Ramelius Resources Limited · ASX:RMS
Ramelius Resources — Gold Forum Americas 2024
44 slides from Ramelius Resources's conference presentation, Sep 16, 2024
Slide 1: Ramelius Resources Limited – Gold Forum Americas September 2024
Ramelius Resources Limited For personal use only Mark Zeptner Managing Director ASX:RMS 1 GOLD FORUM AMERICAS • SEPTEMBER 2024 SEPTEMBER 2024 July 2024
Slide 2: Forward Looking Statements
QUALIFICATION Forward Looking Statements For personal use only This presentation contains certain forward looking statements with respect to Ramelius Resources Ltd’s (Ramelius) financial condition, results of operations, production targets and other matters that are subject to various risks and unce
Slide 3: Corporate Summary
CORPORATE SUMMARY Corporate Structure Gold Guidance For personal use only Market Cap1 A$2.4B (US$1.6B) @ A$2.11 per share FY24 Production 293,033oz @ AISC of A$1,583/oz (US$1,045oz) Cash & Gold2 A$352.5M (US$232.7M) FY25 Guidance3 270,000 – 300,000oz @ AISC of A$1,500 – 1,700/oz (US$990 – 1,125/oz)
Slide 4: Project Portfolio
PROJECT PORTFOLIO RAMELIUS OWNED: For personal use only ➢ Mt Magnet: 10-Year Mine Plan with upside potential1 ➢ Edna May: Realising significant cash flows through to March 2025 Quarter ➢ Rebecca-Roe: 3.2Moz2 project, PFS for delivery December 2025 STRATEGIC INVESTMENT: ➢ 18.35% stake in Spartan Reso
Slide 5: A History of Delivering on Guidance & Value Creation
For personal use only A HISTORY OF DELIVERING ON GUIDANCE & VALUE CREATION GOLD FORUM AMERICAS • SEPTEMBER 2024 5
Slide 6: Platform for Growth / High Margin Production Ounces
PLATFORM FOR GROWTH / HIGH MARGIN PRODUCTION OUNCES HISTORICAL PRODUCTION & MINERAL RESOURCE ESTIMATES1 For personal use only ➢ Total Ore Reserves increased by 18% to 20 Mt at 1.6 g/t Au for 1.1 Moz1 of gold ➢ Significant increases in Ore Reserves are expected during FY25 due to conversion from Mine
Slide 7: Ramelius Guidance History
RAMELIUS GUIDANCE HISTORY GOLD PRODUCTION VS. GUIDANCE (MID-POINT) (Koz) + AISC (US$/oz) For personal use only AISC converted to US$ at a fixed exchange rate of A$1 = US$0.66 Refer to appendices for disclaimers, definitions, supporting information, and sources of data GOLD FORUM AMERICAS • SEPTEMBER
Slide 8: Free Cash Flow - A$315.8M in FY24
FREE CASH FLOW - A$315.8M in FY24 FY24 CASH FLOW For personal use only ➢ FY24 gold production record of 293,033oz2 (Guidance 285,000 – 295,000oz) ➢ FY24 AISC of A$1,583/oz (Guidance A$1,550 - 1,650/oz2) ➢ FY24 capital expenditure of A$49.6M2 (Guidance A$45 - 50M) ➢ The result: ▪ Sector leading cash
Slide 9: AISC - Delivering on Increased Margins
AISC - delivering on increased margins 10 YEAR AISC MARGIN For personal use only (Including forecast for FY25 based on the mid-point of guidance) ➢ FY24 margin 47% over AISC ➢ FY25 assumes a A$3,500/oz spot gold price, plus existing forward contracts1 ➢ FY25 margin 52% over AISC ➢ Currently experien
Slide 10: Value Generating M&A - Return on Investment Scoresheet
VALUE GENERATING M&A - return on investment scoresheet LOM CASH FLOWS – AS AT JUNE 2024 ➢ Track record of generating positive (net) For personal use only [ ] shows change in FY24 cash flow* from new projects ➢ Inventory build-up shown as notional c/flow ▪ Marda: 153kt @ 1.57g/t for 8koz ▪ Tampia: 20
Slide 11: Dividends - Up 150%
DIVIDENDS - up 150% / 6th consecutive dividend payment FINAL DIVIDEND DIVIDEND HISTORY (A$M) For personal use only ➢ Fully franked dividend at 5.0 cents (A$57.2M) ➢ Record / Payment date: 16 Sept / 17 Oct 2024 ➢ Pay-out ratio of 27% of free cash flow in FY24 (25% pay-out ratio since 2019) ➢ Returns
Slide 12: FY25 Gold Production & AISC Guidance
