Gold miner Ramelius Resources raised its all-in sustaining cost guidance for fiscal 2026 to $1900–2050 per ounce from $1700–1900, primarily due to reclassifying costs at the Dalgaranga Never Never mine as sustaining capital after early commercial production. Production guidance remains at 185,000–205,000 ounces.
Gold miner Ramelius Resources has lifted its cost guidance for fiscal 2026, though the bulk of the increase comes from accounting classifications after the Dalgaranga operation reached commercial status earlier than expected.
The company recorded all-in sustaining costs of A$2211 per ounce for the previously reported 38,093oz of gold produced during the March quarter. Costs were roughly 12% higher than the December quarter, during which Ramelius produced 45,610oz at $1977/oz. With average costs for FY26 so far at $1987/oz, Ramelius has upped its cost guidance to $1900–2050/oz from its previous estimate of $1700–1900/oz. Full-year production guidance has been maintained at 185,000–205,000oz.
The Mark Zeptner-led miner said that with the Never Never underground mine at Dalgaranga having reached commercial production ahead of schedule, costs that were initially considered ‘growth capital' would now be classified as ‘sustaining capital', driving about $100/oz in extra AISC. Speaking to analysts on a quarterly conference call, Ramelius management stressed that the overall cost for the Never Never mine was unchanged.
SPOTGOLD quote by TradingView { "lineWidth": 2, "lineType": 0, "chartType": "area", "fontColor": "rgb", "gridLineColor": "rgba", "volumeUpColor": "rgba", "volumeDownColor": "rgba", "backgroundColor": "#ffffff", "widgetFontColor": "#0F0F0F", "upColor": "#22ab94", "downColor": "#f7525f", "borderUpColor": "#22ab94", "borderDownColor": "#f7525f", "wickUpColor": "#22ab94", "wickDownColor": "#f7525f", "colorTheme": "light", "isTransparent": false, "locale": "en", "chartOnly": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "valuesTracking": "1", "changeMode": "price-and-percent", "symbols": ], "dateRanges": , "fontSize": "10", "headerFontSize": "medium", "autosize": false, "width": "100%", "height": 500, "noTimeScale": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false} Increased diesel prices amid the Middle East turmoil, however, have started to impact costs to the tune of $35/oz.
Ramelius said its initial FY26 cost guidance was based on a diesel price of 95c per litre, but it now assumed $2/L for the rest of FY26. The company has hedged an extra 3.6ML of diesel at $1.16/L to the end of July 2026 to curb some of the extra costs. That adds to the 3.8ML hedged at 79c/L through to June 2027 that it had on its books at the end of March.
Meanwhile, with an average gold price of $5795/oz during the quarter, Ramelius has flagged an extra $8 million in royalty charges, adding another $40/oz to its cost base. "FY26 guidance was based on a gold price assumption of $4750/oz, whereas the expected average spot price for FY26 is $6185/oz," Ramelius said. It closed out its FY27 hedge book during the quarter, giving it full exposure to spot prices for the rest of the year.
A big quarter required With March quarter production impacted by a planned six-day mill shutdown at Mt Magnet and Tropical Cyclone Narelle, Ramelius will need to produce nearly 60,000oz in the June quarter to meet its guidance range. Capital markets firm Argonaut said it expected Ramelius to achieve the midpoint of its guidance, albeit it expects full-year AISC to land slightly above the new range.
In any case, the firm maintained a ‘buy' recommendation on Ramelius, with a share price valuation of $6.60. Ramelius ended March with roughly $600 million in cash and gold. Shares in the miner were off 0.3% to $3.66 on Wednesday, capitalising it at $7 billion. It has traded between $2.28 and $5.16 over the past year.
Ramelius Resources Gold Mining Costs Dalgaranga Mine Cost Guidance All-In Sustaining Cost
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