A YEAR OF
ACHIEVEMENT
annual
report
2019 ASX300 ENTRY
CONTINUED GROWTH
NEW ACQUISITIONS
1 MILLION OUNCE LIFE OF MI NE PL AN
DIVIDE ND PAYMENT
CORPORATE DIRECTORY
Directors
Kevin Lines - BSc (Geology), MAusIMM, MAICD
Independent Non – Executive Chairman
Mark Zeptner - BEng (Hons) Mining, MAusIMM, MAICD
Managing Director and Chief Executive Officer
Michael Bohm - BAppSc (Mining Engineering),
MAusIMM, MAICD
Independent Non-Executive Director
David Southam - B. Com, CPA, MAICD
Independent Non-Executive Director
Natalia Streltsova - MSc, PhD (Chem Eng), GAICD,
MSME, MCIM (appointed 1 October 2019 and after
preparation of segments of this report)
Company Secretary
Richard Jones - BA (Hons), LLB
Chief Financial Officer
Tim Manners - BBus (Accounting), FCA, AGIA, MAICD
Chief Operating Officer
Duncan Coutts - BEng (Hons) Mining, MAusIMM
General Manager – Exploration
Kevin Seymour - BSc (Geology), MAusIMM
Principal registered office
Level 1, 130 Royal Street
East Perth WA 6004
+ 61 8 9202 1127
Share registry
Auditor
Computershare Investor Services Pty Limited
Level 5, 115 Grenfell Street
Adelaide SA 5000
1300 556 161 (within Australia)
+ 61 3 9415 4000 (outside Australia)
Deloitte Touche Tohmatsu
Tower 2, Brookfield Place
125 St Georges Terrace
Perth WA 6000
Stock exchange listing
Ramelius Resources Limited (“RMS”) shares are listed on
the Australian Securities Exchange (ASX)
Website
www.rameliusresources.com.au
table of
contents
Chairman’s Report
Managing Director’s Report
2019 Highlights
Operations Review
Overview
Operational Summary
Mt Magnet
Edna May
Development & Exploration Projects
Resources and Reserves
Company Summary
Mineral Resources
Ore Reserves
Competent Persons
Native Title Statement
Sustainability Statement
Workplace Health and Safety
Social Responsibility
Environmental Protection
Water Resource Management
Diversity Statement
Corporate Governance Statement
Annual Financial Report
Directors’ Report
Auditor’s Independence Declaration
Income Statement
Statement of Comprehensive Income
Balance Sheet
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
02
04
06
08
08
09
10
13
14
24
24
25
27
28
29
30
30
31
32
33
34
35
37
38
59
62
63
64
65
66
69
110
111
116
1
RAMELIUS RESOURCES ANNUAL REPORT 2019 CHAIRMAN'S REPORT
DEAR FELLOW SHAREHOLDERS,
I am pleased to report that Ramelius continued
its recent record of strong financial and
operational performances in the financial year
ended 30 June 2019. The Company reported:
is very encouraging and supports the
Company’s belief in the prospectivity of this
under-explored terrain.
At Mt Magnet our exploration team has had a very
successful year highlighted by the discovery of the
Eridanus deposit, adjacent to the previously mined
• Net profit before tax of $30.4 million;
Lone Pine pit. This exciting discovery has been the
• Net Profit after tax of $21.8 million;
• Gold sales of 203,318 ounces generating
revenue of $352.8 million;
• Cash flows from operating activities for the
year of $137.0 million; and
• Cash and gold at 30 June 2019 of
$106.8 million.
This operational and financial performance has
underpinned the Company’s core strategies of securing
both the immediate short-term future of Ramelius and
focus of an accelerated drilling programme with
an initial reserve of 3.1 million tonnes at 1.1g/t Au
containing 110,000 ounces of gold. The Eridanus
discovery continues to build on earlier successes at
Shannon and Stellar and reinforces the value of the
Company’s commitment to ongoing exploration at
Mt Magnet. Similarly, exploration has been ongoing
at our Vivien underground mining operations near
Leinster, with the Board recently taking a decision
to extend mine life by almost a year with further
exploration ongoing.
building the Company’s capacity in the medium to
The combination of these Exploration, Corporate and
longer term. Complementing the strong operational
Mine optimisation efforts has culminated during the
performance has been a very active programme of
year with the release, in June, of the Company’s first
corporate and asset level acquisitions, designed to
One Million Ounce mine plan. This plan underpins
strengthen and extend the mine lives of our two key
production, for the next five years, at both of the
processing facilities at Mt Magnet and Edna May.
Company’s processing centres resulting in gold
At Edna May, 315km east of Perth, the decision
was made early in 2019 financial year to commit to
the development of a new underground mine in
preference to the Stage 3 expansion of the open pit.
output averaging approximately 200,000 ounces
per annum. It is a very significant achievement for
Ramelius and a credit to a great many employees and
contractors across our operations.
As a result of this decision the milling facility at Edna
The efforts of your company have been appreciated
May has excess processing capacity. The acquisitions
by the market with a growing recognition, not just of
of Marda, located 191km north-northeast of Edna
the capability of our team to continuously deliver on
May, and the Tampia Hill project, near Narembeen,
forecasts, but the expanding capacity of Ramelius to
240km east of Perth, have allowed Ramelius to secure
action growth initiatives in a timely and cost-effective
new gold resources to address the latent processing
manner. As a result, in the period 30 June 2018 to 22
capacity of the Edna May Mill. Both these transactions
August 2019;
were successfully completed in February 2019 and
an aggressive programme of planning/approvals has
commenced. In parallel with these corporate initiatives
• Ramelius share price has appreciated 103%;
• Market Capitalisation has appreciated 153%;
the Company has consolidated a strategic landholding
• Market Capitalisation (at A$1.15/share) has
to support exploration for new gold deposits in the
risen to A$757 million; and
region. Early success at Symes’ Find, south of Edna May,
• Ramelius re-entered the ASX300.
2
RAMELIUS RESOURCES ANNUAL REPORT 2019 It is particularly pleasing, following the
to balance the levels for suitable downside insurance,
release of the Ramelius Dividend Policy
through hedging, whilst maintaining exposure to any
at the AGM last year, that your Board
future upside in the gold price and will continue to actively
has been able to approve the payment
manage our gold hedging to achieve best outcomes.
of a fully franked dividend of 1.0 cent
per share. Whilst the dividend is the
minimum allowed under our new policy
it is an important first step and represents
a payout ratio of 27% when compared to
Basic Earnings per share of 3.7 cents.
Since the end of the year under review,
the gold price, both in US$ and A$
terms, has appreciated substantially. This
situation is beneficial for all Ramelius
stakeholders and hopefully represents a
new longer-term support level for gold
globally. However, in this very dynamic
price environment it can be challenging
to confidently set the appropriate level
of revenue protection via the Company’s
gold hedging portfolio. Your Board is very
conscious of the need for the Company
NET PROFIT BEFORE TAX
$30.4
million
$106.8
million
CASH AND GOLD
AT 30 JUNE 2019
The year ahead will be both exciting and challenging for
the Ramelius team with continued developments at the
Marda and Tampia projects at Edna May and new mines,
Eridanus and Shannon, at Mt Magnet.
Your Board remains focused on continuing to grow
your investment in the Company by prudent use of
capital on exploration, asset acquisition and corporate
activities. In parallel with these initiatives Ramelius will
continue to monitor an often rapidly changing external
business environment to ensure the Company retains the
necessary skills to manage change at all levels within the
organisation. As part of these initiatives the Board is very
pleased to welcome Dr Natalia Streltsova to the
Board as an Independent Non-Executive Director.
Dr Streltsova’s very strong technical background and
valuable Board experience will be of significant future
value to our company.
I thank our employees and contractors for their continuing
efforts during past year. I also would like to particularly
thank our Managing Director, Mark Zeptner and the
management team, as well as my fellow non-executive
directors, Mike Bohm and David Southam.
On behalf of the Board, I also thank all of you, our
shareholders, for your ongoing support and look forward
to an interesting year ahead.
Kevin Lines
Chairman
Ramelius Resources Ltd
3
RAMELIUS RESOURCES ANNUAL REPORT 2019 MANAGING DIRECTOR’S
REPORT
DEAR SHAREHOLDERS,
During the 2019 financial year your company
made significant progress towards becoming a
mid-tier gold producer in the Australian sector
in June 2019. Development may occur following the
completion of a 21-day public advertising period
and approval of an offset arrangement. Spectacular
gold intersections within numerous high grade hits
occurring immediately below the Stellar open pit (Mt
with production hitting 196,679 ounces, backing
Magnet) were also announced during the Quarter.
up from the plus 200,000 ounces of production
At the Annual General Meeting in November, the
in the year prior.
The acquisitions of the Marda & Tampia Gold Projects,
both of which are located within 200km of the Edna
May production centre, demonstrate the Company’s
proactive commitment to growth. The addition of
Company announced a new dividend policy that
targets a minimum $0.01/share payment per annum,
subject to meeting mining reserve and cash reserve
hurdles. The Company exceeded the guidance range,
producing 52,623 ounces for the Quarter.
these new projects led to our One Million Ounce mine
The third Quarter was productive seeing multiple
plan, which was announced in June 2019, and which is
mining proposals approved and previously
a landmark point in the history of Ramelius. Although
commenced acquisitions finalised. The mining
we have been a successful gold miner for more than 10
proposal for Eridanus (Mt Magnet) open pit was
years, we have never been in a position to demonstrate
approved and Edna May underground commenced.
such a significant mine life at meaningful production
The Marda acquisition was approved by the courts
levels. On top of this, the Company delivered a positive
and completed, whilst the Company also proceeded
Net Profit after Tax for the fifth year running, as well as
to compulsorily acquire all the shares it did not hold
boasting a cash and gold balance of over A$100M to
close out the financial year.
Ramelius started the year well, achieving guidance
for the September 2018 Quarter with production
of 51,428 ounces from our Mt Magnet, Edna May
and Vivien operations. The Annual Resources and
Reserves Statement, released in September, featured
a 54% increase in Ore Reserves from a year earlier.
This Quarter saw the commencement of two new
acquisitions, that of Explaurum Limited (Tampia) &
Black Oak Minerals Ltd (Marda) via a takeover and deed
of Company arrangement respectively.
The Greenfinch open pit, adjacent to Edna May,
appeal process for the 48.8Ha Clearing Permit
commenced in the December 2018 Quarter. On
7 October 2019 the Company announced that it
had received approval of a revised Clearing Permit
application for a reduced footprint of 16.6Ha submitted
4
10+
years
AS A SUCCESSFUL
GOLD MINER
196,679
ounces
OVER THE YEAR
RAMELIUS RESOURCES ANNUAL REPORT 2019 in Explaurum Limited, at which point Ramelius held
Essentially the share price has doubled over the 12
a relevant intertest of 95.58%. Production remained
month period, delivering strong capital gains for
steady throughout the Quarter with 45,286 ounces of
shareholders.
gold poured, again achieving guidance.
There is no doubt that is has once again been a
The exploration team continued to provide excellent
busy year for the Company I would like to thank
results from diamond drilling at Vivien and Edna
the Board and staff for their support and ongoing
May undergrounds mines, as well as from RC drilling
efforts throughout the year, with the established
at Symes’ Find (Edna May) and below the Eridanus
mining teams at Mt Magnet, Vivien and Edna May
open pit (Mt Magnet). Pleasingly, our strategic
performing exceptionally well. Additionally, I would
tenement position continued to yield positive results
like to extend a warm welcome to our new teams at
over the last 12 months, justifying our continued
Tampia & Marda.
investment into exploration in the region. The 2019
financial year saw approximately $19.8M spent on
exploration at Ramelius, and with our strong balance
sheet, this still gives us the flexibility to pursue growth
opportunities as and when they arise.
Looking forward to another exciting year of growth at
Ramelius.
Ramelius re-entered the ASX300 Index in late March
Mark Zeptner
2019 which complemented a welcome re-rating
of the stock that had commenced in the new year.
Managing Director
Ramelius Resources Ltd
196,679
ounces
$19.8
million
SPENT ON EXPLORATION
54%
increase
IN ORE RESERVES
FROM LAST YEAR
5
RAMELIUS RESOURCES ANNUAL REPORT 2019 2019 HIGHLIGHTS
Over the past year, Ramelius has achieved
a number of major milestones, helping to
entrench its reputation as an emerging
Australian mid-tier gold miner with an
excellent track record of meeting guidance and
delivering growth for shareholders.
CONTINUED GROWTH
Ramelius saw its share price increase 25%
over the 12 months to June 30, 2019. The
positive momentum was partly driven by
the Australian gold price, but also reflected
our strong operational performance, the
bedding down of the Marda and Tampia Hill
acquisitions and continued success with our
exploration programs at Mt Magnet, Vivien
and Edna May. The share price continued to
appreciate strongly in the early months of
the new financial year.
ROBUST FINANCIALS
The Company delivered its fifth consecutive
year of profit, posting a net profit after tax
of $21.8 million. The full-year result was
accompanied by the declaration of a 1.0c
fully franked dividend in keeping with its
dividend policy announced earlier in the
year. At the end of June, the Company held
$106.8 million in cash and bullion and was
debt-free.
6
ASX300 ENTRY
At the bi-annual rebalance of the S&P/
ASX 300 in March this year, Ramelius
re-entered the ASX 300. Inclusion,
which is determined on measures of
market capitalisation and liquidity,
typically results in greater interest
from institutional investors whose
mandates deem that they can only
invest in larger ASX-listed companies.
FY2019 KEY
FINANCIAL
HIGHLIGHTS
Earnings:
EBITDA: A$112.2M (2018: A$127.0M)
NPAT: A$21.8M (2018: A$30.8M)
Cashflow:
Cash from Operating Activities:
A$137.0M (2018: A$118.9M)
Net Mine Cash Flow:
A$70.7M (2018: 48.5M)
Balance Sheet Cash & Bullion:
A$106.8M (2018: A$95.5M)
Debt free. Capacity to secure
debt if required
Dividend Payment:
Directors declare 1.0c fully franked dividend
(27% payout ratio)
Record date of 4 Sept 2019 and a payment
date of 4 Oct 2019
RAMELIUS RESOURCES ANNUAL REPORT 2019 FIVE-YEAR MINE PLAN
In June this year, Ramelius announced a landmark five-year life of mine plan, based around the twin
production centres of Mt Magnet and Edna May. The Company envisages producing in excess of
1,000,000 ounces of gold over the next five years.
• Key production centres continue to deliver mine
• Provides long-term clarity over production and
life extensions
costs
• Anticipate maintaining mine life at five years or
• Plan underpinned largely by existing Ore
more through exploration and acquisition
Reserves/Indicated Resources
EDNA MAY
MT MAGNET
Edna May production centre set to deliver
higher margins
Effective exploration strategies keep
delivering Resource/Reserve replacement
Edna May Operations
Cosmos Mine Area
• Underground development well
• Drilling beneath new Eridanus open pit
progressed, stoping to commence soon
produces excellent intercepts
• Greenfinch approval targeted for
December 2019
Marda Project
• Mining works have commenced
• Haulage to Edna May in the December
Quarter
Tampia Hill Project
• Strategic review completed June 2019
• Confirmed haulage to Edna May as
preferred development option
• Decision to mine targeted for end of CY19
Vivien Satellite Mine
• Resource update delivers an additional 12
months of mine life
•
Incorporates new high grade results
from diamond drilling at depth
CORPORATE SUMMARY
Shares on Issue: 658m
Debt: Nil
Market Cap: @ $1.01/sh: 664M
Enterprise Value: $558M
Cash & Gold*: $106.8M
*As at June 30, 2019
7
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW
OVERVIEW
Ramelius is a well-established mid-tier ASX 300 gold
production and exploration Company. Ramelius has
averaged production of in excess of 200,000 ounces per
annum over the last two years and has set guidance for the
2020 financial year of 205,000 – 225,000 ounces.
Furthermore, a life of mine plan was released on 17 June 2019 which
detailed annual gold production of over 200,000 ounces out to the
2023 financial year.
During the 2019 year the Company produced 196,679 ounces
from its Mt Magnet, Vivien, and Edna May gold mines at an
All-In Sustaining Cost (“AISC”) of A$1,192 per ounce. Sales for
the year totaled 203,318 ounces at an average realised gold price
of A$1,726 generating strong a return of $A534 per ounce above
AISC per ounce.
WESTERN AUSTRALIA
196,679
ounces
from its Mt
Magnet, Vivien,
and Edna May
gold mines.
Ramelius’ operations locations
8
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW (CONTINUED)
OPERATIONAL SUMMARY
Unit
Mt Magnet1
Edna May
Group
OPEN PIT
High grade ore mined
Grade
Contained gold
UNDERGROUND
High grade ore mined
Grade
Contained gold
Total ore mined
MILL PRODUCTION
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
kt
g/t
oz
kt
g/t
oz
kt
kt
g/t
oz
%
oz
oz
oz
2,034
1.23
80,118
305
5.14
50,346
2,338
1,962
1.91
120,271
95.5
114,800
114,840
542
1.40
24,412
32
4.14
4,245
574
2,842
0.94
85,650
93.9
80,464
81,839
2,576
1.26
104,530
337
5.04
54,591
2,912
4,804
1.33
205,921
94.8
195,264
196,679
119,997
83,321
203,318
1
In the above table and throughout this report Mt Magnet incorporates the high grade Vivien underground ore which is processed
through the Mt Magnet processing plant.
Mine operations performance for the 2019 financial year
Average realised gold price v All-in sustaining cost (by Quarter)
%/Oz
$1,669
$1,696
$1,758
$1,791
$1,726
$1,800
$1,600
$1,400
$1,253
$1,190
$1,210
$1,106
$1,192
$1,200
$1,000
$800
$600
z
O
/
C
S
I
A
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
)
z
O
/
$
(
e
c
i
r
p
d
o
g
d
e
s
i
l
l
a
e
r
e
g
a
r
e
v
A
SEP 18
DEC 18
MAR 19
JUN 19
YEAR
Mt Magnet (LHS)
Edna May (LHS)
Group (LHS)
Average realised gold price (RHS)
AISC and realised gold price for 2019
9
RAMELIUS RESOURCES ANNUAL REPORT 2019
OPERATIONS REVIEW (CONTINUED)
MT MAGNET
Mining
Operations at Mt Magnet
continued on a multi
pit / underground basis
throughout the 2019
financial year with ore
being milled from five open
pit and two underground
projects. A summary of the
main projects for the year is
provided as follows:
Mt Magnet key mining & exploration areas
Area
Type
Operational commentary
Milky Way
Open pit
Milky Way was the main ore source at Mt Magnet during the year making up 51% of
the ore feed.
Total high grade ore mined for the year was 1.4 million tonnes at a grade of 1.06 g/t
with 1.0 million tonnes being milled at a grade of 1.10 g/t and recovery of 93.4% for
recovered gold of 33,021 ounces.
At the end of the year there were 0.4 million tonnes of high grade Milky Way ore
stockpiled which will provide base load mill feed in the 2020 financial year as the
Eridanus pit is developed.
Work at Eridanus commenced in May 2019 following the announcement of a maiden
Ore Reserve and subsequent mining approvals.
Eridanus
Open pit
Eridanus is a low strip ratio open pit mine which will provide the base load feed for the
Mt Magnet processing facility from the second Quarter of the 2020 financial year.
Stellar &
Stellar West
Open Pit
A total of 1.1 million bcms were moved during 2019 with negligible ore being mined as
operations focused on the site establishment and pre strip activities.
Mining at Stellar West concluded in the second Quarter of the 2019 financial year with
84k tonnes being milled at a grade of 1.61 g/t and a recovery of 93.7% for recovered
gold of 4,091 ounces.
At Stellar, spectacular drill results in December 2018 led to mining being suspended in
that month as the drill results were analysed, and mine plan options were assessed.
Mining of the Stellar pit is expected to re-commence during the 2020 financial year,
with the high grade areas being exposed in the second half of the year. Mining at
Stellar is expected to be completed by the June 2020 Quarter.
A total of 257k tonnes were milled at a grade of 1.50 g/t and recovery of 93.9% for
recovered gold of 11,598 ounces.
The Shannon open pit was completed during the year which provided modest
volumes of ore and provided access for the underground, with the portal being
established in the June 2019 Quarter.
Shannon
Open Pit
During the year 168k tonnes were milled at a grade of 2.41 g/t at a recovery of 97.0% for
recovered gold of 12,663 ounces.
Development of the Shannon underground has now commenced with commercial
volumes of ore expected from the December 2019 Quarter.
10
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW (CONTINUED)
Area
Type
Operational commentary
Vegas
Open Pit
Water Tank
Hill
Underground
Vegas is a new small pit whose development was bought forward into the year to
assist with mine sequencing and provide oxide BIF ore for blending purposes.
The Vegas pit is planned to continue at modest volumes throughout the 2020
financial year to provide ongoing material for ore feed blending.
The Water Tank Hill underground mine was completed in the March 2019 Quarter.
By the end of that Quarter, the link decline and vent drives had reached the
Hill 60 deposit and the first level cross-cut was completed. In the June Quarter,
several additional small stope areas at Water Tank Hill were identified with mining
commencing in June.
A total of 67k tonnes were milled at a grade of 3.64 g/t and recovery of 97.1% for
recovered gold of 7,641 ounces.
Work commenced at the Hill 60 underground mine during the year with 1,910 metres
of development being achieved.
Hill 60
Underground
During the year operations focused on development with negligible ore being mined
and milled from the Hill 60 underground mine.
Shannon
Underground
Vivien
Underground
Steady state volumes of ore are expected to be available from the September 2019
Quarter.
With the completion of the Shannon open pit, work on the portal and decline
commenced in June 2019.
Only minimal development was made during year with commercial volumes of ore
expected from the December 2019 Quarter.
Despite lower output than last year the Vivien mine performed well producing 37%
(2018: 39%) of the gold production from the Mt Magnet operation.
Total high grade mill production from Vivien was 256k tonnes at a grade of 5.34
g/t and recovery of 97.1% for recovered gold of 42,761 ounces. During the year good
contributions were made from both stoping and development ore.
A recent mine extension diamond drilling program returned significant high grade
gold mineralisation below the current mine plan at Vivien (Vivien Deeps). The results
are considered very significant as they now extend the known mineralisation a further
200m below the current mine plan, deepening the known mineralisation to 600m
below surface. An extension of mine and new resource and reserve information were
announced by the Company on 12 September 2019.
Shannon Underground
Portal Commencement
June 2019
11
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW (CONTINUED)
MT MAGNET (continued)
Milling
MILL PRODUCTION
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
2019
2018
Change (%)
Kt
g/t
Oz
%
Oz
Oz
Oz
1,962
1.91
120,271
95.5
114,800
114,840
1,995
2.23
143,141
94.3
135,021
135,597
119,997
135,565
- 2 %
- 14 %
- 16 %
+ 1 %
- 15 %
- 15 %
- 11 %
Mt Magnet mill production for the 2019 financial year
A total of 1,962k tonnes were processed at the Mt Magnet mill
during the year compared to 1,995k tonnes in the prior year
representing a 2% decrease in throughput. In addition to the
lower throughput the grade was down 14% on the prior year
which resulted in a decrease in gold poured of 20,757 ounces
or 15%.
Grades at Mt Magnet were down on the prior year as a result
of 23% less underground ore being available at a grade
16% less than the prior year. Underground operations at Mt
Magnet focused on the development of Hill 60, and to a lesser
extent the Shannon underground. Both of these sources of
high grade underground ore will reach commercial extraction
rates in the 2020 financial year.
Gold production from Mt Magnet is forecast to be 140,000oz –
150,000oz in the 2020 financial year.
A total of
1,962,000
tonnes
were processed at the
processing facility at Mt
Magnet
12
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW (CONTINUED)
EDNA MAY
Mining
During the year mining of the Stage 2 open pit at Edna May was completed with
operations at Edna May focussing on the development of the underground mine
and the milling of existing Stage 2 high grade and low grade stockpiles.
The Stage 2 open pit performed better than expected with 542k tonnes being
mined at a grade of 1.40 g/t for the year. Mining at Stage 2 concluded in the
December 2018 Quarter with the milling of the ore continuing into the March 2019
Quarter as the Stage 2 high grade stockpiles were exhausted.
In the September 2018 Quarter an assessment of the Edna May development
options post the Stage 2 open pit was completed with the decision to develop
an underground mine chosen in preference to a larger Stage 3 open pit cutback.
In the March 2019 Quarter, the preferred underground mining contractor was
mobilised, and development commenced. During this period of development 32k
tonnes of ore were mined at a grade of 4.14 g/t.
With Stage 2 ore being exhausted in the March 2019 Quarter, and commercial
quantities of underground ore not being available until the 2020 financial year,
milling focused on the low grade stockpiles with this ore making up 92% of ore
being milled in the second half of the 2019 financial year. This low grade ore
performed better than expected and achieved a grade of 0.67 g/t for the 2019
year. The stockpile carried no cost and hence made a positive contribution to both
earnings and cashflows.
Gold production from Edna May is forecast to be 65,000oz – 75,000oz in the
2020 financial year.
Milling
Throughput for the year, when compared to the 2018 financial year (including the period under Evolution
Mining Limited’s control) was up 7% due to improved plant optimisation.
MILL PRODUCTION
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
2019
20181
Change (%)
2,842
0.94
85,650
93.9
80,464
81,839
2,010
1.20
77,352
93.9
72,611
72,521
+ 41 %
- 22 %
+ 11 %
0 %
+ 11 %
+ 13 %
83,321
67,520
+ 23 %
Kt
g/t
Oz
%
Oz
Oz
Oz
1 The figures reported for 2018 are for the nine months ended 30 June 2018, the period of Ramelius ownership
Edna May mill production for the 2019 financial year
13
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW
(CONTINUED)
DEVELOPMENT &
EXPLORATION PROJECTS
Development projects
In the 2018 Annual Report Ramelius outlined the
plans for the following development projects:
• Edna May project (Stage 3 open pit or underground)
• Shannon (Mt Magnet)
• Hill 60 (Mt Magnet)
• Morning Star (Mt Magnet)
• Eridanus (Mt Magnet)
• Greenfinch (Edna May)
Of these six development projects, mining or
development has commenced on four projects
(Edna May underground, Shannon, Hill 60, and
Eridanus). On the remaining two, Morning Star has
been deferred in favour of the Eridanus open pit at
Mt Magnet, and a revised Clearing Permit has been
submitted for Greenfinch which is currently under
assessment by the regulators.
14
OPERATIONS REVIEW (CONTINUED)
Development & exploration projects
(continued)
Greenfinch project
(Edna May, WA)
Marda Gold Project
(Yilgarn, WA)
The Clearing Permit for Edna May was rejected by
In June 2019 initial Mineral Resources
the Department of Mines, Industry Regulations
of 4.8Mt at 2.0 g/t for 300,000oz of
and Safety (DMIRS) in November 2018. This decision
contained gold and Ore Reserves of 1.1Mt
was appealed by Ramelius and on 13 May 2019 the
at 2.4 g/t for 89,000oz of contained gold
Environment Minister upheld the decision of the
were announced.
DMIRS, however at the same time, the Environment
Minister invited Ramelius re-submit a revised Clearing
Permit application. The revised submission, which had
a significantly reduced project disturbance footprint,
was made in June 2019 and focused on completely
avoiding the Declared Rare Flora species, Eremophila
resinosa, without loss of the original 57,000 ounces of
recoverable gold.
On 7 October 2019 the Company announced that it
had received approval of the revised Clearing Permit
application. Development may occur following the
completion of a 21-day public advertising period and
approval of an offset arrangement.
The Marda Gold Project is an open pit
deposit with the ore to be hauled to,
and milled at, the Edna May mill
for processing.
Resource drilling and project
development activities (studies and
costings) were largely completed
by 30 June 2019, with statutory
approvals well-advanced and expected
in the September 2019 Quarter. The
capital works programme is scheduled
to commence in October 2019. Haulage
is planned to the Edna May mill with
The development of the Greenfinch project is
commercial quantities coming into
dependent upon the approval of the revised Clearing
production in the December 2019 Quarter.