FY25 GOLD PRODUCTION & AISC GUIDANCE - another strong year ahead For personal use only ➢ Mt Magnet up 50% to 240,000 ounces at the mid-point ➢ Mt Magnet: FY24 Production Profile: 40% [H1] / 60% [H2], driven primary by Cue production coming online ➢ Edna May to process remaining stockpiles to produce
Slide 13: Present Day – Value Opportunities at Our Mt Magnet Hub
For personal use only PRESENT DAY – VALUE OPPORTUNITIES AT OUR MT MAGNET HUB GOLD FORUM AMERICAS • SEPTEMBER 2024 13
Slide 14: Mt Magnet Hub
MT MAGNET HUB ➢ “Hub and Spoke” centralized operating model For personal use only ➢ FY25 ore sources: ▪ Eridanus (Mt Magnet) ▪ Galaxy (Mt Magnet) ▪ Cue ▪ Penny ➢ FY25 Exploration Focus: ▪ Eridanus expanding existing resource and high grade zones at depth ▪ Galaxy extensions along strike and at depth
Slide 15: Mt Magnet - Primary Driver of Free Cash Flow
MT MAGNET - primary driver of free cash flow, Eridanus upside to come KEY HUB METRICS GOLD PRODUCTION & AISC1,2 For personal use only Metric From 1 Jan 2024 Total Production5 +1.5Moz Average Annual ~150koz Production1 AISC2 (first 3.5 years) A$1,350/oz Potential Eridanus open pit with expanded mill4
Slide 16: Mt Magnet - Eridanus Upside
MT MAGNET - Eridanus upside ➢ Eridanus production (included in Mt Magnet Mine Plan1) For personal use only includes Production Target of 230koz - 330koz from underground option ➢ Updated Mineral Resource Estimate2 of 21Mt at 1.7g/t for 1,200,000 ounces ➢ Updated Mineral Resource includes high grade-
Slide 17: Mt Magnet - Eridanus Upside (Open Pit Cutback)
MT MAGNET - Eridanus upside OPEN PIT CUTBACK OPTION For personal use only ➢ Optimisation @ A$2,500/oz gold price ➢ Production Target 9 - 13Mt at 1.2 – 1.8g/t for 500 – 600koz1 ➢ Potentially represents 6 years mill feed 1 See RMS ASX Release “Ramelius delivers 10 Year Mine Plan at Mt Magnet”, release
Slide 18: Mt Magnet - Galaxy Extensions
MT MAGNET - Galaxy extensions SATURN & MARS For personal use only ➢ Stoping established at Mars, development commenced into Saturn ➢ Resource definition drilling ongoing, with recent results incl*: ▪ 9.4m at 11.8g/t Au ▪ 16.8m at 6.88g/t Au ▪ 26.1m at 6.01g/t Au ➢ Building momentum with multiple min
Slide 19: Cue - Mining Well Underway
CUE - mining well underway ➢ Ramelius study completed (Open Pits) For personal use only ▪ Ore Reserve - 2.7Mt at 2.9g/t for 250,000oz1 ➢ Pre-strip and Project Development commenced in June 2024 (see below) ➢ First ore Q2 FY25 with High Grade zones reached in early Q3 FY25 (see opposite) 1 See RMS AS
Slide 20: Cue - Previous JV Ground Available for Exploration
CUE - previous JV ground now available for exploration ➢ The existing Cue deposits are a combination of high-grade For personal use only open pit and underground deposits ➢ Under-explored tenement package for Cue style deposits ➢ Exploration spend of A$6M planned in FY25 See RMS ASX Release “Resourc
Slide 21: Penny - Free Cash Flow of A$135M in FY24
PENNY - free cash flow of A$135M in FY24, targeting ~A$800/oz2 AISC for FY25 PENNY GOLD MINE | EXPLORATION TARGETS ➢ Performing in line with Ore Reserve1 For personal use only Perspective view looking SW . ➢ Best parts of orebody yet to be accessed ➢ Underground drilling commenced from lowest level
Slide 22: Rebecca-Roe Project – The Future
For personal use only REBECCA-ROE PROJECT – THE FUTURE GOLD FORUM AMERICAS • SEPTEMBER 2024 22
Slide 23: Rebecca-Roe Project - All Coming Together
REBECCA-ROE PROJECT - all coming together BOMBORA UNDERGROUND RESOURCE DEFINITION DRILL PROGRAM For personal use only ➢ Drilling at Roe complete, assays received and model updated ➢ Some drilling delays experienced Mar/Apr due to wet weather ➢ PFS for Rebecca-Roe expected Q2 FY25 REBECCA ROE ▪ Miner
