Ramelius Resources (ASX:RMS) Announces New 17-Year Mine Plan at Mt Magnet
Mine Plan Details
Ramelius Resources Limited has introduced a comprehensive 17-year mine plan (mill full until FY42, life extended to FY44) for its Mt Magnet project, targeting the production of 2.1Moz of gold. The plan includes a full mill operation and ongoing exploration aimed at extending high-grade sources. Historical production from Mt Magnet is projected to surpass 8Moz, supported by a group mine plan of 49Mt at 1.7g/t for 2.6Moz over the next decade.
Financial Performance
As of December 2024, Ramelius holds A$501.7M in cash and projects over A$270M in underlying free cashflow for the second half of FY25, based on a gold price of A$4,000 per ounce. The company anticipates significant pre-tax cash flow generation of A$2.5Bn at a gold price of A$3,500/oz and A$4.3Bn at A$4,500/oz.
Mill Upgrade
Ramelius plans to invest A$95M in upgrading the Mt Magnet mill to increase its capacity from 2Mtpa to 3Mtpa. This upgrade will include a new crusher, SAG mill, ball mill, and additional leach tanks, aiming to reduce operating costs by over 15% by FY28. Construction is scheduled for late 2026, pending final board approval.
Executive Comments
Mark Zeptner, Managing Director, stated, “Ramelius remains focused on delivering these new projects on time and budget. We have the financial capacity, an experienced team in place and a proven track record to turn plans into production and cash flow. We look forward to creating value and increasing returns for our shareholders with A$4.3B (at $4,500/oz) in cash generation alone expected from our new Mt Magnet plan.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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