RMS - Ramelius Resources

[peter2]

M&A activity in the WA gold producers has become more hectic.

RMS offers to merge with WGX (without KRR (Canada), that WGX is hoping to buy). Both RMS and WGX were interested in KRR with RMS walking away. Genesis (GMD who bought SBM Gwalia mine) is also in the same locality.

Any deal would be bigger than the RED 5 and Silver Lake merger.

Trading goldies in WA will get trickier now. Might stick with an ETF for the next gold rally.

 

[Captain_Chaza]

Maybe they can see the Double Top?

 

[divs4ever]

Cue Project Approved for Commencement

HIGHLIGHTS
 Key Mining Proposal approval received from DEMIRS.
 Pre-Feasibility Study (PFS) completed utilising internal and external technical expertise;
o Mineral Resources1  10Mt at 2.0g/t Au for 660koz (open pit)
 1.6Mt at 4.8g/t Au for 250koz (underground)
 12.0Mt at 2.4g/t Au for 910koz (total) o Maiden Ore Reserve2
 2.7Mt at 2.9g/t Au for 250koz (open pit only with underground evaluation targeted for September 2024)
o Updated Mineral Resources and Reserves do not incorporate the latest 2024 drilling program, which is planned to be incorporated and released in September 2024.
o Upfront capital cost of A$26.6M o AISC of A$1,585/oz
o Metallurgical recovery of 92.7% o Pre-tax NPV6% of A$266M @ A$3,000/oz
o Payback of 7 months

 Board has approved commencement, with early works expected in June 2024.

Ramelius Resources Limited (ASX: RMS) (“Ramelius”, the Company”) is pleased to provide an update on the Cue Project, 40km north of the Mt Magnet gold mine, within its portfolio of gold assets in Western Australia.
Managing Director, Mark Zeptner, today said: “Our key operating mines continue to perform well, tracking at the higher end of guidance and in accordance with our recently released Mt Magnet 10-Year Plan3 .
The Cue Project will deliver ore to the Mt Magnet hub in parallel with the Penny high grade ore.
This high margin combination will deliver significant returns with our cash balance already exceeding A$500M4 .
Additional underground potential still remains at both Cue and Penny.”

part of a larger release

i hold RMS

 

[divs4ever]

Ramelius makes strategic investmentin Spartan Resources

Ramelius Resources Limited (ASX: RMS) (“Ramelius”, the “Company”) has purchased 98.5 million shares in Spartan Resources Limited (ASX:SPR) (“Spartan”) as a strategic investment, representing approximately 8.9% of Spartan’s ordinary shares on issue.

Spartan’s Dalgaranga Gold Project is located 65km north-west of Mount Magnet in the Murchison Region of Western Australia.
Ramelius continually evaluates gold assets in Western Australia and will make investments in the sector where it believes there is a strategic rationale.

Managing Director, Mark Zeptner, today said:“Ramelius has an enviable portfolio with multi-stage operations and a development project that is underpinned by the long-life low-cost Mt Magnet operation. We also have extensive greenfield exploration opportunities and our investment into Spartan Resources provides us with a strategic addition to the portfolio”.

Following the purchase of Spartan shares, Ramelius has $446M in cash and gold, and its operations are forecast to continue generating significant free cash flow over the medium term.

Subject to the actions of Spartan or any third party, Ramelius has no current intention to acquire control or make a takeover offer for Spartan.

This ASX announcement was authorised for release by the Board of Directors.

i hold RMS

 

[finicky]

Seems like it makes sense but looks expensive to accumulate being on price to book of 8.5 X and a yearly chart that pretty much goes from bottom left to top right. Gets a bit wearisome trying to assess RMS's train of acquisitions but they're doing well so far.

The Dalgaranga Gold project is 65kms NW from Mt Magnet and has its own modern mothballed gold plant. Spartan Resources (SPR) is the old Gascoyne Resources.