Slide 24: How Do We Stack Up Against Our North American Peers
For personal use only HOW DO WE STACK UP AGAINST OUR NORTH AMERICAN PEERS GOLD FORUM AMERICAS • SEPTEMBER 2024 24
Slide 25: North America Peer Comparison
NORTH AMERICA PEER COMPARISON UNDERLYING FREE CASH FLOW FOR THE YEAR ENDED 30 JUNE AISC FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 (RAMELIUS) 2024 (RAMELIUS) AND 31 DECEMBER 2023 (OTHERS) (US$M) AND 31 DECEMBER 2023 (OTHERS) (US$/OZ) For personal use only GOLD PRODUCTION FOR THE YEAR ENDED 30 JUNE 20
Slide 26: Returns Last 3 Years
RETURNS LAST 3 YEARS L3Y RETURN ON CAPITAL (%) L3Y RETURN ON INVESTED CAPITAL (%) L3Y RETURN ON EQUITY (%) For personal use only Represents Investment Attractiveness Index ranking per Fraser Institute Annual Survey of Mining Companies, 2023 (based on main production centre) Refer to appendices for d
Slide 27: The Pillars for Future Success
THE PILLARS FOR FUTURE SUCCESS For personal use only Proven management team adept in either greenfield development or OPERATIONAL EXCELLENCE refurbishment & operation of both open pit and underground mines Strong balance sheet, disciplined approach to capital management with a focus BALANCE SHEET &
Slide 28: Contact Details
CONTACT DETAILS For personal use only Ramelius Resources Limited ASX Code: RMS Level 1, 130 Royal Street East Perth WA 6004 Authorised for release to the ASX by the Managing Director For further information contact: Investor enquiries: Media enquiries: Mark Zeptner Darren Millman Luke Forrestal Mana
Slide 29: Mineral Resources as at June 2024
MINERAL RESOURCES AS AT 30 JUNE 2024 - INCLUSIVE OF RESERVES Project Deposit Measured Indicated Inferred Total Resource t g/t oz t g/t oz t g/t oz t g/t oz 2024 MINERAL RESOURCE STATEMENT Morning Star Bartus Group Boomer 4,900,000 410,000 1,200,000 1.9 1.2 1.8 300,000 16,000 68,000 4,300,000 420,000
Slide 30: 2024 Ore Reserve Statement
2024 ORE RESERVE STATEMENT ORE RESERVE STATEMENT AS AT 30 June 2024 For detailed information relating to Ore Reserves Project Mine Prov en Probable Total Reserv e For personal use only see ASX Releases (RMS) “Resources and Reserves t g/t oz t g/t oz t g/t oz Statement 2024”, 2 September 2024. Boomer
Slide 31: Mt Magnet - Physicals & Financials
MT MAGNET - physicals & financials ORE MINING SCHEDULE1 PROCESSING SCHEDULE1,2 For personal use only OPERATING COSTS1,3 GROWTH CAPITAL1,4 1 H2 FY24 reflects a half-year from Jan-24 to Jun-24 for Mt Magnet only 2 Processing schedule includes starting stockpile of 2.7Mt @ 0.86g/t for 74koz of containe
Slide 32: Mt Magnet - By Ore Source
MT MAGNET - by ore source Gold Production1 by Ore Source (koz) For personal use only Note: 68koz in low grade stockpiles remaining at June 2034 1 The Mine Plan is a Production Target that contains both a proportion of Inferred Resource (9%) and an Exploration Target (20%). There is a low level of ge
Slide 33: Mt Magnet - Eridanus: Getting Better at Depth
MT MAGNET - ERIDANUS: getting better at depth with both o/p & u/g options ➢ Historical pit production (to 31 Dec 2023) For personal use only ▪ 3.5Mt at 1.42g/t for 160koz ➢ Remaining open pit & stockpiles ▪ 3.8Mt at 1.16g/t for 145koz ➢ Total (original pit) ▪ 7.3Mt at 1.29g/t for 305koz ➢ Undergroun
Slide 34: FY24 Mt Magnet Operating Highlights
FY24 MT MAGNET OPERATING HIGHLIGHTS CONTINUED DOWNWARD TREND IN Q4 WITH COSTS <A$1,000/OZ For personal use only ➢ Safety: three (3) Restricted Work Injuries during the Quarter, no Lost Time Injuries ➢ Production: 160,765 ounces of gold produced at Mt Magnet ➢ Costs: AISC of A$1,313/oz which has cont
