Ramelius Resources Limited

Thank you for standing by and welcome to the Remelius Resources March Quarterly Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Mark Zeppner, Managing Director. Please go ahead.

Thank you, Ashley. Good morning, everyone. Thank you for taking the time to dial into Ramirez's quarterly conference call. I am joined this morning by Acting PFO Ben Ringrose, who will provide some further detail on the financials after I have run through the highlights. As usual, there will be an opportunity for listeners to ask questions at the end. As you will have seen this morning, we reported record quarterly gold production of 86,928 ounces, and an all-in sustaining cost of $13.44 an ounce, with production well above the implied quarterly production guidance range of 70,000 to 77,500 ounces, with all-in sustaining costs also well below our H2FY24 guidance range of $1,700 to $1,800, whilst the all-in sustaining costs also slightly below the range of $13.75 to $14.75 which we provided in the pre-quarterly released at the start of the month. Remelius' free cash flow after everything was $125.3 million, a super quarter in anyone's language. Now obviously it's a much easier job to talk to a set of numbers like these, but the plaudits have to go out to the operations team for all the hard work put in to deliver them safely. As I said at the outset, Ben will delve into the financials further, but I wanted to highlight upfront that we expect very strong cash flows to continue for the short to medium term, remembering that the quarterly result was derived from an average sale price just above $3,000 an ounce. In terms of group gold production, this was 27% higher than the prior quarter, with that outcome primarily attributable to the increased production at penny. Eridanus, Symes and the Edna Mae Underground. Given that we anticipate strong performance from both our Mount Magnet and Edna Mae hubs and will continue through the June quarter, we have upgraded full year guidance to 285,000 to 295,000 ounces from the previous 265,000 to 280,000. Anywhere in this range would represent a new full year production record for the company. Along with the upgraded production guidance, we have also lowered our cost guidance. We are now expecting oil and sustaining costs for the second half of the financial year to be in the range of $13.25 to $14.25, which should see full-year oil and sustaining costs fall into the $15.50 to $16.50 range. The previous full-year guidance, which was provided following the CVO1 conveyor repair at Mount Magnet in the December quarter, which was an event that incurred some one-off costs and required temporary crushing in a haulage solution had been set at 1,750 to 1,850 an ounce. In terms of the split between Mount Magnet and Edna May, fairly even split between our two hubs, nearly 46,000 ounces poured at Mount Magnet and a touch over 41,000 ounces poured at Edna May. At Mount Magnet itself, lower strip ratios and improving grades at both the Eridanus and Brownhill open pits led to a 62% increase in gold mines compared to the prior quarter, where we mined a total of 588,000 tonnes of oil grading 1.6 for 31,000 ounces of contained gold. Open pit oil mining rates and grades are expected to increase further. at Mount Magna in the June quarter. Touching on penny, we do have multiple stoking areas now available, which helped drive a significant increase in autumns, up 42%, and grade mines up 13% over the period. As a result, contained goldmine from penny increased 60% quarter on quarter. In terms of haulage, movements proceeded pretty much to plan, with only minor inconvenience due to rain. with 52,420 ore tonnes at a grade of 13.74 by truck-to-mount magnet for 22,700 recovered ounces. We do anticipate penny production to continue at similar levels for the June quarter. And you may have noticed in the quarterly a photo of one of the stokes at penny where the team is doing an excellent job of minimising dilution on both the footwall and the hanging wall. as well as retaining the brow and the veranda which is created by the stope itself. I was on site only a couple of weeks ago and saw a number of similar examples in other sloping areas and I would go as far to say that what the team are doing on site at the moment is world class relative to the scale of that operation. Over the haulage at Edna May, all hauled to Edna May from Martyr, Tampion, Symes totaled just over 470,000 tonnes at a grade of 2.24 for almost 34,000 ounces of contained gold. There remains approximately 1 million tonnes of ore at an average grade of 1.62 on stockpiles at those operations as at the end of the quarter. Over to project development, Eridanus and Galaxy continue to be the focus areas at Mount Magnet. Resource development drilling targeting shallow high-grade veining below the current pit design at Eridanus produced excellent results, only recently received, including 14 metres at 6.2 and 20 metres at 14.5. These and other numbers will feed into an updated mineral resource estimate to be released once the model has been completed, which we expect in the not too distant future. At Galaxy, ongoing mine development has reached the sixth ore drive. and the new Mars decline is developing further at depth. Underground diamond drilling targeting the Mars and Saturn ore bodies was completed during the quarter with results including 4.4 metres at 16.6, 5.7 metres at 10.3 and 14.5 metres at 6.7. Resource definition drilling of the Saturn BIF itself began in the March quarter with assays expected to start feeding through this quarter. We've also completed dewatering of the satin pit, which sits above the satin ore body, obviously, and will allow development of the decliner across to the satin ore body itself. Up at Kew, a program of diamond core RC and air core drilling was completed at the end of the reporting period. The program comprised resource definition, some infill, some extension, and also some geotech drilling of proposed mining areas, including Breaker Day numbers, Leviticus, Waratah and the Amarillo open pits, as well as some deeper holes into the Breaker Day underground area. Lastly, we remain on track to deliver a PFS-level study on the combined development of the Rebecca and Roe gold projects and also an update on the Edna Mainstates III project mid-year, which has commenced a review process. As always, further detail on the exploration programs themselves that are underway at our various mines can be found in the quarterly. That covers the highlights from me. I'll now hand over to Ben.