Held and
Holding

 

[divs4ever]

since there is existing infrastructure , maybe the synergies look better , in a pinch borrow the use of the airstrip , etc etc

( even rent some accommodation while Spartan are getting the mine back into production )

 

[finicky]

Cruising

 

[divs4ever]

Westgold Resources Limited

– Panel Accepts Undertakings and Declines to Make a Declaration

The Panel has accepted undertakings from Westgold Resources Limited (Westgold)and Karora Resources Inc. (Karora) (see Annexure) and declined to make adeclaration of unacceptable circumstances in response to an application dated 27 May 2024 from Ramelius Resources Limited (Ramelius) in relation to the affairs of Westgold (see TP24/29).

The application concerned (among other things) complaints in relation to:
• deal protection arrangements1 in an arrangement agreement (Arrangement Agreement) which Westgold entered into with Karora pursuant to which Westgold is to acquire Karora via a Canadian plan of arrangement
• a standstill in a confidentiality deed (Confidentiality Deed) which Westgold entered into with Ramelius and
• Westgold and Karora’s disclosure of estimated operational and corporate synergies arising from the Karora transaction.

The Panel had concerns in relation to the non-solicitation provisions, in particular the effectiveness of the ‘fiduciary out’, in the Arrangement Agreement.
The Panel considered those concerns are sufficiently addressed by Westgold and Karora’s undertakings to amend the relevant provisions of the Arrangement Agreement including to (in effect) reduce fetters or constraints on the ‘fiduciary out’.

The Panel considered that, in the circumstances, the termination fee payable by Westgold to Karora as set out in the Arrangement Agreement is not currently having an anti-competitive effect.1

Including non-solicitation covenants, an obligation to enforce any pre‑existing confidentiality or standstill agreements and a termination fee of C$40 million payable by Westgold to Karora should Westgold terminate the Arrangement Agreement due to (among other reasons) its entry into a binding agreement with respect to a superior proposal2/4

The Panel did not consider Westgold’s continued reliance on the standstill in the Confidentiality Deed to be inappropriate nor did the Panel consider that there was reason to question further whether there were reasonable grounds to support Westgold and Karora’s disclosed estimates of operating and corporate synergies.The Panel considers that it is not against the public interest to decline to make a declaration of unacceptable circumstances.

The sitting Panel was James Burchnall, Deborah Page and Sarah Rennie (sittingPresident).

The Panel will publish its reasons for the decision in due course on itswebsite www.takeovers.gov.au.

Allan BulmanChief Executive, Takeovers Panel Level 16, 530 Collins Street Melbourne VIC 3000Ph:

+61 3 9655 3500

takeovers@takeovers.gov.au

i hold both RMS and WGX

 

[divs4ever]

Response to Takeovers Panel Media Release

Ramelius Resources Limited (ASX: RMS) (“Ramelius”, the “Company”) refers to the Takeovers Panel’s (“Panel”) media release dated 8 July 2024.

As noted in the Panel’s media release of 29 May 2024, Ramelius’ made an application to the Panel (“Application") in relation to the affairs of Westgold Resources Limited (“Westgold”)seeking orders, among other things, in relation to the standstill restrictions contained in a mutual confidentiality deed between those parties dated 14 November 2023 (“Confidentiality Deed”).

The Confidentiality Deed predated the announcement of the Arrangement Agreement between Westgold and Karora Resources Inc (“Karora”) in relation to a potential acquisition of Karoraby Westgold by way of a Canadian plan of arrangement (the “Karora Transaction”)1.

The Panel has accepted binding undertakings (“Undertakings”) from Westgold and Karora relating to the operation of the lock-in provisions of the Arrangement Agreement between those parties in relation to the Karora Transaction2.

Ramelius notes that the Panel has determined not to make a declaration of unacceptable circumstances in relation to other matters raised in the Application, including the operation of the standstill provisions in the Confidentiality Deed.

Following the outcome of the Panel process and given the amount of time which has passed since Ramelius first submitted its application to the Panel, Ramelius would like to confirm that it is no longer in any corporate transaction discussions with Westgold.

