 244,000 ounces per annum at an ASIC below $2000 per ounce.”
The group mine plan will deliver 2.6 million ounces of gold over the next 10 years, with the Mt Magnet mine looking to contribute 1.5Moz over the first 10.5 years, while the Rebecca-Roe project will add 1.1Moz.
A major contributor to this increased production is the Eridanus cutback, which replaces an earlier underground option.
The project now has a maiden ore reserve of 680,000 ounces, with production expected to begin in April 2026.
“The announced maiden ore Reserve and updated mineral resource (open pit and underground) now demonstrates our vision for Eridanus to become the third +1Moz mine in the Mt Magnet field alongside Hill 50 & Morning Star,” Zeptner said.
“The planned Mt Magnet mill upgrade to 3 million tonnes per annum (Mtpa) (from 2Mtpa) capacity will cost $95 million with both the benefit of increasing capacity and reducing our milling costs by over 15 per cent over the mine plan on all ore sources.
“An investment decision is planned for the September 2025 Quarter with construction planned for the December 2026 quarter.”
Zeptner said Ramelius remains focused on delivering these new projects on time and budget, with strong financial capacity and the company looks to increase returns for its shareholders with a $4.3 billion (at $4500/oz) in cash generation from its new Mt Magnet plan.
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