Ramelius Resources Limited

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, our next presenter is, Darren Millman, CFO of Remelius Resources. Darren. It's been a while. How you doing? Good to see you. You. Well thanks all for for joining the conference and attending this session. for those that haven't followed Remilius, we're on a list on the ASX, currently producing approximately 200,000 ounces a year. And we're on a real projection as we go forward with the asset we acquired last year with Spartan Resources for 2.5 billion. I'll let you read the disclaimer here. for those that haven't followed the story, we historically had two operating assets being Mount Magnet, which is the production hub that would generate approximately 350,000 ounces per annum, once we're in full production, we historically also used to produce at the Edna May asset, which we acquired, from, evolution several years ago. That's now put on care and maintenance, And we've done that, when the gold price was Australian was at approximately $3000 an ounce, so, we are disciplined on what we do, and we only look to invest in projects that make large returns and a high margin business. the third project, which, it's looking to be in development in two years, is the Rebecca Rowe project, and that's two deposits, in which we've joined together. the Rebecca deposits approximately 800,000 ounces, and Roe of 300,000 ounces. Rebecca is fully permitted, all in Western Australia, and Rowe, we're going through a process which I'll talk about a bit more shortly. the thing with Remilius is we want to ensure we also get, returns to our shareholders, but we also want to invest into the, into the ground and exploration. we've established a share, share buyback policy, for $250 million over the financial year 2026 FY 2027 in totality. These are referencing Australian dollars. We've also established minimum 2 cents per year. In FY 26 and in FY 27 to ensure we will be returning to shareholders during this investment phase we're about to undertake. As you can see here, this is just the first or the financial year 26 production update, so you'll see there the different quarters. the first quarter Q1 produced 55,000 ounces, and that was when we had the penny was in the high grade zones also Q, and then it came off a little bit, but in Q3 we had a lower production due to two reasons. One being there was a six day mill shutdown, and then the second, Cyclone Narell decided to visit, or close to the mine, and we had increased rainfall and it shutdown some of the roads in which we're trucking the ore. that was the last week or so in the production of the quarter, so we produced about $5000 less than planned in Q3, but we still feel we can make that up in Q4. And why I say we can do that is one, we've got several ounces of stockpiles available to us, we're starting to get into the high grade material that is Dalgarangga or the never never ore, and also we'll be re-entering the high grade open pit of Kew. For those in the room that you know, do follow the Australian Stock Exchange market, there's been potential has been some restraints, in the area, for us, we've got a long-term contract, with a large oil producer, we haven't missed one or one delivery, but what we also wanted to try to do here is just show you, you know, what would be the scenario if there was reduction in fuel and restrictions were to be in place. on the right hand side you'll see, We only need 2% of diesel fuel generation or power to ensure the mill is continued to operate, and that's, and that will is crucial in the context that we have stockpiles of 2.2 million tons, just under 0.9. Grams per ton, so we can still be generating probably $20 million in cash flow Australian, at $6000 an ounce per month, under the scenario that we would have to, you know, minimize the, you know, haulage and and mining mining contract production. And then as we go forward, ah, we, that's that also you can see we've got gas and solar, next year we're looking to put in wind farm also, and that will also reduce the gas cost as we move forward. Now into the long game we call out our medium term production profile, as you can see here, 200 to 195 to 205 production guidance in FY 26, and midpoint there 1825. for that, for us is really the low point in this production profile, and we've got looking to grow 170% growth from FY 26 to FY 30. And as you can see, we've plotted two things on the on the bar chart, or the line charts. And one representing the Remelius all in sustaining costs, and that's in Australian dollars, so, so what we're targeting is approximately under $2000 an ounce, or that's approximately $1400 US dollars. So, and what you can also see here, in the blue line, is that our peer group in the Australian market, Is approximately $400 to $500 less than that of our peer group, so that's because of our high grade in nature business that we have historically run, and continue to do so as we go forward. the blue represents the Mount Magnet contribution, which when in full flight will be at 350,000 ounces production per annum. And then in the, the yellow is the Rebecca Rowe project, we're looking to develop in FY 2026 27, and into production and FY 28 production FY 29, which in full flight will be approximately 150,000 ounces per year. So, so very much a a a fully funded growth profile, we've got $500 million in the bank, Australian, and also got $600 million in the bank and $500 million credit facility available to us. what this here shows is a historical margin, as you can see, you know, we've been pretty consistent in growing, our margins in the business and obviously with the spike in gold price, we'll see that margin continue to increase. What we've done as a business is look to establish a business at Australian 4500 gold price, and anything, you know, above that is