Furthermore, for the avoidance of any doubt, Ramelius reconfirms that it ceased all discussions with Karora regarding a potential control transaction involving Ramelius and Karora on or around 28 March 2024, as previously noted by Ramelius3.


This ASX announcement was authorised for release by the Board of Directors.


i hold both RMS and WGX

 

[finicky]

Ramelius Resources posts record gold production numbers in FY24

Ramelius Resources' (ASX: RMS) rapid growth plans are well on target after the company achieved a financial year production record of 293,033 ounces. The

smallcaps.com.au

Ramelius Resources’ (ASX: RMS) rapid growth plans are well on target after the company achieved a financial year production record of 293,033 ounces.

The financial year 2024 results are at the upper end of the upgraded guidance of 285,000-295,000oz and well above the original guidance of 250,000-275,000oz published in July 2023.

The company told shareholders that the outstanding results are expected to lead to its full-year all-in sustaining costs being at the lower end of the upgraded guidance range of between A$1,550/oz and A$1,650/oz.

Held

WEEKLY not updated to today's 2c rise

 

[divs4ever]

RAMELIUS DELIVERS RECORD NET PROFIT AFTER TAX OF A$216.6M (up 252%)DECLARES RECORD 5.0cps DIVIDEND (up 150%)

FY24 HIGHLIGHTS
• Gold sales of 293,966 ounces at AISC1 of A$1,583/oz
• Revenue from ordinary activities of A$882.6M (FY23: A$631.3M), up 40%
• Statutory net profit after tax of A$216.6M (FY23: A$61.6M), up 252%
• EBITDA2 of A$451.3M (FY23: A$256.7M), up 76%
• Underlying3 EBITDA of A$462.2M (FY23: A$276.3M), up 67%
• Underlying3 net profit after tax of A$200.3M (FY23: A$75.3M), up 166%
• Cash flow from operations of A$454.8M (FY23: A$259.6M), up 75%
• Net cash and bullion of A$446.6M(FY23: A$272.1M), up 64%
• Strategic investment in Spartan Resources Limited of 8.9% in FY24, increased to 18.35% in July 2024, valued at A$274.1M4(Cost: A$185.2M)
• Renewed and upsized (+A$25M) Revolving Corporate Facility of A$175M over a four year term (nil drawn)
• Board approves investment into a renewable energy solution (solar, battery & wind),as part of a long-term power purchase agreement at Mt Magnet
• Fully franked dividend of 5.0 cents per share (FY23: 2.0cps), up 150%Ramelius Resources Limited (ASX: RMS) (“Ramelius”, “the Company”) is pleased to report its financial and operational performance for the Financial Year ending 30 June 2024.
Additional information is provided in the Appendix 4E, Financial Statements and Presentation released today.
FY24 was a record year for the Company in terms of gold sales, cash flow, earnings and dividends.
Gold sales increased at both operations, mainly as a result of improved grades at Mt Magnet and increased haulage capacity across the Edna May hub.
Mt Magnet grades increased due to not only an increased contribution from the high-grade Penny mine, but also improving grades at Eridanus which reported a 51% increase in milled grade year-on-year.
At Edna May the introduction of Symes as the third haulage route increased the haulage capacity across the hub and the successful management of water inflow at the Edna May underground allowed development beyond the expected lower levels.
The excellent operational performance, coupled with the strong A$ gold price, saw underlying EBITDA per ounce increase to A$1,573/oz (FY23: A$1,136/oz) with a resultant Net Profit after Tax (NPAT) of A$216.6M. 2
The underlying3 EBITDA for the year of A$462.2M was achieved at a margin of 52% representing a 67% increase in underlying EBITDA and 20% increase in the underlying EBITDA margin.
A reconciliation of NPAT to the underlying NPAT is provided in the Financial Statements and Presentation.
The Company made an initial strategic investment of A$87.7M in Spartan Resources Ltd (Spartan) in June 2024 and subsequent to year end, additional purchases amounting to A$97.5M were completed resulting in the Company now holding 18.35% of Spartan.