Permit as well as the Commonwealth EPBC Act
approvals which are currently being assessed
in parallel by the Federal Department of the
Environment and Energy (DotEE).
15
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW (CONTINUED)
Development & exploration projects
(continued)
Tampia Hill Gold Project (Narembeen, WA)
Since completing the acquisition of the Tampia Hill Gold Project in
April 2019 Ramelius moved to complete a Strategic Review of the
project which aimed to determine the best economic outcomes
for the future development of the project. Broadly, the premise
of the Strategic Review was to compare the merits of an on-site
processing facility at Tampia (‘milling option’) versus mining only
at Tampia with the ore hauled to the Edna May mill located some
140km to the north (‘haulage option’).
The haulage option was identified to deliver superior economic
returns for shareholders and as a result the Board resolved to
evaluate the project based on milling at the Edna May production
centre. The results of the Strategic Review were discussed in detail
in the ASX announcement on 17 June 2019. Ramelius continues
to advance the project with work still required on hydrology,
environmental, permitting and stakeholder engagement. With
further work still to be undertaken to evaluate the project the
Tampia Hill Gold Project has been classified as an Exploration &
Evaluation Asset within the financial report.
The final investment decision is anticipated to occur late in the
2019 calendar year.
In June 2019 initial Mineral Resources of 8.2Mt at 1.7 g/t for
460,000oz of contained gold and Ore Reserves of 2.2Mt at 2.8g/t
for 200,000oz of contained gold was announced.
Water Bore Drilling
Tampia Hill Gold
Project
16
OPERATIONS REVIEW (CONTINUED)
Development & exploration projects
(continued)
Exploration
Ramelius’ exploration activities focused around the Mt Magnet and
Edna May Gold Projects during the year.
Mt Magnet
ERIDANUS DEEPS PROSPECT
Diamond and RC drilling programmes were completed on the
Eridanus Deeps Prospect during the year. Drilling was oriented
parallel to the strike of the Eridanus Granodiorite to scope for
orthogonal vein arrays identified in earlier resource definition
drilling. The new drilling confirmed the presence of broad intervals
of significant (>1.0 g/t Au) mineralisation within the Eridanus
Granodiorite below the proposed open pit. Drill testing has now been
partially completed to 400m below surface. Selected (>0.5 g/t Au)
assay results as reported during the year include:
• 8m at 5.06 g/t Au from 37m
•
12.6m at 5.39 g/t Au from
in GXRC1904,
230.4m in GXDD0085
including 3m at 11.42 g/t Au
• 32m at 2.26 g/t Au from 23m
• 23m at 1.93 g/t Au from 126m
in GXDD0086
in GXRC1904
•
15m at 4.10 g/t Au from 385m
•
12m at 6.41 g/t Au from 183m
in GXDD0086
in GXRC1904, including 2m
• 7m at 6.32 g/t Au from 450m
at 25.85 g/t Au
in GXDD0086
•
15m at 3.32 g/t Au from 27m
•
12m at 6.90 g/t Au from 211m
in GXDD0075
• 23m at 3.98 g/t Au from
240m in GXDD0075
• 36m at 3.29 g/t Au from
375m in GXDD0075
in GXRC2027
• 30m at 1.85 g/t Au from
206m in GXRC2028
• 37m at 2.60 g/t Au from 30m
in GXRC2029
• 43m at 4.17 g/t Au from 27m
•
16m at 2.66 g/t Au from 84m
in GXDD0084,
including 12m at 11.6 g/t Au
•
14m at 2.45 g/t Au from
324m in GXDD0084
in GXRC2030
• 8m at 7.66 g/t Au from 218m
in GXRC2030
17
OPERATIONS REVIEW (CONTINUED)
Development & exploration projects (continued)
ERIDANUS OPEN PIT
Detailed structural and vein
density logging of the diamond
core revealed a dominant
subvertically dipping, north-
westerly striking vein set within
a broader stockwork vein array.
The gold mineralisation is best
developed within the competent
east-west trending Eridanus
Granodiorite but numerous lodes
are seen to extend well beyond
the granodiorite and are hosted
by the surrounding Boogardie
Basin felsic porphyry rocks.
Eridanus Deeps RC and Diamond drill hole location plan
Eridanus exploration drilling cross section (north-south) below the current pit design
18
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW (CONTINUED)
Development & exploration projects (continued)
TITAN DEEPS PROSPECT
Two Titan Deeps diamond holes were drilled
below the Titan pit during the year. Only
narrow, low order anomalous intersections were
generated but further step out drilling along
the controlling Boogardie Break structure is
warranted.
• 9.2m at 2.10 g/t Au from 131.9m in GXDD0088
• 3.5m at 6.77 g/t Au from 461.5m in
GXDD0088, including 1.5m at 15.35 g/t Au
LONE PINE SOUTH PROSPECT
RC drilling was completed over the Lone Pine
South Prospect (located below the backfilled
Lone Pine Palaeochannel). Gold mineralisation
appears associated with a north-northwest
trending sericite-carbonate altered shear zone in
felsic porphyry rocks.
• 6m at 2.05 g/t Au from 19m in GXRC1872
• 5m at 3.29 g/t Au from 109m in GXRC1873
•
1m at 21.2 g/t Au from 127m in GXRC1897
• 3m at 4.23 g/t Au from 90m in GXRC2003
• 6m at 13.67 g/t Au from 200m in GXRC2010
•
11m at 2.19 g/t Au from 175m in GXRC2011
A steep west dip is preferred at present with
mineralisation remaining open down dip and
along strike to the south. With this predicted dip
projection, true widths are estimated to be 30%
of the reported down hole intersections.
RAMELIUS RESOURCES ANNUAL REPORT 2019
19
OPERATIONS REVIEW (CONTINUED)
Development & exploration projects
(continued)
Edna May
Over the year Ramelius has consolidated its land holding
around the Edna May Gold Mine through numerous
tenement acquisitions along with the acquisitions of the
Tampia Hill Gold Project and Marda Gold Project.
Exploration & development projects around the Edna May Gold Mine
20
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW (CONTINUED)
Drill hole location and
conceptual pit design
over Symes’ Find
SYMES’ FIND
Symes’ Find encompasses Mining Lease (ML) 77/1111,
situated over the historical Symes Find gold workings,
located 80km south of the Moorine Rock township.
During the year Ramelius exercised its right to
acquire the project outright having completed RC
drilling with highly encouraging results, including:
•
12m at 2.23 g/t Au from 70m in SYFC002,
including 1m at 11.4 g/t Au
• 6m at 3.11 g/t Au from 46m in SYFC003
True widths are interpreted to be around 80% of
the reported downhole intersections for the shallow
plunging gneissic fabric mineralisation and 50% for
the sub-vertical quartz healed shears.
Infill RC drilling culminated in the successful
delineation of a maiden Indicated and Inferred
Mineral Resource of 540Kt at 1.90 g/t for 34,000oz.
The drilling has further delineated a broad southeast
trending surficial laterite gold anomaly (at plus 1.0 g/t
• 9m at 2.19 g/t Au from 44m in SYFC004
Au) which remains open to the southeast.
•
16m at 3.59 g/t Au from 18m in SYFC010,
including 2m at 8.98 g/t Au
• 8m at 43.23 g/t Au from 5m in SYFC073,
including 3m at 112.4 g/t Au
•
14m at 5.31 g/t Au from 51m in SYFC087,
including 4m at 12.64 g/t Au
• 8m at 17.05 g/t Au from 33m in SYFC093,
including 3m at 42.01 g/t Au
•
11m at 6.65 g/t Au from 8m in SYFC094,
including 2m at 30.90 g/t Au
• 7m at 11.62 g/t Au from 10m in SYFC097,
including 3m at 23.56 g/t Au
•
12m at 6.79 g/t Au from 1m in SYFC100, including
2m at 33.85 g/t Au
•
12m at 4.49 g/t Au from surface in SYFC101,
including 2m at 23.35 g/t Au
• 6m at 10.62 g/t Au from surface in SYFC140,
including 2m at 30.20 g/t Au
The defined resource is currently constrained by the
boundaries of the granted Mining Lease (ML) 77/1111.
Step out RC drilling, targeting the southern strike
and plunge projection of the higher grade shoots at
Symes’ Find has commenced within the surrounding
Exploration Licence (EL) 77/2474 (where drilling
access can now be achieved as paddocks
are in fallow).
21
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW (CONTINUED)
Development & exploration
projects (continued)
EDNA MAY GOLD MINE
Subsequent to the completion of the Stage 2 open
pit at Edna May, access has now been gained
off the switchback within the open pit to target
deeper exploration drill holes into the predicted
extensions of the Greenfinch and Golden Point
Gneisses (located within the footwall of the Edna
May Gneiss). Better drill results returned include
5m at 5.02 g/t Au from 16m in EMRC015.
A deep surface diamond drill program targeted
the extension of the high grade underground
Jonathan and Fuji lodes. A number of good results
were returned for the Jonathan lode position,
including:
• 7m at 4.93 g/t Au from 521m EMRCD022
• 7m at 8.95 g/t Au from 508m in EMRCD025
• 5.4m at 5.67 g/t Au from 480m in EMRCD027
WESTONIA / HOLLETON / MT HAMPTON PROJECTS
Wholly owned Ramelius subsidiary, Edna May
Operations Pty Ltd (EMO) acquired 100% of the
Westonia Exploration Licence (EL) 77/2443 that
surrounds its gold mining operations at Edna May
along with acquiring 100% of three Exploration
Licences (EL) 77/2334, 77/2458 and 70/5033 around
the historical Holleton Mining Centre located south
of the mine.
During the year the focus was on negotiating
land access for future exploration activities. Land
access and compensation agreements continue
to be negotiated with various private land owners
in the district to allow Ramelius more flexibility
to schedule its planned exploration activities
without disrupting any farmers’ wheat/canola crops
throughout the year.
NULLA SOUTH FARM-IN & JOINT VENTURE
PROJECT – RAMELIUS EARNING 75%
Early in the year Ramelius entered into a
Farm-in and Joint Venture Agreement with
CGM (WA) Pty Ltd, a subsidiary of Chalice Gold
Mines Limited (ASX: CHN) over CGM’s Nulla
South Exploration Licences (EL) 77/2353 and
2354. Under the terms of the farm-in and joint
venture agreement, Ramelius may earn a 75%
interest in the project by spending $2 million
on exploration within 3 years.
Exploration drilling initially focused around
the historical Felstead’s Find workings before
moving to drill test a series of blind litho-
structural targets located elsewhere within
the project area (while access was available
ahead of winter cropping). Encouraging drill
results from Felstead’s Find include:
•
•
13m at 2.34 g/t Au from 34m in NUSC004
10m at 1.08 g/t Au from 53m in NUSC004
• 9m at 2.07 g/t Au from 69m in NUSC005
22
RAMELIUS RESOURCES ANNUAL REPORT 2019 OPERATIONS REVIEW (CONTINUED)
Felstead’s Find, Nulla South Farm-in Project drilling cross section
Jupiter RC drilling cross section
GIBB ROCK FARM-IN & JOINT
VENTURE PROJECT – RAMELIUS
EARNING 75%
During the year, Ramelius
executed a Farm-in and Joint
Venture Agreement with CGM
(WA) Pty Ltd, a subsidiary of
Chalice Gold Mines Limited
(ASX: CHN), for Ramelius
to fund all exploration over
CGM’s Gibb Rock Exploration
Licence (EL) 70/4869 and EL
70/5194. Under the terms of the
Agreement, Ramelius may earn
a 75% interest in the project
by spending $2 million within
three years. Ramelius continues
to advance land access and is
designing work programmes
over selected target areas within
the project.
Other
YANDAN PROJECT (QLD)
Ramelius relinquished the
Yandan project during the year.
TANAMI JOINT VENTURE (NT) –
RAMELIUS 85%
No field work was completed
during the year.
JUPITER FARM-IN & JOINT
VENTURE (NEVADA, USA) –
RAMELIUS EARNING 75%
RC drilling was completed
during the year with the drilling
confirming the continuity of low-
level gold anomalism associated
with flat lying brecciated
jasperoids, sitting along the
Tertiary volcanics. Drilling failed
to enhance the results from
the prior year. More drilling is
planned for the 2020 year.
23
RAMELIUS RESOURCES ANNUAL REPORT 2019 RESOURCES AND RESERVES
COMPANY SUMMARY AS AT 30 JUNE 2019
Total Mineral Resources are
estimated to be 81 Mt at 1.6 g/t
Au for 4.1 Moz of gold as shown
in table A
Total Ore Reserves are estimated
to be 15 Mt at 1.8 g/t Au for 840
koz of gold as shown in table B
The previous publicly reported estimate of total Mineral
Resources was 70.5Mt at1.5 g/t Au for 3,476 koz of gold
announced 18 September 2018. The previous publicly
reported estimate of total Ore Reserves was 13.3 Mt at 1.6
g/t Au for 698 koz of gold announced 18 September 2018.
Increases were largely achieved via the acquisition of the
Marda and Tampia projects.
24
RAMELIUS RESOURCES ANNUAL REPORT 2019 RESOURCES AND RESERVES (CONTINUED)
MINERAL RESOURCES
Table A: Mineral Resources
MINERAL RESOURCES AS AT 30 JUNE 2019 - INCLUSIVE OF RESERVES
Project
Deposit
Measured
Indicated
Inferred
Total Resource
t
g/t
oz
t
g/t
oz
t
g/t
oz
t
g/t
oz
Galaxy Group
92,000
Morning Star
-
Bartus Group
49,000
1.8
-
2.2
-
-
-
5,400
4,100,000
-
4,900,000
4,000
110,000
-
-
-
1,200,000
180,000
200,000
1.6
1.9
2.1
1.8
2.0
3.3
-
-
-
220,000
2,300,000
300,000 4,300,000
8,000
240,000
68,000
790,000
1.3
1.5
1.6
1.0
-
96,000
6,600,000
210,000
9,200,000
12,000
400,000
26,000
2,000,000
-
180,000
-
40,000
2.5
3,000
240,000
12,000
21,000
1.5
1.7
1.9
1.5
2.1
3.1
320,000
510,000
24,000
94,000
12,000
24,000
Boomer
Britannia Well
Bullocks
Eastern
Jaspilite
Eclipse
Eridanus
Golden Stream
Lone Pine
Milky Way
O'Meara Group
Spearmont-
Galtee
Stellar
Welcome -
Baxter
Open Pit
deposits
Mt
Magnet
150,000
2.2
10,000
120,000
2.8
11,000
130,000
2.5
11,000
400,000
2.5
32,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
170,000
-
2,800,000
150,000
490,000
1,400,000
180,000
2.2
1.3
2.9
1.3
1.3
2.5
12,000
41,000
120,000
690,000
14,000
67,000
21,000
390,000
58,000
880,000
14,000
230,000
2.1
1.1
1.2
1.7
1.1
1.7
3,000
210,000
23,000
3,500,000
2,700
220,000
21,000
870,000
30,000
2,300,000
2.2
1.3
2.4
1.5
1.2
12,000
410,000
2.0
15,000
150,000
17,000
42,000
88,000
27,000
25,000
2.9
2,000
210,000
4.3
28,000
230,000 4.0
30,000
220,000
1.6
11,000
280,000
380,000
2.1
1.6
26,000
-
-
-
380,000
15,000
200,000
1.8
11,000
700,000
2.1
1.7
26,000
37,000
510,000
1.9
30,000
17,000,000
1.7
920,000
11,000,000
1.4
480,000 28,000,000
1.6
1,400,000
Hill 50 Deeps
280,000
5.5
49,000
930,000
200,000
7.0
4.4
210,000
400,000
28,000
160,000
6.4
4.3
81,000
1,600,000
22,000
360,000
6.6
4.3
340,000
50,000
Hill 60
Morning Star
Deeps
Saturn UG
Shannon
-
-
-
-
-
-
-
-
-
-
-
-
UG deposits
280,000
5.5
49,000
1,700,000
190,000
4.2
26,000
330,000
5.0
53,000
530,000
4.7
79,000
-
330,000
-
5.9
6.1
-
1,600,000
63,000
290,000
330,000
2,800,000
2.5
4.2
3.6
130,000
1,600,000
39,000
620,000
320,000
4,700,000
2.5
5.1
4.6
130,000
100,000
700,000
ROM & LG
stocks
Total Mt
Magnet
Edna May
Edna May UG
Greenfinch
ROM & LG
stocks
Edna
May
1,500,000
0.7
33,000
-
-
-
-
-
-
1,500,000
0.7
33,000
2,300,000
1.5
110,000
18,000,000
2.1
1,200,000
13,000,000
1.9
810,000 34,000,000
2.0
2,200,000
-
-
-
-
-
-
- 21,000,000
-
-
310,000
2,700,000
0.9
6.9
1.1
580,000
5,100,000
70,000
12,000
94,000
1,700,000
0.8
6.7
1.1
130,000 26,000,000
2,700
330,000
60,000 4,400,000
0.9
6.9
1.1
720,000
73,000
150,000
1,700,000
0.5
25,000
-
-
-
-
-
-
1,700,000
0.5
25,000
25,000 24,000,000
41,000
110,000
91,000
1.0
3.9
2.6
3.8
750,000
6,800,000
5,100
8,900
11,000
34,000
120,000
300,000
0.9
2.9
3.4
2.0
200,000 32,000,000
3,100
440,000
13,000
18,000
230,000
390,000
0.9
5.4
3.0
2.4
970,000
77,000
22,000
30,000
Total Edna May
1,700,000
Vivien
Vivien UG
370,000
Kathleen
Valley
Mossbecker
Yellow Aster
Nil
Desperandum
Total KV
Coogee Coogee
Western
Queen
WQ South
Symes
Symes Find
Dolly Pot
Dugite
Python
Goldstream
Marda
Golden Orb
King Brown
Die Hardy
Red Legs
Total Marda
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.5
5.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
68,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Tampia
Tampia
390,000
2.4
31,000
7,700,000
Total Resource
4,700,000
1.6 240,000 54,000,000
23,000
5.8
4,400
100,000
2.9
9,500
120,000
3.5
14,000
220,000
31,000
3.4
3.6
24,000
520,000
3,600
65,000
2.5
3.3
41,000
750,000
7,000
96,000
2.7
3.4
66,000
11,000
100,000
3.6
12,000
81,000
3.4
8,800
180,000
3.5
21,000
400,000
560,000
250,000
760,000
100,000
370,000
130,000
1,100,000
-
3,200,000
1.9
1.7
1.9
1.9
2.5
3.0
4.3
1.6
-
2.0
1.7
1.6
24,000
31,000
15,000
47,000
8,300
35,000
18,000
150,000
44,000
170,000
130,000
190,000
41,000
54,000
450,000
-
370,000
210,000
1,400,000
420,000
130,000
2.1
1.7
1.8
1.4
1.8
1.9
1.5
2.9
2.0
1.8
10,000
540,000
2,300
610,000
250,000
10,000
940,000
5,900
11,000
2,600
230,000
560,000
170,000
21,000
1,500,000
34,000
370,000
87,000
4,600,000
7,400
8,200,000
2,700,000 22,000,000
1.6
1,200,000 81,000,000
1.9
1.7
1.9
1.9
1.9
2.6
3.7
1.6
2.9
2.0
1.7
1.6
34,000
34,000
15,000
57,000
14,000
46,000
21,000
75,000
34,000
300,000
460,000
4,100,000
Figures rounded to 2 significant figures. Rounding errors may occur.
25
RAMELIUS RESOURCES ANNUAL REPORT 2019
RESOURCES AND RESERVES (CONTINUED)
Mineral Resource Commentary
Mt Magnet is comprised of numerous gold
deposits contained within a contiguous
tenement holding, located within an 8km radius
of the processing facility. The Galaxy group
includes the Saturn, Mars, Titan, Brown Hill and
mineralisation hosted in mafic gneiss units similar
to Tampia.
All resources are based on combinations of RC and
diamond drill holes. Sampling has been via riffle
or cone splitters (RC) or by sawn half core. Assay
is carried out by commercial laboratories and
accompanied by QAQC samples. A substantial
Vegas deposits. Current mining operations
proportion of drill data is historic in nature or
include the Milky Way, Eridanus, Stellar West &
gathered by previous owners, however Ramelius
Vegas open pits, and the Hill 60 and Shannon
underground mines. Vivien is a high grade
quartz lode deposit, located near Leinster.
has added significant further drilling for all
deposits, especially those forming Ore Reserves.
Mineralisation has been modelled via cross-
sectional interpretations using deposit appropriate
The Edna May mine was acquired in October 2017.
lower cut-off grade shapes and geological
It was re-modelled and reported in early 2018,
interpretations. Geological understanding
following a significant underground and surface
has formed the basis of all ore interpretations.
drilling campaign. It comprises of the large-scale
Interpretations have then been wireframed
Edna May stockwork deposit and the related,
adjacent Greenfinch deposit. Two high grade
quartz lodes are modelled within the broader Edna
May deposit. Underground mining is in progress on
high grade lodes and large low grade stockpiles are
providing significant mill feed.
All deposits have been depleted for mining during
the 2019 financial year.
using geological software, including Micromine,
Leapfrog & Surpac. Mineralisation has been
grouped by domain where required and statistical
analysis, top-cutting and estimation carried out
using anisotropic search ellipses. Estimation uses
Ordinary Kriging and/or Inverse Distance methods.
Modelling has been undertaken with recognition
of the probable mining method and minimum
mining widths and resource classifications reflect
Acquisition of the Marda and Tampia projects has
drill spacing, data quality, geological and grade
provided the main increase to Mineral Resources.
continuity. Density information for fresh rock is
Both are unmined ore deposits. Marda comprises
generally well established and new measurements
a number of BIF hosted gold deposits, located
120km north of Southern Cross. Tampia is hosted
within amphibolite facies mafic rocks 12km SE of
Narembeen in the WA wheatbelt. Symes Find is
located 120km SSE of Edna May, also in the WA
wheatbelt and consists of lateritic and primary
have frequently been obtained. Nearly all deposits
listed, with the exceptions of Marda and Tampia,
have had some degree of recent production or
historic mining. Resources are reported using cut-
offs approximating an A$1,850/oz gold price.
26
RAMELIUS RESOURCES ANNUAL REPORT 2019 RESOURCES AND RESERVES (CONTINUED)
ORE RESERVES
Table B: Ore Reserves
Project
Deposit
Proven
g/t
t
Probable
Total Reserve
oz
t
g/t
oz
t
g/t
oz
ORE RESERVE STATEMENT AS AT 30 JUNE 2019
Boomer
Brown Hill
Eridanus
Golden Stream
Milky Way
Morning Star
Mt Magnet
Stellar
Vegas
Total Open Pit
Hill 60
Shannon
Total Underground
-
-
-
-
-
-
-
-
-
-
-
-
ROM & LG stocks
1,500,000
Mt Magnet Total
1,500,000
Edna May UG
Greenfinch
-
-
ROM & LG stocks
1,700,000
Edna May Total
1,700,000
Edna May
Vivien
Vivien UG
220,000
Marda
Dolly Pot
Dugite
Python
Goldstream
Golden Orb East
Golden Orb West
King Brown
Marda Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.7
0.7
-
-
0.5
0.5
6.2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
130,000
620,000
3,100,000
95,000
200,000
1,100,000
170,000
180,000
5,600,000
240,000
290,000
530,000
33,000
-
2.9
1.6
1.1
3.0
1.2
1.9
2.7
1.3
1.4
3.2
5.1
4.3
-
12,000
130,000
31,000
620,000
110,000
3,100,000
9,200
95,000
7,800
200,000
68,000
1,100,000
15,000
170,000
7,500
180,000
260,000
5,600,000
25,000
240,000
48,000
290,000
73,000
530,000
-
1,500,000
33,000
6,100,000
1.7
330,000
7,600,000
-
-
420,000
1,700,000
25,000
-
4.7
1.2
-
63,000
420,000
62,000
1,700,000
-
1,700,000
25,000
2,100,000
1.9
130,000
3,700,000
44,000
-
-
-
-
-
-
-
-
-
300,000
170,000
320,000
71,000
64,000
140,000
75,000
1,100,000
-
1.7
2.0
2.2
2.6
4.2
2.7
5.3
2.5
2.7
-
220,000
16,000
300,000
11,000
170,000
22,000
320,000
6,000
71,000
8,600
64,000
12,000
140,000
13,000
75,000
89,000
1,100,000
180,000 2,200,000
2.9
1.6
1.1
3.0
1.2
1.9
2.7
1.3
1.4
3.2
5.1
4.3
0.7
1.5
4.7
1.2
0.5
1.3
6.2
1.7
2.0
2.1
2.6
4.2
2.7
5.4
2.5
2.8
12,000
31,000
110,000
9,200
7,800
68,000
15,000
7,500
260,000
25,000
48,000
73,000
33,000
360,000
63,000
62,000
25,000
150,000
44,000
16,000
11,000
22,000
6,000
8,600
12,000
13,000
89,000
200,000
Tampia
Tampia
170,000
3.7
20,000
2,000,000
Total Reserve
3,600,000
1.1
120,000 11,000,000
2.0
720,000 15,000,000
1.8
840,000
Figures rounded to 2 significant figures. Rounding errors may occur.
Ore Reserve Commentary
All Ore Reserves have been reported from Measured and Indicated Resources only. Current operational open
pits are Milky Way, Vegas and Eridanus and these were depleted via mining to the end of June 2019. Current
underground operations are the Vivien, Edna May, Shannon and Hill 60 mines which were also depleted. All
Ore Reserves have been generated from a number of internal and external mining optimisations and open
pit or underground design studies using appropriate cost, geotechnical, slope angle, stope span, dilution,
cut-off grade and recovery parameters. Ore Reserves are utilised in the current Life of Mine plan. Mining
approvals processes are in progress for the Greenfinch, Tampia and Marda open pits.
27
RAMELIUS RESOURCES ANNUAL REPORT 2019 RESOURCES AND RESERVES (CONTINUED)
Ore Reserve Commentary
(continued)
The Eridanus Ore Reserve is based on an open pit mine
design and has been reported from Indicated Resource
only. It has been calculated from several internal
and external optimisation and design studies using
appropriate cost, geotechnical, slope design criteria,
dilution, cut-off grade and recovery parameters. Ore
Reserves are reported above 0.6g/t Au. The design pit
totals 5.5Mbcm, is 450m long and reaches a maximum
depth of 110m.
Ore Reserve gold prices as below (per oz), were used to
generate appropriate cut-offs;
• Mt Magnet open pits reserves utilise a gold price
of A$1,650 and underground utilise a gold
price of A$1,800
• Edna May open pits reserves utilise a gold price
of A$1,650 and underground utilise a gold
price of A$1,800
• Vivien reserves utilise a gold price of A$1,800
• Marda open pits reserves utilise a gold
price of A$1,700
• Tampia open pits reserves utilise a gold
price of A$1,800
Mining, milling and additional overhead costs are based
on currently contracted and budgeted operating costs.
Costs for Vivien underground mining and ore haulage
are based on current contracted and budgeted rates.
Mill recoveries for all ore types are well established. Mt
Magnet and Edna May stockpiles consist of ROM stocks
& low grade stocks mined post 2012.
COMPETENT
PERSONS
The information in this report that
relates to Mineral Resources and Ore
Reserves is based on information
compiled by Rob Hutchison (Mineral
Resources) and Duncan Coutts
(Ore Reserves), who are Competent
Persons and Members of The
Australasian Institute of Mining
and Metallurgy. Rob Hutchison
and Duncan Coutts are full-time
employees of the Company. Rob
Hutchison and Duncan Coutts have
sufficient experience that is relevant
to the style of mineralisation and
type of deposit under consideration
and to the activity being undertaken
to qualify as a Competent Person
as defined in the 2012 Edition of the
“Australasian Code for Reporting of
Exploration Results, Mineral Resources
and Ore Reserves”. Rob Hutchison
and Duncan Coutts consent to the
inclusion in this report of the matters
based on their information in the form
and context in which it appears.
