Ramelius Resources Limited

Thank you for standing by and welcome to the Remelius Resources September quarterly report. 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 via the phones, you will need to press the star key followed by the number one on your telephone keypad. And if you do wish to ask a question via the webcast, please enter it into the ask a question box and click submit. I would now like to hand the conference over to Mr. Mark Zepna, Managing Director. Please go ahead.

Good morning, everyone. Thank you for taking the time to dial in this morning. In addition to the full quarterly report, we have also released a presentation that we'll speak to during this call. Both documents have been uploaded on the ASX platform and will also be available on our website shortly. This morning, I'm joined by our CLO, Tim Hewitt, and our CFO, Darren Millman. Tim and Darren will provide some detail on the operations and financials after I run through the highlights. Whilst the presentation as a whole is relatively high level, I do note that there is a lot more detail that can be found within the quarterly report itself. As usual, there will be an opportunity for listeners to ask questions at the end, whether that be through the teleconference or the webinar, depending on how you have joined the call. So for those who have the presentation deck handy, I'll initially be speaking to slide three. The September quarter for Remelius has been a period of both operational transition and strategic progress. A quarterly production of 55,013 ounces at an all-in-sustaining cost of $18.36 an ounce was in line with our expectations, with grades at queue reverting back closer to all reserve estimates following several quarters of overperformance. Given this and mining at Penny moving more to the Penny West deposit as opposed to Penny North, Mount Magnet production grades will be slightly lower going forward until such time that we see material quantities of Dalgaranga, specifically Never Never Ore, available in late FY26. Tomorrow we will be issuing full year FY26 guidance and a five year outlook and we encourage you to dial in for that call as well, noting It will be a little earlier, 9am Eastern, 6am Western Standard Time. Now, production for the quarter was achieved without any lost-time injuries, but unfortunately there were five restricted work injuries recorded, which resulted in a marginally higher 12-month moving average total recordable injury frequency rate, or TRIFA. Now, whilst the RWIs were minor in nature, this result is still disappointing, and our focus continues to for all employees and contractors, particularly as our exploration activities ramp up and Delveranga increases its development rates. During the quarter, Remelius launched its life-saving rules, which complement our principal mining hazards as we continue our journey towards improving our proactive safety culture. The closing cash and gold balance for the quarter was $827.7 million, up from $809.7 million at 30 June. which was after the Spartan acquisition and related costs of 74.3 million, which was net of the cash acquired from Spartan. During the quarter, we released our 2025 resource and reserve statement with mineral resources of 12 million ounces and all reserves of 2.4 million ounces, which were up 38% and 118% respectively on the 2024 numbers, but also noting that this does not include a maiden never-never PEPA or row underground or reserve. Stay tuned tomorrow for updates on both of these. Our exploration and resource definition activities for the quarter focused on drilling at the Galaxy Mine at Mount Magnet, specifically at Perseverance South in Hesperus, to further target the BIF mineralisation. At Penny, drilling was focused on extending the mine life beyond FY26. As you're no doubt aware, the Board has approved an increased FY26 exploration budget of $80 to $100 million, and with $18.8 million spent in the quarter. Tim will also talk to this a little later also. Work on the Rebecca Road DFS is currently being finalised and is planned to be published tomorrow, along with our Never Never PFS Mount Magnet Delgarenga integration studies and our five-year plan. Our transformational combination with Spartan Resources completed on the 31st of July via a scheme of arrangement. Spartan Simon Lawson and Deanna Carpenter have joined the Remedius Board as Deputy Chair and Non-Executive Director respectively, while other members of the Spartan team have crossed over, bringing with them a great deal of enthusiasm and plenty of new ideas. We're grateful to have them on board. I'm on to slide four. where you can see the chart on the left which breaks down the quarterly production. This sequential decline is not surprising and reflects the gap left by Ednamay as that operation is now in care and maintenance, and the outperformance of Q subsides as the pits transition from the oxide and transitional zones into fresh rock. With that, I'll now hand over to Tim to discuss the operations in more detail.