Ramelius is committed to investing in renewable energy solutions at Mt Magnet.
In August 2024, a power purchase agreement was signed with PWR Hybrid (PWR) for hybrid energy power supply to the Mt Magnet Gold Mine.
The hybrid power purchase agreement will deliver a 32MW hybrid power station consisting of 14MW gas generation, 3MW diesel generation, 6.7MWp solar photovoltaic (PV) and 8MW/10MWh battery energy storage system (BESS).
The agreement also accommodates the future addition of 8.4MW of wind generation or 6.7MWp expansion of solar PV, to support future operations, decarbonisation ambitions and lower the cost of energy through a larger hybrid power station.
The strong earnings and cash flows for the year, together with the positive FY25 outlook, has enabled the Board to declare a record fully franked dividend of 5.0 cents per share, a 150% increase on the prior year.
If shareholders wish, they may elect to reinvest their dividend into RMS shares via the established Dividend Reinvestment Plan (DRP).
The reinvestment price will be based on a 2.0% discount to the 10-day volume weighted average price after the date of election.
Ramelius Managing Director, Mark Zeptner, today said:“It is very pleasing to present such a strong set of financial results for Ramelius for FY24.
The second half of the financial year was particularly strong with 80% of our NPAT for the year coming in this period as we converted the substantial benefits of our disciplined investments from prior years.
This is not only true of Penny, where multiple stoping areas are now available, but also Eridanus where grades improved notably in the last quarter of the year.
Indeed, the future for Eridanus is very encouraging with over 3Mt stockpiled and attractive underground / open pit options currently on the table.
In June 2024, we also commenced development of Cue with first high grade ore to be delivered late in October 2024, another key source of future cash flow generation for the Mt Magnet hub.
Not only did the mine operations generate record earnings and cash flow, but this was achieved safely with no Lost-Time Injuries (LTI) being recorded.
For FY25, we are expecting another strong year to follow on from the record breaking FY24.
Our Group Guidance is targeting production between 270,000 to 300,000 ounces of gold at a market leading AISC of A$1,500 to A$1,700 per ounce.
Our financial position leaves us well placed to fund our exciting organic pipeline of projects.
Project evaluations for the Eridanus underground / open pit options are now being modelled with the Mt Magnet mill expansion and separately, the PreFeasibility on Rebecca-Roe, with both targeted for the December 2024 Quarter.
In addition, our long-term mine plan at Mt Magnet now enables us to invest with confidence into sustainable energy with our first priority being solar power generation and with a long-term aspiration to transition to wind power generation once studies have been completed.
Ramelius is also pleased to announce the declaration of a fully franked 5 cent per share dividend.
This is now the sixth consecutive annual dividend for Ramelius shareholders with a total of A$131.4M being returned over that period. Ramelius continues to strive for superior returns via both capital growth and dividend yield for its shareholders.”

Dividend Information3
The key dates for participation in the dividend are as follows:
• Ex-date for dividend entitlement 13 September 2024
• Record date 16 September 2024
• Payment date / Allotment Date (for DRP) 17 October 2024FY24

Financial Results Conference Call
The Company wishes to advise that Mark Zeptner (Managing Director) and Darren Millman (Chief Financial Officer) will be holding an investor conference call to discuss the financial results at 11:00am AEST (9:00am AWST) on Monday, 26 August2024.
To listen in live, please click on the link below and register your details:https://s1.c-conf.com/diamondpass/10040312-7oxb5c.html1.