pure, you know, higher margins, so we're looking at 50 to 60% margin at 5500, 4500 Australian, where the current Australian gold price is at is 6700, so obviously this margin will significantly grow. And one thing you'd probably point out for our business is that all these expansions, especially at Mount Magnet, is to facilitate higher grade to be put into the system. We're not looking to increase the mill size to bring in additional low grade ounces to reduce the mill costs, which were very competitive at $22 a ton. It is to bring in the higher margin, the higher grade, production that will come from the Dalgarang or the Never Never ore body. pulled up this chart just to give you a feel for, you know, how we, view ourselves and what sort of metrics we do look at, you know, return on invested capital, return on return on capital. these also factor in the hedge book we had several, a large hedge book in place, we've paid that all out in the March quarter just gone. Ah, and we also were, if we hadn't have had these hedges in place, in this period, we would have been the top performer return on capital, at 36%, we would have been top return on capital, of 33%, and we've been would've been at 24% for that last metric. So as you can see here, continue to perform well, invest well, and I guess from a, I think, actually Scotia put out a report recently, I think we had the, In 2025, the TXX peer group was about 12% and the average for the last three years about 18%, so we stack up pretty well compared to our TSX peers also. this one's an interesting one, you know, for us, we really wanted to be very transparent and demonstrate sort of what free cash flow generation will be coming into the business, in the short-term and the medium-term, that is overlaid by that five year production profile. As you can see, lower levels of production in 200 FY 26, FY 27, and that's when we're looking to build or expand on the Mount Magnet mill with 223 Australian being invested in that period. we've also got the development of Dalgarranga, mine, which is going extremely well, which I'll jump into in a moment. It's 82 million Australian and then come FY 28, we're looking to to develop the Rebecca Rowe project at 300 million. what we're doing, as I said earlier, is in FY 26 and FY 27, we're looking to reinvest into the business with that $250 million in buyback, and also the minimum 2 cents per year in FY 26, FY 27 in our high investment period. The numbers that point out to you is FY 28, just under $750 million in free cash flow generation Australian. FY 29 and over a billion, and then an FY 30, at, you know, approximately, you know, just under 1.75 billion. These are the factors you should be using as we go forward into FY 28, we'll be targeting a 40% payout ratio, so these are significant numbers, and we're also building another mine to to grow, and we're not into the best part of the ore body, as I'll show shortly. So this just shows you our operating cash flow, for us, we just wanted to demonstrate the bubble grows as you saw previously, as we get the production at Mount Magnet increase, we get Rebecca Rowe into production, but it's, you know, we invested last year in Kew and Galaxy, this year it's the mine development at at Dalgaranga, the Mount Magnet mill, and then we move into FY 28, 29 Rebecca Rowe. We have purposely scheduled these developments out to ensure we have free cash flow generation to return to our shareholders, and with the $250 million buyback plus the minimum share, we can maintain and then grow our return to our shareholders, which has always been a focus of the business. And this is the demonstrating this, so as you can see, every year we've continued to grow on our dividends, with a payout ratio up until the end of FY 25 of 29%. As noted, we've got FY 26, FY 27 are the two periods in when we're reinvesting into the business, which you saw in the previous slide, but once again, in FY 26, we've topped up in effect the minimum dividend with the buyback, and as you can see here, because of the increase in the cash flow projection from where we started on targeting that 4500 Aussie, we are already over and growing with that, but that'll only also extentiate even further as we get into FY 28. So Mount Magnet, so this is the, the real engine of the business, as you can see here the the orange represents the contribution from Dalgaranga. And, and if you convert that all and sustaining cost up the top, it's approximately 1300 US oil and sustaining we're sort of targeting at this production hub. But more importantly, this gets better. So come financial year 31 to 36 is when we only start to get into the high grade zone of the Dargaranga deposit, and we're also increasing our capacity. So come FY 28, we're looking to increase from the 1.9 million ton capacity up to 4.1, then 4.3, and this once again is to enable the ore contribution from the Delgarranga deposit. So the mine development has gone really well, two fronts, one, we're probably about a month ahead of schedule, and secondly, you know, we're probably seeing grades higher than planned in our production profile. For us, we're looking to, be getting 200,000 ton 2 3.7 g per ton. As you can see, on the first stop we delivered 40,000 ton at 7.4, and we had stockpiles which were primarily development at 52,000 tons of 3.6, so, so extremely great start, you know, already generating cash flow from this mine in a really short period of time. We only closed this transaction back in July, we put out our five year plan in October, and we're already seeing the benefit. the actual geology itself, so as you can see, We've got the open pit up the top and we just really have only established this to ensure more ventilation through to the to the bulk part of the mine, so we can get the mining rates up, and the second sort of drawing there or