Thank you, Mark, and it's a pleasure to be here with you all today, especially considering the record quarter that we've just had. These results speak to the strength of our assets, operations and team, with the obvious highlight from a financial point of view being $144 million in operating cash flows. After investments in exploration and mine development, the resulting closing cash and gold balance for the quarter was $407 million, a 44% increase on December. Putting this into perspective, this represents over $1,600 in operating cash flow per ounce produced. During the quarter, we sold just under 84,500 ounces at an average realized price of $3,014 an ounce. which included a mix of spot and committed forward sales resulting in revenue totalling $255 million for the quarter. Gold sales for the quarter were less than gold production with the quarter end falling on the Easter weekend. This resulted in a higher than normal bullion balance at the end of March. This bullion was sold in early April which evidently worked in our favour with the increase in gold price. I realised spot price for the quarter to date in June is $3,600 an ounce, 5% higher than the closing March price. Whilst the gold price certainly impacted the quarter, this is only part of the story, with the oil and sustaining costs also reducing on the improved grades and ore mining rates. As Mark noted, the oil and sustaining costs for the March quarter was $13.44 an ounce, which is 27% lower than the prior quarter, with these lower costs being driven by both production centres. The resulting all-in sustaining cost margin, which is the realised gold price left the all-in sustaining cost, was 55%, a significant increase on the December quarter. At Mount Magnet, the all-in sustaining cost was a touch over $1,000 an ounce, representing a 38% reduction on the prior quarter. This was achieved on the back of lower unit costs, with 33% more tonnes being mined for a comparable cost, as well as improved mill head grades. which were up 27% on the prior quarter. This result has been driven by the multiple stoping areas being available at Penny and mining at Eridanus now having passed through the lower grade section of the ore body and accessing the higher grade ore rich zones of the pit. Moving on to Edna May, the oil and sustaining cost there was just under $1,700 an ounce, representing a 16% reduction on the prior quarter. The lower oil and sustaining cost was driven by the higher mill grade with all projects within the hub reporting a higher grade than the prior quarter. The standout here was Symes, which reported an impressive mill grade of 3.36 grams per tonne. As we have noted in the past, the Edna May oil and sustaining costs include the 319 per ounce non-cash charge for the drawdown of existing Tampia and Marta stockpiles. Ignoring this, the oil and sustaining costs for Edna May would have been under $1,400 an ounce. A total of $21 million was reinvested in mine development and resource definition in the quarter, which focused on the Galaxy underground mine at Mount Magnet, and resource definition works at the Rebecca, Rowe and Kew gold projects. Pleasingly, we have been able to reduce our growth capital guidance for FY24 to $45 to $50 million, which is down from our original guidance of $50 to $60 million. This guidance includes an allowance for the development of Q as we maintain our fast-tracked first order early in the new financial year. In relation to exploration and resource definition, the more astute followers of Remelius will note that our year-to-date investment in exploration is currently at $30 million, which is where our original guidance for FY24 sat. We don't shy away from the fact we are investing more into the ground in this current environment. notably at Kew which was acquired during the year and Eridanus which is presenting very promising drill results with open pit and underground options being considered. This has resulted in our guidance for exploration for FY24 being increased to $40 million. As Mark noted earlier our closing cash and gold position was $407 million which coupled with our $100 million debt facility leaves us with a very healthy war chest. We appreciate that cash isn't the only measure of liquidity. It is worth highlighting to the listeners that we have further reduced our credited days in the quarter, which now sits at 33 days. As Mark mentioned earlier, this is not a one-off quarter, with more like this being expected in the short to median term, which is reflective of the investments we have made over the years which are now coming into fruition. Focusing on the immediate June quarter, we expect this to be comparable to March with respect to production, costs and cash generation. which will leave Remelius with well in excess of $500 million in cash and gold come 30 June. On a personal note, it's been a pleasure to have been able to discuss these financial results of Remelius with you over the past few months and I look forward to welcoming our incoming CFO Darren Millman in May. And with that I'll hand back to Mark.