All-in Sustaining Cost (AISC) calculated in accordance with the World Gold Council Guidance Note on AISC and AIC released on 14 November 2028.
2. EBITDA is earnings before interest, tax, depreciation, and amortisation and is calculated from continuing operations.
EBITDA is a financial measure which is not prescribed by the International Financial Reporting Standards (IFRS) and represents the profit under IFRS adjusted for specific significant items.
EBITDA has not been subject to any specific review procedures by the auditor but has been extracted from the company’s financial statements.
3. Underlying results exclude the impact of the asset and exploration impairments, fair value adjustments on investments and deferred consideration and tax benefits arising on the recognition of acquired tax losses.
Refer to Table 6 on Page 12 of the 2024 Annual Financial Report and the appendices to the FY24 Results Presentation.
4. As at 23 August 2024, holding in Spartan Resources Limited.

This ASX announcement was authorised for release by the Board of Directors.

i hold both RMS

 

[finicky]

Market Matters morning report
Held
Holding

Ramelius Resources Ltd (RMS) $2.39​

In May, RMS approached Westgold (WGX) for a $3bn gold merger. Although rebuffed, it doesn’t mean they’ve given up on the concept—Red & SLR beat them to the punch. At the time, Westgold turned away the approach, suggesting it was unwilling to progress as it chased an M&A target of its own in Karora Resources – as M&A flows, the CEOs want to remain on top of the tree! Their FY24 earnings beat expectations in August, which helped the stock rerate on the upside.

• Revenue of A$882.6mn was in line with expectations, but the Earnings Per Share (EPS) was a tidy 3.5% beat.
• We always pay attention to the market’s rhythm, and RMS often likes to retrace over 30c; hence, $2.20 would be our ideal entry-level.

MM likes RMS below $2.20

Ramelius Resources Ltd (RMS)
LAST UPDATED 01/11/2024 09:00

 

[divs4ever]

Ramelius participation in Spartan capital raising

Ramelius Resources Limited (ASX: RMS) (“Ramelius”, “the Company”) confirms its participation in the capital raising announced by Spartan Resources Limited (“Spartan”) this morning, increasing its holding in Spartan from 18.3% to 19.9%.

Ramelius funded the purchase of additional Spartan shares from existing cash reserves.

The Company’s holding in Spartan has been acquired at a cumulative average cost of $1 per share.

Consistent with its long-running strategy, Ramelius continually evaluates gold assets in Western Australia and will make investments in the sector where it believes there is a strong rationale.

This ASX announcement was authorised for release by the Board of Directors.

i hold RMS

 

[Sean K]

AISC of A$2346?

Is that a lot these days?

Lucky Aus POG has gone nuts.

 

[divs4ever]

AISC of A$2346?

Is that a lot these days?

Lucky Aus POG has gone nuts.

View attachment 189253

it seems so to me , i would prefer a fair bit under $2000 but depending on the debt levels , maybe those costs include future development/exploration costs

ALSO most of those grades seem fairly low to me also ( i really prefer over 1.5 g/t )

 

[finicky]

Rebecca-Roe has never appealed to me and the PFS with that AISC would be a bit if a dud at earlier gold prices. Certainly today I wouldn't be inspired to buy RMS today upon this study alone.
Personal note: unpredictably RMS at this time is my most profitable gold stock, beating NST in percentage terms by a long shot. However the profit on RMS if I sold would only neutralise my loss on SSR Mining. RMS greedy but very competent management over the decade, so I sort of trust them to make a go of Rebecca-Roe.

Held
Holding

 

[divs4ever]

Rebecca-Roe has never appealed to me and the PFS with that AISC would be a bit if a dud at earlier gold prices. Certainly today I wouldn't be inspired to buy RMS today upon this study alone.
Personal note: unpredictably RMS at this time is my most profitable gold stock, beating NST in percentage terms by a long shot. However the profit on RMS if I sold would only neutralise my loss on SSR Mining. RMS greedy but very competent management over the decade, so I sort of trust them to make a go of Rebecca-Roe.

Held
Holding

the reverse for me NST doing better than RMS ( but both in profit , capital-gain wise ) but i did buy into NST 8 years earlier than my entry into RMS

my gold miner losses include TRY , X64, KCN and MOY , but am very likely in front courtesy of the various winners ( especially if you classed Oz Minerals as a gold/copper miner , which it was when i bought in )