28
RAMELIUS RESOURCES ANNUAL REPORT 2019 NATIVE TITLE STATEMENT
Exploration and mining areas held by the Company
may be subject to issues associated with Native Title.
While it is not appropriate to comment in any detail
upon specific negotiations with Native title parties, the
directors of Ramelius believe it is important to state
the Company’s policy and approach to Native Title and
dealings with indigenous communities.
The directors believe that the following native title policy
statement summarises the Company’s desire to develop a spirit
of cooperation in its dealings with indigenous people, create
goodwill, mutual awareness and understanding and most
importantly, respect and commitment.
Recognition and Respect
Ramelius recognises Aboriginal regard for land and respects their
culture, traditions and cultural sites.
Understanding and Trust
Ramelius listens to Aboriginal community representatives
to understand their views and beliefs. Recognising that
communities may not be fully appreciative of how the
Company’s business and industry operates, Ramelius works
towards increasing their understanding, respect and trust and to
promote the Company’s obligations and economic constraints
among indigenous communities.
Ramelius ensures that its employees and contractors approach
the Company’s activities at local sites with respect and a clear
understanding of important issues and priorities.
Communication and Commitment
Ramelius adopts practical measures to develop trust.
Acknowledging that community leaders and representatives
have an obligation to consult their people to determine their
opinions and wishes, and that this may often not be achieved
as quickly as is desired, Ramelius uses its best endeavours to
expedite the process and ensure that its commercial interests are
not adversely impacted.
The Company also uses its best endeavours to ensure reasonable
rights of consultation and continued access to land are facilitated
and the integrity of land is preserved.
The Company is committed to taking appropriate steps to
identify and reduce the effects of any unforeseen impacts from
its activities.
29
RAMELIUS RESOURCES ANNUAL REPORT 2019 SUSTAINABILITY STATEMENT
The Ramelius Board of Directors maintains
oversight of sustainability issues.
Sustainability embraces how Ramelius
conducts business and includes workforce
occupational health and safety, social
responsibility to the general community,
minimising business operational impact
on the environment and protecting the
Company’s reputation as a gold producer
in Australia.
The following is a summary of how Ramelius
deals with sustainability.
WORKFORCE HEALTH
AND SAFETY
Ramelius is committed to providing a healthy
and safe environment for all employees and
contractors. This is achieved as follows:
• Creating a culture that promotes health and
safety in the best interests of all workforce
participants;
• Regular site safety meetings which
encourage identification of issues and
continual improvement;
• Strict mine site entry procedures and
requirements including enforcement of a
drug and alcohol policy and testing of site
personnel;
•
Incident investigations and reporting to the
Board;
• Documented and regular review of
emergency procedures and processes;
• Ongoing staff training; and
• by a process of risk management.
30
RAMELIUS RESOURCES ANNUAL REPORT 2019 SUSTAINABILITY STATEMENT (CONTINUED)
SOCIAL RESPONSIBILITY
Ramelius endeavours to build and maintain a sustainable and diverse workforce focused on high
performance. The Company publically reports to shareholders and investors to ensure they are informed on
corporate governance issues and the entity’s approach to sustainability matters. The Company’s efforts in
regard to social responsibility include the following:
• Maintaining and reviewing the Company’s diversity policy which encourages a workforce comprised
of individuals with diverse backgrounds, experiences, values and skills;
• Encouraging staff training and ongoing professional development;
• Acknowledgement of native title which promotes indigenous regard for land and respect of their
culture, traditions and cultural sites;
• Engagement of shareholders and investors through presentations, roadshows and information
booths at various industry conferences;
• Encouraging full participation of shareholders at the Annual General Meeting to ensure a high level
of accountability and identification with the Company’s strategy and goals
• Providing security holders with an on-line voting facility to enable voting through a secure website or
mobile device and providing the option to receive and send communications electronically;
•
Identification and ongoing management of economic and other business-related risks including the
maintenance of a risk register; and
• Community support through sponsorships and donations.
Sunrise at
Edna May
Gold mine
31
RAMELIUS RESOURCES ANNUAL REPORT 2019 SUSTAINABILITY STATEMENT (CONTINUED)
ENVIRONMENTAL PROTECTION
The Company has policies and procedures in place
• Undertaking appropriate waste product
which aim to protect the environment. Ramelius
management activities including mine site
seeks to comply with legislative requirements and
sewage, tailings and other hazardous materials,
to promote a high regard for the environment
dust and general waste;
in conducting its business. Key areas on which
Ramelius focuses to address this important
sustainability issue are summarised below:
• Landfill rehabilitation and conducting ongoing
restoration wherever possible;
• Maintaining a focus on the efficient use of
• Environmental incidence documentation and
resources including water and power;
reporting;
•
Implementing water and other resource
• Addressing biodiversity issues as part of
recycling measures; and
the Company’s planning for and conduct of
• Facilitating environmental pollution audits and
exploration and mining activities including flora
reporting.
and fauna studies, native vegetation recording
and disturbed land restoration;
• Conducting environmental impact studies
and preparing reports thereon including
rehabilitation measures for government
assessment as part of the process in seeking
approval for proposed mining activities;
Edna May Gold Mine
Southern Waste Dump
32
RAMELIUS RESOURCES ANNUAL REPORT 2019 SUSTAINABILITY STATEMENT (CONTINUED)
WATER RESOURCE
MANAGEMENT
Ramelius conducts open pit gold mining and
processing at its Mt Magnet and Edna May
operations and underground gold mining at its
Mt Magnet, Edna May and Vivien sites located in
Western Australia where water management is an
important and integral part of site activities. We
seek to engage with our local communities and
government regulators to promote efficient water
use and effective catchment management to help
improve water security. The Company’s objectives
with respect to effective water management at its
operating sites includes:
• maximising water use efficiency at all mine
sites to reduce the need for water to be
abstracted from the environment;
• ensuring water management planning
includes consideration of mine voids at
closure;
• ensuring that environmental, social and
cultural values are not adversely affected from
the abstraction and release of water;
• effective planning and design of mining
activity to ensure quality and quantity of
public and private drinking water supplies are
not adversely affected; and
• optimising the use of excess water from
mine dewatering, either on site or off site,
to reduce adverse effects of releases to the
environment.
33
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIVERSITY STATEMENT
Ramelius acknowledges that benefits flow from a workforce comprised of individuals
with diverse backgrounds, experiences, values and skills. The Company is committed to
recruitment based on qualifications, skills, abilities and merit to ensure workforce vacancies
are filled with the most suitable employees available regardless of gender, religion, cultural
background or marital status. Ramelius values the contribution of all its employees and
encourages personal development and training of employees to achieve their full potential for
the mutual benefit of Ramelius and employees.
WORKPLACE GENDER PROFILE
During the year, the Company updated its workplace gender profile as follows.
WORKPLACE PROFILE
Women
Men
Casual
Full
Time
Part
Time
Full
Time
Part
Time
Women Men
Total
Staff
%
Women Men
Board*
Senior Executives/KMP’s
Managers
Professional Staff
Technical Staff
Community & Personal
Service Staff
Clerical & Administrative
Staff
Machinery Operators and
Drivers
Other
Total
-
-
2
3
10
3
10
1
-
29
-
-
-
1
-
-
1
-
-
2
4
4
15
28
86
5
4
48
1
195
*Excludes appointment of Natalia Streltsova on 1 October 2019
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
2
1
-
5
-
-
1
3
10
3
1
3
-
4
4
18
35
106
13
18
53
1
21
252
-
-
11.1
11.4
9.4
38.4
100.00
100.0
88.9
88.6
90.6
61.6
83.3
16.7
3.7
-
14.2
96.3
100.0
85.8
34
RAMELIUS RESOURCES ANNUAL REPORT 2019 CORPORATE GOVERNANCE STATEMENT
The Board of Directors is responsible for the
overall Corporate Governance of the Company
including strategic direction, management
goal setting and monitoring, internal control,
risk management and financial reporting.
In discharging this responsibility, the Board
seeks to take into account the interests of all
key stakeholders of the Company, including
shareholders, employees, customers and the
broader community.
Ramelius is committed to conducting its
business with high standards of ethics and
corporate governance in the best interests of all
stakeholders.
The 2019 Corporate Governance Statement of
Ramelius has been lodged with the Australian
Securities Exchange Limited and is publically
available from the “Investors” section of the
Company’s website at www.rameliusresources.
com.au
35
RAMELIUS RESOURCES ANNUAL REPORT 2019 36
RAMELIUS RESOURCES ANNUAL REPORT 2019 financial
report
2019
Directors’ report
Directors and Company Secretary
Principal activities
Dividends
Significant changes in the state of affairs
Events since the end of the financial year
Financial review
Material business risks
Environmental regulation
Information on Directors
Meetings of Directors
Remuneration report
Shares under option
Insurance of officers and indemnities
Proceedings on behalf of the Company
Non-audit services
Rounding of amounts
Auditor’s independence declaration
Financial statements
Financial statements
Notes to the financial statements
Signed reports
Directors’ declaration
Independent auditor’s report to the members
38
38
38
38
38
39
39
42
43
44
46
46
57
57
57
57
58
59
61
62
69
110
110
111
37
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT
Your Directors present their report on the consolidated entity consisting of Ramelius Resources Limited and the
entities it controlled at the end of, or during, the year ended 30 June 2019. Throughout the report, the consolidated
entity is referred to as the group. Unless specifically noted, all dollar amounts disclosed in this report are
Australian Dollars (A$ or AUD).
Directors and Company secretary
The following persons were Directors of Ramelius Resources Limited during the whole of the financial year and up to
the date of this report:
Kevin Lines
Mark Zeptner
Michael Bohm
David Southam was appointed as a Director on 2 July 2018 and continued in office at the date of this report.
The Company Secretary is Richard Jones. Mr Jones was appointed to the position of Company Secretary on 30
November 2018 after serving as Joint Company Secretary from 1 October 2018. Mr Jones has nearly 20 years’ experience
as a corporate commercial lawyer in both private and in-house capacities and across various industries. He has also
served as Company Secretary for ASX listed and unlisted companies in the mining sector.
Principal activities
The principal activities of the group during the year included exploration, mine development, mine operations and the
production and sale of gold. There were no significant changes to those activities during the year.
Operations review
A review of the group’s operations during the year ended 30 June 2019 is provided in the section of the report headed
‘Review of Operations’, which commences on page 8.
Development & exploration projects
A review of the group’s development and exploration projects during the year ended 30 June 2019 is provided in the
section of the report headed ‘Development & Exploration Projects, which commences on page 14.
Dividends
Dividends recommended but not yet paid
Since the end of the 2019 financial year the Directors have recommended the payment of a fully franked final dividend
of 1 cent per fully paid share. The fully franked final dividend will have a record date of 4 September 2019 and a payment
date of 4 October 2019.
The financial effect of the final dividend has not been brought to account in the financial statements for the year ended
30 June 2019 and will be recognised in subsequent financial reports.
Dividends paid
There were no dividends paid in the year ended 30 June 2019.
Significant changes in the state of affairs
Acquisition of the Tampia Hill Gold Project (Explaurum Limited)
The Tampia Hill Gold Project is located near Narembeen, 204km east of Perth in Western Australia and 140km by road
from the existing Edna May gold mine and processing facility. The Tampia Hill Gold Project has a Mineral Resource of
460,000 ounces and an Ore Reserve of 200,000 ounces (refer to ASX Announcement dated 17 June 2019 “Life of Mine
and Tampia Update”).
On 10 September 2018 Ramelius announced an initial off-market takeover bid to acquire all of the ordinary shares of
Explaurum Limited (“Explaurum”). Under the offer, Explaurum shareholders would have received one (1) Ramelius share
for every four (4) Explaurum shares held.
On 13 December 2018 Ramelius announced an improved, best and final takeover offer for Explaurum. Under the improved
offer Explaurum shareholders received $0.02 cash for every Explaurum share held in addition to the existing consideration
of one (1) Ramelius share for every four (4) Explaurum shares held. On 18 December 2018 the Explaurum Board unanimously
recommended that Explaurum shareholders accept the Ramelius offer in the absence of a superior proposal.
Control of Explaurum was attained on 27 December 2018. The offer formally closed on 25 February 2019 with Ramelius
holding a relevant interest in 95.58% of Explaurum shares. On this date Ramelius exercised its compulsory acquisition
powers under the Corporations Act to acquire the remaining Explaurum shares. The compulsory acquisition was
completed on 4 April 2019 with Ramelius having a 100% relevant interest in Explaurum Limited and its subsidiaries.
38
RAMELIUS RESOURCES ANNUAL REPORT 2019
DIRECTORS’ REPORT (CONTINUED)
Significant changes in the state of affairs (continued)
Acquisition of the Tampia Hill Gold Project (Explaurum Limited) (continued)
A total of $8.5 million cash consideration (net of receipts) was paid along with 127,778,619 Ramelius shares issued to
Explaurum Shareholders as part of the offer. Acquisition costs totaled $4.9 million which includes stamp duty on the
transaction.
Acquisition of the Marda Gold Project
The Marda Gold Project is located 191km north-northeast of the Edna May operations and is amenable to processing
at the existing Edna May facilities. The Marda Gold Project has a Mineral Resource of 300,000 ounces and an initial Ore
Reserve of 89,000 ounces.
On 13 September 2018 Ramelius entered into a binding agreement for the acquisition of Black Oak Minerals Limited (in
Liquidation) (“BOK”), the owner of the Marda Gold Project, for $13.0 million.
A BOK creditors meeting held on 1 November 2018 approved the acquisition of BOK by Ramelius paving the way for
Ramelius to apply to the Federal Court of Australia for the transfer of the shares in BOK to the group. On 31 January
2019 the Federal Court of Australia approved the transfer of shares with completion occurring on 13 February 2019.
Transaction costs were $0.9 million.
Further details of the acquisitions can be found in note 17 to the financial statements.
Greenfinch approvals delayed
The Clearing Permit for Edna May was rejected by the Department of Mines, Industry Regulations and Safety (DMIRS)
in November 2018. This decision was appealed by Ramelius and, on 13 May 2019, the Environment Minister upheld the
decision of the DMIRS. However, at the same time, the Environment Minister invited Ramelius to re-submit a revised
Clearing Permit application. This revised submission, with a materially reduced project footprint, was made in June 2019
and focused on avoiding all of the Declared Rare Flora species, Eremophila resinosa, without loss of the original 57,000
ounces of recoverable gold.
There were no other significant changes in the state of affairs of the group that occurred during the financial year not
otherwise disclosed in this report or the financial statements.
Events since the end of the financial year
No matter or circumstance has arisen since 30 June 2019 that has significantly affected the group’s operations, results,
or state of affairs, or may do so in the future.
Financial review
Financial performance
Revenue
Cash costs of production
Gross margin excluding
“non-cash” items
Mt
Magnet
$M
Edna
May
$M
Corp &
other
$M
207.2
(130.1)
145.6
(80.1)
77.1
65.5
Amortisation and depreciation
(67.9)
Inventory movements
Gross profit
Earnings before interest & tax (EBIT)
Profit / (loss) before income tax
Income tax expense
Profit / (loss) for the year from
continuing operations
2019 Financial performance
5.3
14.5
14.5
14.5
-
14.5
(13.4)
(23.0)
29.1
29.1
29.1
-
29.1
-
-
-
-
-
-
(12.9)
(13.2)
(8.6)
(21.8)
Group
2019
$M
352.8
(210.2)
142.6
(81.3)
(17.7)
43.6
30.7
30.4
(8.6)
21.8
2018
$M
Change
$M
Change
%
341.8
(209.4)
11.0
(0.8)
+ 3 %
+ 0 %
132.4
10.2
+ 8 %
(80.7)
(0.6)
+ 1 %
8.2
59.9
46.2
45.5
(14.7)
(25.9)
- 316 %
(16.3)
(15.5)
(15.1)
6.1
- 27 %
- 34 %
- 33 %
- 41 %
30.8
(9.0)
- 29 %
39
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Financial review (continued)
Revenue Reconciliation
Revenue reconciliation between 2019 and 2018
Revenue
Revenue for the year ended 30 June 2019 increased by 3% to $352.8 million compared to $341.8 million for the year
ended 30 June 2018. The main driver behind this has been an improved gold price environment with lower production
from Mt Magnet being offset by increased production at Edna May:
• Mt Magnet gold sales decreased by 11% or 15,568 ounces due to the lower grades as discussed within this report;
• Edna May gold sales increased by 23% or 15,861 ounces due to the operation being owned for the full financial year
(owned for only nine months of the 2018 financial year) as well as higher throughput rates;
• The realised gold price was $1,726 per ounce, a 3% increase on the 2018 realised gold price of $1,679, and slightly below
the average spot price for the year of A$1,768 per ounce;
• Silver & other sales increased to $1.8 million in 2019 from $0.8 million in 2018, this was mainly due to the sale of
equipment at Edna May as the mine moved to a contractor model when operations focused on the underground
development.
Earnings before interest & tax (EBIT)
The EBIT for the year ended 30 June 2019 was $30.7 million compared to $46.2 million for the year ended 30 June 2018,
representing a 34% decrease.
Mt Magnet delivered an EBIT of $14.5 million for the year ended 30 June 2019 which was down from the $44.2 million
gross profit for the year ended 30 June 2018. Profitability at Mt Magnet was down on 2018 due to slightly higher
operating costs and lower grades in 2019 financial year at that operation. The cost per tonne at Mt Magnet was up 7%
on the prior year due to higher operating costs due to higher stripping costs at Milky Way in the year and the operations
moving to smaller open pits which have lower productivity rates.
Whilst operating costs were higher the main driver of the reduced profitability has been due to the lower grades at
Mt Magnet & Vivien with the total cost of sales per ounce increasing 19%. Grades were down at the Mt Magnet
project as a result of 58% less high grade underground ore being available as mining at Water Tank Hill concluded
and underground operations focused on the development of the new Hill 60 and Shannon underground mines.
The development of these underground mines in 2019 will deliver higher grades in the 2020 financial year. This drop
in underground ore was offset in part by a 6% increase in the grade of open pit ore fed into the processing plant at
Mt Magnet. Whilst the volumes from the Vivien mine were comparable to the 2018 financial year grades at Vivien
decreased 20% on the 2018 grades.
Edna May delivered an EBIT of $29.1 million for the year ended 30 June 2019 compared to $15.7 million for the year ended
30 June 2018. Whilst this is in part due to the operation being controlled by Ramelius for the whole financial year in 2019
it is also, and more importantly, attributable the improved financial performance of the operation. Profitability at Edna
May increased in the 2019 financial year with the completion of the Stage 2 open pit delivering higher than expected
grades. This was despite the business incurring costs involved in the restructure of the operations as a seamless
transition to the Greenfinch project was not possible. As the Stage 2 stockpiles were exhausted the mill feed came to
rely on the low grade stockpiles which again delivered excellent, and higher than expected, grades.
40
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Financial review (continued)
Earnings before interest & tax (EBIT) (continued)
Low grade ore stockpiles will continue to be the primary source of ore feed at Edna May until the Marda and Greenfinch
ore becomes available and will continue to be used for blending purposes. Low grade ore has delivered positive earnings
as well as positive cash flow over the year.
Reconciliation of earnings before interest & tax (EBIT)
Reconciliation of movement in EBIT from 2018 to 2019
Overall the cost of sales for the group (on a per tonne basis) decreased 9%, however, the cost of sales increased in
absolute terms as a result of higher tonnes being milled. This has not been reflected in higher gold sales revenue due to
the decreased grades across the group’s operations.
Net profit after tax (NPAT)
A net profit after income tax of $21.8 million was recorded for the year ended 30 June 2019, representing a decrease of
29% from the year ended 30 June 2018.
Net finance costs, which include interest income and non-cash financing costs relating to the unwinding of provisions
and contingent consideration, were comparable to the 2018 financial year.
The effective tax rate of the group for the year ended 30 June 2019 was 28% compared to 32% for the year ended 30
June 2018. The 30 June 2018 effective tax rate was higher due to non-deductible costs associated with the acquisition of
Edna May.
Cashflow
The net cash from operations for the year was $137.0 million compared to $118.9 million in the 2018 financial year. This
has been due to the monetisation of ore stockpiles and gold on hand that was accumulated in the prior year. Ore &
gold stockpiles decreased $17.7 million in the financial year ended 30 June 2019 compared to a build-up of gold and ore
stockpiles in the 2018 financial year of $8.2 million.
A total of $109.0 million was re-invested during the year which included:
• Payments for the Tampia Gold Project (Explaurum Limited) (net of cash acquired) of $8.4 million;
• Payments for the Marda Gold Project (Black Oak Minerals Limited) of $13.2 million;
• Payments for the development of open pit and underground mines of $58.2 million; and
• Payments for mining tenements and exploration of $19.0 million.
Free cash flow# for the year was $51.8 million (2018: $34.9 million). Cash on hand at the end of the financial year was $95.8
million compared to $68.2 million at 30 June 2018. As at 30 June 2019 a total of 5,465 ounces of gold were on hand with
the reported cash and gold bullion on hand at 30 June 2019 being $106.8 million (2018: $88.7 million).
Corporate
Ramelius held forward gold sales contracts at 30 June 2019 totaling 240,900 ounces of gold at an average price
of A$1,834 per ounce over a period to August 2021. This compared to forward gold sales contracts at 30 June 2018
totaling 140,250 ounces of gold at an average price of A$1,719 per ounce over a period to November 2019. The level of
price protection has increased as the group’s production profile has increased along with the record AUD gold prices
enabling attractive cash margins to be secured.
# - Free cash flow is defined as operating cash flows less payments for development, exploration and property, plant, and equipment.
41
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Material business risks
The material business risks for the group include:
• Fluctuations in the United States Dollar (“USD”) spot gold price and AUD/USD exchange rate: The financial results
and position of the group are reported in Australian dollars. Gold is sold throughout the world based principally on
the U.S. dollar price. Accordingly, the groups revenues are linked to both the USD spot gold price and AUD/USD
exchange rate. Volatility in the gold price creates revenue uncertainty and requires careful management to ensure
that operating cash margins are maintained should there be a sustained fall in the AUD spot gold price. The group
uses AUD gold forward contracts, within certain Board approved limits, to manage exposure to fluctuations in the
AUD gold price.
• Government regulation: The group’s mining, processing, development and exploration activities are subject to
various laws and statutory regulations governing prospecting, development, production, taxes, royalty payments,
labour standards and occupational health, mine safety, toxic substances, land use, water use, communications, land
claims of local people and other matters.
No assurance can be given that new laws, rules and regulations will not be enacted or that existing laws, rules and
regulations will not be applied in a manner which could have an adverse effect on the group’s financial position and
results of operations. Any such amendments to current laws, regulations and permits governing operations and
activities of mining and exploration, or more stringent implementation thereof, could have a material adverse impact
on the group.
• Operating risks and hazards: The group’s mining operations, consisting of open pit and underground mines,
involve a degree of risk. The group’s operations are subject to all the hazards and risks normally encountered in the
exploration, development and production of gold. Processing operations are subject to hazards such as equipment
failure, toxic chemical leakage, loss of power, fast-moving heavy equipment, failure of tailings disposal pipelines
and retaining dams around tailings containment areas, rain and seismic events which may result in environmental
pollution and consequent liability. The impact of these events could lead to disruptions in production and
scheduling, increased costs and loss of facilities, which may have a material adverse impact on the group’s results of
operations, financial condition, license to operate and prospects. These risks are managed by a structured operations
risk management framework, experienced employees and contractors and formalised procedures. Ramelius also has
in place a comprehensive insurance program with a panel of experienced industry supportive underwriters.
• Production, cost and capital estimates: The group prepares estimates of future production, operating costs and
capital expenditure relating to production at its operations. The ability of the group to achieve production targets or
meet operating and capital expenditure estimates on a timely basis cannot be assured. The assets of the group are
subject to uncertainty with regards to ore tonnes, grade, metallurgical recovery, ground conditions, and operational
environment. Failure to achieve production, cost or capital estimates, or material increases to costs, could have an
adverse impact on the group’s future cash flows, profitability and financial condition. The development of estimates
is managed by the group using a rigorous budgeting and forecasting process. Actual results are compared with
forecasts and budgets to identify drivers behind discrepancies which may result in updates to future estimates.
• Exploration and development risk: An ability to sustain or increase the current level of production in the longer term
is in part dependent on the success of the group’s exploration activities and development projects, and the expansion
of existing mining operations.
The exploration for, and development of, mineral deposits involves significant risks that even a combination of
careful evaluation, experience and knowledge may not eliminate. While the discovery of an ore body may result in
substantial rewards, few properties that are explored subsequently have economic deposits of gold identified, and
even fewer are ultimately developed into producing mines. Major expenses may be required to locate and establish
mineral reserves, to establish rights to mine the ground, to receive all necessary operating permits, to develop
metallurgical processes and to construct mining and processing facilities at a particular site.
• Ore Reserves and Mineral Resources: The group’s estimates of Mineral Resources and Ore are based on different
levels of geological confidence and different degrees of technical and economic evaluation, and no assurance can
be given that anticipated tonnages and grades will be achieved, that the indicated level of recovery will be realised
or that Ore Reserves could be mined or processed profitably. The quality of any Mineral Resources and Ore Reserves
estimate is a function of the quantity of available technical data and of the assumptions used in engineering and
geological interpretation, and modifying factors affecting economic extraction. Such estimates are compiled by
experienced and appropriately qualified personnel and subsequently reported by Competent Persons under the
JORC Code. Fluctuation in gold prices, key input costs to production, as well as the results of additional drilling, and
the evaluation of reconciled production and processing data subsequent to any estimate may require revision of
such estimates.
42
RAMELIUS RESOURCES ANNUAL REPORT 2019
DIRECTORS’ REPORT (CONTINUED)
Material business risks (continued)
Actual mineralisation of ore bodies may be different from those predicted, and any material variation in the
estimated Ore Reserves, including metallurgy, grade, dilution, ore loss, or stripping ratio at the group’s properties
may affect the economic viability of its properties, and this may have a material adverse impact on the group’s
results of operations, financial condition and prospects. There is also a risk that depletion of reserves will not be offset
by discoveries or acquisitions, or that divestitures of assets will lead to a lower reserve base. The reserve base of the
group may decline if reserves are mined without adequate replacement and the group may not be able to sustain
production beyond current mine lives, based on current production rates.
• Climate Change: Ramelius acknowledges that climate change effects have the potential to impact our business. The
highest priority climate related risks include reduced water availability, extreme weather events, changes to legislation
and regulation, reputational risk, and technological and market changes. The group is committed to understanding
and proactively managing the impact of climate related risks to our business. This includes integrating climate
related risks, as well as energy considerations, into our strategic planning and decision making.
Environmental regulation
Regulations
The operations of the group in Australia are subject to environmental regulations under both Commonwealth and State
legislation. In the mining industry, many activities are regulated by environmental laws as they may have the potential
to cause harm and/or otherwise impact upon the environment. Therefore, the group conducts its operations under the
necessary State Licences and Works Approvals to carry out associated mining activities and operate a processing plant
to process mined resources. The group’s licences and works approvals are such that they are subject to audits both
internally and externally by the various regulatory authorities. These industry audits provide the group with valuable
information in regard to environmental performance and opportunities to further improve systems and processes,
which ultimately assist the business in minimising environmental risk.
Reporting
Due to the various licences and works approvals the group holds, annual environmental reporting (for a 12-month
period) is a licence and works approval condition. The group did not experience any reportable environmental incidents
for the reporting year 2018-2019. Regulatory agencies requiring annual environmental reports are outlined below but
are not limited to the following:
• Department of Water and Environmental Regulation (DWER);
• Department of Mines, Industry Regulation and Safety (DMIRS);
• Tenement Condition Report;
• Native Vegetation Clearing Report;
• Mining Rehabilitation Fund (MRF) Levy;
• National Pollutant Inventory (NPI);
• National Greenhouse and Energy Reporting Scheme (NGERS); and
• Bureau of Land Management.
