Ramelius Resources Limited

Thank you for standing by and welcome to the Remelius Resources quarterly teleconference. 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'll 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. Good morning, everyone. Thank you for taking the time to dial in this morning. In addition to the quarterly report, we have released a presentation that we'll speak to during this call. All documents have been uploaded on the ASX platform and will also be available on our website shortly. This morning I'm again joined by our CFO, Darren Millman. Darren will provide some detail on the financials after I've run through the highlights and touched on operational performance as well as our development projects. As usual, there will be an opportunity for listeners to ask questions at the end. So for those who have downloaded the presentation deck, I'll be speaking initially to slide three. On slide three, we generated $89.6 million in underlying free cash flow during the quarter. And whilst our cash and gold levels remained at a similar level to last quarter at approximately $440 million, the balance does take into consideration our additional $97 million investment in Spartan Resources in July. Our quarterly gold production of 62,444 ounces was at an all-in sustaining cost of $19.65 an ounce. The all-in sustaining cost, whilst higher than full-year guidance, is in line with our plan, and it should also be noted that the all-in sustaining cost, excluding the non-cash component, would be $15.89 per ounce. Our FY25 guidance remains unchanged at 270,000 to 300,000 ounces at an oil and sustaining cost of 1,500 to 1,700 an ounce, with production being weighted to quarter two onwards following the introduction of the higher grade QO and improving grades at penny. Pleasingly, our production for the quarter was achieved without any lost time injuries as we continue to focus on this area since marking the 12-month LTI-free milestone in May 2023. Development activities at Kew are now well underway. We commenced all mining in the quarter, with the entire Mount Magnet open pit mining fleet now mobilised to this project. At Kew, we moved over a million BCM in the quarter, which was mainly focused on the high-grade breaker day pits. Expiration and resource development activities focused on Eridanus in the quarter, given the promising results we've seen at this deposit today. On to slide four. Just draw your attention to the table on the left, which breaks down the quarterly production for the last 12 months. The lower production for the quarter is the result. I'll focus on the development of Q, lower volumes from penny due to line sequencing. and lower grades from the stockpiles across Edna May, as expected. Grades and volumes from penny are expected to increase across the balance of the financial year, and this, along with the introduction of high-grade ore from Kew, will see production increase in the coming quarters. On to slide five, which looks at the company's quarterly production stat. As expected, our total tons mined reduced from the preceding quarter with the focus on the development of Q. However, what is plain to see is the impact the introduction of higher grade Q ore has on the mine grade, which increased 33% despite less ore from our highest grade ore source, penny, during the quarter. Mill throughput levels were maintained during the quarter with the drawdown of existing stockpiles across Edna May. However, the lower stockpile grade and less penny tons have resulted in a lower mill grade for the quarter, with the result in reduction in gold production compared to prior quarters. On to slide six, where we show the operating highlights for Mount Magnet. Production from Mount Magnet totaled 41,019 ounces at an oil and sustaining cost of $15.25 an ounce. Mining of the Brownhill and Eridanus open pits was completed during the quarter, with the entire open-pit mining fleet now relocated to concentrate on accessing the higher-grade QR, as mentioned previously. Underground operations feeding Mount Magnet are now focused on the Galaxy and Penny mines. The Galaxy mine is well into commercial production after development in the prior year, and as a result we saw a 90% increase in tonnes mined, 44% increase in mine grade and a resultant 172% increase in contained gold mined. At Penny, we did see a drop in production in the quarter, which was not entirely unexpected with the planned development of the next levels within the mine. We are expecting to see production from Penny improve from this quarter onwards, returning to levels seen in the second half of FY24. Before I move on from this slide, I'd like to highlight that in the quarter we mined at an overall grade of 3.43, whilst the mill process grades were some 20% less than this at 2.91 grams per tonne. If you look back a couple of quarters to the March 2024 quarter at Mount Magnet, we processed all grades at 3.42, similar to the current quarter's mine grades. And we did that at an all-in sustaining cost of $1,030 per ounce, with operating cash flow from Mount Magnet of $79 million at an average realized gold price of just over $3,000 an ounce. Now, the March 2024 quarter only included the high-grade penny material with no Q ore. As we sit here today, we have Q ore stockpiled at grades over 10 grams per tonne. and gold spot prices over 35% higher than the realised prices back in March. As a result, we are looking forward to some extremely positive numbers from Mount Magnet for the remainder of FY25. Just on slide 7, you'll note a picture of the construction works of the intersection with the Kew Access Road with the Great Northern Highway. Works on the whole road between Kew and Mount Magnet continue. Mainly the vitimization of this intersection with all haulage expected to commence shortly. As of today, we have 35,000 tons of oxide ore at a grade above 10 grams for 11,500 ounces of contained gold, which is only awaiting haulage and processing. This all will obviously generate significant cash flows once those stockpiles begin processing. Slide eight, Edna May. Highlights for the quarter, gold production totaled 21,425 ounces at an all-in sustaining cost of just under $2,800 an ounce, with production being sourced from the existing high- and low-grade stockpiles available across the hub. The all-in sustaining cost, excluding the non-cash component, was $1,712 an ounce. As at the end of the quarter, there remained Around 900,000 tonnes of both high and low-grade stockpiles, which will provide feed for the mill into the March 2025 quarter. Slide nine, Eridanus. Earlier this year, we released a mineral resource for Eridanus of 1.2 million ounces, which was a 64% increase on the June 2023 mineral resource, despite the continued mining depletion. Our studies on Eridanus are continuing. We've added a new exploration target over and above the stated 1.2 million ounce resource of 1.6 to 3.7 million tonnes at between 2 and 2.5 grams per tonne for between 100 and 300,000 ounces. This is a new target that sits underneath the already contemplated open pit cutback. In terms of the cutback, we've set a new production target. For that, I compared between 12 and 16 million tonnes at a grade between 1.2 and 1.6 grams per tonne for between 575 and 775,000 ounces, which is a 25% increase on the previous production target, if you take the midpoints. With our mill expansion studies now firming at around 3 million tonnes per annum. Our targeted outcomes from these mill studies, not surprisingly, include increased gold production, a reduction in operating costs per tonne for all tonnes that go through the mill, and ideally leading to a lower overall falling sustaining costs for the Mount Magnet mine plant. Before handing over to Darren, I'd also like to highlight further detail on the exploration and project development programs underway at our various mines that I've not covered can be found in the quarterly report itself. And I'd also like to add we're very much looking forward to sharing with you the PFS results on our Rebecca Rowe project with some encouraging RC drilling results received in the quarter further enhancing the economics of that project. That covers the highlights from me. I will now hand over to Darren.