the red draw is where we currently are in the production. For us, what you need to really focus on here is just how small of a part of the puzzle we're in right now, given we're starting the mine. And you can see, when you get down to year 4, year 5, you know, in particular, which is FY 20, FY 30, is when you get to grade increase and you get to the strike increasing as well. So for us, that's the most exciting part and then though as you can see, it will continue for several years, that's why the, that's why the cost will be coming down as the grade is coming up. So this is the production profile that we'll be sourcing from the Never Never Mine. So as you see, 0.2 in the first year, 0.6, 1000 ton, and then the grade increases. And as I said earlier, come FY30 is when the grade really picks up and when we're in full production, so that's why our cost, as I said, will come down, and it's even better after FY 30, which is not many sort of companies can put forward that your cost profile will be coming down as you you're you're past this period. And probably the other thing just to flag is the only sort of element of this deposit is that it does require finer grind. So because of that, we're building a separate circuit within the Mount M Mount Magnet mill, and to ensure that we get the highest recoveries. We're willing to accept a lower recovery at 81% for FY 26, FY 27, but when the mine is in full production, which is also timed from September, 2027 is when we'll have the separate circuit being built. And that's what this is trying to explain here. So on the left-hand side, down the bottom, that's an existing operating circuit. So it's currently running at 1.9 million tons per annum. We're looking to add additional crushing to facilitate that bringing down from 175 micron to 53 to enable that a release of those gold particles within the Delgarranga deposit. That will be it's sole alone ore feed feeding the Delgarranga project. And then on the 2nd side there, we're building a separate 2 million ton circuit. Which will process all other material and what's in the green in the middle there is approximately $100 million worth of savings in and which has been enabled from we're taking the Spartan or the Delgaranga mill and we're reusing some of that equipment and that's how that that $100 million in savings is being generated. And just for just to get a flavor of what what this deposit will become or what this production hub will become, just wanted to show where we're sitting for FY 25 at just under 250,000 ounces, at that low in all and sustaining cost. You know, when this is in full flight, you know, up to 360,000 ounces, at under $1600 an ounce Aussie products, so, top five production hub in Australia, and at the lower cost compared to our peers. The only lower cost producer, based on our numbers is, is the Fosterville mine, which as you know is sort of coming off its best, best time. Rebecca Rowe, just quickly, which hasn't a bit of focus of the presentation because we've been more focusing on Mount Magnum, that's sort of front and center for us. But the Rebecca Rowe project shouldn't be forgotten, as I said, a 150,000 ounce producer, 2600 Australian, all in sustaining cost, we've got the Rebecca project, which has been permitted. And now the focus is on Rowe, so for Roe we we've resubmitted application with a view to head down that same path of the Rowe project, and that'll enable us to, you know, be more timeline driven because of the additional hydro hydrological drilling we have done. We no longer need to take that water from the underground and dispense it to the saltwater, so the lakes, so that's basically why the change and why we're taking a little bit longer, but on the timelines and schedules we've set, ah, it, it basically, we've already made a fit on this, once we get Row, we'll have a lots of time based on our current thinking before we have to get into construction. And probably the the fun part, is the exploration. So for us, we're spending 100 million Australian on exploration this year. And we're a little bit different, we're not looking to extend the mine life at the back end, we're going after high grade to displaced lower grade material in the next 5 years. What we've done is we've asked our geologist, OK guys, tell us what potentially we can extend in mine lives, and what's gonna be of higher grade to displace the lower grade material. And the way it works in here is, you know, for the first or FY 26, it is what it is, the guidance is here, FY 27, we're putting forward, we think we can extend the penny high grade mine, which is 10 to 12 g, we think we can probably get 8 to 10, extend that for 6 months, so we'll look to increase production that way. Then you get into FY 28, the Q mine is due to finish. And that's at a 4 to 5 g ton material, we think we can displace this lower grade 0.8 to 0.9 for the next few years. Galaxy is due to finish up a Galaxy Mfall in part of the Mount Magnet complex is due to finish up at the end of FY 28. We think we can extend that several years, and the example we've given here on our exploration target is the Galaxy at 6 to 7 million ton. At 2.1 to 2.6 g per ton for 4000 to 600,000 ounces, so that is quite meaningful when you add that into the production mix and displace this lower grade material. So, so for us, this is the prize, we've got everything we need, fully funded, we've got the the team in place, we've hit guidance for the last five years in a row, both on production and cost, and we think we've got the right mix to ensure shareholder returns and growing the business at the same time. so with that I'll, I'll open it up, probably the end on this one. Yeah, thank you very much, Darren. we are out of time, but, great update. Thanks so much. Thank you. Yeah, yeah. Our next company is Highcroft Mining and presenting.