Ramelius lifts costs but advances growth as Dalgaranga and Mt Magnet projects progress

The latest announcement is out from Ramelius Resources Limited ( (AU:RMS) ).

Ramelius Resources reported March quarter gold production of 38,093 ounces at an all-in sustaining cost of A$2,211 per ounce, contributing to year-to-date output of 138,716 ounces at A$1,987 per ounce and operating cash flow of A$171.3 million. While FY26 production guidance of 185,000 to 205,000 ounces remains unchanged, the company raised its cost outlook due to earlier-than-planned commercial production at Dalgaranga, higher diesel prices and increased royalties from stronger gold prices, even as cash and gold holdings declined to A$606.5 million after heavy growth and exploration spending.

Development at Dalgaranga advanced with first production mining from the Never Never underground, concurrent open-pit progress and ongoing capital works on site infrastructure and a paste plant. At Mt Magnet, Ramelius pushed ahead with a major plant upgrade, front-end loading engineering design for a new 3.0Mtpa circuit and refurbishing the existing 1.9Mtpa mill, a strategy that shifts some capital into FY27 without altering the overall project schedule.

Exploration remained aggressive, with A$26.4 million spent in the quarter and strong drilling results at Gilbey’s Underground raising the prospect of a second underground mine alongside Never Never. Additional mineralisation identified at Mars and Saturn supports a sizeable exploration target, underlining the company’s focus on extending mine life and building higher-grade ounces across its portfolio.

On the corporate front, Ramelius continued capital management initiatives, completing A$110.2 million of share buybacks under its A$250 million program and declaring a fully franked interim dividend of A$0.03 per share. The company also expanded its financing flexibility by replacing a A$175 million revolving credit facility with a new A$500 million undrawn facility and exited its forward gold hedging for FY27 and the June quarter, leaving future production fully exposed to spot prices.

The most recent analyst rating on (AU:RMS) stock is a Buy with a A$6.50 price target. To see the full list of analyst forecasts on Ramelius Resources Limited stock, see the AU:RMS Stock Forecast page.

More about Ramelius Resources Limited

Ramelius Resources Limited is an Australian gold producer focused on mining and processing operations in Western Australia, notably at Mt Magnet and Dalgaranga. The company targets high-grade underground and open-pit deposits and supports its growth through significant exploration drilling and plant expansion projects, positioning itself as a key mid-tier player in the domestic gold sector.

Average Trading Volume: 11,074,900

Technical Sentiment Signal: Buy

Current Market Cap: A$7.06B

For an in-depth examination of RMS stock, go to TipRanks’ Overview page.