Thank you, Mark, and it's a pleasure to be here with you all today. I will be initially speaking to slide 10 of the presentation deck. On slide 10, we show financial highlights for the quarter. The September quarter has been another strong quarter for Remilius with approximately 90 million of free cash flow being generated. What is really pleasing about this is despite the low production in Q1, which was in line with our expectations, cash flow remains very strong, demonstrating the high margins being generated by the business. During the quarter, we sold 62,806 ounces at an average realized price of 3,359 per ounce, which included a mix of spot and committed forward sales. This resulted in total sales revenue for the quarter of 211 million. The gold prices showed incredible strength for the quarter, increasing from 3,500 to 3,800, a run that has further extended into the current quarter with spot prices currently sitting above As we have previously flagged, we continue to wind down our forward contract hedges, which now sits at 127,000 ounces at an average price of 3,123 per ounce. The oil and sustaining cost for the quarter was 1,965 per ounce, which was up from the prior quarter, but within internal expectations. This oil and sustaining cost includes a 376 per ounce charge at the group level from the non-cash drawdown of existing stockpiles. Excluding this non-cash charge, the group oil and sustaining cost is $1,589 per ounce. I will talk to this more shortly. The resulted oil and sustaining cost margin, which is the realised gold price of $3,359, less the oil and sustaining cost of $1,965, remains strong at 42%. Cost guidance for FY25 remains unchanged at $1,500 to $1,700 per ounce. Looking at Mount Magnet in isolation, the oil and sustaining cost was just over $1,500 per ounce. The higher cost in the quarter was driven by a couple of factors. Firstly, the focus on development of Q as opposed to the higher grade sections of the Eridanus pit in the prior quarter. Less production being sourced from lower cost penny operations. and development costs for Galaxy are now being considered sustaining as opposed to growth capital. Production is expected to increase and cost to decrease across the balance of the financial year at Mount Magnet, with higher grades and tonnage from Penny and the introduction of higher grade ore from Q. Cost guidance for Mount Magnet remains at $1,300 to $1,500 per ounce for FY25, peer leading in the industry. At Edna May, the oil and sustaining cost was $2,799 per ounce, which is again in line with our expectations. Given the prevailing gold price, we are milling lower-grade material, which having a higher cost is still generating meaningful cash flow. The Edna May oil and sustaining cost including $1,087 per ounce of non-cash charge at this asset level for the drawdown of existing stockpiles across the hub. Excluding this, the oil and sustaining cost for Edna May would have been $1,589 per ounce. While this non-cash charge is higher than flagged in our guidance, it is not expected to continue at this level for the remaining quarters, and free-carry low-grade stockpiles now being the source of mill feed. We still expect the non-cash charge over FY25 to be approximately $500 per ounce per and our cost guidance for Edna May at 2,525 to 2,725 remains in place. On slide 11 and 12, we show a breakdown of free cash flow metrics for the quarter and historically. Gold sales of 62,806 ounces generated operational cash flow of 111.2 million with 68.4 million coming from Magnet and the balance of 42.8 from Edna May. A total of $22.5 million was reinvested in mine development, resource definition and exploration in the quarter, which focused on Eridanus, Kew development and the Rowe Rebecca project. The resultant free cash flow for the quarter was $89.6 million, with the closing cash and gold position being $438.6 million, which was after the investment of $97.6 million in Spartan Resources. Our closing cash and gold position of $438.6 million, coupled with the new $170 million debt facility, leaves us with over $600 million in available liquidity. It is not only our cash and gold that points to strong balance sheet, but our working capital position with sizeable stockpiles available going forward. Lastly from me, I would highlight that the growth capital and expiration spend for the quarter was in line with expectations and our guidance but this spend remains at $20 to $30 million for growth capital and $40 to $50 million for exploration. However, such expenditures in H2 of FY25 is dependent on the outcomes associated with Eridanus and mill expansion studies mentioned earlier. Although any material spent associated with those projects are not realistically likely to come in until FY26. With that, I'll hand it back to Mark.