Strong Performance Drives Share Price Higher
Ramelius Resources Limited (ASX: RMS) continued its strong run, with its share price rising 5.00% today to $2.415. The stock has gained 5.92% over the past week, 16.67% year-to-date, and 26.77% over the past year.
Ramelius has outperformed its sector by 39.76% over the past 12 months, proving its resilience in a volatile market. Compared to the ASX 200, Ramelius shares have gained 25.88% more over the same period.
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Record Cash Flow and Strong Gold Production
The company announced a record underlying free cash flow of $223 million for the March 2025 quarter, up from $174.5 million in the previous quarter.
Quarterly gold production totalled 80,455 ounces, slightly down from 85,311 ounces in December 2024. The Mt Magnet hub contributed 67,464 ounces, while the Edna May hub produced 12,991 ounces.
Cash and gold reserves increased to $657.1 million, up from $501.7 million in the previous quarter.
Operations and Expansion Plans
Ramelius operates the Mt Magnet, Penny, Cue, and Edna May gold mines in Western Australia. The company hauls high-grade ore from Penny and Cue to the Mt Magnet processing plant, where it is blended with other sources.
The Edna May operation is winding down, with its final gold pours set for April 2025 before moving into care and maintenance.
The company is also advancing its Rebecca-Roe project, which combines two previous projects. A Pre-Feasibility Study was completed in December 2024, with a Definitive Feasibility Study and Final Investment Decision expected in late 2025.
Dividend Announcement and Corporate Moves
Ramelius declared a fully franked maiden interim dividend of $0.03 per share, payable on 17 April 2025.
The company also announced a proposed acquisition of Spartan Resources Limited (ASX: SPR). Under the binding Transaction Implementation Deed, Ramelius will acquire all remaining Spartan shares through:
- A scheme of arrangement offering $0.25 in cash and 0.6957 Ramelius shares per Spartan share
- A conditional off-market takeover if the scheme is unsuccessful
Ramelius expects to complete the acquisition by late July or early August 2025.
Managing Director’s Statement
Managing Director Mark Zeptner highlighted the company’s financial strength and future plans.
“The March 2025 Quarter has delivered our second consecutive record underlying free cash flow, finishing the quarter with over $657 million in cash and bullion,” Zeptner said.
He also expressed confidence in the Spartan acquisition, stating that integration efforts are progressing well and that investor feedback has been overwhelmingly positive.
Outlook: Strong Gold Prices Support Growth
Ramelius remains well-positioned to capitalise on elevated gold prices. With strong cash reserves, record cash flow, and an upcoming acquisition, the company is set for continued growth in 2025.
Investors will watch for the March 2025 Quarterly Report, expected later this month, which will provide further details on full-year guidance and project developments.
