It has been a strong start to the week for Ramelius Resources Ltd (ASX: RMS) shares.
The gold miner is up 6.98% to $3.83 in midday trade on Monday after releasing its latest update to the market.
However, the stock is still down around 8% since the start of 2026.
So, what's behind the sudden buying?
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Gold output could triple by FY30
According to the release, Ramelius expects to produce between 205,000 and 225,000 ounces of gold in FY27.
All-in sustaining costs (AISC) are forecast at between $2,150 and $2,350 per ounce.
From there, though, production is expected to really start stepping up.
Ramelius is guiding for 250,000 to 300,000 ounces in FY28, before climbing again to 410,000 to 460,000 ounces in FY29.
By FY30, the company is targeting annual production of 560,000 to 610,000 ounces, with AISC of $2,100 to $2,400 per ounce.
That would be 11% above its previous FY30 production plan and around 205% higher than FY26 output.
A lot of that growth should come from Mt Magnet, which could produce 420,000 to 460,000 ounces in FY30.
Rebecca-Roe is expected to contribute another 140,000 to 150,000 ounces that year.
Ramelius is spending heavily to get there
Of course, getting production up to those levels won't be cheap.
Ramelius expects growth capital expenditure of between $480 million and $570 million in FY27.
A large chunk of that is set to go towards Mt Magnet.
The cost of expanding the processing plant has now increased to around $280 million, up from the previous estimate of $223 million.
The company said the increase reflects higher costs, greater fixed-price coverage, and extra infrastructure work.
The expanded plant is targeted for completion in the December 2027 quarter and should lift total throughput to 4.3Mtpa.
Commercial production is expected to start in the March 2028 quarter.
Ramelius has plenty of firepower
The good news is Ramelius isn't heading into this spending phase short on funding.
The company said its cash, gold, and investment holdings currently sit above $1 billion.
That includes proceeds from the recent Edna May hub sale, which brought in $210 million in cash and another $90 million worth of Forrestania Resources Ltd (ASX: FRS) shares.
Ramelius said the growth plan remains fully funded, which gives it a bit more breathing room while spending ramps up.
Management also expects the stronger production profile to start showing up in cash flow later in the decade.
By FY30, Ramelius is forecasting free cash flow of as much as $1.5 billion, based on a gold price of $5,500 per ounce.
