Ramelius Resources Limited

Thank you for standing by and welcome to the Romelius Resources FY26 Financial Results Conference Call. All participants are in a list naming mode. There will be a presentation followed by a question and answer session. If you wish to ask a question by the phone, you will need to press the star key followed by the number one on your telephone keypad. And if you wish to ask a question by 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 Zettner, Managing Director and Chief Executive Officer. Please go ahead.

Thank you, Harmony. Good morning, everyone. Thank you for taking the time to dial into our FY26 results conference call. Alongside me this morning is our General Manager of Finance, Ben Ringrose, who will drill down into the numbers after I've covered off on the highlights. Dan Millman, our CFO, and Tim Hewitt, our COO, are also both in the room for any Q&A that might come up after our initial comments. We have uploaded to the ASX platform along with our website a number of documents this morning, including our FY26 financial results summary, our audited statutory financial report and a presentation that we'll be speaking to today. So if we start on slide three and look back at the year for Remelius in which we increased returns to shareholders and also focused on consolidating our asset base to achieve production of plus 500,000 ounces per annum. by FY30. We made a commitment to shareholders in December to maintain our returns through this period of investment into the business. Pleasingly, we were not only able to maintain these returns in FY26 but grew them with our $250 million share buyback program. I will touch more on our shareholder returns later in the call. From an asset point of view, we continue with our focus on the high-grade, high-margin projects with the acquisitions of the Dalgaranga goldmine early in the financial year. We also entered into an agreement for the sale of our non-core Edna May hub for $300 million, which we expect to complete in September. It was a very busy year again in FY26, with the obvious focus being on the world-class Dalgaranga asset, where we announced the maiden Never Never Underground oil reserve of 1.6 million ounces at 7.3 grams per tonne, and completed a PFS with an NPV of 3.5 billion and a base case of 4,500 Aussie. At $6,000 per ounce, closer to today's price, the NPV increases to 6.4 billion. Along with the PFS, we selected a preferred milling option for the Dolgoranga ore with a single processing plant at Mount Magnet with a capacity of up to 5 million tonnes per annum. We look forward to updating the market with a four-year production outlook to FY30, including full FY27 guidance details in September, once we have finalised the EPC contract for Stage 2 of the Mount Magnet mill upgrade, and also settled on new life of mines at our Mount Magnet assets. At Rebecca Rowe, we completed the DFS in October 2025, which showed an NPV of $692 million, noting that at $6,000 per ounce gold price, this increases to $2.1 billion. On the back of the DFS and the compelling economics, the Board made an FID on the project, subject only to Rowe environmental approvals. Before we get to the financials, I wanted to touch on our track record of delivering on guidance on slide four. FY26 was the sixth consecutive year we had met our production and cost guidance, which is something the team here is very proud of, and it's front of mind whenever we consider our commitments we make to the market. As I said earlier, we will be providing an updated four-year production outlook. At this stage, we are targeting the week commencing 21 September. This outlook will include full production and cost guidance for FY27, but what we are seeing here, like our peers, is inflationary pressure on costs, higher royalty charges from higher gold prices, and higher fuel costs with the ongoing Iran conflict. In addition to this, and as a direct result of exploration success during the year, we have extended the life of mine at our Galaxy operation out to 2032. noting that this was previously only out to 2028 and also with a planned production rate looking to increase to 800,000 tonnes per annum compared to 600,000 tonnes per annum in the previous plan. It is expected the additional development required in FY27 will add approximately $30 million to oil and sustaining costs which is equivalent to around $130 an ounce. I will note that we have already provided exploration guidance of between 90 and 110 million for the FY27 year. With that, I'll now hand over to Ben.

