Ramelius Resources Limited

Thank you for standing by and welcome to the Remittance Resources FY25 financial results 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 turn the conference call over to Mr. Darren Millman, Chief Financial Officer. Please go ahead, sir.

Thank you and good morning, everyone. Unfortunately, Mark Zetman is at a late withdrawal this morning. He was cheering on his beloved West Coast Eagles this morning or last night, so over to me for today. Thanks for taking the time to dial in to our FY25 results conference call. Alongside me is our General Manager of Finance, Ben Ringrose, who will drill down into the numbers after I've covered off on the highlights. We have uploaded to the ASX platform, along with our website, a number of documents, including our FY25 financial results summary, our audited statutory financial report, and the presentation we'll be speaking to today. Starting on slide four, we set out our plans to grow the business on the back of an exceptional FY25, which you saw us establish a strong platform to build from with the release of our 17-year Mount Magnet mine plant, the Rebecca Road PFS, and significant cash reserves, which were $784 million, post the net payment of $71.3 million on the close of the Spartan transaction. Our focus for the coming year is to integrate Dalgaranga into our Mad Magnet Hub and enhance our portfolio with aggressive exploration plan that will see us spend between $80 to $100 million, focusing on defining additional high-grade resources and making new discoveries. We look forward to updating the market in the December quarter with our five-year plan incorporating Dalgorenga and showing a clear path to becoming a 500,000 ounce producer by 2030. This plan will also incorporate detailed guidance for FY26. Moving on to slide five and our mining and production highlights for the year. The standout from an operational point of view is our record gold production of 302,000 ounces with the overperformance of Q opened pits along with improved grades from Penny. This was achieved despite less tonnes being milled in the year with the transition of EDMA to care and maintenance. Without stealing too much of Ben's thunder, I would like to highlight our industry-leading oil and sustaining cost of $1,551 per ounce and our realised gold price of $3,963 per ounce, which leaves us with a margin of $2,400 per ounce sold, the impact of which can be seen with our exceptional cash generation across the year. With that, I'll now hand over to Ben to talk to the numbers in more detail.

