Ramelius Resources Ltd.

Ramelius Resources Ltd. is a mid-tier gold producer headquartered in East Perth, Australia, operating primarily in Australia. The company's portfolio consists of 3 projects, comprising 2 operating mines and 1 development project. Key assets include Mt Magnet and Rebecca-Roe. The business model centers on operating multiple mining projects that feed into centralized processing hubs, enabling operational synergies and cost efficiencies. This approach is supported by a strategy of hauling material from satellite operations to established processing facilities. The organization's culture is defined by a 'fit-for-purpose' and 'can-do' attitude, emphasizing a lean management structure and empowered personnel. Risk management is a key component of the business model, utilizing forward sales contracts and put options to provide revenue certainty and protect against price volatility. The company's operational framework allows for the extension of asset life beyond initial forecasts through technical optimization and additional pumping capacity, demonstrating a focus on maximizing value from existing infrastructure. A core competency is the ability to generate significant cash flow, which supports both shareholder returns and strategic growth initiatives.

Strategic direction is centered on creating shareholder value through a combination of organic growth and disciplined, value-accretive acquisitions. A key objective is the continuous replacement and expansion of the ore reserve base, supported by a significant exploration and resource definition budget. Capital allocation is guided by rigorous economic evaluation, as demonstrated by the decision to pursue an expansion study for one asset over a high-cost cutback at another. The company maintains a formal dividend policy targeting a maximum payout of 30% of free cash flow, having returned capital to shareholders for 6 consecutive years. Long-term visibility is provided through a 10-year mine plan for a core operational hub, which underpins investment in sustainable infrastructure. The approach to mergers and acquisitions is highly disciplined, focusing on adding profitable ounces rather than pursuing growth at any cost, with a public record of walking away from transactions that do not meet strict criteria.

Executive leadership includes a Managing Director with over 30 years of industry experience and a Chair with over 35 years of multi-commodity and international experience. The Board of Directors consists of 6 members, 5 of whom are independent, ensuring strong oversight. Governance is structured through 3 primary committees: Audit; Risk & Sustainability; and Nomination & Remuneration, with the latter meeting at least 4 times annually to review and make recommendations on remuneration and performance. The Nomination & Remuneration Committee engages independent external consultants, such as Remsmart, for remuneration benchmarking to ensure market alignment. Management philosophy is characterized by a lean structure and a 'fit-for-purpose' approach, with a focus on empowering personnel. The remuneration framework is directly linked to performance, with short-term incentives tied to specific safety, environmental, production, and financial targets.

A key environmental initiative is the implementation of a hybrid power solution at a core operational hub, incorporating gas, solar, and battery storage systems with provisions for future wind generation to advance decarbonization. The company's commitment to social responsibility is demonstrated through a psychosocial workplace audit and the subsequent implementation of an action plan, alongside ongoing workplace behavior and bystander training. Safety programs are a priority, reflected in a declining trend in the total recordable injury frequency rate and the achievement of a 12-month lost-time injury free milestone. Community engagement includes a commitment to invest up to a set amount per ounce produced. Specific environmental targets are integrated into executive remuneration, including increasing water reuse, achieving zero environmental impact from acid mine drainage, and meeting mine closure plan criteria. The organization also focuses on increasing female representation in the workforce as part of its diversity and inclusion objectives.

The corporate structure has been shaped by recent strategic transactions, including the acquisition of Musgrave Minerals Limited, which was completed in October 2023 through a scrip and cash offer. In June 2023, the company also completed the acquisition of Breaker Resources NL. A significant strategic investment was made in Spartan Resources Limited in June 2024, initially acquiring an 8.9% interest, which was subsequently increased to 18.35% post-reporting period. The group participates in several unincorporated joint operations for exploration purposes, including arrangements with Chalice Gold Mines Limited for the Nulla South project and with IGO Newsearch Pty Ltd for the Louisa project. A Deed of Cross Guarantee is in place between the parent entity and the majority of its wholly-owned Australian subsidiaries, including Ramelius Operations Pty Limited and Mt Magnet Gold Pty Limited. The company has also explored but not proceeded with potential tie-ups with other entities, including Westgold Resources and Karora Resources, reflecting a disciplined approach to structural changes.