RMS - Ramelius Resources

[divs4ever]

MAIDEN INTERIM DIVIDEND – 3.0 cps
Ramelius Resources Limited (ASX: RMS) (“Ramelius”) is pleased to announce a fully franked maiden interim dividend of A$0.03 per share in respect of the six months to 31 December 2024.
Key dates in relation to the dividend are set out below:
Date Action 17 March 2025 Ex-Dividend
Date 18 March 2025 Record Date
Dividend Reinvestment Plan (DRP) 19 March 2025 DRP Election Date (final date to participate in the DRP)20 March – 2 April 2025
DRP price calculation period (inclusive)17 April 2025 Payment / Share Issue / Allotment Date
The dividend will be paid in Australian dollars.
A 2.0% discount to the 10-day volume weighted average price will apply to share allotments made under the DRP for the dividend announced today.
Ramelius Managing Director, Mark Zeptner, today said:“Our first half of FY25 has been record breaking on production, profitability and cash flow generation.
We are in a great position to deliver our FY25 guidance and generate over A$650M1 in operating cash flow for the year at current spot prices.
In recognition of the Company’s current financial strength, record gold price, future cash flow generation and our ability to fund our growth pipeline we are increasing our returns to our shareholders with a maiden interim dividend.”2
Dividend Reinvestment Plan Ramelius’ Dividend Re-investment Plan (DRP) will apply to the dividend announced today.
The DRP allows eligible shareholders to nominate to re-invest part or all of their dividend into Ramelius shares.
The DRP provides that a discount may be applied to shares issued under the DRP at the discretion of the Company.
A 2.0% discount to the 10-day volume weighted average price will apply to allotments made under the DRP for the 2025 dividend announced today.
A copy of the DRP Rules is available here.Participation in the DRP is not automatic, and shareholders need to respond to correspondence from the Share Registry or elect to participate online via www.computershare.com.au/easypdate/rms before 5pm AEST on 19 March2025.
No brokerage, commission or other transaction costs will be payable by the shareholder on shares acquired under the DRP.
Shareholders with registered addresses in a country or jurisdiction outside of Australia or New Zealand should have regard to the international offer restrictions set out in the DRP Rules.
Share Registry contact details
Shareholders are encouraged to ensure their contact details and payment preferences held with the Share Registryare up to date via www.investorcentre.com/au.
This ASX announcement was authorised for release by the Board of Directors.

i hold RMS

well that is a nice surprise in a climate of paused and reduced divs.

 

[peter2]

RMS presented a new strategic plan for the next decade. They've got the cash to do it.
Market wasn't impressed smashed down 15%.

Would have been better to not say anything, just get on with it.

 

[finicky]

Ramelius getting socked hard on release of its long term production plan. I tend to agree with the markets reaction. After the current couple of glory years concluding FY26 the projected AISC at Mt Magnet skyrockets to $3155/oz FY29 and production at Mt Magnet glides down for five years before a path of recovery, and of course (I just looked it up again) as we all bitterly know, projected AISC does not include deductions before the bottom line of: capital for expansion, depreciation and amortization, or remediation contingencies. [slide 1)

Including the yet to be built Rebecca-Roe hub in calculations is speculated to somewhat smooth out the production and AISC 'profile' (slide 2). For example the highest AISC at Mt Magnet of $3155 in FY29 becomes a more acceptable $2429 for the group's production. But Rebecca-Roe is only at PFS stage.

They have ditched the destructive hedging policy, quote:
"The Company has not entered any new gold forward contracts since May 2024 and as at 31 December 2024 there were 98,500 ounces of gold forward contracts outstanding at an average gold price of A$3,183/oz. These hedges have been factored into the Mt Magnet mine plan economics. The forward contracts represent 27% of H2 FY25 production, 28% of FY26 production, and 6% of FY27 production. The Ramelius Board has approved the new Ramelius hedging policy with no gold forward contracts planned.

Held
Holding

Slide1 : all annotations mine and copyright

Slide 2

 

[Sean K]

I reckon there's going to be a lot of M&A in the gold sector coming up with larger companies wanting to use their explosion in cash for add-ons instead of handing it back to shareholders because, that's what gold miners do. And if history is any indication, they will do it badly.

The will-they-won’t-they couple of Western Australia’s gold sector is about to put a ring on it.

Street Talk can reveal Ramelius Resources chief executive Mark Zeptner and Spartan Resources boss Simon Lawson were in advanced talks with their respective advisers over the weekend, seeking to agree terms around a merger. A deal is slated to be announced to the ASX as early as this week.

Sources said Ramelius shareholders had driven increased engagement between the two companies after the company handed down a trading update on its Edna May gold mine on Tuesday that reflected lower production than anticipated alongside higher-than-expected costs and capital expenditure.

Ramelius is capitalised at $2.54 billion and its shares last traded at $2.20 a share. It last year acquired a 19 per cent stake in Spartan, which has a $2 billion market value and its stock closed on Friday at $1.60. Neither company was available to comment on Sunday.