Thanks, Mark, and good morning to everyone on the call. I'll start on slide five of the presentation where we'll discuss the mining and production metrics. The September quarter saw us mine 560,000 tonnes of ore, an increase of 63% on the prior quarter, contributed by the mobilisation of the third fleet at Kew and the lower mine strip ratio. As Mark previously mentioned, the mine grade of 2.74 grams per tonne has decreased, and this is in line with QE mine performance now being closer to the model predictions and lower grade mining locations at both Pennywest and Galaxy. Total tonnes processed for the quarter was comparable to the prior quarter at a grade of 3.3 grams per tonne and an excellent recovery of 97.1%. Whilst mill throughput was comparable to the prior quarter, lower grades as mentioned resulted in lower gold production in the quarter compared to the previous quarter. On to slide six, we take a more detailed look at the Mount Magnet operations for the quarter. As Mark mentioned, safety is still not where we want it to be with the three restricted work injuries at Mount Magnet. We continue to focus on our critical controls and our leadership responsibility around our highest risks in the business. Open pit mining is solely focused on Q. The break of day in whiteheat pits recorded an average mine grade of 3.63 grams per tonne, 3.47 respectively, during the quarter. We have now progressed past the weather zones of the ore body and are now mining in the fresh rock at Kew. As flagged in prior quarters, we had expected the ore body outperformance to reduce as fresh rock is reached, and there are detailed tables on pages 7 and 8 of the quarterly report which show the performance of the break of day in whitehead oil bodies since commencement. Pollage at Kew was uninterrupted in the quarter, with tonnages increasing 36% on the prior quarter. At Galaxy, total mine tonnes were up on the prior quarter, with additional stoping fronts available. Now we've seen the benefit of the second jumbo that we added last year. The mine grade increased from the prior quarter, with higher grading steps making up the majority of the schedule from Mars. And the teams focalised on operational excellence and cost control can use to deliver strong results, positioning us well for the quarters ahead. Now onto slide seven and Penny. Both mined ore tonnes and grade were down in the prior quarter. Full body reconciliation performance was excellent though. and we achieved an average grade of 8.21 grams per tonne. Gold production totalled 11,109 ounces at an all-in sustained cost of $19.28 per ounce, generating a cash flow of just under $21 million. Despite the lower production, Penny continues to generate strong cash flows and our underground drilling campaign is aimed at extending the mine's life and unlocking further value. Noting that this drilling has just commenced in the target area, which is just below Penny North. Moving on to slide 8 and Q, a total of 399,000 tonnes at a grade of 2.44 grams per tonne were mined across Q and the quarter. Mine tonnes are up 95% on the prior quarter. As stated before, we've mobilised a third fleet at Q and with a declining strip ratio, we're able to access more ore. Selective stockpiling and processing allowed us to mill 202,000 tonnes of kew ore at 4.4 grams per tonne, which while down the prior quarter is still a remarkable grade to be mined from an open pit. Gold production totalled 30,625 ounces, all in sustained costs of $13.65 per ounce, generating an operational cash flow of $73.1 million. It's hard not to mention the cash flow that this asset has generated since mining commenced, with that amount now up to $420 million. Slide 9 takes us to Dalgaranga, where we've really hit the ground running, the mine being successfully integrated with the Reliefs Group during the quarter. I'd just like to shout out the team both in Perth and at site for the successful transition. A lot of hard work has gone into it and we're really hitting the ground. During the quarter, 920 metres of lateral development was undertaken in the Nevernever underground mine, with 628 metres of this done under Amelius from 31st of July. The planned addition of the second jumbo will accelerate development in the upcoming quarter, including the start of ore driving to set up the first production levels. As noted in the quarterly report, Barminco was successful in the mining tender with a four-year contract executed in the quarter also. We're making rapid progress of key infrastructure items, including installation of the interim prime event system and extension of the electrical supply underground. And we look forward to releasing our NEVA NEVA PFS and integration studies tomorrow and taking you through those. Now onto exploration. So slides 10 through to 13 talk through our exploration activities. At Dalgaranga, we drilled across NEVA NEVA Pepper and Four Pillars. Nevernever and Pepper drilling were focused on infill drilling with the results continuing to reinforce our geological model. Results for the quarter at Nevernever included 25.4 metres at 11.4, 43.5 at 11.7 and 27.6 metres at 14.4 grams per tonne. While at Pepper, drilling intercepted 13.5 metres at 6.22 grams per tonne. At four pillars we are resource definition drilling as we look to add to the inventory of the mine and results for the quarter include 6.92 metres at 4.05 and 2.26 metres at 4.51 grams per tonne. Mount Magnet, Site 11, Perseverance South, we continue to follow up after encouraging results from the June quarter and we're targeting the prospective banded iron formation or the BIF. This is immediately east of the Galaxy underground mine. Results for the quarter include 9.44 metres at 8.8 and 3.2 metres at 10.1. These high-grade intercepts reinforce the potential for further resource expansion in the Mount Magnet area. On slide 12, we talked to Hesperus Pit, which sits a few hundred metres from Saturn and was historically mined solely on the ground diorite geology. We continue to test for the ground diet posted mineralisation with deeper drilling extensions of our mineralisation and a biff in the footwall of the main ground diorite. Results for the quarter include 42.5 metres of 3.54 grams per tonne and 25 metres of three. These results again support our strategy of targeting near mine opportunities to extend mine life and enhance value. Mount Magnet has huge potential and we just need to continue drilling. Our commitment to this is reflected in our increased exploration guidance for FY26 of $80 to $100 million. Slide 13 talks to Rebecca Rowe where we continue RC drilling of the near mine targets T1, T1 North, T4, Cleo and Rebecca footwall. The Rebecca footwall drilling has also validated the previously defined Jennifer load in the process of reaching the target footwall position. Recent results there include 51 metres at 2.91 and 37 metres at 1.78.