Slide 35: FY24 Edna May Operating Highlights
FY24 EDNA MAY OPERATING HIGHLIGHTS UNLOCKING VALUE IN STOCKPILES ACROSS THE HUB For personal use only ➢ Safety: one (1) Restricted Work Injuries during the Quarter, no Lost Time Injuries ➢ Production: 132,268 ounces of gold produced at Edna May ➢ Costs: AISC of A$1,906/oz which includes a A$230/oz n
Slide 36: Appendix 1: Peer Reporting Data (Underlying Free Cash Flow)
APPENDIX 1: PEER REPORTING DATA (UNDERLYING FREE CASH FLOW IN US$M) Underlying Investments For personal use only Total cash Opening Closing Company (US$M) free cash & Dividends Financing Tax Other Source flow cash & gold cash & gold flow acquisitions Ramelius Resources Limited 208.4 (77.2) (11.4) -
Slide 37: Appendix 2: Peer Reporting Data (AISC)
APPENDIX 2: PEER REPORTING DATA (AISC) AISC For personal use only Company (US$) (US$/oz) Period Source Ramelius Resources Limited $ 1,045 FY24 (June) June 2024 Annual Financial Report New Gold Inc $ 1,545 FY23 (December) Management Discussion and Analysis for the year ended December 31, 2023 Centerr
Slide 38: Appendix 3: Peer Reporting Data (Production)
APPENDIX 3: PEER REPORTING DATA (PRODUCTION) Production For personal use only Company (koz) Year of production Source Ramelius Resources Limited 293 FY24 (June) June 2024 Annual Financial Report New Gold Inc 424 FY23 (December) Management Discussion and Analysis for the year ended December 31, 2023
Slide 39: Appendix 4: Peer Reporting Data (Net Cash / Debt)
APPENDIX 4: PEER REPORTING DATA (NET CASH / (DEBT IN US$M)) As at 30 June 2024 / 31 December 2023 For personal use only Net Company (US$M) Cash Gold Debt cash & gold Source Ramelius Resources Limited 280.0 14.7 - 294.8 June 2024 Annual Financial Report New Gold Inc 185.5 - (396.0) (210.5) Management
Slide 40: Appendix 5: Peer Reporting Data (Returns – Earnings)
APPENDIX 5: PEER REPORTING DATA (RETURNS – EARNINGS IN US$M) Add back: Add / (less): Net operating Statutory income tax net finance profit after For personal use only Statutory EBIT Tax Rate Company (US$M) NPAT expense / expense / tax Source (benefit) (income) (Statutory) (D) (F) (A) (B) (C) (E) (A)
Slide 41: Appendix 5: Peer Reporting Data (Returns – Earnings) (Continued)
APPENDIX 5: PEER REPORTING DATA (RETURNS – EARNINGS IN US$M) (CONTINUED) Add back: Add / (less): Net operating Statutory income tax net finance profit after For personal use only Statutory EBIT Tax Rate Company (US$M) NPAT expense / expense / tax Source (benefit) (income) (Statutory) (D) (F) (A) (B)
Slide 42: Appendix 6: Peer Reporting Data (Returns - Capital)
APPENDIX 6: PEER REPORTING DATA (RETURNS - CAPITAL) Return on Invested Capital Return on Return on Debt Equity Cash & gold invested Capital Employed capital equity For personal use only Company (US$M) capital Source (D) (E) (F) (G) (H) (A) (B) (C) (A)+(B)+(C) (A)+(B) (F)1 /(D) (D)1 /(E) ((A)1 /(B) R
Slide 43: Appendix 6: Peer Reporting Data (Returns – Capital) (Continued)
APPENDIX 6: PEER REPORTING DATA (RETURNS – CAPITAL IN US$M) (CONTINUED) Return on Invested Capital Return on Return on Debt Equity Cash & gold invested Capital Employed capital equity For personal use only Company (US$M) capital Source (D) (E) (F) (G) (H) (A) (B) (C) (A)+(B)+(C) (A)+(B) (F)1 /(D) (D
Slide 44: Appendix 7: Disclaimer, Definitions, Footnotes
APPENDIX 7: DISCLAIMER, DEFINITIONS, FOOTNOTES DISCLAIMER For personal use only The information has been sourced from publicly available information and includes Non-IFRS information. The reporting and calculation of Non-IFRS information may vary from company to company. Whilst efforts have been mad