Sustainability
The group is committed to environmental performance and sustainability and works closely with the regulatory
authorities to minimise the environmental impact and achieve sustainable operations. Where the business can,
continuous improvement processes are implemented to improve the operation and environmental performance. The
group seeks to build relationships with all stakeholders to ensure that their views and concerns are taken into account
in regard to decisions made about the operations, to achieve mutually beneficial outcomes. This includes current
operations, future planning and post closure activities.
43
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Information on Directors
Kevin Lines
BSc (Geology), MAusIMM, MAICD
Mark Zeptner
BEng (Hons) Mining, MAusIMM, MAICD
Independent Non-Executive Chairman
Managing Director & Chief Executive Officer
Experience
Mr Lines is a geologist and has more than 35 years’
experience in mineral exploration and mining for
gold, copper, lead, zinc and tin. He has held senior
geological management positions with Newmont
Australia Limited, Normandy Mining Limited and the
CRA group of companies. He was the foundation Chief
Geologist at Kalgoorlie Consolidated Gold Mines where
he led the team that developed the ore-body models
and geological systems for the Super-Pit Operations in
Kalgoorlie.
Interest in Shares and Options
1,000,000 Ordinary Shares
Special responsibilities
Chairman of the Board
Member of Audit & Risk Committee
Member of Nomination & Remuneration Committee
Directorships held in other listed entities in the
last three years
None.
Experience
Mr Zeptner has more than 25 years’ industry experience
including senior operational and management positions
with WMC and Gold Fields Limited at their major gold
and nickel assets in Australia and offshore. He joined
Ramelius on 1 March 2012 as the Chief Operating Officer,
was appointed Chief Executive Officer on 11 June 2014
and Managing Director effective 1 July 2015.
Interest in Shares and Options
3,012,500 Ordinary Shares
1,500,000 Options over Ordinary Shares exercisable at
$0.20 expiring on 11 June 2020
500,000 Performance Rights over Ordinary Shares
expiring on 11 June 2026
568,956 Performance Rights over Ordinary Shares
vesting on 1 July 2021 and expiring on 1 July 2028
Special responsibilities
Chief Executive Officer
Directorships held in other listed entities in the
last three years
None.
44
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Information on Directors (continued)
Michael Bohm
B.AppSc (Mining Eng.), MAusIMM, MAICD
David Southam
B.Comm, CPA, MAICD
Independent Non-Executive Director
Independent Non-Executive Director
Experience
Mr Bohm is a mining engineer with extensive corporate
and operational management experience in the
minerals industry in Australia, South East Asia, Africa,
Chile, Canada and Europe. He is a graduate of the WA
School of Mines and has worked as a mining engineer,
mine manager, study manager, project manager,
project director and Managing Director. He has been
directly involved in many project developments in the
gold, base metals and diamond sectors in both open pit
and underground mining environments.
Interest in Shares and Options
1,237,500 Ordinary Shares (as at 30 June 2019)
Special responsibilities
Chairman of Nomination & Remuneration Committee
Member of Audit & Risk Committee
Directorships held in other listed entities in the
last three years
Chairman of Cygnus Gold Limited and Non-Executive
Director Mincor Resources NL
Previously a Non-Executive Director of Perseus Mining
Limited, Tawana Resources NL and Berkut Minerals
Limited
Experience
Mr Southam is a Certified Practicing Accountant with
more than 25 years’ experience in accounting, capital
markets and finance across the resources and industrial
sectors. Mr Southam has been intimately involved in
several large project financings in multiple jurisdictions
and has completed significant capital market and M & A
transactions.
Interest in Shares and Options
Nil
Special responsibilities
Chairman of Audit & Risk Committee
Member of Nomination & Remuneration Committee
Directorships held in other listed entities in the
last three years
Managing Director of Mincor Resources NL
Previously Executive Director of Western Areas Limited
Previously Non-Executive Director of Kidman Resources
Limited
45
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Meetings of Directors
The number of meetings of the Company’s Board of Directors and each Board Committee held during the year ended
30 June 2019, and number of meetings attended by each Director were:
Full meetings of Directors
Audit & Risk Committee
Nomination &
remuneration Committee
Meetings of Committees
Director
Kevin Lines
Mark Zeptner
Michael Bohm
David Southam
A
17
17
17
15
B
17
17
17
17
A
6
-
6
6
B
6
-
6
6
A
5
-
5
5
B
5
-
5
5
A = Number of meetings attended; B = Number of meetings held during the time the Director held office or was a member of the
Committee during the year
Remuneration report (audited)
The Directors present the Ramelius Resources Limited 2019 remuneration report, outlining key aspects of our
remuneration policy and framework, and remuneration awarded this year. This remuneration report is prepared in
accordance with the requirements of the Corporations Act 2001 (the Act) and its regulations. This information has been
audited as required by section 308(3C) of the Act.
The remuneration report details the remuneration arrangements for key management personnel (KMP) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major activities
of the group, directly or indirectly, including any directors (executive and non-executive) of Ramelius Resources Limited.
For this report a KMP is a direct report to the Managing Director / Chief Executive Officer which includes the Chief
Financial Officer, Chief Operating Officer, General Manager – Exploration, and the Manager Legal / Company Secretary.
The report is structured as follows:
(a) Key management personnel covered in this report
(b) Remuneration governance
(c) Remuneration policy and framework
(d) Elements of remuneration
(e) Link between remuneration and performance
(f) Contractual arrangements for executive KMP
(g) Non-executive director arrangements
(h) Details of KMP remuneration
(i) Other statutory information
(a) Key management personnel covered in this report
Name
Position
Directors of the group during the financial year were:
Kevin Lines
Mark Zeptner
Michael Bohm
David Southam
Non-Executive Chairman
Managing Director / Chief Executive Officer
Non-Executive Director
Non-Executive Director (appointed 2 July 2018)
The KMP during the financial year were:
Tim Manners
Duncan Coutts
Kevin Seymour
Richard Jones 1
Chief Financial Officer
Chief Operating Officer
General Manager – Exploration
Manager Legal / Company Secretary (appointed 1 October 2018)
Domenico Francese 1
Company Secretary (resigned 30 November 2018)
1. Richard Jones & Domenico Francese served as Joint Company Secretary for the period 1 October 2018 to 30 November 2018.
Details on the Executive and Non-Executive Directors can be found on pages 45 to 46 of the Directors report.
46
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Remuneration report (audited) (continued)
(b) Remuneration governance
The Nomination & Remuneration Committee (NRC) is a Committee of the Board. It is primarily responsible for making
recommendations to the Board on:
• Non-executive director fees;
• Executive remuneration (directors and executives); and
• The executive remuneration framework and incentive plan policies.
The objective of the NRC is to ensure that remuneration policies and structures are fair and competitive and aligned
with the long-term interests of the Company. In performing its functions, the NRC may seek advice from independent
remuneration consultants. No such consultants were engaged during the year.
(c) Remuneration policy and framework
Ramelius has adopted a policy that aims to attract, motivate and retain a skilled executive team focused on contributing
to its objective of creating wealth and adding value for its shareholders. The remuneration framework has been formed
on this basis. The remuneration framework is based on several factors including the experience and performance of the
individual in meeting key objectives of Ramelius.
The objective of the executive remuneration framework includes incentives that seek to encourage alignment of
management performance and shareholder interests. The framework aligns executive rewards with strategic objectives
and the creation of value for shareholders and conforms to market practices for delivery of rewards.
In determining executive remuneration, the NRC aims to ensure that remuneration practices are:
• Competitive and reasonable, enabling the Company to attract and retain and incentivise key talent;
• Aligned to the Company’s strategic and business objectives and the creation of shareholder value;
• Distinctly demonstrate a link between performance and pay;
• Structured to have a suitable mix of fixed and performance related variable components;
• Acceptable to shareholders, and
• Transparent.
The executive remuneration framework is designed to ensure market competitiveness and achievement of the
remuneration objective. The remuneration of executives is:
• Benchmarked from time to time against similar organisations both within the industry and of comparable market
size to ensure uniformity with market practices;
• A reflection of individual roles, levels of seniority and responsibility that key personnel hold;
• Structured to take account of prevailing economic conditions; and
• A mix of fixed remuneration and at-risk performance-based elements using short and long-term incentives.
The executive remuneration framework has three components:
• Base pay and benefits, including superannuation;
• Short-term performance incentives; and
• Long-term incentives through participation in the Performance Rights Plan as approved by the Board.
The combination of these comprises an executive’s total remuneration package. Incentive plans are regularly reviewed
to ensure continued alignment with financial and strategic objectives.
(d) Elements of remuneration
Ramelius remunerates its executives with a total remuneration package (“TRP”) that consists of two components:
• Total fixed remuneration; and
• Total variable remuneration.
The total variable remuneration ensures an executive’s remuneration is aligned to the group’s performance, this portion
of an executive’s remuneration is considered “at risk”. Variable remuneration can be in the form of either a short-term
incentive (STI) or a long-term incentive (LTI).
47
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Remuneration report (audited) (continued)
(d) Elements of remuneration (continued)
Total fixed remuneration
Total fixed remuneration (“TFR”) comprises of base salary, superannuation, and any fringe benefits tax charges related to
employee benefits. The group allows a KMP to salary sacrifice certain items such as superannuation and motor vehicles
(on a total cost basis).
Remuneration levels are reviewed annually in June by the NRC through a process that considers individual and overall
performance of the group. Industry remuneration surveys and data are utilised to assist in this process. There are no
guaranteed base pay increases included in any executive contracts.
Short-term incentives
Short-term incentives (STI) allow executives to earn an annual incentive which is linked the group’s annual performance.
How is it paid?
Any STI awards are paid in cash after the assessment of the annual performance is made.
How much can an
executive earn?
In the 2019 financial year the Managing Director / Chief Executive Officer was able to earn a
maximum STI of 60% of the TFR. Other executives were able to earn a maximum STI of 45% of
their TFR.
In conjunction with the group’s key performance measures detailed below, a comprehensive
review of each executive’s individual performance is made to determine the achievable
percentage (between 0% - 100%) of the maximum potential STI available to be awarded.
This may result in the proportion of remuneration related to performance varying between
individual executives.
A structured set of key performance measures have been selected which are core drivers
of short-term performance as well as considered important for the group’s growth and
profitability.
For any STI to be paid two “gates” must be passed, these are:
• No loss of life at any project site; and
• No serious environmental breach.
The KPI’s used to measure performance for the Managing Director / Chief Executive Officer
are:
• Net profit after tax relative to budget
• Gold production relative to budget
30%
20%
• All in sustaining cost (AISC) relative to budget
30%
• Reserve addition to Life of Mine Plan
20%
How is performance
measured?
The KPI’s used to measure performance for the other KMP’s are as follows. Ranges are shown
as the particular weighting varies depending on the role of the KMP:
• Net profit after tax relative to budget
• Gold production relative to budget
20 - 30%
20 - 30%
• All in sustaining cost (AISC) relative to budget
20 - 30%
• Reserve addition to Life of Mine Plan
20 - 40%
The performance is measured relative to the budget with threshold, target, and stretch cases
considered.
The STI’s are payable at the absolute discretion of the Board, there are several modifiers
considered by the Board which may result in a downward reduction in the STI’s paid.
The STI award is determined following a review of the financial results, operations, life-of-
mine plan and the annual Resources & Reserves Statement by the NRC. This typically occurs
in the second Quarter of the financial year. No amount is provided for or included in the
financial report and remuneration report until such review has taken place.
When is it paid?
48
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Remuneration report (audited) (continued)
(d) Elements of remuneration (continued)
Short-term incentives (continued)
Based on this assessment, the STI cash payments for the 2018 financial year which were paid in the 2019 financial year
are detailed in the following table:
Name
Position
Mark Zeptner
Tim Manners
Managing Director / Chief Executive Officer
Chief Financial Officer
Duncan Coutts
Chief Operating Officer
Kevin Seymour
General Manger – Exploration
Richard Jones 2
Manager Legal / Company Secretary
Domenico Francese
Company Secretary
Maximum STI1
Achieved STI1
%
60%
45%
45%
45%
n/a
45%
$
326,700
176,963
190,575
141,750
n/a
163,123
%
46%
33%
34%
33%
n/a
29%
$
250,470
129,773
142,932
103,818
n/a
103,455
1 Amounts disclosed above include superannuation attributable to the STI.
2 Richard Jones was not employed by the group in the 2018 financial year and as such no bonus payment was made.
Long-term incentives
Under the Ramelius Performance Rights Plan, annual grants of performance rights are made to executives to align
remuneration with the creation of shareholder value over the long-term. The LTI’s are designed to focus executives on
delivering long-term shareholder returns.
How is it paid?
How much can an
executive earn?
How is performance
measured?
LTI’s are provided to selected executives under the Ramelius Performance Rights Plan.
Selected executives are eligible to receive performance rights (being entitlements to
shares in Ramelius subject to satisfaction of vesting conditions) as long-term incentives as
determined by the Board in accordance with the terms and conditions of the plan.
The plan provides selected executives the opportunity to participate in the equity of
Ramelius through the issue of rights as a long-term incentive that is aligned to the long-
term interests of shareholders.
Under the Performance Rights Plan, the number of rights granted to executives ranges up
to 40% (60% for the Managing Director / Chief Executive Officer) of the executive’s TFR and
is dependent upon the individual’s skills, responsibilities and ability to influence financial
or other key objectives of Ramelius. The number of rights granted is calculated by dividing
the LTI remuneration dollar amount by the volume weighted average price of Ramelius
shares traded on the Australian Securities Exchange during the 5-trading day period prior
to the date of the grant.
The vesting of performance rights is subject to vesting conditions related to achievement
of total shareholder returns (TSR) and period of service. TSR performance is measured
against the TSR of a benchmark peer group.
The following companies have been identified by Ramelius to comprise the peer group.
Company
Saracen Mineral Holdings Limited
Regis Resources Limited
Silver Lake Resources Limited
Westgold Resources Limited
Gascoyne Resources Limited
Northern Star Resources Limited #
Resolute Mining Limited #
Gold Road Resources Limited
Millennium Minerals Limited
Dacian Gold Limited
St Barbara Limited
Pantoro Limited
Blackham Resources Limited
Evolution Mining Limited #
# Companies added to the peer group on 25 July 2019 but not applied retrospectively
ASX Code
SAR
RRL
SLR
WGX
GCY
NST
RSG
GOR
MOY
DCN
SBM
PNR
BLK
EVN
49
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Remuneration report (audited) (continued)
(d) Elements of remuneration (continued)
Long-term incentives (continued)
How is performance
measured?
(continued)
The NRC may recommend to the Board to either include or exclude gold mining
organisations available on this list to reflect changes in the industry.
The proportion of executive rights that vest is dependent on how the Ramelius TSR
compares to the peer group as follows:
Relative TSR Over the Vesting and
Measurement Period
Below the 50th percentile
At the 50th percentile
Between the 50th and 75th percentile
At and above the 75th percentile
Proportion of Performance
Rights Vested
0%
50%
Pro-rata between 50% and 100%
100%
Once vested, rights may be exercised within seven years of the vesting date.
The vesting and measurement period for performance rights granted in the 2017 financial
year have been set over three years with vesting and measurement for each third of the
granted rights occurring at the end of each year during the three-year period.
When is performance
measured?
For performance rights granted after 30 June 2017 the performance rights vest three years
after the grant date.
Any performance rights that do not vest will lapse after testing. There is no re-testing of
performance rights.
What happens if an
executive leaves?
Where an executive ceases to be an employee of the group any unvested performance
rights will lapse on the date of cessation of employment, except in limited circumstances
that are approved by the Board on a case by case basis.
Based on the above assessment the performance rights issued, vested, and lapsed in the 2019 financial year (for the 2018
financial year performance) are detailed in the following table:
Name
Position
Issued 1
Performance
rights measured
for vesting
Percentage
vested %
Number
vested
Mark Zeptner
Managing Director / Chief
Executive Officer
568,956
500,000
100%
500,000
Tim Manners
Chief Financial Officer
Duncan Coutts
Chief Operating Officer
260,966
284,483
Kevin Seymour
General Manger – Exploration
201,186
Richard Jones 1
Manager Legal / Company
Secretary
189,655
-
117,994
87,653
-
Domenico Francese Company Secretary
-
101,138
-
83%
83%
-
83%
-
98,336
73,050
-
84,288
All performance rights
3,825,125
1,358,451
89%
1,215,432
1 Performance rights issued during the financial year will be measured for vesting on 1 July 2021.
Employee Share Acquisition Plan
The Employee Share Acquisition Plan enables the Board to offer eligible employees ordinary fully paid shares in
Ramelius as a long-term incentive, in accordance with the terms of the plan. Shares may be offered at no consideration
unless the Board determines that market value or some other value is appropriate. No such shares were offered during
the 2019 financial year.
Other long-term incentives
The Board may at its discretion provide share rights/options as a long-term retention incentive to employees.
50
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Remuneration report (audited) (continued)
(e) Link between remuneration and performance
The following table shows key performance indicators for the group over the last five years:
Name
Net profit (loss) after tax ($000)
Dividend / capital return ($000)
Share price 30 June ($)
Basic earnings per share (cents)
Diluted earnings per share (cents)
2019
21,832
-
0.73
3.74
3.67
2018
30,760
-
0.58
5.84
5.75
2017
17,765
-
0.45
3.39
3.36
2016
27,540
-
0.44
5.82
5.81
2015
16,068
-
0.12
3.48
3.48
The total remuneration mix for the Managing Director / Chief Executive Officer and Other Executives is illustrated in the
following graph. The link between performance and remuneration is discussed within this remuneration report.
2019 Total remuneration mix
Other
Executives
Managing
Director/CEO
63%
21%
7% 9%
56%
25%
11% 8%
0%
20%
40%
60%
80%
100%
TFR
STI
LTI
STI forgone
(f) Contractual arrangements for executive KMP
Remuneration and other terms of employment for executives are formalised in service agreements. The service
agreements specify the components of remuneration, benefits and notice periods. Participation in short-term
and long-term incentives are at the discretion of the Board. Other major provisions of the agreements relating to
remuneration are set out below. Contracts with executives may be terminated early by either party as detailed below:
Name and Position
Term of Agreement
Mark Zeptner
Managing Director / Chief
Executive Officer
Tim Manners
Chief Financial Officer
Duncan Coutts
Chief Operating Officer
Kevin Seymour
GM – Exploration
Richard Jones
Manager Legal / Company
Secretary
On-going commencing
1 July 2015
On-going commencing
31 July 2017
On-going commencing
12 February 2016
On-going commencing
1 July 2009
On-going commencing
26 October 2018
Base Salary
incl. Super 1
Company /
Employee
Notice Period
$550,000
6 / 3 months
$378,400
6 / 3 months
$412,500
3 / 3 months
$291,720
3 / 3 months
$275,000
6 / 3 months
Termination
Benefit 2
6 months base
salary
6 months base
salary
3 months base
salary
3 months base
salary
6 months base
salary
1. Base salaries quoted are as at 30 June 2019, they are reviewed annually by the Nomination & Remuneration Committee
2. Termination benefits are payable on early termination by the Company, other than for gross misconduct, unless otherwise indicated. In
certain circumstances the termination benefit may be 12 months base salary.
51
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Remuneration report (audited) (continued)
(g) Non-executive director arrangements
Non-executive director fees are determined using the following guidelines. Fees are:
• Determined by the nature of the role, responsibility and time commitment necessary to perform required duties;
• Not performance or incentive based but are fixed amounts; and
• Determined by the desire to attract a group of individuals with pertinent knowledge and experience.
In accordance with the Company’s Constitution, the total amount of remuneration of Non-Executive Directors is within
the aggregate limit of $550,000 per annum as approved by shareholders at the 2010 Annual General Meeting.
Non-executive directors may apportion any amount up to this maximum level amongst the non-executive directors as
determined by the Board. Remuneration consists of non-executive director fees, committee fees and superannuation
contributions.
Non-executive directors are also entitled to be paid reasonable travelling, accommodation and other expenses
incurred in performing their duties as directors. Non-executive directors do not participate in any performance-based
pay including schemes designed for the remuneration of an executives, share rights or bonus payments and are not
provided with retirement benefits other than salary sacrifice and superannuation.
All non-executive directors enter into a service agreement with the Company in the form of a letter of appointment.
The letter summarises the Board policies and terms, including remuneration, relevant to the office of director. Details of
remuneration fees paid to non-executive directors are set out below:
Non-executive directors
Robert Kennedy
Kevin Lines
Michael Bohm
David Southam
Total
Year
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Director
fees
-
141,503
173,269
116,864
95,304
95,304
97,231
-
365,804
353,671
Superannuation
Total
remuneration
-
1,444
17,327
11,686
9,530
9,530
9,723
-
36,580
22,660
-
142,947
190,596
128,550
104,834
104,834
106,954
-
402,384
376,331
52
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Remuneration report (audited) (continued)
(h) Details of KMP remuneration
The following table shows details of the remuneration expense recognised for the group’s executive key management
personnel for the current and previous financial year measured in accordance with the requirements of the accounting
standards.
FIXED REMUNERATION
VARIABLE REMUNERATION
Cash
Salary1
Term.
Payments
Non-
Monetary
Benefits1
Annual
and Long
Service
Leave2
Superan-
nuation
STI 1
LTI
Options3
LTI
Rights3
Total
Perform.
Related
Executive Director
Mark Zeptner – Managing Director / Chief Executive Officer
2019
2018
521,666
470,000
Executives
-
-
5,343
85,087
25,000
250,470
-
111,466
999,032
3,071
23,440
25,000
44,000
53,130
55,862
674,503
Tim Manners – Chief Financial Officer
2019
2018
357,868
308,620
-
-
5,343
2,815
(218)
12,992
20,531
129,773
19,714
5,500
Duncan Coutts – Chief Operating Officer
2019
2018
387,499
363,796
-
-
5,343
3,071
15,076
(1,601)
25,000
142,932
27,129
19,438
Kevin Seymour – General Manager – Exploration
2019
2018
266,720
260,000
-
-
5,343
12,143
25,000
103,818
3,071
(4,466)
27,500
15,000
Richard Jones – Company Secretary (appointed 8 October 2018)
2019
2018
187,500
-
-
-
3,740
17,456
18,750
-
-
-
-
-
Domenico Francese – Company Secretary (up to 30 November 2018)4
2019
2018
124,826
299,583
-
(44,146)
21,888
94,050
313,021
-
477
34,665
17,511
9,900
Simon Iacopetta – Chief Financial Officer
-
-
-
-
-
50,741
40,000
95
(69,564)
1,988
-
-
1,846,079
299,583
25,112
85,398
136,169
721,043
2019
2018
Total
2019
2018
36.2%
22.7%
31.5%
7.3%
31.8%
17.8%
-
-
-
-
-
-
-
-
-
-
-
-
-
46,378
559,675
21,722
371,363
58,667
634,517
65,713
477,546
42,699
455,723
48,816
349,921
32.2%
18.2%
8,736
236,182
3.7%
-
-
-
202 496,403
56,326
431,900
19.0%
15.3%
-
-
-
23,260
268,148 3,381,532
-
0%
29.3%
17.0%
1,766,178
40,000
12,600
(4,534)
118,842
93,838
53,130
248,439 2,328,493
1. Short-term benefits as per Corporations Regulation 2M.3.03(1) Item 6.
2. Other long-term benefits as per Corporations Regulation 2M.3.03 (1) Item 8. The amounts disclosed in this column represent the
movements in the associated provisions. They may be negative where a KMP has taken more leave than accrued during the year.
3. Rights and options relate to rights and options over ordinary shares issued to key management personnel. The fair value of rights and
options granted shown above is non-cash and was determined in accordance with applicable accounting standards and represents
the fair value calculated at the time rights and options were granted and not when shares were issued.
4. In addition to the amounts above Domenico Francese was paid $329,661 in annual and long service leave entitlements which had been
accrued but not paid during his employment.
53
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Remuneration report (audited) (continued)
(i) Other statutory information
(i) Terms and conditions of the share-based payment arrangements
Performance rights
The terms and conditions of each grant of performance rights affecting remuneration in the current or future reporting
period are as follows:
Grant Date
Vesting and
Exercise Date
Expiry Date
Exercise Price
Value Per Performance
Right at Grant Date
23 November 2016
1 July 2019
1 July 2026
22 December 2016
11 June 2019
11 June 2026
1 July 2017
31 July 2017
3 October 2017
5 September 2018
29 November 2018
1 July 2020
1 July 2020
1 July 2020
1 July 2021
1 July 2021
1 July 2027
1 July 2027
1 July 2027
1 July 2028
1 July 2028
$nil
$nil
$nil
$nil
$nil
$nil
$nil
$0.37
$0.36
$0,33
$0.29
$0.27
$0.39
$0.27
Vested
0%
100%
0%
0%
0%
0%
0%
Rights to deferred shares under the Performance Rights Plan are assessed against vesting criteria (and vested
accordingly) in July each year. For the performance rights granted on 23 November 2016, one third of the performance
rights granted vested on 1 July 2017, another third vested on 1 July 2018, and the final third vests on 1 July 2019.
Performance rights granted after 30 June 2017 vest three years from the grant date. On vesting, each right must
be exercised within seven years of the vesting date. The performance rights carry no dividend or voting rights. If
an employee ceases employment before the performance rights vest, the rights will be forfeited, except in limited
circumstances that are approved by the Board on a case-by-case basis.
(ii) Reconciliation of options, performance rights, and ordinary shares held by KMP
Options
The table below shows a reconciliation of options held by each KMP from the beginning to the end of the 2019 financial
year. All vested options were exercisable.
Vested
Balance at the end of the year
Name &
grant dates
Balance at start of
year Number
Number
%
Exercised
Vested
Unvested
Mark Zeptner
26 November 2015
26 November 2015
1,500,000
1,500,000
1,500,000
1,500,000
100
100
(1,500,000)
-
-
1,500,000
-
-
The amounts paid per ordinary share on the exercise of options at the date of exercise were as follows:
Exercise date
3 June 2019
Amounts paid per share
$0.20
No amounts are unpaid on any shares issued on the exercise of options.
54
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Remuneration report (audited) (continued)
(i) Other statutory information (continued)
(ii) Reconciliation of options, performance rights, and ordinary shares held by KMP (continued)
Performance rights
The table below shows a reconciliation of performance rights held by each KMP from the beginning to the end of the
2019 financial year. All vested performance rights were exercisable.
Name
Grant Year
Mark Zeptner
2019
2017
Tim Manners
2019
2018
Duncan Coutts
2019
2018
2017
Kevin Seymour
2019
2018
2017
Domenico Francese
2018
2017
Richard Jones
2019
Balance
at start
of year
Granted
during
the year
Vested
Forfeited /
Cessation as KMP
Balance at the end
of the year
Value
to vest1
Number
Number
%
Number
%
Vested Unvested
$
-
568,956
-
500,000
-
500,000
-
100
-
260,966
317,778
-
-
284,483
342,222
353,982
-
-
-
201,186
254,222
262,958
293,333
303,413
-
-
-
-
-
-
-
-
216,330
-
-
160,703
-
185,426
-
189,655
-
-
-
-
-
61
-
-
61
-
61
-
-
-
-
-
-
-
-
-
-
-
(293,333)
(286,563)
-
-
-
568,956
128,547
- 500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
260,966
80,140
317,778
46,736
284,483
87,361
342,222
56,467
216,330
117,994
-
-
-
201,186
254,222
61,782
41,947
160,703
87,652
-
-
-
-
-
189,655
42,850
-
-
-
1. The maximum value of the performance rights yet to vest has been determined as the amount of the grant date fair value of the rights
that is yet to be expensed.
Shareholdings
The table below shows a reconciliation of shareholdings held by each KMP from the beginning to the end of the 2019
financial year.
Name
Mark Zeptner
Kevin Lines
Michael Bohm
Kevin Seymour
Balance at
start of year
3,012,500
1,000,000
1,237,500
224,860
Domenico Francese
1,314,922
Received
during the year
on the exercise
of options
Received during
the year on
exercising of
performance rights
Sold during
the year
Cessation
as KMP
1,500,000
-
-
-
-
-
-
-
-
-
(1,500,000)
-
-
(30,000)
-
-
-
-
Balance at
the end of
the year
3,012,500
1,000,000
1,237,500
194,860
All shareholdings noted above are held either directly by the KMP or their associate.