Thank you, Darren. For those following on the presentation, I will initially be speaking to slide six and our earnings for the year. Now, the risk of sounding too repetitive this morning, I'm going to say from the outset that these financial results are record returns to the business on pretty much every metric reported. This is even more impressive considering we sat here 12 months ago saying the same thing. Revenue from the sale of 303,000 ounces surpassed 1.2 billion and was up 36% on the prior year. Revenue not only benefited from a strong gold price, but also reducing hedge book commitments at a higher average price. The gross profit for the year was 695 million, which was a 122% increase and is reflective of not only the high gold price, but also the lower cost per ounce that high-grade ore brings. At the group level, the milled grade increased 23%, with the two operations telling very different stories. At Mount Magnet, the milled grade increased 53% to 4.48 grams per tonne, whilst at Edna May, the milled grade dropped 41% to 1.19 grams per tonne as that operation transitioned to care and maintenance. As the old adage goes, grade is king, and even more so when it comes from a shallow open pit like those at Kew. Below the gross profit line, other items were largely in line with the prior year, with the exception being the $4.1 million in care and maintenance costs at Edna May. These costs include the cost of employee redundancies and should not be considered reflective of the ongoing care and maintenance costs for that operation. Group EBITDA, which adds back depreciation and amortisation charges, was $819 million and represented an impressive margin of 68%. This reported EBITDA was an 81% increase on the prior year, whilst the margin was a 33% increase. The income tax expense for the year was $196 million, with an effective tax rate of 29%. The actual income tax paid and payable in relation to FY25 was $158 million, which equates to a cash tax rate of 23%. At June 30, there remained $130 million in tax outstanding on FY25 earnings, with the bulk of this being due in December this year. Now, as we are required now to make monthly tax instalments, we do not foresee these large one-off tax payments continuing in the future. The resulting impact for the group of $474 million was more than double that of the prior year and represented a net profit margin of 39%. This equated to earnings per share of $0.41. Moving on to slide 7 now and the EBITDA operation. This is an important slide as it shows the superior margins at Mount Magnet. In isolation, the EBITDA for Mount Magnet was a phenomenal 80%, or $3,159 per every ounce sold. Whilst the earnings from Eds and May were respectable and cash generative, they do bring down group earnings metrics. Indeed, you will be hard-pressed to find a production centre in Australia with better returns in FY25 than those of Mount Magnet. This powerhouse will only be further bolstered with the addition of Dargaranga ore into the feed. Now, moving on to slides eight and nine, we have given a bit more detail on the operations at Mount Magnet and then Edna May. I won't dwell on these too much, but there are a couple of key highlights to point out. Firstly, at Mount Magnet, the grade of the cue material milled for the year was 10.66 grams per tonne. Now, that grade's pretty good for an underground mine, let alone for an open pit mine, and the impact of this on FY25 earnings is clear to see. Secondly, at Edna May, the operation generated $123 million in cash earnings for the year, with the stockpiles performing above expectations. Given the prevailing gold price in the year, we squeezed every little bit out we could from Edna May, and whilst, yes, this did decrease the group margins as a percentage, the cash generated made it more than worthwhile. Whilst there remains 940,000 ounce resource associated with Stage 3 cutback at Edna May, our immediate priorities are with Mount Magnet, Dargahanga and Rebecca Row. We intend to revisit our options at Edna May early in the 26th calendar year. Turning our attention now to what it's all really about, cash, which is discussed on slide 10. There are undoubtedly some impressive numbers here, starting with the underlying free cash flow of $694.9 million, which equates to $2,304 per ounce produced and puts Remelius well out in front of our peer group. The total cash flow for the year was $359.4 million and was more than double that of last year, resulting in a closing cash and gold position of $809.7 million. On slide 7, we've highlighted a few key cash items, including total cash return to shareholders for the year by way of the FY24 dividend and the maiden FY25 interim dividend of $70.3 million. If we include the dividend reinvestments in this, the total return to shareholders increases to $92 million. Our total capital investment for the year of $328 million was 36% up on the prior year and includes mine development, exploration, and our 19.9% stake in SPARL. And finally, just referring you to the chart on the bottom left of the slide, since the introduction of Q in the December quarter, we have consistently delivered strong cash flows averaging above $200 million per quarter. Moving now on to slide 12 and our balance sheet. The working capital position of Remelius, which takes into account the current stockpiles and current payables, increased 70% to $689 million whilst the net asset position increased to $1.9 billion or 43% on the prior year. This increase was on the back of the strong earnings for the year as well as the fair value increase in our investment in Spartan. Our total liquidity of just under $1 billion which includes our undrawn but committed $175 million finance facility leaves us fully funded for future development of Roe Rebecca, integration of Dalgaranga, and continued returns to our shareholders. The transformational combination with Spartan will materially change our balance sheet in FY26. Whilst valuation work on the acquisition is progressing, I will draw your attention to Note 26 of our financial report, which provides some provisional detail on the purchase consideration and the fair value of assets and liabilities acquired. The $2.8 billion purchase consideration will be allocated over the assets and liabilities acquired with the bulk of the value expected to sit within the mill infrastructure, mine development and exploration assets. At the date of completion and after considering the cash payment to Spartan shareholders, the total cash and gold of the combined group was $784 million. And whilst the valuation works are still progressing, we do expect a stamp duty on the transaction to be between $130 and $140 million, which we assume will be due sometime in the second half of FY26 and will have an impact on earnings that year. It is expected these works will be completed by the end of this calendar year with a half-year financial report including all relevant information on the acquisition and fair values. We do look forward to providing the market with our five-year plan in December quarter This will not only detail our path to becoming 500,000 ounces per an atom by FY30, but also the synergies available to the combined group, which includes tax synergies, which are real and immediate, with our tax installments already being reduced as a result. This will all be quantified with the release of the five-year plan, which, as Darren has mentioned, will also include detailed guidance for FY26. Before handing back to Darren, I'll just highlight that the appendices to the presentation include detailed information and reconciliations, along with the five-year history of our operations, earnings, and cash generation. I trust you will find these useful. With that, back to you, Darren.