Thank you, Mark, and good morning to you all. For those following on the presentation, I will initially be speaking to slide five and our financial highlights for the year. The business generated an underlying EBITDA of 765 million from the sale of 192,000 ounces and a record 74% margin. which is exceptionally strong in this year of consolidation and transformation. As we've said throughout the year, it's a fantastic time to be a gold miner and that is evidenced with the EBITDA per ounce of over $4,000. Now whilst we have seen a drop in production with the completion of operations at Edna May in the prior year, what is really pleasing to see is the increase in the EBITDA margin. With further high grades come from Never Never in the following years, It is going to be exciting to see Mount Magnet fulfill its potential, becoming a top fire production hub in Australia. The underlying impact for the year was just shy of $320 million, with higher DNA charge being incurred with increased challenges mined, particularly at Dalgaranga, Penny and Kew, which are mines that have a related acquisition cost being amortized. We have today announced a $0.03 per share fully franked final dividend, FY26, taking the total for the year to $0.06. Mark will discuss the dividend and shareholder returns in more detail shortly, but what I will highlight is that the paid and declared dividends for FY26, along with our share buybacks, results in $256 million being returned to shareholders for the year. This represents 65% of our underlying free cash flows. Now, throughout the documents released today and the presentation itself, we do refer to underlying earnings to give you a better understanding of the operational performance. A reconciliation of the underlying and statutory earnings can be found in the appendix to the presentation. These adjustments do include, firstly, Spartan acquisition costs of $133 million, of which $131 million relates to stamp duty on the transaction. This stamp duty has now been paid. but was recognised on our balance sheet as a payable at 30 June. Secondly, the Spartan Private Royalty Obligation Fair Value Adjustments of $55 million. This is a non-cash adjustment to the current earnings and relates to the fact we expect higher revenue in the future based on our increased confidence in the ore body with the maiden 1.6 million ounce ore reserves and higher consensus gold price forecasts. Ultimately, this is a positive. However, we must recognise an expense to earnings with the future royalty payments associated with higher revenues. And lastly, during the year we closed out our remaining FY27 gold forward contracts at a cost of $28.4 million. We can see the positive impact this had on cash flows in Q4 when there was no hedging in place. Moving on to slide 6 and the cash performance and closing position for the year. As you would expect with the completion of Edna May and period of capital investment, the cash metrics, while still exceptionally strong, were down on FY25. Business generated over $700 million in operating cash flow, which after growth capital and exploration resulted in an underlying free cash flow of $393 million, or over $2,000 an ounce. After considering the net cash to acquire Spartan, income tax and hedge book management, the overall free cash flow was $149 million. After shareholder returns, the closing cash and gold position was $650 million, which, when coupled with our undrawn credit facility, leaves us with liquidity of $1.1 billion. Again, the appendices provide a reconciliation between these cash metrics and the statutory cash flow in the financial report. Still on cash and slide seven, I want to highlight the cash return to shareholders in the year. A total of $255 million of cash was returned to shareholders, a 263% increase by way of the final FY25 dividend, the interim FY26 dividend and share buyback program. In addition to this, we've returned $38 million to shareholders by way of our dividend reinvestment plan in the year. This clearly demonstrates that not only did we maintain shareholder returns in FY26, we grew them, which in this period of lower production and higher capital is a testament to our balance sheet strength and confidence in our growth plan to in excess of 500,000 ounces per annum by FY30. Capital investment in the business, the way of growth capital exploration and the acquisition of Spartan grew 19% to 390 million. making up just over 50% of our use of operating cash flow. On the chart on the bottom left of this slide, we show the quarterly cash flow across the year, and what can be seen here is a notable increase in the underlying free cash flow in the second half of the financial year, particularly in Q4 with production from Never Never and no hedge fund commitments. Finally, before I hand back to Mark, I want to touch on the balance sheet on slide 8. which has seen a notable change with the acquisition of Spartan. Our working capital position remains strong after capital investment and shareholder returns at just over $460 million, whilst net assets increased to $3.9 billion. Importantly, our balance sheet and future production cash flow leaves our development pipeline fully funded without drawing on our credit facility. I will now hand proceedings back over to Mark, who will give a recap on operations and projects before discussing the dividend decay today.