 

[divs4ever]

hmmm am up about 80 cents a share here

i already reduced in April 2023 , maybe i should consider reducing further to a 'free-carry position '

buy the dip later if the disappointment triggers a big enough drop

 

[Sean K]

hmmm am up about 80 cents a share here

i already reduced in April 2023 , maybe i should consider reducing further to a 'free-carry position '

buy the dip later if the disappointment triggers a big enough drop

Depends on how you think the combined entity will go I guess. Especially with gold running like the wind. Who's to say when the music stops? I haven't looked but are they both unhedged? Could transfer into some great margins while the music is on.

edit: just re-read finicky's post above and RMS are still trying to get out of some hedges.

 

[Sean K]

@divs4ever if I had looked at Spartan / Gascoyne a little earlier I would have bought it.

 

[divs4ever]

Depends on how you think the combined entity will go I guess. Especially with gold running like the wind. Who's to say when the music stops? I haven't looked but are they both unhedged? Could transfer into some great margins while the music is on.

edit: just re-read finicky's post above and RMS are still trying to get out of some hedges.

i am only thinking about taking the ( remaining ) cash risk out , not a total exit

and i will be hoping for a little extra on top of Friday's close

i get nervous when miners miss targets repeatedly ( i have been burnt like that a few times before )

RMS seems to have high production costs ( currently ) so machinery is wearing out and they are looking at more mines .

let's assume the acquisition will bed in smoothly ( a crazy idea often , only Bill Beament seemed to have had that skill ) , AND the gold price trends higher ( despite all the rigging ) at least in the local peso

my quick calculations show RMS costs spiraling upwards in $$ terms which implies production targets have little room for misses.

AND i suspect the gold price rise trend will end sooner ( within months ) rather than later ( years )

i am a lot more tolerant of 'my free-tickets ' paying 2% on ( my average buying price ) than when real investment cash is still stilling on the table and some risk of capital loss and i have to factor in that risk

also this company has disappointed before ( February 2023 )( and that is when i added some more @ 86 cents a share ) it MIGHT disappoint again

 

[peter2]

RMS management scrambling after their own goal. There has to be some doubt about their ability to manage an efficient tie-up with SPR after that recent report.

 

[divs4ever]

@divs4ever if I had looked at Spartan / Gascoyne a little earlier I would have bought it.

didn't look at Spartan until after RMS bought into it , i looking at a totally different sector

one of the problems trying to create ' a balanced portfolio' with individual stocks

 

[divs4ever]

RMS management scrambling after their own goal. There has to be some doubt about their ability to manage an efficient tie-up with SPR after that recent report.

not that unusual with comparatively large acquisitions and then you have all the tax-write-downs , which usually spooks some investors

some synergies yes , but at what costs , do they need all the SPR staff ?

if the deal goes through .. great if you were short of skilled workers , not so flash if you already have a great team , and you have to dilute that formula

 

[peter2]

The Murchison gold district (WA) is ripe for a massive consolidation. RMS and WGX are the main producers with SPR and a few minor explorers (CRS) holding gold rich land.

I wonder if RMS and SPR will be open for trade on Monday? The SPR gold rich ore could be the catalyst to fix the RMS near term production hole.

 

[Sean K]

The Murchison gold district (WA) is ripe for a massive consolidation. RMS and WGX are the main producers with SPR and a few minor explorers (CRS) holding gold rich land.

I wonder if RMS and SPR will be open for trade on Monday? The SPR gold rich ore could be the catalyst to fix the RMS near term production hole.

Yeah, I agree on the consolidation. Been slowly happening, but surprised at the snail pace.

I think @finicky was one of the shareholders trying to tie up these two and leaked it to the media hoping for some extra excitement for RMS.

They must be halted Monday am before the open so they can disclose their Esplanade Hotel luncheon discussions.

 

[Sean K]

 

[divs4ever]

View attachment 195486View attachment 195487

all fine and good , but what about the 5 years up to 2030

i may or may not be alive then ( luckily i do not have a huge position so have other sources of income .. so far )

 

[finicky]

This'll fill the 5 years of holes in Mt Magnet production and lower the AISC presumably, while expediting production from Delgaranga reserves as the mill there is on care and maintenance.
Possible that Mt Magnet might still find or acquire other resources? Before this I was wondering whether RXL's Youanmi might be a target as RXL's normally stagnant share price has been moving (as Boggo noted) and Youanmi is within trucking distance to MM.
Ramelius has to pay a premium on an already highly valued SPR to get the deal done but it looks good to me for RMS holders with longer term commitment?

Held
Holding

 

[qldfrog]

Bought and sold at 2.11..today..lost commission
Not sure why my SL triggered?
No big deal

 

[finicky]

Went ex dividend today of 3c ff

 

[finicky]

@qldfrog i minute chart is saying price touched 2.11 very early in trading?

1 Minute

 

[mullokintyre]

Bought and sold at 2.11..today..lost commission
Not sure why my SL triggered?
No big deal

Trump ordered the trigger.
Like everything else, its his fault.
Mick