-
(1,314,922)
-
55
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Remuneration report (audited) (continued)
(i) Other statutory information (continued)
Loans to key management personnel
There were no loans made to key management personnel or their personally related parties during the current or prior
financial year.
Other transactions with key management personnel
There were no other transactions with key management personnel.
Aggregate amounts of each of the above types of transactions with key management personnel of Ramelius Resources
Limited:
Amounts recognised as an expense
Rent of office building
2019
$
-
2019
$
45,286
Voting and comments made at the Company’s 2018 Annual General Meeting
Of the total valid available votes lodged, Ramelius received 97% of “FOR” votes on its remuneration report for the 2018
financial year. The Company did not receive any specific feedback at the AGM on its remuneration practices.
Share trading policy
The trading of shares is subject to, and conditional upon, compliance with the Company’s employee share trading
policy. The policy is enforced through a system that includes a requirement that executives confirm compliance with
the policy and provide confirmation of dealings in Ramelius securities. The ability for an executive to deal with an option
or a right is restricted by the terms of issue and the plan rules which do not allow dealings in any unvested security. The
Share Trading Policy specifically prohibits an executive from entering into transactions that limit the economic risk of
participating in unvested entitlements such as equity-based remuneration schemes. The Share Trading Policy can be
viewed on the Company’s website.
Remuneration report ends.
56
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Shares under option
(a) Unissued ordinary shares
Unissued ordinary shares of Ramelius Resources Limited under option at the date of this report are as follows:
Date options granted
26 November 2015
Expiry date
11 June 2020
Exercise price
Number under option
$0.20
1,500,000
1,500,000
No option holder has any right under the options to participate in any other share issue of the Company or any other
entity.
(b) Shares issued on the exercise of options
The following ordinary shares of Ramelius were issued during the year ended 30 June 2019 as a result of the exercise of
options. No amounts are unpaid on any of the shares.
Date options granted
26 November 2015
Exercise price of options
Number of shares issued
$0.20
1,500,000
1,500,000
Insurance of officers and indemnities
Indemnification
Ramelius is required to indemnify its Directors and Officers against any liabilities incurred by the Directors and Officers
that may arise from their position as Directors and Officers of Ramelius and its controlled entities. No costs were
incurred during the year pursuant to this indemnity.
Ramelius has entered into deeds of indemnity with each Director whereby, to the extent permitted by the Corporations
Act 2001, Ramelius agreed to indemnify each Director against all loss and liability incurred as an officer of the Company,
including all liability in defending any relevant proceedings.
Insurance premiums
Since the end of the previous year Ramelius has paid insurance premiums in respect of Directors’ and Officers’ liability
and legal expenses insurance contracts. The terms of the policies prohibit disclosure of details of the amount of the
insurance cover, the nature thereof and the premium paid.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of Ramelius or to intervene in any proceedings to which Ramelius is a party, for the purpose of taking
responsibility on behalf of Ramelius for all or part of those proceedings. There were no such proceedings brought or
interventions on behalf of Ramelius with leave from the Court under section 237 of the Corporations Act 2001.
Non-audit services
The Company may decide to engage the auditor (Deloitte Touche Tohmatsu) (for 2018 the figures disclosed below
relate to Grant Thornton) on assignments additional to their statutory audit duties where the auditor’s expertise and
experience with the Company and/or the group are important. Details of the amounts paid or payable to the auditor for
audit and non-audit services provided during the year are set out below.
The Board of Directors has considered the position and, in accordance with advice received from the Audit & Risk
Committee, is satisfied that the provision of the non-audit services is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision of
non-audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the
Corporations Act 2001 for the following reasons:
- all non-audit services have been reviewed by the Audit & Risk Committee to ensure they do not impact the
impartiality and objectivity of the auditor;
- none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants.
57
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ REPORT (CONTINUED)
Non-audit services (continued)
During the year the following fees were paid or payable for non-audit services provided by the auditor of the parent
entity, its related practices and non-related audit firms:
Other assurance services
Audit of regulatory returns
Accounting assistance
Non-assurance services
Tax advice and compliance services
Total
2019
$
6,250
13,200
-
19,450
2019
$
-
-
62,400
62,400
Auditor independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out
on page 59.
Rounding of amounts
The Company is of the kind referred to in ASIC Legislative Instrument 2016/191 relating to the ‘rounding off’ of amounts
in the Directors’ report. Amounts in the Directors’ report have been rounded off in accordance with the instrument to
the nearest thousand dollars, or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of Directors.
Kevin James Lines
Chairman
Perth
23 August 2019
58
RAMELIUS RESOURCES ANNUAL REPORT 2019
AUDITOR’S INDEPENDENCE
DECLARATION
59
Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte Network. Deloitte Touche Tohmatsu ABN 74 490 121 060 Tower 2, Brookfield Place 123 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia Tel: +61 8 9365 7000 Fax: +61 8 9365 7001 www.deloitte.com.au The Directors Ramelius Resources Limited Level 1, 130 Royal Street East Perth WA 6892 23 August 2019 Dear Directors Auditor’s Independence Declaration to Ramelius Resources Limited In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Ramelius Resources Limited and its controlled entities. As lead audit partner for the audit of the financial report of Ramelius Resources Limited and its controlled entities for the financial year ended 30 June 2019, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. Yours faithfully DELOITTE TOUCHE TOHMATSU David Newman Partner Chartered Accountants RAMELIUS RESOURCES ANNUAL REPORT 2019 60
RAMELIUS RESOURCES ANNUAL REPORT 2019 financial
statements
Income statement
Statement of comprehensive income
Balance sheet
Statement of changes in equity
Cash flow statement
Notes to the financial statements
Directors’ declaration
Independent auditor’s report to
the members
62
63
64
65
66
69
110
111
61
RAMELIUS RESOURCES ANNUAL REPORT 2019 INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2019
Revenue
Cost of production
Gross profit
Other expenses
Other income
Interest income
Finance costs
Profit before income tax
Income tax expense
Profit for the year from continuing operations
Earnings per share
Basic earnings per share
Diluted earnings per share
Note
1(a)
2(a)
2(b)
1(b)
2(c)
3
26
26
2019
$’000
352,770
(309,161)
43,609
(15,016)
2,125
1,886
(2,193)
30,411
(8,579)
21,832
Cents
3.74
3.67
2018
$’000
341,784
(281,864)
59,920
(16,994)
3,322
1,021
(1,770)
45,499
(14,739)
30,760
Cents
5.84
5.75
62
RAMELIUS RESOURCES ANNUAL REPORT 2019 STATEMENT OF
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
Profit for the year
Other comprehensive income, net of tax
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations
Items that may not be reclassified to profit or loss:
Change in fair value of financial assets
Other comprehensive (loss) / income for the year, net of tax
Note
2019
$’000
21,832
2018
$’000
30,760
15
15
(69)
38
(50)
(119)
242
280
Total comprehensive income for the year
21,713
31,040
63
RAMELIUS RESOURCES ANNUAL REPORT 2019 BALANCE SHEET
AS AT 30 JUNE 2019
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total current assets
Non-current assets
Other receivables
Other assets
Financial assets
Property, plant, and equipment
Development assets
Exploration and evaluation expenditure
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Current liabilities
Non-current liabilities
Provisions
Contingent consideration
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Retained earnings
Total equity
64
Note
4(a)
5
6
7
5
7
8
9
10
3
11
13
13
12
3
14
15
2019
$’000
95,815
6,774
41,067
8,629
152,285
-
1,488
101
43,823
99,430
99,442
-
244,284
2018
$’000
68,209
3,358
58,086
1,439
131,092
1,306
7,296
126
51,122
84,728
19,317
917
164,812
396,569
295,904
44,926
6,852
51,778
45,987
12,121
7,741
65,849
31,796
6,075
37,871
43,169
12,892
-
56,061
117,627
93,932
278,942
201,972
214,218
(7,674)
72,398
278,942
149,568
1,884
50,520
201,972
RAMELIUS RESOURCES ANNUAL REPORT 2019 STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
Share capital
$000’s
Share-based
payment
reserve
$000’s
Other
reserves
$000’s
Retained
profits
$000’s
Total
equity
$000’s
Balance at 30 June 2017
149,122
861
59
19,760
169,802
Profit for the year
Other comprehensive income
Total comprehensive income
Transactions with owners in their
capacity as owners:
Share capital
Transaction costs net of tax
Share-based payments
Balance at 30 June 2018
Profit for the year
Other comprehensive loss
Total comprehensive (loss) / income
Transactions with owners in their
capacity as owners:
Shares issued for acquisition of
Explaurum Limited (see notes 15 & 17)
Shares issued on exercise of options
Share-based payments
Balance at 30 June 2019
-
-
-
448
(2)
-
149,568
-
-
-
64,232
300
118
214,218
-
-
-
-
-
684
1,545
-
-
-
-
-
487
2,032
-
280
280
-
-
-
30,760
-
30,760
30,760
280
31,040
-
-
-
448
(2)
684
339
50,520
201,972
-
(119)
(119)
21,832
-
21,832
21,832
(119)
21,713
(9,926)
-
-
-
-
46
54,306
300
651
(9,706)
72,398
278,942
65
RAMELIUS RESOURCES ANNUAL REPORT 2019 STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
Cash flows from operating activities
Receipts from operations
Payments to suppliers and employees
Interest received
Finance costs
Income tax refund received
Note
2019
$’000
2018
$’000
348,382
(213,321)
1,843
(14)
79
337,160
(219,185)
946
(10)
-
Net cash provided by operating activities
4(b)
136,969
118,911
Cash flows from investing activities
Payments for derivatives
Payments for property, plant, and equipment
Payments for development assets
Proceeds from sale of property, plant, and equipment
Proceeds from the sale of subsidiary
Payments for the acquisition of Explaurum, net of cash acquired
Payments for the acquisition of Marda
Payment for acquisition of subsidiary, net of cash acquired
5(a)
17(a)
17(b)
Loan to Explaurum Limited
Payments for financial assets
Proceeds from the sale of financial assets
Payments for mining tenements and exploration
Payments for site rehabilitation
Net cash used in investing activities
Cash flows from financing activities
Proceeds from the issue of shares
Transaction costs from issue of shares
(Payments for) / return of secured deposits
Net cash provided by financing activities
-
(7,995)
(58,233)
763
1,000
(8,383)
(13,238)
-
(3,700)
(25)
-
(18,962)
(209)
(108,982)
300
-
(681)
(381)
(30)
(4,757)
(65,628)
-
60
-
-
(38,350)
-
(17)
200
(13,620)
(754)
(122,896)
448
(2)
(4)
442
Net increase / (decrease) in cash and cash equivalents
27,606
(3,543)
Cash at the beginning of the financial year
68,209
71,752
Cash and cash equivalents at the end of the financial year
4(a)
95,815
68,209
66
RAMELIUS RESOURCES ANNUAL REPORT 2019 Edna May
Open Pit
67
RAMELIUS RESOURCES ANNUAL REPORT 2019 68
RAMELIUS RESOURCES ANNUAL REPORT 2019 notes to
the financial
statements
About this report
Key numbers
Segment information
Note 1: Revenue
Note 2: Expenses
Note 3: Income tax expense
Note 4: Cash and cash equivalents
Note 5: Trade and other receivables
Note 6: Inventories
Note 7: Other assets
Note 8: Property, plant, & equipment
Note 9: Development assets
Note 10: Exploration and evaluation assets
Note 11: Trade and other payables
Note 12: Contingent consideration
Note 13: Provisions
Note 14: Share capital
Note 15: Reserves
Risk
Note 16: Financial instruments and financial
risk management
Group structure
Note 17: Asset acquisitions
Note 18: Business combination
Note 19: Interests in other entities
Unrecognised items
Note 20: Contingent liabilities
Note 21: Commitments
70
72
72
75
75
76
80
81
81
82
82
85
87
88
88
89
91
92
93
93
95
95
97
98
99
99
99
Other information
100
Note 22: Events occurring after the reporting period 100
Note 23: Related party transactions
Note 24: Share based payments
Note 25: Remuneration of auditors
Note 26: Earnings per share
Note 27: Deed of cross guarantee
Note 28: Parent entity information
Note 29: Accounting policies
100
101
104
104
105
107
109
69
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
ABOUT THIS REPORT
About this report
Ramelius Resources Limited (referred to as ‘Ramelius’) is
a for-profit Company limited by shares incorporated and
domiciled in Australia whose shares are publicly listed
on the Australian Securities Exchange Limited (ASX).
The nature of the operations and principal activities of
Ramelius and its controlled entities (referred to as ‘the
group’) are described in the segment information.
The consolidated general purpose financial report of the
group for the year ended 30 June 2019 was authorised
for issue in accordance with a resolution of the Directors
on 23 August 2019. The Directors have the power to
amend and reissue the financial report.
The financial report is a general purpose financial report
which:
- has been prepared in accordance with Australian
Accounting Standards and Interpretations issued by
the Australian Accounting Standard Board (AASB)
and the Corporations Act 2001. The consolidated
financial statements of the group also comply with
International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards
Board (IASB);
- has been prepared under the historical cost
convention except for FVOCI financial assets, which
have been measured at fair value;
- has been presented in Australian dollars and rounded
to the nearest $1,000 unless otherwise stated, in
accordance with ASIC Corporations (Rounding in
Financial/Directors Reports) Instrument 2016/191;
- adopts all new and amended Accounting Standards
and Interpretations issued by the AASB that are
relevant to the group and effective for reporting
periods beginning on or before 1 July 2018. Refer to
Note 29 for further details;
- does not early adopt Accounting Standards and
Interpretations that have been issued or amended
but are not yet effective. Refer to Note 29 for further
details.
Certain comparatives on the balance sheet and income
statement have been reclassified to bring these into line
with classifications in the current period.
70
Key Judgements, Estimates and
Assumptions
In the process of applying the groups accounting
policies, management has made a number of
judgements and applied estimates of future events.
Judgements and estimates which are material to the
financial report are found in the following notes:
Page
76
Note 3
Recovery of deferred tax assets
82&85 Note 8 & 9 Impairment of assets
82&85 Note 8 & 9 Depreciation and amortisation
85
85
87
88
89
Note 9
Deferred mining expenditure
Note 9
Ore Reserves estimates
Note 10
Exploration and evaluation
expenditure
Note 12
Contingent consideration
Note 13
Provision for restoration and
rehabilitation
Principles of consolidation
The consolidated financial statements comprise the
financial statements of the parent entity, Ramelius
Resources Limited, and its controlled entities. A list
of controlled entities is contained in Note 19 to the
consolidated financial statements. All controlled entities
have a 30 June financial year end.
In preparing the consolidated financial statements, all
inter-Company balances and transactions, income and
expenses and profits and losses resulting from intra-
group transactions have been eliminated.
Subsidiaries are consolidated from the date on which
control is obtained to the date on which control is
disposed. The acquisition of subsidiaries is accounted for
using the acquisition method of accounting.
Foreign currency
The functional currencies of overseas subsidiaries are
listed in note 19. As at the reporting date, the assets and
liabilities of overseas subsidiaries are translated into
Australian dollars at the rate of exchange ruling at the
balance sheet date and the income statements are
translated at the average exchange rates for the year.
The exchange differences arising on the retranslation
are taken directly to a separate component of equity.
Transactions in foreign currencies are initially recorded
in the functional currency at the exchange rates
ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies are
translated at the exchange rate ruling at the balance
sheet date. Exchange differences arising from the
application of these procedures are taken to the income
statement, with the exception of differences on foreign
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
ABOUT THIS REPORT (CONTINUED)
currency borrowings that provide a hedge against a net
investment in a foreign entity, which are taken directly
to equity until the disposal of the net investment and
are then recognised in the income statement. Tax
charges and credits attributable to exchange differences
on those borrowings are also recognised in equity.
Other accounting policies
Significant and other accounting policies that
summarise the measurement basis used and
are relevant to an understanding of the financial
statements are provided throughout the notes to the
financial statements.
The notes to the financial statements
The notes include information which is required to
understand the financial statements and is material
and relevant to the operations, financial position and
performance of the group. Information is considered
material and relevant if, for example:
- the amount in question is significant because of its
size or nature;
-
-
-
it is important for understanding the results of the
group;
it helps to explain the impact of significant changes
in the group’s business – for example acquisition and
impairment write downs; or
it relates to an aspect of the group’s operations that is
important to its future performance.
The notes are organised into the following sections:
- Key numbers: provides a breakdown of individual
line items in the financial statements that the
Directors consider most relevant and summarises
the accounting policies, judgements and estimates
relevant to understanding these line items;
- Risk: provides information about the capital
management practices of the group and discusses
the group’s exposure to various financial risks and
what the group does to manage these risks;
- Group structure: explains aspects of the group
structure and how changes have affected the
financial position and performance of the group;
- Unrecognised items: provides information about
items that are not recognised in the financial
statements but could potentially have a significant
impact on the group’s financial position and
performance;
- Other information: provides information on items
which require disclosure to comply with Australian
Accounting Standards and other regulatory
pronouncements. However, these are not considered
critical in understanding the financial performance of
position of the group.
Significant items in the current
reporting period
The financial position and performance of the group
was particularly affected by the following events and
transactions during the reporting period:
• The acquisition of Explaurum Limited (Tampia Gold
Hill Project) which completed in April 2019 (see note
17) which resulted in an increase in exploration &
evaluation assets (note 10).
• The acquisition of Marda Operations Pty Limited
(formerly Black Oak Minerals Limited) (Marda Gold
Project) in February 2019 (see note 17) which resulted
in an increase in mine development assets (note 9).
• The change in managements judgements
regarding the fair value of the Edna May contingent
consideration which impacted the other income
(see note 1(b)) in the year and the contingent
consideration liability (see note 12)
For a detailed discussion about the group’s performance
and financial position please refer to our operating and
financial review on pages 8-13 and 39-41.
71
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS
Segment information
(a) Description of segments and principal activities
Management has determined the operating segments based on internal reports about components of the group that
are regularly reviewed by the Chief Operating Decision Maker (CODM), being the Managing Director / Chief Executive
Officer, to make strategic decisions. Reportable operating segments are Mt Magnet, Edna May and Exploration. The
group operates primarily in one business segment, namely the exploration, development and production of minerals
with a focus on gold. The CODM monitors performance in these areas separately. Unless stated otherwise, all amounts
reported to the CODM are determined in accordance with accounting policies that are consistent to those adopted in
the annual financial statements of the group. Operating segment performance details for financial years 2019 and 2018
are set out below:
(b) Segment gross margin
2019 Segment results
Segment revenue
Cost of production
Amortisation and
depreciation
Movement in inventory
Deferred mining costs
Segment margin
Mt Magnet
$’000
Edna May
$’000
Exploration
$’000
207,123
(176,895)
(67,920)
5,360
46,879
14,547
145,647
(85,537)
(13,383)
(23,034)
5,369
29,062
-
-
-
-
-
-
Total
$’000
352,770
(262,432)
(81,303)
(17,674)
52,248
43,609
Total segment assets
115,975
74,594
100,021
290,590
Total segment liabilities
55,676
48,163
1,626
105,465
2018 Segment results
Segment revenue
Cost of production
Amortisation and
depreciation
Movement in inventory
Deferred mining costs
Segment margin
Mt Magnet
$’000
Edna May
$’000
Exploration
$’000
226,720
(176,752)
(61,233)
(4,823)
60,313
44,225
115,064
(93,003)
(19,422)
13,056
-
15,695
-
-
-
-
-
-
Total
$’000
341,784
(269,755)
(80,655)
8,233
60,313
59,920
Total segment assets
109,453
86,038
19,747
215,238
Total segment liabilities
43,798
48,510
789
93,097
72
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Segment information (continued)
(c) Segment gross margin
Segment margin reconciles to profit before income tax from continuing operations for the year ended 30 June 2019 and
30 June 2018 as follows:
Segment margin
Other income
Interest income
Depreciation and amortisation
Employee benefit expense
Equity settled share-based payments
Costs associated with the acquisition of Edna May
Exploration and evaluation costs
Impairment of exploration and evaluation assets
Change in fair value of Edna May contingent consideration
Impairment of development assets
Impairment of debtors
Loss / (gain) on sale of investments
Finance costs
Other expenses
Profit before income tax from continuing operations
(d) Other profit and loss disclosure
2019
$’000
43,609
116
1,886
(193)
(6,674)
(651)
-
(711)
(2,800)
2,009
-
(717)
-
(2,193)
(3,270)
30,411
2019
Exploration and evaluation costs
Impairment of exploration and
evaluation assets
Change in fair value of contingent
consideration
Total other profit and
loss disclosure
2018
Exploration and evaluation costs
Impairment of exploration and
evaluation assets
Change in fair value of contingent
consideration
Impairment of development
assets
Total other profit and
loss disclosure
Mt Magnet
$’000
Edna May
$’000
Exploration
$’000
-
-
-
-
-
-
2,009
2,009
(711)
(2,800)
-
(3,511)
Mt Magnet
$’000
Edna May
$’000
Exploration
$’000
-
-
-
-
-
-
-
3,282
(2,999)
(610)
(2,428)
-
-
283
(3,038)
2018
$’000
59,920
40
1,021
(125)
(3,120)
(684)
(3,471)
(610)
(2,428)
3,282
(2,999)
-
(225)
(1,770)
(3,332)
45,499
Total
$’000
(711)
(2,800)
2,009
(1,502)
Total
$’000
(610)
(2,428)
3,282
(2,999)
(2,755)
73
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Segment information (continued)
(e) Segment assets
Operating segment assets are reconciled to total assets as follows:
Segment assets
Unallocated assets:
Cash and cash equivalents
Trade and other receivables
Other current assets
Other non-current assets
Available-for-sale financial assets
Property, plant and equipment
Deferred tax assets
Total assets as per the balance sheet
(f) Segment liabilities
Operating segment liabilities are reconciled to total liabilities as follows:
Segment liabilities
Unallocated liabilities:
Trade and other payables
Current provisions
Non-current provisions
Deferred tax liabilities
2019
$’000
290,590
95,815
-
8,629
1,016
101
418
-
2018
$’000
215,238
68,209
2,877
1,439
6,819
126
279
917
396,569
295,904
2019
$’000
105,465
3,980
423
18
7,741
2018
$’000
93,097
195
563
77
-
Total liabilities as per the balance sheet
117,627
93,932
(g) Major customers
Ramelius sells its gold production to either The Perth Mint or delivers it into forward gold contracts.
(h) Segments assets by geographical location
The total non-current assets other than financial instruments and deferred tax assets, broken down by the location of
the assets, is shown in the following table:
Australia
US
Total non-current assets other than financial instruments
and deferred tax assets
2019
$’000
241,741
954
242,695
2018
$’000
155,073
506
155,579
74
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 1: Revenue
The group derives the following types of revenue:
(a) Revenue
Gold sales
Silver sales
Other revenue
Total revenue from continuing operations
(b) Other income
Change in fair value of Edna May contingent consideration
Foreign exchange gains
Total other income from continuing operations
(c) Recognising revenue from major business activities
2019
$’000
2018
$’000
350,981
340,957
808
981
665
162
352,770
341,784
Note
12
2019
$’000
2,009
116
2,125
2018
$’000
3,282
40
3,322
Revenue (general)
Revenue is measured at the fair value of the consideration received or receivable. Revenue from sale of goods or
rendering of a service is recognised upon delivery of the goods or service to customers as this corresponds to the
transfer of control of the goods and the cessation of all involvement with those goods. All revenue is stated net of goods
and services tax (GST).
Gold bullion and silver sales
Revenue from gold bullion and silver sales is brought to account when control over the inventory has transferred to the
buyer and selling prices are known or can be reasonably estimated.
Note 2: Expenses
Profit before tax includes the following expenses whose disclosure is relevant in explaining the performance
of the group:
(a) Cost of production
Mining and milling production costs
Employee benefits expense
Royalties
Amortisation and depreciation
Inventory movements
Total cost of production from continuing operations
2019
$’000
157,575
36,247
16,362
81,303
17,674
309,161
2018
$’000
160,259
32,271
16,912
80,655
(8,233)
281,864
75
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 2: Expenses (continued)
(b) Other expenses
Employee benefit expense
Equity settled share-based payments
Other expenses
Costs associated with the acquisition of Edna May
Amortisation and depreciation
Exploration and evaluation costs
Impairment of development assets
Impairment of exploration and evaluation assets
Impairment of receivable
Loss on sale of available-for-sale financial assets
Total other expenses from continuing operations
(c) Finance costs
Provisions: unwinding of discount
Contingent consideration: unwinding of discount
Interest and finance charges
Total finance costs from continuing operations
Note
9
10
5(a)
13
12
2019
$’000
6,674
651
3,270
-
193
711
-
2,800
717
-
15,016
941
1,238
14
2,193
2018
$’000
3,120
684
3,332
3,471
125
610
2,999
2,428
-
225
16,994
631
1,128
11
1,770
(d) Recognising expenses from major business activities
Amortisation and depreciation
Refer to notes 8 and 9 for details on depreciation and amortisation
Impairment
Impairment expenses are recognised to the extent that the carrying amounts of assets exceed their recoverable
amounts. Refer to notes 8, 9 and 10 for further details on impairment.
Employee benefits expense
The group’s accounting policy for liabilities associated with employee benefits is set out in Note 13. The policy relating to
share-based payments is set out in Note 24.
Note 3: Income tax expense
(a) The components of tax expense comprise
Current tax
Deferred tax
Income tax expense from continuing operations
2019
$’000
(79)
8,658
8,579
2018
$’000
-
14,739
14,739
76
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 3: Income tax expense (continued)
(b) Recognition of income tax expense to prima facia tax payable:
Accounting profit before tax
Income tax expense calculated at 30%
Tax effects of amounts which are not deductible / (taxable) in
calculating taxable income:
- Share-based payments
- Other non-allowable items
- Adjustments for prior periods
- Research & development tax credit
Income tax expense
Applicable effective tax rate
(c) Deferred tax movement:
2019
$’000
30,411
9,123
195
11
(671)
(79)
2018
$’000
45,499
13,650
205
884
-
-
8,579
14,739
28%
32%
30 June 2019
Deferred tax liability (“DTL”)
Exploration and evaluation
Development
Property, plant & equipment
Inventory – consumables
Total DTL
Deferred tax asset (“DTA”)
Inventory – deferred mining costs
Property, plant, and equipment
Provisions
Tax losses
Other
Group DTA
Net deferred tax asset / (liability)#
Balance at 1
July 2018
$’000
Charged /
(credited) to
income
$’000
Balance at 30
June 2019
$’000
5,644
19,545
499
342
26,030
2,236
933
14,886
8,296
596
26,947
917
3,082
2,689
(499)
(23)
5,249
-
1,011
668
(6,181)
1,093
(3,409)
8,726
22,234
-
319
31,279
2,236
1,944
15,554
2,115
1,689
23,538
(7,741)
# Deferred tax assets and liabilities have been offset for presentation on the balance sheet pursuant to set off provisions
77
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 3: Income tax expense (continued)
(c) Deferred tax movement: (continued)
30 June 2018
Deferred tax liability (“DTL”)
Exploration and evaluation
Development
Property, plant & equipment
Inventory – consumables
Total DTL
DTL from discontinued operation
DTL from continuing operations
Deferred tax asset (“DTA”)
Equity transaction costs
Inventory – deferred mining costs
Property, plant, and equipment
Receivables
Provisions
Tax losses
Other
Total DTA
DTA from discontinued operation
DTA from continuing operations
Balance at 1
July 2017
$’000
Acquisition
of subsidiary
$’000
Charged /
(credited) to
income
$’000
Charged /
(credited) to
equity
$’000
Balance at
30 June 2018
$’000
5,730
13,127
-
134
18,991
(2)
18,989
503
1,749
1,279
3
7,863
20,394
141
31,932
(988)
30,944
-
3,799
-
-
3,799
-
3,799
-
-
-
-
7,500
-
-
7,500
-
7,500
(86)
2,619
499
208
3,240
2
3,242
-
487
(346)
(3)
(477)
(12,098)
95
(12,342)
988
(11,354)
-
-
-
-
-
-
-
(143)
-
-
-
-
-
-
(143)
-
(143)
5,644
19,545
499
342
26,030
-
26,030
360
2,236
933
-
14,886
8,296
236
26,947
-
26,947
917
Net deferred tax asset / (liability) #
11,955
# Deferred tax assets and liabilities have been offset for presentation on the balance sheet pursuant to set off provisions
(d) Franking credits
Franking credits available for subsequent years (at 30%)
2019
$’000
21,826
2018
$’000
21,826
The above represents the balance of the franking account as at the end of the reporting period, adjusted for:
- Franking credits / debits that will arise from payment of any current tax liability / current tax asset, and
- Franking debits that will arise from the payment of dividends recognised as a liability at the reporting date.
