The Ramelius Resources Ltd (ASX: RMS) share price is in focus after announcing the first delivery of Never Never deposit ore to its Mt Magnet processing plant, and a major reduction of its gold hedge commitments.
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What did Ramelius Resources report?
- First Never Never deposit ore delivered from Dalgaranga to Mt Magnet processing plant
- 31,000 tonnes of development ore graded at 3.6g/t (3,600 ounces) hauled by end of January 2026
- Never Never maiden ore reserve: 7.0Mt at 7.3g/t for 1.6Moz gold, with 11-year mine life
- Mine plan targets 1.8Moz gold at an AISC of A$1,128/oz
- Closed out FY27 gold forward contracts at a cost of A$28.4 million
- No gold hedge contracts remaining from 31 March 2026
What else do investors need to know?
Ramelius has brought forward Never Never development ore delivery to Mt Magnet within 202 days of completing its Spartan Resources combination. The company now plans to blend the lower grade development ore with other Mt Magnet sources from March, ramping up to process higher grade material in the June quarter.
With the hedge book now largely closed, Ramelius has increased exposure to spot gold prices, which averaged around A$7,000/oz in February. The move will see a one-off hedge closure expense of A$28.4 million and a forecast $47.5 million revenue dip in the March quarter. However, this allows full participation in current gold price strength going forward.
Development at the Never Never mine remains on schedule and within budget, underpinning the group's 5-year growth plan and production targets.
What did Ramelius Resources management say?
Managing Director Mark Zeptner said:
Since finalising our combination with Spartan Resources in July 2025, we have been focused on delivering the first Never Never ore to the Mt Magnet production hub in accordance with our 5-Year Growth Pathway.
This is a key milestone in supercharging the Mt Magnet production hub to up to 380,000 ounces in annual production and realising our vision to become a 500,000-ounce producer by FY30.
At this important juncture we have also elected to close-out our FY27 gold forward contract hedge book and pre-deliver June 2026 Quarter contracts in this March 2026 Quarter. By doing this, we will have increased exposure to the strong gold price.
What's next for Ramelius Resources?
Management is aiming to boost annual gold production to 380,000 ounces at the Mt Magnet hub as part of its strategy to become a 500,000-ounce producer by FY30. Ramp-up of higher-grade Never Never ore is scheduled from the June 2026 quarter, as plant tuning continues.
With the forward gold book now closed, future earnings will be more closely tied to movements in the gold price. Focus remains on safe, on-budget development and further growth from the company's regional projects.
Ramelius Resources share price snapshot
Over the past 12 months, Ramelius Resources shares have risen 72%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.