No such adjustments are required in the current financial year.
(e) Tax losses
2019
2018
Gross
Net (30%)
Gross
Net (30%)
7,050
37,923
44,973
2,115
11,377
13,492
27,653
4,305
31,958
8,296
1,292
9,588
Unused tax losses:
- for which a deferred asset has been recognised
- for which a no deferred asset has been recognised
Total potential unused tax losses
78
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 3: Income tax expense (continued)
(e) Tax losses (continued)
Explaurum Limited, Explaurum Operations Pty Ltd, and Ninghan Exploration Pty Ltd (“Explaurum Group”) entered the
Ramelius tax consolidated group on 4 April 2019. When a Company enters an existing tax consolidated group the tax
losses of that Company at the date it enters the tax consolidated group may be transferred to the existing tax group and
utilised against future taxable income, subject to various provisions in the relevant tax legislation.
The balance of the unused tax losses for which no deferred tax has been recognised relates to capital losses.
All other unused tax losses have been recognised as a deferred tax asset. The Directors have assessed that it is probable
the group will generate sufficient taxable profits to utilise the losses recognised as a deferred tax asset.
Key judgement, estimates and assumptions: Recovery of deferred tax assets
Judgement is required to determine whether deferred tax assets are recognised in the balance sheet. Deferred tax
assets, including those arising from un-utilised tax losses, require management to assess the likelihood that the
group will generate sufficient taxable earnings in the future periods in order to recognise and utilise those deferred
tax assets. Judgement is also required in respect of the expected manner of recovery of the value of an asset or
liability (which will then impact the quantum of the deferred tax assets or deferred tax liabilities recognised) and the
application of existing laws in each jurisdiction.
Estimates of future taxable income are based on forecast cash flows from operations and existing tax laws in each
jurisdiction. These assessments require the use of estimates and assumptions such as exchange rates, commodity
prices and operating performance over the life of the assets. To the extent that cash flows and taxable income differ
significantly from estimates, the ability of the group to realise the net deferred tax assets reported at the reporting
date could be impacted.
Additionally, future changes in tax laws in the jurisdictions in which the group operates could limit the ability of the
group to obtain tax deductions and recover/utilise deferred tax assets in future periods.
As at 30 June 2019 the ability of the Ramelius tax group to access and utilise the carried forward tax losses from
the Explaurum Group is being assessed and as such no deferred tax asset has been recognised in relation to these
carried forward tax losses. At the date the Explaurum Group entered the Ramelius tax group it had carried forward
tax losses of $33,618,000 with a potential benefit of $10,085,400.
(f) Recognition and measurement of income tax
Current income tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates that have been enacted, or substantially enacted by the reporting date. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretations. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to
(recovered from) the relevant taxation authority.
Deferred taxes
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the
year as well as unused tax losses.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts
have been fully expensed for accounting purposes, but future tax deductions are available. No deferred income tax will
be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no
effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the
asset is realised, or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their
measurement also reflects the way management expects to recover or settle the carrying amount of the related asset
or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profits will be available against which the benefits of the deferred tax asset can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that
no adverse change will occur in income tax legislation and the anticipation that the group will derive sufficient future
assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
79
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 3: Income tax expense (continued)
(f) Recognition and measurement of income tax (continued)
Tax consolidated group
Ramelius Resources Limited and its wholly-owned Australian subsidiaries have formed an income tax consolidated
group under tax consolidation legislation. Each entity in the group recognises its own current and deferred tax assets
and liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to allocation.
Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries
are immediately transferred to the head entity.
The tax consolidated group has entered into a tax funding arrangement whereby each Company in the group
contributes to the income tax payable by the group in proportion to their contribution to the group’s taxable income.
Differences between the amounts of net tax assets and liabilities derecognised and the net amounts recognised
pursuant to the funding arrangement are recognised as either a contribution by, or distribution to the head entity.
Note 4: Cash and cash equivalents
(a) Cash and cash equivalents
Cash at bank and in hand
Deposits at call
Total cash and cash equivalents
(b) Reconciliation of net profit after tax to net cash flows from operations
Net profit
Non-cash items
Share based payments
Depreciation and amortisation
Write off and impairment of exploration assets
Discount unwind on provisions
Discount unwind on deferred consideration
Change in fair value of Edna May contingent consideration
Impairment of development assets
Impairment of receivable
Items presented as investing or financing activities
Gain on disposal of non-current assets
Payments for derivatives
Financial assets at FVOCI
(Increase) / decrease in assets
Prepayments
Trade and other receivables
Inventories
Deferred tax assets
Increase / (decrease) in liabilities
Trade and other payables
Provisions
Deferred tax liabilities
Net cash provided by operating activities
(c) Recognition and measurement
2019
$’000
40,815
55,000
95,815
2018
$’000
38,181
30,028
68,209
21,832
30,760
651
81,496
3,511
941
1,238
(2,009)
-
717
(765)
-
-
(690)
(3,337)
17,019
3,409
8,111
(404)
5,249
136,969
684
80,780
3,038
631
1,128
(3,282)
2,999
-
-
30
225
(316)
(587)
(8,233)
11,497
(3,645)
(40)
3,242
118,911
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank, demand deposits held with banks, other
short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in values. For the purposes of the Statement of cash flows, cash and cash equivalents
consist of cash and cash equivalents as defined above.
Risk exposure
The group’s exposure to interest rate risk is discussed in Note 16. Maximum exposure to credit risk at the end of the
reporting period is the carrying amount of each class of cash and cash equivalents disclosed above.
80
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 5: Trade and other receivables
Current
Trade receivables
Provision for impairment
Trade receivables
Other receivables
Total current trade and other receivables
Non-current
Other receivables
Total non-current trade and other receivables
(a) Other receivables
2019
$’000
2018
$’000
5,422
(8)
5,414
1,360
6,774
-
-
128
(8)
120
3,238
3,358
1,306
1,306
Other receivables in the prior year included a $411,000 (current) and $1,306,000 (non-current) receivable from Maximus
Resources Limited in relation to the Share Sale Agreement for Ramelius Milling Services Pty Limited. This receivable was
settled during the year for $1,000,000 resulting in an impairment of the receivable of $717,000.
Note 6: Inventories
Ore stockpiles
Gold in circuit
Gold bullion & dore
Gold nuggets
Consumables and supplies
Total inventories
(a) Inventory expense
2019
$’000
22,313
2,107
5,475
80
11,092
41,067
2018
$’000
26,012
4,444
17,115
80
10,435
58,086
The reversal of prior year write down of inventories due to an increase in net realisable value recognised during the year
ended 30 June 2019 amounted to a net $548,000 credit to the income statement (2018: $1,446,000 charge to income
statement).
(b) Recognition and measurement
Inventories
Gold ore, gold in circuit and poured gold bars are physically measured, or estimated, and valued at the lower of cost and
net realisable value. Cost represents the weighted average cost and includes direct costs and an appropriate allocation
of fixed and variable production overhead costs, including depreciation and amortisation.
Consumables and stores are valued at the lower of cost and net realisable value. Costs of purchased inventory are
determined after deducting any applicable rebates and discounts. A periodic review is undertaken to establish the
extent of any surplus or obsolete items and where necessary a provision is made.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
of sale.
Gold ore represents stockpiled ore that has been mined or otherwise acquired and is available for further processing.
If there is significant uncertainty as to whether the stockpiled ore will be processed, it is expensed. Where future
processing of ore can be predicted with confidence (e.g. it exceeds the mine cut-off grade), it is valued at the lower of
cost and net realisable value. If ore is not expected to be processed within 12 months after reporting date, it is classified
as non-current assets. Ramelius believes processing ore stockpiles may have a future economic benefit to the group and
accordingly ore is valued at lower of cost and net realisable value.
81
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 7: Other assets
Current
Prepayments
Secured term deposits with financial institutions
Total other current assets
Non-current
Secured term deposits with financial institutions
Other security bonds & deposits
Total other non-current assets
(a) Other non-current assets
2019
$’000
2,129
6,500
8,629
1,000
488
1,488
2018
$’000
1,439
-
1,439
6,819
477
7,296
Other non-current assets comprise secured deposits with financial institutions for finance facilities as well as bonds and
deposits with government bodies with regards to the mining and exploration activities of the group.
Note 8: Property, plant, and equipment
2019
As at 1 July 2018
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2019
Opening net book amount
Additions on the acquisition of
subsidiary
Transfers from mine
development
Additions
Disposals
Transfers
Depreciation charge
Closing net book amount
As at 30 June 2019
Cost or fair value
Accumulated depreciation
Net book amount
Land and
buildings
$’000
Plant and
equipment
$’000
Assets under
construction
$’000
7,096
(802)
6,294
6,294
135
-
-
-
1,420
(775)
7,074
8,651
(1,577)
7,074
102,212
(59,297)
42,915
1,913
-
1,913
42,915
1,913
134
249
-
(6)
5,223
(14,494)
34,021
107,852
(73,831)
34,021
-
-
7,458
-
(6,643)
-
2,728
2,728
-
2,728
Total
$’000
111,221
(60,099)
51,122
51,122
269
249
7,458
(6)
-
(15,269)
43,823
119,231
(75,408)
43,823
82
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 8: Property, plant, and equipment (continued)
2018
As at 1 July 2017
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2018
Opening net book amount
Additions on the acquisition of
subsidiary
Transfers from mine
development
Additions
Transfers
Depreciation charge
Closing net book amount
As at 30 June 2018
Cost or fair value
Accumulated depreciation
Net book amount
(a) Valuation of property
Land and
buildings
$’000
Plant and
equipment
$’000
Assets under
construction
$’000
1,618
(210)
1,408
1,408
5,478
-
-
-
(592)
6,294
7,096
(802)
6,294
59,376
(43,289)
16,087
16,087
35,752
703
4,637
1,744
(16,008)
42,915
102,212
(59,297)
42,915
1,744
-
1,744
1,744
1,793
-
120
(1,744)
-
1,913
1,913
-
1,913
Total
$’000
62,738
(43,499)
19,239
19,239
43,023
703
4,757
-
(16,600)
51,122
111,221
(60,099)
51,122
Properties are recognised as a Level 2 in the fair value hierarchy as defined under AASB 13 Fair Value Measurements.
The valuation basis of property is fair value being the amounts for which the assets could be exchanged between willing
parties in an arm’s length transaction, based on current prices in an active market for similar properties in the same
location and condition.
(b) Depreciation
Items of plant and equipment are depreciated on a straight-line basis over their estimated useful lives, the duration of which
reflects the useful lives depending on the nature of the asset. The group uses the straight-line method when depreciating
property, plant and equipment, resulting in estimated useful lives for each class of depreciable assets as follows:
Class of fixed asset
Properties
Plant and equipment – mine camp
Plant & equipment – mill refurbishments
Plant & equipment – tailings dam
Plant & equipment – computers
Plant & equipment – office equipment
Plant & equipment – office furniture
Plant & equipment – other
Mine and exploration equipment
Motor vehicles
Useful life
40 years
2 – 15 years
5 years
5 years
4 years
3 – 10 years
10 – 25 years
2.5 – 25 years
2 – 33.3 years
8 – 12 years
Key judgement, estimates and assumptions: Depreciation
The estimations of useful lives, residual value and depreciation methods require management judgement and are
reviewed bi-annually for all major items of plant and equipment. If they need to be modified, the change is accounted for
prospectively from the date of reassessment until the end of the revised useful life (for both the current and future years).
83
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 8: Property, plant, and equipment (continued)
(c) Derecognition
An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use is
expected to bring no future economic benefits. Gains and losses on derecognising assets are determined by comparing
proceeds with the carrying amount. These gains and losses are included in the Income Statement. When revalued
assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.
(d) Impairment
Key judgement, estimates and assumptions: Impairment of assets
The group assesses each Cash-Generating Unit (CGU) at least annually, to determine whether there is any indication
of impairment or reversal of a prior impairment. Where an indicator of impairment or reversal exists, a formal estimate
of the recoverable amount is made, which is deemed as being the higher of the fair value less costs to sell and value
in use. These assessments require the use of estimates and assumptions such as ore reserves, future production,
commodity prices, discount rates, exchange rates, operating costs, sustaining capital costs, any future development
cost necessary to produce the reserves (including the magnitude and timing of cash flows) and operating
performance.
Some of the factors considered in management’s assessment as to whether there existed any indicators of
impairment at the CGU’s included:
• Strong operational; and financial performance of the CGU’s compared to that assumed in the prior year
impairment model, particularly for the Edna May CGU;
• The extension of mine life across all CGU’s;
• Positive gold price environment;
• The decision of the business to develop an underground operation at Edna May; and
• Acquisitions complementing the existing CGU’s of the group.
(e) Recognition and measurement of property, plant, and equipment
Cost
Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated
depreciation and impairment losses.
Properties are shown at fair value based on valuations by external independent valuers, less subsequent depreciation
for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the carrying amount of the
asset and the net amount is restated to the revalued amount of the asset. All other plant and equipment are stated at
historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the
items.
Major spares purchased specifically for particular plant are capitalised and depreciated on the same basis as the plant
to which they relate when in use. Assets are depreciated or amortised from the date they are installed and are ready for
use, or in respect of internally constructed assets, from the time the asset is completed and deemed ready for use.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the group and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to the income statement during the
financial period in which they are incurred.
84
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 9: Development assets
Development assets
Less: accumulated amortisation
Net book amount
Development asset reconciliation
Opening net book amount
Additions on the acquisition of subsidiary
Additions
Restoration and rehabilitation adjustment
Impairment
Transfer to property, plant, and equipment
Transfer from exploration and evaluation asset
Amortisation
Closing net book amount
(a) Impairment
Note
17(b)
2(b)
8
10
2019
$’000
330,866
(231,436)
99,430
84,728
13,759
57,159
3,164
-
(249)
7,096
(66,227)
99,430
2018
$’000
249,937
(165,209)
84,728
53,455
23,240
65,568
817
(2,999)
(703)
9,515
(64,165)
84,728
No impairment of development assets arose during the 2019 financial year. Refer to note 8(d) for further discussion on
the impairment of assets and the process undertaken by managements in forming this conclusion.
In the prior year the evaluation of the mine plan and future cash flows of the Edna May gold mine resulted in an
impairment charge of $2,999,000 being incurred on the Edna May cash generating unit (CGU). However, in conjunction
with the assessment of the recoverable amount for the Edna May CGU management revised the fair value of the
contingent consideration which resulted in a reduction in the fair value of the contingent consideration of $3,282,000 in
the prior year.
(b) Recognition and measurement
Mine development
Development assets represent expenditure in respect of exploration, evaluation, feasibility and development incurred
by or on behalf of the group, including overburden removal and construction costs, previously accumulated and carried
forward in relation to areas of interest in which mining has now commenced. Such expenditure comprises net direct
costs and an appropriate allocation of directly related overhead expenditure.
All expenditure incurred prior to commencement of production from each development property is carried forward to
the extent to which recoupment out of future revenue from the sale of production, or from the sale of the property, is
reasonably assured.
When further development expenditure is incurred in respect of a mine property after commencement of production,
such expenditure is carried forward as part of the cost of the mine property only when future economic benefits are
reasonably assured, otherwise the expenditure is classified as part of the cost of production and expensed as incurred.
Such capitalised development expenditure is added to the total carrying value of development assets being amortised.
Deferred mining expenditure - Pre-production mine development
Pre-production mining costs incurred by the group in relation to accessing recoverable reserves are carried forward as
part of ‘development assets’ when future economic benefits are established, otherwise such expenditure is expensed as
part of the cost of production.
85
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 9: Development assets (continued)
(b) Recognition and measurement (continued)
Deferred mining expenditure - Surface mining costs
Mining costs incurred during the production stage of operations are deferred, this is generally the case where there
are fluctuations in deferred mining costs over the life of the mine, and the effect is material. The amount of mining
costs deferred is based on the ratio obtained by dividing the amount of waste mined by the quantity of gold ounces
contained in the ore. Mining costs incurred in the period are deferred to the extent that the current period waste to
contained gold ounce ratio exceeds the life-of-mine waste-to-ounce (life-of-mine) ratio. The life-of-mine ratio is based on
economically recoverable reserves of the operation.
In the production stage of some operations, further developments of the mine require a phase of unusually high
overburden removal activity that is similar in nature to pre-production mine development. The costs of such unusually
high overburden removal activity are deferred and charged against reported profits in subsequent periods on a unit-
of-production basis. The accounting treatment is consistent with that of overburden removal costs incurred during
the development phase of a mine, before production commences. Deferred mining costs that relate to the production
phase of the operation are carried forward as part of ‘development assets’. The amortisation of deferred mining costs is
included in site operating costs.
Key judgement, estimates and assumptions: Production stripping
The life-of-mine ratio is a function of an individual mine’s design and therefore changes to that design will generally
result in changes to the ratio. Changes in other technical or economic parameters that impact reserves will also have
an impact on the life-of-mine ratio even if they do not affect the mine’s design. Changes to the life-of-mine ratio are
accounted for prospectively.
Key judgement, estimates and assumptions: Deferred mining expenditure
The group defers mining costs incurred during the production stage of its operations. Changes in an individual mine’s
design will generally result in changes to the life-of-mine waste to contained gold ounces (life-of-mine) ratio. Changes
in other technical and economic parameters that impact reserves will also have an impact on the life-of-mine ratio
even if they do not affect the mine’s design. Changes to the life-of-mine are accounted for prospectively.
Key judgement, estimates and assumptions: Amortisation and impairment
The group uses the unit-of-production basis when depreciating / amortising mine specific assets which results
in a depreciation / amortisation charge proportional to the depletion of the anticipated remaining life-of-mine
production. Economic life, which is assessed annually, has due regard to both its physical life limitations and to
present assessments of economically recoverable reserves of the mine property. These calculations require the use of
estimates and assumptions.
Development assets are amortised based on the unit-of-production method which results in an amortisation charge
proportional to the depletion of the estimated recoverable reserves. Where there is a change in the reserves the
amortisation rate is adjusted prospectively in the reporting period in which the change occurs. The net carrying
values of development expenditure carried forward are reviewed half-yearly by Directors to determine whether there
is any indication of impairment, refer to Note 8 (d) for further information.
Key judgement, estimates and assumptions: Ore reserves
The group estimates ore reserves and mineral resources each year based on information compiled by Competent
Persons as defined in accordance with the Australian code for reporting Exploration Results, Mineral Resources
and Ore Reserves 2012 (‘JORC code’). Estimated quantities of economically recoverable reserves are based upon
interpretations of geological models and require assumptions to be made including estimates of short and long-term
commodity prices, exchange rates, future operating performance and capital requirements. Changes in reported
reserve estimates can impact the carrying value of plant and equipment and development, provision for restoration
and rehabilitation obligations as well as the amount of depreciation and amortisation.
86
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 10: Exploration and evaluation assets
Exploration and evaluation
Exploration and evaluation asset reconciliation
Opening net book amount
Additions on the acquisition of subsidiary
Additions
Impairment
Exchange differences
Transfer to development asset
Closing net book amount
(a) Recognition and measurement
Note
17(a)
2(b)
2019
$’000
99,442
19,317
72,262
17,732
(2,800)
27
(7,096)
99,442
2018
$’000
19,317
19,101
-
12,165
(2,428)
(6)
(9,515)
19,317
Exploration and evaluation
Exploration and evaluation costs related to areas of interest are capitalised and carried forward to the extent that:
(a) Rights to tenure of the area of interest are current; and
(b) (i) Costs are expected to be recouped through successful development and exploitation of the area of interest or
alternatively by sale; or
(ii) Where activities in the area of interest have not yet reached a stage which permits a reasonable assessment of
the existence or otherwise of economically recoverable reserves, active and significant operations in, or in
relation to, the areas are continuing.
Such expenditure consists of an accumulation of acquisition costs and direct net exploration and evaluation costs
incurred by or on behalf of the group, together with an appropriate portion of directly related overhead expenditure.
Deferred feasibility
Feasibility expenditure represents costs related to the preparation and completion of feasibility studies to enable a
development decision to be made in relation to an area of interest and is capitalised as incurred.
When production commences, relevant past exploration, evaluation and feasibility expenditure in respect of an area of
interest that has been capitalised is transferred to mine development where it is amortised over the life of the area of
interest to which it relates on a unit-of-production basis.
When an area of interest is abandoned or the Directors decide it is not commercial, any accumulated costs in respect of
that area are written off in the year the decision is made. Each area of interest is reviewed at the end of each reporting
period and accumulated costs written off to the extent they are not expected to be recoverable in the future.
Mineral rights
Mineral rights comprise identifiable exploration and evaluation assets, mineral resources and ore reserves, which are
acquired as part of a business combination or a joint venture and are recognised at fair value at date of acquisition.
Mineral rights are attributable to specific areas of interest and are classified within exploration and evaluation assets.
Mineral rights attributable to each area of interest are amortised when commercial production commences on a unit-
of-production basis over the estimated economic reserve of the mine to which the rights related.
Impairment
Impairment of specific exploration and evaluation assets during the year have occurred where Directors have concluded
that capitalised expenditure is unlikely to be recovered by sale or future exploitation. At each reporting date the group
undertakes an assessment of the carrying amount of its exploration and evaluation assets. During the year indicators of
impairment were identified on certain exploration and evaluation assets in accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources. As a result of this review, an impairment loss of $2.8 million (2018: $2.4 million) has been
recognised in relation to areas of interest where the directors have concluded that capitalised expenditure is unlikely to
be recovered by sale or future exploitation.
87
RAMELIUS RESOURCES ANNUAL REPORT 2019
NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 10: Exploration and evaluation assets (continued)
Key judgement, estimates and assumptions: Exploration, Evaluation and Deferred feasibility expenditure
Judgement is required to determine whether future economic benefits are likely, from either exploitation or sale,
or whether activities have not reached a stage that permits a reasonable assessment of existence of reserves.
In addition to these judgements, the group has to make certain estimates and assumptions. The determination
of JORC resources is itself an estimation process that involves varying degrees of uncertainty depending on how
the resources are classified (i.e. measured, indicated or inferred). The estimates directly impact when the group
capitalises exploration and evaluation expenditure. The capitalisation policy requires management to make
certain estimates and assumptions as to future events and circumstances, in particular, the assessment of whether
economic quantities of reserves will be found. Any such estimates and assumptions may change as new information
becomes available.
Note 11: Trade and other payables
Trade payables
Other payables and accruals
Total trade and other payables
(a) Recognition and measurement
2019
$’000
9,436
35,490
44,926
2018
$’000
7,080
24,716
31,796
Trade and other payables
Liabilities for trade and other payables are initially recorded at the fair value of the consideration to be paid in the future
for goods and services received, whether or not billed to the group, and then subsequently at amortised cost. Trade
payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts of trade and other
payables are assumed to be the same as their fair values, due to their short-term nature.
Risk exposure
The group’s exposure to cash flow risk is discussed in Note 16.
Note 12: Contingent consideration
Non-current
Acquisition of Edna May contingent consideration
Total contingent consideration
Movements
Balance as at 1 July 2018
Unwinding of discount rate
Change in fair value of contingent consideration
Total contingent consideration
88
2019
$’000
12,121
12,121
Note
2(c)
1(b)
2018
$’000
12,892
12,892
Contingent
consideration
$’000
12,892
1,238
(2,009)
12,121
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 12: Contingent consideration (continued)
Significant estimate: contingent consideration
The purchase consideration for Edna May included contingent consideration of:
• $20,000,000 in cash or Ramelius shares, or a combination of both, at Ramelius’ sole election, upon a Board
approved decision-to-mine the Edna May Stage 3 open pit; and
• Royalty payments of up to a maximum of $30,000,000 payable at $60/oz from gold production over 200,000
ounces (or up to $50,000,000 payable at $100/oz if the Edna May Stage 3 open pit decision-to-mine is not Board
approved).
The potential undiscounted amount payable under the agreement is between $0 and $50,000,000.
The fair value of the contingent consideration has been revalued at 30 June 2019 which resulted in a reduction of the
contingent consideration of $2,009,000 which has been recorded in the income statement. The main driver behind
the reduction in the fair value of the contingent consideration has been the decision to commence underground
mining at Edna May as opposed to carrying out the larger ‘Stage 3’ open pit, which attracted the $20,000,000 bullet
payment noted above.
Note 13: Provisions
Current
Employee benefits
Rehabilitation and restoration costs
Total current provisions
Non-current
Employee benefits
Rehabilitation and restoration costs
Total non-current provisions
Rehabilitation and restoration costs
Opening book amount
New provision from the acquisition of subsidiary
Revision of provision during the year
Expenditure on rehabilitation and restoration
Discount unwind
2019
$’000
6,089
763
6,852
379
45,608
45,987
42,489
-
3,150
(209)
941
2018
$’000
5,411
664
6,075
1,344
41,825
43,169
20,914
20,984
714
(754)
631
Total provision for rehabilitation and restoration
46,371
42,489
Rehabilitation and restoration costs
Current
Non-current
Total provision for rehabilitation and restoration
763
45,608
46,371
664
41,825
42,489
(a) Revision of rehabilitation and restoration provision
Represents amendments to future restoration and rehabilitation liabilities resulting from changes to the approved mine
plan in the financial year, initial recognition of new rehabilitation provisions as well as a change in provision assumptions.
Key provision assumption changes include reassessment of costs and timing of expenditure.
89
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 13: Provisions (continued)
(b) Recognition and measurement
Provisions
Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
Employee Benefits - Wages, salaries, salary at risk, annual leave and sick leave
Liabilities arising in respect of wages and salaries, bonuses, annual leave and any other employee benefits expected
to be wholly settled within 12 months of the reporting date are measured at their nominal amounts based on
remuneration rates which are expected to be paid when the liabilities are settled. These amounts are recognised in
‘trade and other payables’ (for amounts other than annual leave and bonuses) and ‘current provisions’ (for annual leave
and bonuses) in respect of employee services up to the reporting date. Costs incurred in relation to non-accumulating
sick leave are recognised when the leave is taken and are measured at the rate paid or payable.
Long service leave
The liability for long service leave is measured at the present value of the estimated future cash outflows to be made by
the group resulting from employees’ services provided up to the reporting date. Liability for long service leave benefits
not expected to be settled within 12 months are discounted using the rates attaching to high quality corporate bonds
at the reporting date, which most closely match the terms of maturity of the related liability. In determining the liability
for these long-term employee benefits, consideration has been given to expected future increases in wage and salary
rates, the groups experience with staff departures and periods of service. Related on-costs have also been included in
the liability.
The obligations are presented as current liabilities in the Balance Sheet if the entity does not have an unconditional right
to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is
expected to occur.
Defined contribution superannuation plans
Contributions to defined contribution superannuation plans are expensed when incurred.
Provision for restoration and rehabilitation
Estimated costs of decommissioning and removing an asset and restoring the site are included in the cost of the asset
as at the date the obligation first arises and to the extent that it is first recognised as a provision. The group records the
present value of the estimated cost of constructive and legal obligations to restore operating locations in the period
in which the obligation is incurred. The nature of decommissioning activities includes dismantling and removing
structures, rehabilitating mine sites, dismantling operating facilities, closure of plant and waste sites and restoration,
reclamation and revegetation of affected areas.
Typically, the obligation arises when the asset is installed, or the environment is disturbed at the development location.
When the liability is initially recorded, the present value of the estimated cost is capitalised by increasing the carrying
amount of the related mining assets. Over time, the discounted liability is increased for the change in the present value
based on the discount rates that reflect the current market assessments and the risks specific to the liability. Additional
disturbances or changes in decommissioning costs will be recognised as additions or changes to the corresponding
asset and rehabilitation liability when incurred.
The unwind effect of discounting the provision is recorded as a finance cost in the Income Statement and the carrying
amount capitalised as a part of mining assets is amortised on a unit-of-production basis. Costs incurred that relate to an
existing condition caused by past operations, but do not have future economic benefits, are expensed as incurred.
Key judgement, estimates and assumptions: Provision for restoration and rehabilitation
The group assesses its mine restoration and rehabilitation provision bi-annually in accordance with the accounting
policy. Significant judgement is required in determining the provision for restoration and rehabilitation as there are
many transactions and other factors that will affect the ultimate liability payable to rehabilitate and restore the mine
sites. The estimate of future costs therefore requires management to make assessment of the future restoration and
rehabilitation date, future environmental legislation, changes in regulations, price increases, changes in discount
rates, the extent of restoration activities and future removal and rehabilitation technologies. When these factors
change or become known in the future, such differences will impact the restoration and rehabilitation provision in the
period in which they change or become known. At each reporting date the rehabilitation and restoration provision is
remeasured to reflect any of these changes.
90
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
KEY NUMBERS (CONTINUED)
Note 13: Provisions (continued)
(b) Recognition and measurement (continued)
Key judgement, estimates and assumptions: Long service leave
Management judgement is required in determining the following key assumptions used in the calculation of long
service leave at balance sheet date:
- Future increase in salaries and wages;
- Future on cost rates; and
- Future probability of employee departures and period of service
Note 14: Share capital
Ordinary shares
Share capital at 1 July 2017
Shares issued from exercise of options
Shares issued from exercise of performance rights
Less cost of share issues (net of tax)
At 30 June 2018
Note
Number of
shares
$’000
526,734,248
149,122
1,500,000
274,760
-
448
-
(2)
528,509,008
149,568
Shares issued as part of the acquisition of Explaurum1
17(a)
127,778,619
64,232
Shares issued from exercise of performance rights
Shares issued from exercise of options
Transfer from share based payments reserve
At 30 June 2019
85,342
1,500,000
-
28
300
90
657,872,969
214,218
1 Represents the value of shares at the date of issue. Refer to Note 15 for details on the NCI reserve.
(a) Recognition and measurement
Share capital
Ordinary share capital is classified as equity and is recognised at fair value of the consideration received by the group.
Any transaction costs arising on the issue of ordinary shares and the associated tax are recognised directly in equity as a
reduction of the share proceeds received.
Ordinary shares
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote
per share at shareholders’ meetings other than voting exclusions as required by the Corporations Act 2001. In the event
of winding up of the Company, ordinary shareholders rank after all creditors and are fully entitled to any proceeds of
liquidation.
Options over shares
Refer Note 24 for further information on options, including details of any options issued, exercised and lapsed during the
financial year and options over shares outstanding at financial year end.
Rights over shares
Refer Note 24 for further information on rights, including details of any rights issued, exercised and lapsed during the
financial year and rights over shares outstanding at financial year end.
91
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
RISK
Note 15: Reserves
Share-based payments reserve
Financial assets at FVOCI
Other
NCI acquisition reserve
Foreign currency translation reserve
Total reserves
2019
$’000
2,032
(383)
634
(9,926)
(31)
(7,764)
2018
$’000
1,545
(333)
634
-
38
1,884
Share-based payment reserve
Share-based payments reserve records items recognised as expenses on valuation of employees share options and
rights.
Financial assets at FVOCI
The group has elected to recognise changes in the fair value of certain investments in equity securities in OCI. These
changes are accumulated within the FVOCI reserve within equity. The group transfers amounts from this reserve to
retained earnings when the relevant equity securities are derecognised.
Non-Controlling Interest (NCI) acquisition reserve
The NCI acquisition reserve represents the incremental increase in the RMS share price on the buy-out of the EXU non-
controlling interest post the date control was obtained.
Foreign currency translation reserve
Foreign currency translation reserve comprises all foreign exchange difference arising from the translation of the
financial statements of foreign operations where their function currency is different to the presentation currency of the
reporting entity.
Note 16: Financial instruments and financial risk management
The Directors are responsible for monitoring and managing financial risk exposures of the group. The group holds the
following financial assets and liabilities:
Financial assets
Cash at bank
Term deposits
Trade and other receivables
Secured term deposits with financial institutions
Other security bonds and deposits
Available-for-sale financial assets
Total financial assets
Financial liabilities
Trade and other payables
Total financial liabilities
(a) Recognition and measurement
2019
$’000
40,815
55,000
6,774
7,500
488
101
2018
$’000
38,181
30,028
4,664
6,819
477
126
110,678
80,295
44,926
44,926
31,796
31,796
Initial recognition and measurement
Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified
‘at fair value through profit or loss’ in which case transaction costs are expensed immediately.
92
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
RISK (CONTINUED)
Note 16: Financial instruments and financial risk management (continued)
(b) Classification and subsequent measurement
Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method
or at cost. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. Quoted prices in an active market are
used to determine fair value where possible. The group does not designate any interest in subsidiaries, associates or
joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial
instruments.
Amortised Cost
Amortised cost amounts are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market and are subsequently measured at amortised cost using the effective interest rate method.
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.
Fair value through other comprehensive income (FVOCI)
FVOCI financial assets include any financial assets not included in the above categories.
(c) Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied
to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar
instruments and option pricing models.
(d) Expected loss
At each reporting date, the group assesses whether there is objective evidence that a financial instrument has been
impaired. If there is objective evidence of impairment, the cumulative loss - measured as the difference between the
acquisition cost and the current fair value, less any impairment loss on that financial asset previously not recognised in
the profit or loss - is removed from equity and recognised in profit or loss.
Management of financial risk
The group’s management of financial risk is aimed at ensuring cash flows are sufficient to:
• Withstand significant changes in cash flow at risk scenarios and meet all financial commitments as and when they
fall due; and
• Maintain the capacity to fund future project development, exploration and acquisition strategies.
The group continually monitors and tests its forecast financial position against these criteria.
The group is exposed to the following financial risks: liquidity risk, credit risk and market risk (including foreign exchange
risk, commodity price risk and interest rate risk).
(a) Liquidity risk
Liquidity risk arises from the possibility that the group might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities. Prudent liquidity risk management implies maintaining sufficient
cash to meet obligations when due. The group manages liquidity risk by regularly monitoring forecast cash flows.
i. Maturities of financial liabilities
(a) Payables
Trade and other payables are expected to be settled within 6 months.
(b) Borrowings
The group has no outstanding borrowings as at 30 June 2019.
(b) Credit risk exposures
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The credit risk
on financial assets of the entity which have been recognised in the Balance Sheet is the carrying amount, net of any
provision for doubtful debts. Credit risk is managed through the consideration of credit worthiness of customers and
counterparties. This ensures to the extent possible, that customers and counterparties to transactions are able to pay
their obligations when due and payable. Such monitoring is used in assessing impairment.
i. Past due but not impaired
As at 30 June 2019 there were no receivables past due but not impaired.
93
RAMELIUS RESOURCES ANNUAL REPORT 2019
NOTES TO THE FINANCIAL STATEMENTS:
RISK (CONTINUED)
Note 16: Financial instruments and financial risk management (continued)
(b) Credit risk exposures (continued)
ii. Impaired trade receivables
Individual receivables which are known to be uncollectable are written off by reducing the carrying amount directly. The
other receivables are assessed to determine whether there is objective evidence that an impairment has been incurred
but not yet identified. For these receivables, the estimated impairment losses are recognised in a separate provision for
impairment. The group considers that there is evidence of impairment if any of the following indicators are present:
• significant financial difficulties of the debtor,
• probability that the debtor will enter bankruptcy or financial reorganisation, and
• default or delinquency in payments (past due).
Receivables for which an impairment provision was recognised are written off against the provision when there is no
expectation of recovering additional cash. Impairment losses are recognised in profit or loss within other expenses.
Subsequent recoveries of amounts previously written off are credited against other expenses.
(c) Market risk
i. Foreign currency risk
The group undertakes transactions impacted by foreign currencies; hence exposures to exchange rate fluctuations arise.
The majority of the group’s revenue is affected by movements in USD:AUD exchange rate that impacts on the Australian
gold price whereas the majority of costs (including capital expenditure) are in Australian dollars. The group considers
the effects of foreign currency risk on its financial position and financial performance and assesses its option to hedge
based on current economic conditions and available market data.
ii. Commodity price risk
The group’s revenue is exposed to commodity price fluctuations, in particular to gold prices. Price risk relates to the
risk that the fair value of future cash flows of gold sales will fluctuate because of changes in market prices largely
due to demand and supply factors for commodities and gold price commodity speculation. The group is exposed to
commodity price risk due to the sale of gold on physical delivery at prices determined by markets at the time of sale. The
group manages commodity price risk as follows:
Forward sales contracts
Gold price risk is managed through the use of forward sales contracts which effectively fix the Australian Dollar gold
price and thus provide cash flow certainty. These contracts are accounted for as sale contracts with revenue recognised
once gold has been physically delivered into the contract. The physical gold delivery contracts are considered a contract
to sell a non-financial item and therefore do not fall within the scope of AASB 9 Financial Instruments. At 30 June 2019,
the group had 240,900 ounces in forward sales contracts at an average price of A$1,834. Refer to Note 21(a) for further
details.
Put options
Gold price risk may be managed with the use of hedging strategies through the purchase of gold put options to
establish gold “floor prices” in Australian dollars over the group’s gold production; however, this is generally at levels
lower than current market prices. These put options enable Ramelius to retain full exposure to current, and any future
rises in the gold price while providing protection to a fall in the gold price below the strike price. Gold put options are
marked to market at fair value through profit and loss.
Gold prices, cash flows and economic conditions are constantly monitored to determine whether to implement a
hedging program.
(d) Gold price sensitivity analysis
The group has performed a sensitivity analysis relating to its exposure to gold price risk at reporting date. This sensitivity
analysis demonstrates the effect on the current year results and equity which could result in a change in these risks. Any
impacts from such hedging would be in relation to revenue from gold sales.
Based on gold sales of 39,102oz (200,352 oz less forward sales of 161,250oz) in 2019 and 51,523oz (200,273oz less forward
sales of 148,750oz) in 2018, if gold price in Australian dollars had changed by + / - A$100, with all other variables remaining
constant, the estimated realised impact on pre-tax profit (loss) and equity would have been as follows:
94
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
GROUP STRUCTURE
Note 16: Financial instruments and financial risk management (continued)
(d) Gold price sensitivity analysis (continued)
Impact on pre-tax profit
Increase in gold price by A$100
Decrease in gold price by A$100
Impact on equity
Increase in gold price by A$100
Decrease in gold price by A$100
(e) Capital risk management
2019
$’000
3,910
(3,910)
3,910
(3,910)
2018
$’000
5,152
(5,152)
5,152
(5,152)
The objective when managing capital is to maintain a strong capital base capable of withstanding cash flow variability,
whilst providing flexibility to pursue growth aspirations. Ramelius aims to maintain an optimal capital structure to
reduce the cost of capital and maximise shareholder returns. The capital structure is equity as shown in the Balance
Sheet. The group is not subject to any externally imposed capital requirements.
(f) Fair value measurement
The financial assets and liabilities of the group are recognised on the Consolidated Balance Sheet at their fair value in
accordance with the group’s accounting policies. Measurement of fair value is grouped into levels based on the degree
to which fair value is observable in accordance with AASB 7 Financial Instruments: Disclosure.
- Level 1 - fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
assets or liabilities.
- Level 2 - fair value measurements are those derived from inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).
- Level 3 - fair value measurements are those derived from valuation techniques that include inputs for the asset or
liability that are not based on observable market data (unobservable inputs).
(g) Fair value measurement of financial instruments
Derivative financial assets are measured at fair value using valuation techniques which maximise the use of observable
market data and rely as little as possible on entity specific estimates. The valuations would be recognised as a Level 2 in
the fair value hierarchy as they have been derived using inputs from a variety of market data. Available-for-sale financial
assets are measured at fair value using the closing price on the reporting date as listed on the Australian Securities
Exchange Limited (ASX). Available-for-sale financial assets are recognised as a Level 1 in the fair value hierarchy as
defined under AASB 7 Financial Instruments: Disclosures. The carrying amounts of trade receivables and payables are
assumed to approximate their fair values due to their short-term nature.
Note 17: Asset acquisitions
(a) Tampia Hill Gold Project (Explaurum Limited)
On 10 September 2018 Ramelius released a Bidders Statement in relation to its off-market takeover bid under Chapter 8
of the Corporations Act for all of the fully paid ordinary shares in Explaurum Limited (Explaurum) (then ASX: EXU). Under
the offer, Explaurum shareholders would have received one (1) Ramelius share for every four (4) Explaurum shares held.
On 13 December 2018 Ramelius announced an improved, best and final takeover offer (“the Offer”) for Explaurum.
Under the improved offer Explaurum shareholders received $0.02 cash for every Explaurum share held in addition to
the existing consideration of one (1) Ramelius share for every four (4) Explaurum shares held. On 18 December 2018 the
Explaurum Board unanimously recommended that Explaurum shareholders accept the Ramelius offer in the absence
of a superior proposal.
Control of Explaurum was obtained on 27 December 2018. The offer closed on 25 February 2019 with Ramelius holding
a relevant interest in 95.58% of Explaurum shares. On this date Ramelius exercised its compulsory acquisition powers
under the Corporations Act to acquire the remaining Explaurum shares. The compulsory acquisition was completed on
4 April 2019 with Ramelius having a 100% relevant interest in Explaurum Limited and its subsidiaries.
95
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
GROUP STRUCTURE (CONTINUED)
Note 17: Asset acquisitions (continued)
(a) Tampia Hill Gold Project (Explaurum Limited) (continued)
The Tampia Hill Gold Project is located in the wheatbelt of Western Australia is located near Narembeen, 204km east of
Perth in Western Australia and 140km by road from the existing Edna May Gold Mine. The Tampia Hill Gold Project has a
Mineral Resource of 460,000 ounces and an Ore Reserve of 200,000 ounces.
The group has determined that the transaction does not constitute a business combination in accordance with AASB
3 Business Combinations. The acquisition of the net assets meets the definition of, and has been accounted for, as an
asset acquisition. When an asset acquisition does not constitute a business combination, the assets and liabilities are
assigned a carrying amount based on their relative fair values in an asset purchase transaction and no deferred tax will
arise in relation to the acquired assets and assumed liabilities as the initial recognition exemption for deferred tax under
AASB 112 Income Taxes is applied. No goodwill arises on the acquisition and transactions costs of the acquisition are
included in the capitalised cost of the asset.
Details of the purchase consideration and the net assets acquired are as follows:
Purchase consideration:
Cash paid
Ordinary shares issued (127,778,619)
NCI reserve
Acquisition costs
Total purchase consideration
Note
At acquisition
$’000
At 30 June 2019
$’000
14
15
5,219
27,727
-
1,127
34,073
8,472
64,232
(9,926)
4,893
67,671
The fair value of the shares issued to gain control of Explaurum Limited was based on the Ramelius share price on 27
December 2018 (the date on which control was obtained) of $0.425 per share. The fair value of the shares issued post
control being obtained was the share price at the date the shares were issued. The difference between this share price
and that at the date of control has been recorded in the NCI acquisition reserve (see note 15).
At acquisition
$’000
At 30 June 2019
$’000
1,665
495
129
66,492
(3,063)
(3,700)
(117)
61,901
(27,828)
34,073
1,665
495
129
72,262
(3,063)
(3,700)
(117)
67,671
-
67,671
8,472
4,893
(3,317)
(1,665)
8,383
Net assets acquired:
Cash and cash equivalents
Trade and other receivables
Plant and equipment
Exploration & evaluation assets
Trade and other payables
Loans payable
Provisions
Net identifiable assets acquired
Less: Non-controlling interest
Net assets acquired
Outflow of cash to acquire subsidiary, net of cash acquired:
Cash consideration, net of receipts
Acquisition costs
Less: acquisition costs provided for but not paid
Less: cash balance acquired
Net outflow of cash – investing activities
96
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
GROUP STRUCTURE (CONTINUED)
Note 17: Asset acquisitions (continued)
(b) Marda Gold Project (Black Oak Minerals Limited)
The Marda Gold Project is located 191km north-northeast of the Edna May operations and is amenable to processing at
the existing Edna May facilities. The Marda Gold Project has a Mineral Resource of 300,000 ounces and an Ore Reserve of
89,000 ounces.
On 13 September 2018 Ramelius entered into a binding agreement for the acquisition of Black Oak Minerals Limited (in
Liquidation) (“BOK”), the owner of the Marda Gold Project, for $13.0 million.
A BOK creditors meeting held on 1 November 2018 approved the acquisition of BOK by Ramelius paving the way for
Ramelius to apply to the Federal Court of Australia for the transfer of the shares in BOK to the group. On 31 January 2019
the Federal Court of Australia approved the transfer of shares with completion occurring on 13 February 2019.
The group has determined that the transaction does not constitute a business combination in accordance with AASB
3 Business Combinations. The acquisition of the net assets meets the definition of, and has been accounted for, as an
asset acquisition. When an asset acquisition does not constitute a business combination, the assets and liabilities are
assigned a carrying amount based on their relative fair values in an asset purchase transaction and no deferred tax will
arise in relation to the acquired assets and assumed liabilities as the initial recognition exemption for deferred tax under
AASB 112 Income Taxes is applied. No goodwill arises on the acquisition and transactions costs of the acquisition are
included in the capitalised cost of the asset.
Details of the purchase consideration and the net assets acquired are as follows:
Purchase consideration:
Cash paid
Acquisition costs
Total purchase consideration
Net assets acquired:
Consumables
Land & buildings
Plant and equipment
Mine development
Net assets acquired
Outflow of cash to acquire subsidiary, net of cash acquired:
Cash consideration
Acquisition costs
Less: acquisition costs provided for but not paid
Net outflow of cash – investing activities
Note 18: Business combination
$’000
13,000
901
13,901
2
135
5
13,759
13,901
13,000
901
(663)
13,238
In the prior reporting period Ramelius acquired Edna May Operations Pty Limited from Evolution Mining Limited. Part
of the purchase consideration was consideration contingent upon future production and mine development.
The contingent consideration arrangement requires the group to pay the former owner Evolution Mining Limited a
royalty of either $60 or $100 per ounce and/or a payment of $20,000,000 in cash or Ramelius shares as described in note
12. The maximum amount payable under this arrangement is $50,000,000. There is no minimum amount payable.
The fair value of the contingent consideration as at 30 June 2018 of $12,892,000 was estimated calculating the present
value of the future expected cash flows. The estimates were based on a discount rate of 10% and probability adjusted
production profiles.
For the year ended 30 June 2019, there was an increase of $1,238,000 recognised in the income statement for the contingent
consideration arrangement which represents the unwinding of the discount rate. In addition to this there was a decrease of
$2,009,000 recognised in the income statement relating to changes in the fair value of the contingent consideration.
The liability is presented as non-current contingent consideration in the balance sheet.
97
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
GROUP STRUCTURE (CONTINUED)
Note 19: Interests in other entities
Controlled entities
The group’s principal subsidiaries at 30 June 2019 are set out below. Unless otherwise stated, they have share capital
consisting solely of ordinary shares that are held directly by the group, and the proportion of ownership interests held
equals the voting rights held by the group. The country of incorporation or registration is also their principal place of
business.
Name of Entity
Parent entity
Country of
incorporation
Functional
currency
Percentage
owned 2019
%
Percentage
owned 2018
%
Ramelius Resources Limited
Australia
Australian dollars
n/a
n/a
Subsidiaries of Ramelius Resources Limited
Mt Magnet Gold Pty Limited
RMSXG Pty Limited
Ramelius USA Corporation
Australia
Australian dollars
Australia
Australian dollars
USA
US dollars
Ramelius Operations Pty Limited
Australia
Australian dollars
Explaurum Limited
Australia
Australian dollars
Subsidiaries of Ramelius Operations
Pty Limited
Edna May Operations Pty Limited
Australia
Australian dollars
Marda Operations Pty Limited
(formerly Black Oak Minerals Limited)
Australia
Australian dollars
Subsidiaries of Explaurum Limited
Explaurum Operations Pty Limited
Australia
Australian dollars
Ninghan Exploration Pty Limited
Australia
Australian dollars
100
100
100
100
100
100
100
100
100
100
100
100
100
-
100
-
-
-
The parent entity and all subsidiaries of Ramelius, except for Ramelius USA Corporation, form part of the closed group
detailed at Note 27.
Joint operations
The group has the following direct interests in unincorporated joint operations at 30 June 2019 and 30 June 2018:
Joint operation project
Joint operation partner
Principal activity
2019
Interest (%)
85%
Withdrawn
0%*
0%*
0%*
Diluting 100%
2018
85%
0%*
0%*
-
-
-
0%*
0%*
Tanami
Mooletar
Jumbulyer
Nulla South
Gibb Rock
Dreadnought Resources Limited
Unlisted entity
Unlisted entity
Chalice Gold Mines Limited
Chalice Gold Mines Limited
Coogee Farm-out
Jupiter
Unlisted entity
Kinetic Gold#
Gold
Gold
Gold
Gold
Gold
Gold
Gold
* Ramelius is earning into the joint ventures by undertaking exploration and evaluation activities.
# - Kinetic Gold is a subsidiary of Renaissance Gold Inc.
98
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
UNRECOGNISED ITEMS
Note 19: Interests in other entities (continued)
Joint operations (continued)
The share of assets in unincorporated joint operations is as follows:
2019
$’000
2018
$’000
Non-current assets
Exploration and evaluation assets (note 10)
2,490
3,549
(a) Recognition and measurement
Under AASB 11 Joint Arrangements investments in joint arrangements are classified as either joint operations or joint
ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal
structure of the joint arrangement. Ramelius has exploration related joint arrangements which are considered joint
operations. Ramelius recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and
its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the
financial statements under the appropriate headings.
Note 20: Contingent liabilities
The Directors are of the opinion that the recognition of a provision is not required in respect of the following matters, as
it is not probable that a future sacrifice of economic benefits will be required, or the amount is not capable of reliable
measurement.
(a) Bank guarantees
The group has negotiated a number of bank guarantees in favour of various government authorities and service
providers. The total nominal amount of these guarantees at the reporting date is $370,145 (2018: $2,122,000). These bank
guarantees are fully secured by cash on term deposit.
Note 21: Commitments
(a) Gold delivery commitments
Forward sale contracts are accounted for as sale contracts with revenue recognised once gold has been physically
delivered. The physical gold delivery contracts are considered own use contracts and therefore do not fall within the
scope of AASB 139 Financial Instruments: Recognition and Measurement. As a result, no derivatives are required to be
recognised. Forward gold sale contract delivery commitments are shown below:
Gold delivery commitments
As at 30 June 2019
Within one year
Between one and five years
Total
As at 30 June 2018
Within one year
Between one and five years
Total
Gold for
physical
delivery
Oz
138,800
102,100
240,900
110,250
30,000
140,250
Contracted
sales price
A$/oz
Committed
gold sales value
$’000
$1,806
$1,873
$1,834
$1,708
$1,758
$1,719
250,605
191,193
441,798
188,347
52,744
241,091
99
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION
Note 21: Commitments (continued)
(b) Capital expenditure commitments
Capital expenditure contracted but not provided for in the
financial statements.
Within one year
Total capital expenditure commitments
(c) Operating lease commitments
Future minimum rentals payable on non-cancellable operating
leases due:
Within one year
Between one and five years
Total operating lease commitments
2019
$’000
1,509
1,509
819
524
1,343
2018
$’000
-
-
363
639
1,002
(d) Minimum exploration and evaluation commitments
In order to maintain current rights of tenure to exploration tenements, the group is required to perform minimum
exploration work to meet minimum expenditure requirements. These obligations are subject to renegotiation and may
be farmed out or relinquished. These obligations are not provided for in the financial statements.
Within one year
Between one and five years
Due later than five years
Total minimum exploration and evaluation commitments
Note 22: Events occurring after the reporting period
2019
$’000
5,171
17,254
22,881
45,306
2018
$’000
3,346
12,099
21,826
37,271
No matters or circumstances have arisen since 30 June 2019 that have significantly affected, or may significantly affect:
(a) The group’s operations in future financial years,
(b) The results of operations in future financial years, or
(c) The group’s state of affairs in future financial years.
Note 23: Related party transactions
Transactions with related parties are on normal commercial terms and at conditions no more favourable than those
available to other parties unless otherwise stated.
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Termination benefits
Share-based payments
2019
$
2018
$
3,108,089
2,226,288
172,749
(64,650)
299,583
268,148
141,503
(4,535)
40,000
301,569
Total key management personnel compensation
3,783,919
2,704,825
Detailed remuneration disclosures are provided in the Remuneration Report.
100
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION (CONTINUED)
Note 23: Related party transactions (continued)
(a) Subsidiaries
Interests in subsidiaries are set out in Note 19.
(b) Transactions with other related parties
There were no other transactions with related parties during the year. In the prior year lease payments were made to
an entity related to the late Chairman, Mr R M Kennedy. The lease agreement was for the office property in Adelaide, SA
and had been based on normal commercial terms on conditions on an arm’s length basis.
Aggregate amounts of each of the above types of transactions with key management personnel of Ramelius Resources
Limited:
Amounts recognised as an expense
Rent of office building
2019
$
2018
$
-
45,286
There was no other amount receivable from or payable to Directors and their related entities at reporting date.
Note 24: Share based payments
(a) Options
In November 2015 3,000,000 options over the ordinary fully paid shares in Ramelius Resources Limited were issued as
approved by the shareholders at the 2015 Annual General Meeting.
The table set out below summarises the options granted:
As at 1 July
Options exercised
As at 30 June
Vested and exercisable at 30 June
2019
2018
Avg ex price
per option
Number of
options
Avg ex price
per option
Number of
options
$0.20
$0.20
$0.20
$0.20
3,000,000
(1,500,000)
1,500,000
1,500,000
$0.23
$0.30
$0.20
$0.20
4,500,000
(1,500,000)
3,000,000
3,000,000
Share options outstanding at the end of the year have the following expiry dates and exercise prices:
Grant date
26 November 2015
20 November 2015
Total
Expiry date
Exercise price
Share options
30 June 2019
Share options
30 June 2018
11 June 2019
11 June 2020
$0.20
$0.20
-
1,500,000
1,500,000
1,500,000
1,500,000
3,000,000
Weighted average remaining contractual life of options outstanding at the
end of the year
0.95 years
1.45 years
There were no options granted during the years ended 30 June 2019 and 30 June 2018.
101
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION (CONTINUED)
Note 24: Share based payments (continued)
(b) Performance rights
Under the Performance Rights Plan, which was approved by shareholders at the 2016 Annual General Meeting, eligible
employees are granted performance rights (each being an entitlement to an ordinary fully paid share) subject to the
satisfaction of vesting conditions and on the terms and conditions as determined by the Board. Performance rights are
issued for no consideration and have a nil exercise price.
The amount of performance rights that vest depends on Ramelius Resources Limited’s total return to shareholders
(TSR), including share price growth, dividends and capital returns, and ranking within a peer group. Once vested
performance rights remain exercisable for a period of seven years.
Performance rights issued under the plan carry no voting or dividend rights.
The table set out below summarises the performance rights granted:
As at 1 July
Performance rights forfeited
Performance rights lapsed
Performance rights granted
Performance rights exercised
As at 30 June
Vested and exercisable at 30 June
Performance rights outstanding at the end of the year have the following expiry date:
Grant date
23 November 2016
23 November 2016
23 November 2016
22 December 2016
1 July 2017
31 July 2017
3 October 2017
5 September 2018
29 November 2018
Total
Expiry date
1 July 2024
1 July 2025
1 July 2026
11 June 2026
1 July 2027
1 July 2027
1 July 2027
1 July 2028
1July 2028
2019
Performance
rights
2018
Performance
rights
6,900,914
(422,645)
(143,019)
3,825,125
(85,342)
10,075,033
1,831,778
3,429,330
(235,988)
-
3,982,332
(274,760)
6,900,914
701,688
Performance
rights
30 June 2019
Performance
rights
30 June 2018
701,688
630,090
804,081
500,000
2,635,721
464,445
580,500
2,437,039
1,321,469
701,688
858,451
858,442
500,000
2,793,388
464,445
724,500
-
-
10,075,033
6,900,914
Weighted average remaining contractual life of performance rights outstanding
at the end of the year
7.92 years
8.25 years
102
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION (CONTINUED)
Note 24: Share based payments (continued)
(b) Performance rights (continued)
The fair value at grant date is independently determined using a Monte Carlo Simulations pricing model that takes into
account the exercise price, the term of the performance right, the share price at grant date, expected price volatility of
the underlying share and the risk-free rate for the term of the performance right. The expected price volatility is based
on historic volatility (based on the remaining life of the performance right). Model inputs for performance rights granted
during the year are as follows:
Metric
Exercise price
Grant date
Life
Share price at grant date
Expected price volatility
Risk free rate
Performance rights granted:
5 Sept 2018
29 Nov 2018
$nil
$nil
5 Sept 2018
29 Nov 2018
2.8 years
2.6 years
$0.49
63%
2.08%
$0.385
55%
2.09%
(c) Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transaction recognised during the period as part of employee
benefits expense were as follows:
Performance rights
Options
Total share-based payment expense
(d) Recognition and measurement
2019
$‘000
651
-
651
2018
$‘000
631
53
684
The group provides benefits to employees (including the Managing Director / Chief Executive Officer) in the form of
share-based compensation, whereby employees render services in exchange for shares or options and/or rights over
shares (equity-settled transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity
instruments at the date at which they are granted. The group issues share-based remuneration in accordance with the
employee share acquisition plan, the performance rights plan or as approved by the Board as follows:
(i) Employee share acquisition plan
The group operates an Employee Share Acquisition Plan where employees may be issued shares and/or options.
Fair value of the equity to which employees become entitled is measured at grant date and recognised as an
employee benefits expense over the vesting period with a corresponding increase in equity. Fair value of shares
issued is determined with reference to the latest ASX share price. Options are valued using an appropriate valuation
technique which takes vesting conditions into account.
(ii) Performance rights plan
The group has a Performance Rights Plan where key management personnel may be provided with rights to
shares in Ramelius. Fair values of rights issued are recognised as an employee benefits expense over the relevant
service period, with a corresponding increase in equity. Fair value of rights are measured at effective grant date
and recognised over the vesting period during which key management personnel become entitled to the rights.
There are a number of different methodologies that are appropriate to use in valuing rights. Fair value of rights
granted is measured using the most appropriate method in the circumstances, taking into consideration the terms
and conditions upon which the rights were issued.
(iii) Other long-term incentives
The Board may at its discretion provide share rights either to recruit or as a long-term retention incentive to key
executives and employees.
The fair value of options and/or rights granted is recognised as an employee benefits expense with a corresponding
increase in equity. The total amount to be expensed is determined by reference to the fair value of the options and/or
rights granted, which includes any market performance conditions and the impact of any non-vesting conditions but
excludes the impact of any service and non-market performance vesting conditions.
103
RAMELIUS RESOURCES ANNUAL REPORT 2019
NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION (CONTINUED)
Note 24: Share based payments (continued)
(d) Recognition and measurement (continued)
Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. The
total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions
are to be satisfied. At the end of each period, the entity revises its estimates of the number of options and/or rights that
are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original
estimates, if any, in profit or loss, with a corresponding adjustment to equity.
Upon exercise of the rights, the balance of the Share-Based Payments Reserve relating to those rights remains in the
share-based payments reserve until it is transferred to retained earnings.
Note 25: Remuneration of auditors
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its
related practices and non-related audit firms:
Deloitte Touche Tohmatsu
Audit and review of financial statements
Other assurance services
- Audit of regulatory returns
- Accounting assistance
Total remuneration of Deloitte Touche Tohmatsu
Grant Thornton
Audit and review of financial statements
Other assurance services
- Audit of regulatory returns
Tax advice and compliance services
Total remuneration of Grant Thornton
Note 26: Earnings per share
2019
$
105,000
6,250
13,200
124,450
-
-
-
-
2018
$
-
-
-
-
182,333
-
62,400
244,733
2019
Cents
2018
Cents
(a) Basic earnings per share
Basic earnings per share attributable to the ordinary equity holders of the Company
3.74
5.84
(b) Diluted earnings per share
Diluted earnings per share attributable to the ordinary equity holders of the Company
3.67
5.75
(c) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in calculating
basic earnings per share
584,112,265
527,021,292
Adjustments for calculation of diluted earnings per share:
Share rights and options
11,448,559
7,780,731
Weighted average number of ordinary shares used as the denominator in
calculating diluted earnings per share
595,560,824
534,802,023
2019
Number
2018
Number
104
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION (CONTINUED)
Note 26: Earnings per share (continued)
(d) Calculation of earnings per share
Basic earnings per share is calculated by dividing:
-
the profit attributable to owners of the Company, adjusted to exclude costs of servicing equity other than ordinary
shares,
- by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the year.
Diluted earnings per share adjusts the figures used in determining basic earnings per share to take into account the:
-
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares,
- weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
(e) Earnings used in the calculation of earnings per share
Both the basic and diluted earnings per share have been calculated using the profit after tax as the numerator.
(f) Classification of securities
All ordinary shares have been included in basic earnings per share.
(g) Classification of securities as potential ordinary shares
Rights to shares granted to executives and senior managers are included in the calculation of diluted earnings per share
and assume all outstanding rights will vest. Rights are included in the calculation of diluted earnings per share to the
extent they are dilutive. Options have been included in determining diluted earnings per share to the extent that they
are in the money (i.e. not antidilutive). Rights and options are not included in basic earnings per share.
Note 27: Deed of cross guarantee
Pursuant to ASIC Instrument 2016/785, wholly-owned controlled entities Mt Magnet Gold Pty Ltd (formerly Mt Magnet
Gold NL), RMSXG Pty Ltd, Ramelius Operations Pty Ltd, Edna May Operations Pty Ltd, Marda Operations Pty Ltd
(formerly Black Oak Minerals Limited), Explaurum Operations Pty Ltd, and Ninghan Exploration Pty Ltd are relieved
from the Corporations Act 2001 requirements for preparation, audit and lodgement of its financial reports and
director’s report.
It is a condition of the Class Order that the Company and each of its eligible controlled entities enter into a Deed of
Cross Guarantee. In December 2011, Ramelius Resources Limited, RMSXG Pty Ltd and Mt Magnet Gold Pty Ltd (the
Closed group) entered into a Deed of Cross Guarantee. In March 2018 Edna May Operations and Ramelius Operations
Pty Ltd joined the Closed Group by entering the Deed of Cross Guarantee by way of an Assumption Deed. In April
2019 Explaurum Limited, Explaurum Operations Pty Ltd, and Ninghan Exploration Pty Ltd joined the Closed Group by
entering the Deed of Cross Guarantee by way of an Assumption Deed.
The effect of the Deed is that Ramelius Resources Limited has guaranteed to pay any deficiency in the event of winding
up of the abovementioned controlled entities under certain provisions of the Corporations Act 2001. Mt Magnet Gold Pty
Ltd, RMSXG Pty Ltd, Ramelius Operations Pty Ltd, Edna May Operations Pty Ltd, Marda Operations Pty Ltd, Explaurum
Limited, Explaurum Operations Pty Ltd, and Ninghan Exploration Pty Ltd have also given a similar guarantee in the
event that Ramelius Resources Limited is wound up.
Explaurum Limited is required to prepare an audited financial report for the year ended 30 June 2019 as it was a
disclosing entity during the year ended 30 June 2019.
A Consolidated Statement of Comprehensive Income and Consolidated Balance sheet comprising the Closed group
which are parties to the Deed of Cross Guarantee, after eliminating all transactions between parties to the Deed is set
out below.
105
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION (CONTINUED)
Note 27: Deed of cross guarantee (continued)
Statement of comprehensive income
Sales revenue
Cost of production
Gross profit
Other expenses
Other income
Interest income
Finance costs
Profit before income tax
Income tax expense
Profit for the year from continuing operations
Other comprehensive income
Net change in fair value of available-for-sale assets
Other comprehensive income for the year, net of tax
2019
$’000
352,770
(309,161)
43,609
(14,961)
2,125
1,886
(2,193)
30,466
(8,579)
21,887
2018
$’000
341,784
(281,864)
59,920
(16,548)
3,322
1,021
(1,770)
45,945
(14,739)
31,206
(50)
(50)
(42)
(42)
Total comprehensive income for the year
21,837
31,164
Balance sheet
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total current assets
Non-current assets
Other receivables
Other assets
Available-for-sale financial assets
Property, plant, and equipment
Development assets
Exploration and evaluation expenditure
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Current liabilities
106
2019
$’000
95,815
6,774
41,067
8,629
152,285
1,488
1,488
101
43,823
99,430
98,488
-
244,818
2018
$’000
68,209
3,358
58,086
1,439
131,092
2,264
7,296
126
51,122
84,728
18,812
917
165,265
397,103
296,357
44,926
6,852
51,778
31,796
6,075
37,871
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION (CONTINUED)
Note 27: Deed of cross guarantee (continued)
Balance sheet (continued)
Non-current liabilities
Provisions
Deferred consideration
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Retained earnings
Total equity
2019
$’000
45,987
12,121
7,741
65,849
117,627
2018
$’000
43,169
12,892
-
56,061
93,932
279,476
202,425
214,218
(7,642)
72,900
279,476
149,568
1,890
50,967
202,425
Note 28: Parent entity information
The financial information of the parent entity, Ramelius Resources Limited, has been prepared on the same basis as
the consolidated financial statements, other than investments in controlled entities which were carried at cost less
impairment.
(a) Summary financial information
Financial statement for the parent entity show the following
aggregate amounts:
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Share-based payment reserve
Other reserves
Retained losses
Total equity
(b) Income statement
Profit / (loss) after income tax
Total comprehensive income / (loss)
(c) Commitments
(i) Operating lease commitments
Future minimum rentals payables on non-cancellable leases due:
Within one year
Later than one year but not later than five years
Total operating lease commitments
2019
$’000
2018
$’000
84,055
214,596
(12,735)
(16,701)
197,895
71,317
169,516
(6,783)
(11,650)
157,866
214,218
149,568
2,032
(383)
(17,972)
197,895
(25,104)
(25,154)
351
280
631
1,545
(332)
7,086
157,866
7,242
7,200
191
561
752
107
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION (CONTINUED)
Note 28: Parent entity information (continued)
(c) Commitments (continued)
(ii) Minimum exploration and evaluation commitments
In order to maintain current rights of tenure to exploration tenements, Ramelius is required to perform minimum
exploration work to meet minimum expenditure requirements. These obligations are subject to renegotiation and may
be farmed out or relinquished. These obligations are not provided for in the parent entity financial statements.
Within one year
Later than one year but not later than five years
Later than five years
Total minimum exploration and evaluation commitments
(d) Contingent liabilities
2019
$’000
698
1,748
1,742
4,188
2018
$’000
1,261
3,737
1,808
6,806
The Directors are of the opinion that the recognition of a provision is not required in respect of the following matters, as
it is not probable that a future sacrifice of economic benefits will be required, or the amount is not capable of reliable
measurement.
(i) Bank guarantees
Ramelius has negotiated a number of bank guarantees in favour of various government authorities and service
providers. The total nominal amount of these guarantees at the reporting date is $370,145 (2018: $2,122,000). These bank
guarantees are fully secured by cash on term deposit.
(e) Guarantees in relation to debts of subsidiaries
In December 2011, Ramelius Resources Limited, RMSXG Pty Ltd and Mt Magnet Gold Pty Ltd (the Closed group) entered
into a Deed of Cross Guarantee. In March 2018 Edna May Operations and Ramelius Operations Pty Ltd joined the Closed
Group by entering the Deed of Cross Guarantee by way of an Assumption Deed. In April 2019 Explaurum Limited,
Explaurum Operations Pty Ltd, and Ninghan Exploration Pty Ltd joined the Closed Group by entering the Deed of Cross
Guarantee by way of an Assumption Deed.
The effect of the Deed is that Ramelius has guaranteed to pay any deficiency in the event of winding up of the
abovementioned subsidiaries under certain provisions of the Corporations Act 2001. The subsidiaries have also given a
similar guarantee in the event that Ramelius is wound up.
108
RAMELIUS RESOURCES ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION (CONTINUED)
Note 29: Accounting policies
(a) New standards and interpretations not yet adopted
The group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting
Standards Board (the AASB) that are relevant to its operations and effective for an accounting period that begins on or
after 1 July 2018.
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2019
reporting periods and have not been early adopted by the group. The group’s assessment of the impact of these new
standards and interpretations is set out below.
Title of standard
AASB 16 Leases
Nature of change
Impact
AASB 16 was issued in February 2016. It will result in almost all leases being recognised
on the balance sheet, as the distinction between operating and finance leases is
removed. Under the new standard, an asset (the right to use the leased item) and a
financial liability to pay rentals are recognised. The only exceptions are short-term (<12
months) and low-value assets.
The depreciation of the right of use asset and interest on the lease liability will be
recognised in the income statement
The group plans to adopt the modified retrospective approach on transition whereby
comparative information is not restated. Consequently, the date of initial application is
the first day of the annual reporting period in which the new standard applies, being 1
July 2019. The lease asset is measured at an amount equal to the lease liability.
The group is in the process of completing changes to the contracting process and the
system processes to ensure ongoing compliance with AASB 16.
The group has substantially completed the assessment of key contracts and
arrangements that may qualify as leases under AASB 16 and require recognition on the
balance sheet. The group has reviewed key service contracts including mining services,
drilling, haulage, and power generation contracts.
The work performed to date includes:
Data gathering: site and group data has been collated relating to contracts that may
contain leases.
Data integrity and analysis: several identified contracts are covered by the exemption for
short-term and low-value leases and some commitments may relate to arrangements
that will not qualify as leases under AASB 16.
Modelling of transition options: review of the transition options is ongoing.
Further work on the process improvements and reaching conclusions on the
groups accounting interpretations is continuing. In addition, the group is aware that
implementation activities of other peers continues and the practical application of the
new standard will continue to develop and emerge.
The leases recognised by the group under AASB 16 predominately relate to the lease
of mining equipment embedded in mining services contracts, power generation
contracts, the leasing of light vehicles, and office premises.
On adoption of AASB 16, operating lease expense, and a portion of mining contractor
charges, will no longer be recognised in gross profit. Instead the depreciation of right-
of-use assets will be recognised in the gross profit and lease financing costs will be
recognised in the finance costs.
Date of adoption
AASB 16 is mandatory for financial years commencing on or after 1 January 2019. For the
group this is the reporting period commencing on 1 July 2019.
109
RAMELIUS RESOURCES ANNUAL REPORT 2019 DIRECTORS’ DECLARATION
In the Directors’ opinion:
(a) the financial statements and notes set out on pages 38 to 110 are in accordance with the Corporations Act 2001,
including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements, and
(ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2019 and of its performance
for the financial year ended on that date, and
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable, and
(c) at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed
group identified in note 27 will be able to meet any obligations or liabilities to which they are, or may become,
subject by virtue of the deed of cross guarantee described in note 27.
The ‘About this report’ section of the notes to the financial statements confirms that the financial statements also
comply with International Financial Reporting Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
Kevin James Lines
Chairman
Perth
23 August 2019
110
RAMELIUS RESOURCES ANNUAL REPORT 2019
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF RAMELIUS RESOURCES LIMITED
111
Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte Network. Deloitte Touche Tohmatsu ABN 74 490 121 060 Tower 2, Brookfield Place 123 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia Tel: +61 8 9365 7000 Fax: +61 8 9365 7001 www.deloitte.com.au Independent Auditor’s Report to the members of Ramelius Resources Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of Ramelius Resources Limited (the “Company”) and its subsidiaries (the “Group”) which comprises the consolidated balance sheet as at 30 June 2019, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity, and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information, and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. RAMELIUS RESOURCES ANNUAL REPORT 2019 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF RAMELIUS RESOURCES LIMITED (CONTINUED)
112
Key Audit Matter How the scope of our audit responded to the Key Audit Matter Acquisition and classification of the Tampia Hill Gold Project During the year, the Group acquired the Tampia Hill Gold Project, for a total consideration of $67.7 million. The determination as to whether the acquisition represents a business combination or an asset acquisition requires judgement, specifically as to whether or not the assets acquired and liabilities assumed constitute a business in accordance with AASB 3 ‘Business Combinations’. Details of the key assumptions applied by management as part of the acquisition accounting is disclosed in Note 17. Our procedures included, but were not limited to: • evaluating the nature of the assets acquired and liabilities assumed; • assessing whether the existence of a JORC compliant reserve, without a definitive feasibility study constitutes an ‘input’ in the context of accounting standards; • assessing whether the existing employees who accompanied the Tampia Hill Gold Project constituted an organised workforce; and • assessing the amount of additional work that would be required to be undertaken to allow a potential development decision to be made. We also assessed the appropriateness of the disclosures included in Note 17 to the financial statements. Accounting for mine development assets As at 30 June 2019 the carrying value of development assets amounts to $ 99.4 million as disclosed in Note 9. During the year the Group incurred $57.2 million of capital expenditure related to mine development assets and recognised related amortisation expenses of $66.2 million. The accounting for both underground and open pit operations includes a number of estimates and judgements, including: • the allocation of mining costs between operating and capital expenditure; and • the determination of the units of production used to amortise mine properties. For underground operations, a key driver of the allocation of costs between operating and capital expenditure is the physical mining data associated with the different underground mining activities including the development of declines, lateral and vertical development, as well as capital non-sustaining costs. The allocation of costs for open pit operations is based on the ratio between actual ore and waste mined, referred to as the ‘waste to ounce ratio’, compared with the ratio of expected ore and waste mined over the life of the respective open pit. In respect of the allocation of mining costs our procedures included, but were not limited to: • obtaining an understanding of the key controls management has in place in relation to the capitalisation of both underground and open pit mining costs and the production of physical mining data; and • on a sample basis, testing the mining costs through agreeing to source data. In respect of the allocation of mining costs for underground operations, our procedures included, but were not limited to: • assessing the appropriateness of the allocation of costs between operating and capital expenditure based on the nature of the underlying activity, and recalculating the allocation based on the underlying physical data. In respect to the deferred stripping costs our procedures included, but were not limited to: • assessing the accounting policy against the appropriate accounting standards, including AASB 102 Inventories and AASB Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine; • assessing the accuracy of the expected stripping ratios by agreeing key inputs to Reserves and Resources reports; • assessing the accuracy of the actual stripping ratios by agreeing key inputs to production reports and stockpile surveys; and • assessing the completeness and accuracy of costs associated with stripping activities. RAMELIUS RESOURCES ANNUAL REPORT 2019 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF RAMELIUS RESOURCES LIMITED (CONTINUED)
113
In respect of the Group’s unit of production amortisation calculations our procedures included, but were not limited to: • obtaining an understanding of the key controls management has in place in relation to the calculation of the unit of production amortisation rate; • testing the mathematical accuracy of the rates applied; and • agreeing the inputs to source documentation, including: - the allocation of contained ounces to the specific mine development assets; - the contained ounces to the applicable reserves statement; and - the reasonableness of the life of mine plan for the development asset. We also assessed the appropriateness of the disclosures included in Note 9 to the financial statements. Rehabilitation provision As at 30 June 2019 a rehabilitation provision of $46.4 million has been recognised as disclosed in Note 13. Judgement is required in the determination of the rehabilitation provision, including: • assumptions relating to the manner in which rehabilitation will be undertaken, • scope and quantum of costs, and • timing of the rehabilitation activities. Our procedures included, but were not limited to: • obtaining an understanding of the key controls management has in place to estimate the rehabilitation provision; • agreeing rehabilitation cost estimates to underlying support, including where applicable reports from management’s experts; • assessing the independence, competence and objectivity of specialists used by management; • confirming the closure and related rehabilitation dates are consistent with the latest estimates of life of mines; • comparing the inflation and discount rates to available market information; and • testing the mathematical accuracy of the rehabilitation provision. We also assessed the appropriateness of the disclosures included in Note 13 to the financial statements. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2019, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. RAMELIUS RESOURCES ANNUAL REPORT 2019 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF RAMELIUS RESOURCES LIMITED (CONTINUED)
114
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the director’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. RAMELIUS RESOURCES ANNUAL REPORT 2019 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF RAMELIUS RESOURCES LIMITED (CONTINUED)
115
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 17 to 27 of the Director’s Report for the year ended 30 June 2019. In our opinion, the Remuneration Report of Ramelius Resources Limited, for the year ended 30 June 2019, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. DELOITTE TOUCHE TOHMATSU David Newman Partner Chartered Accountants Perth, 23 August 2019 RAMELIUS RESOURCES ANNUAL REPORT 2019 SHAREHOLDER INFORMATION
Additional Information required by the Australian Securities Exchange Limited Listing Rules and not disclosed
elsewhere in this report is set out below.
Shareholdings as at 7 October 2019
Substantial shareholders
The number of shares held by substantial shareholders and their associates as disclosed in substantial holding notices
given to the Company are set out below:
Substantial shareholder
Number of fully paid ordinary shares held
Ruffer LLP
Mitsubishi UFJ Financial Group, Inc.
Van Eck Associates Corporation
Vinva Investment Management
Voting Rights
Fully paid ordinary shares
50,392,723
44,016,990
36,388,598
32,586,179
Other than voting exclusions as required by the Corporations Act 2001 and subject to any rights or restrictions attached
to any class of shares, at a meeting of members, on a show of hands, each member present (in person, by proxy, attorney
or representative) has one vote and on a poll, each member present (in person, by proxy, attorney or representative) has
one vote for each fully paid share they hold.
Options and Performance Rights
Details of options and performance rights on issue by the Company as at 7 October 2019 are as follows:
Expiry date
11/06/2020*
01/07/2024*
01/07/2025*
11/06/2026*
01/07/2026*
01/07/2027#
01/07/2028#
Exercise price
$0.20
Number of options
1,500,00
Number of
Performance Rights
Nil
Nil
Nil
Nil
Nil
Nil
593,217
539,690
500,000
620,181
3,680,666
3,758,508
Option and performance rights holders will be entitled on payment of the exercise price shown above to be allotted one
ordinary fully paid share in the Company for each option/performance right exercised.
* These options/performance rights are exercisable in whole or in part at any time until the expiry date. Any options/performace rights not
exercised before expiry will lapse.
# These performance rights are subject to vesting conditions and once vested are exercisable in whole or in part at any time until the
expiry date. Any vested performance rights not exercised before expiry will lapse.
116
RAMELIUS RESOURCES ANNUAL REPORT 2019 SHAREHOLDER INFORMATION
(CONTINUED)
Distribution of equity security holders
Ordinary shares
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Rounding
Total
Unmarketable Parcels
Total holders
1,504
2,212
1,253
2,465
445
-
7,879
Units
579,601
6,270,057
10,098,849
83,362,595
557,910,926
-
658,222,028
Units
0.09
0.95
1.53
12.66
84.76
0.01
100.00
Range
Minimum $ 500.00 parcel at $ 1.1950 per unit
Minimum
Parcel Size
419
Holders
Units
859
86,557
All unquoted options (1,500,000) are held by the Company’s Managing Director, Mr Mark Zeptner.
Performance Rights
Holders of
Unquoted
1 July 2024
Performance
Rights
Holders of
Unquoted
1 July 2025
Performance
Rights
Holders of
Unquoted 11
June 2026
Performance
Rights
Holders of
Unquoted
1 July 2026
Performance
Rights
Holders of
Unquoted
1 July 2027
Performance
Rights
Holders of
Unquoted
1 July 2028
Performance
Rights
-
-
-
4
3
7
-
-
-
8
-
8
-
-
-
-
1
1
-
-
-
6
2
8
-
-
-
-
18
18
-
-
-
12
13
25
Category
1 - 1000
1001 - 5,000
5001 – 10,000
10,001 – 100,000
100,001 and over
Total Security Holders
On market buy-back
There is no current on-market buy-back.
117
RAMELIUS RESOURCES ANNUAL REPORT 2019 SHAREHOLDER INFORMATION
(CONTINUED)
Twenty largest shareholders
The name of the 20 largest holders of fully paid ordinary shares constituting a class of quoted equity securities on the
Australian Securities Exchange Limited including the number and percentage held by those holders at 3 October 2019
are as follows:
Rank Name
Units
% Units
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
19
19
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
NATIONAL NOMINEES LIMITED
STRAMIG HOLDINGS PTY LTD
WEST TRADE ENTERPRISES PTY LTD
CS THIRD NOMINEES PTY LIMITED
MR RICHARD ARTHUR LOCKWOOD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
BNP PARIBAS NOMINEES PTY LTD
BNP PARIBAS NOMS PTY LTD
MISTY GRANGE PTY LTD
BNP PARIBAS NOMINEES PTY LTD
CHRYSOS FUND LIMITED
WEST TRADE ENTERPRISES PTY LTD
MR GABOR MATORICZ
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
SOUTHERN CROSS CAPITAL PTY LTD
MR IAN GEORGE KNIGHT
MR MARK WILLIAM ZEPTNER
MR MARK WILLIAM ZEPTNER + MRS VALMA ZEPTNER
162,423,767
128,722,615
72,172,415
16,377,670
9,500,000
5,515,333
4,660,400
4,500,000
4,460,779
3,806,582
3,761,676
3,721,383
3,431,041
2,950,000
2,306,254
2,200,000
2,014,779
1,905,000
1,500,000
1,500,000
1,500,000
24.68
19.56
10.96
2.49
1.44
0.84
0.71
0.68
0.68
0.58
0.57
0.57
0.52
0.45
0.35
0.33
0.31
0.29
0.23
0.23
0.23
Totals: Top 21 holders of ORDINARY FULLY PAID SHARES (Total)
Total Remaining Holders Balance
438,929,694
219,292,334
66.68
33.32
Unquoted and restricted equity securities
Fully paid ordinary Shares
There are no unquoted restricted fully paid ordinary shares on issue.
Performance Rights
Details of options and performance rights on issue as at 7 October 2019 which are unquoted restricted securities held by
employees as long-term incentives are as follows.
Date until securities are
restricted
11/06/2020#
01/07/2024*
01/07/2025*
11/06/2026*
01/07/2026*
01/07/2027**
01/07/2028**
Number of
unquoted
securities on
issue
1,500,000
593,217
539,690
500,000
620,181
3,680,666
3,758,508
Number of
holders
Vesting Date
Exercise price
Exercisable
until
1
7
8
1
8
18
25
-
-
-
-
-
01/07/2020
01/07/2021
$0.20
Nil
Nil
Nil
Nil
Nil
Nil
11/06/2020
01/07/2024
01/07/2025
11/06/2026
01/07/2026
01/07/2027
01/07/2028
# These securities are vested options which may not be transferred or used as collateral.
* These securities are vested performance rights which may not be transferred or used as collateral.
** These securities are unvested performance rights exercisable when vested which may not be transferred or used as collateral
118
RAMELIUS RESOURCES ANNUAL REPORT 2019 A YEAR OF
ACHIEVEMENT
RAMELIUS RESOURCES LIMITED
ACN 001 717 540
ABN 51 001 717 540
Level 1, 130 Royal Street
EAST PERTH WA 6004
PO Box 6070 EAST PERTH WA 6892
Telephone: (08) 9202 1127
Email: ramelius@rameliusresources.com.au
Website: www.rameliusresources.com.au