CONTINUED GROWTH
REFLECTS OUR STRATEGY
IN ACTION
CORPORATE DIRECTORY
Directors
Bob Vassie – FAusIMM, GAICD, B.MinTech (Hons) Mining
Independent Non-Executive Chair
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
Independent Non-Executive Director
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
Principal Registered Office
Share Registry
Auditor
Peter Ruzicka – MSc (Ore Deposit Geology), BAppSc (Geology), BSc, MAusIMM
Level 1, 130 Royal Street
East Perth WA 6004
+ 61 8 9202 1127
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
RAMELIUS RESOURCES ANNUAL REPORT 2021
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TABLE OF CONTENTS
Key Operational Highlights for the Year
Key Financial Highlights for the Year
Corporate Strategy
Chair’s Report
Managing Director’s Report
Review of Operations
Overview
Mt Magnet
Edna May
Development and Exploration Projects
Resources and Reserves
Company Summary
Mineral Resources
Ore Reserves
Forward Looking Statement
Competent Persons
Sustainability Report
2021 Achievements
About Ramelius
Our Business
Our People
Our Communities
Our Environment
Performance Data
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
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RAMELIUS RESOURCES ANNUAL REPORT 2021
KEY OPERATIONAL
HIGHLIGHTS FOR
THE YEAR
Commencement of mining at the
Tampia Gold Mine
Negotiations on the compensation payments with landowners and with the 10%
minority JV owner were finalised in January 2021. Ramelius agreed to purchase
the remaining 10% minority interest in the Tampia Gold Mine JV for $3.0
million cash, 5 million shares in Ramelius, and a 2% royalty on any gold
production above 185,539 ounces from the Tampia Gold Mine (Tampia). At
the same time, Ramelius agreed to purchase the primary freehold land associated
with Tampia for $6.0 million. These agreements allowed for immediate access
to the Tampia area for the commencement of site preparations.
Following grade control drilling, mining contractor mobilisation, and site
establishment, material movement commenced in April 2021 with first
ore mined in June 2021. Haulage to, and processing at, the Edna May
processing plant commenced in July 2021.
Commencement of development at the
Penny Gold Mine
On 9 November 2020 Ramelius released the results of the Penny Feasibility Study
and advised the Board’s approval to commence project development. As a result
of the compelling financial outcomes from the Penny Feasibility Study, the
Board also approved a decision to mine.
In the March 2021 quarter, works commenced on regulatory approvals, contract
negotiations, and the purchase of long lead items. All key approvals were
received in the June quarter and accordingly camp construction commenced and
the open pit mining and catering contracts were awarded. Open
pit mining commenced in the September 2021 quarter before underground
development commences in the second half of the 2022 financial year. In the
coming year operations will focus on the development of the underground
mine with only modest amounts of ore sourced from the Magenta open pit and
the Penny West pit cutback.
Gold Production
& Guidance
NEW RECORD
FY21 Production
272,109oz
@ AISC A$1,317/oz
FY22 GUIDANCE
260,000-
300,000oz
@ AISC A$1,425 - 1,525/oz
MINERAL RESOURCES
5.4 Moz
at 30 June 2021
ORE RESERVES
1.1 Moz
at 30 June 2021
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RAMELIUS RESOURCES ANNUAL REPORT 2021
Digger of the
Year 2020
Ramelius was named the
Digger of the Year
at the 2020 Diggers and
Dealers Conference in
October after delivering a
420 per cent rise in net
profit across our WA gold
mines in FY20.
@ AISC A$1,317/oz
@ AISC A$1,425 - 1,525/oz
at 30 June 2021
at 30 June 2021
RETURNS FOR SHAREHOLDERS
Payout rate of 32% of
total cash flows
Returns A$75/oz
produced in dividends
Yield of 2.3%*
* After tax and based on share price
of $1.70 at 30 June 2021
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COVID-19
Whilst the direct impact of COVID-19 has been
minimal, border closures and lockdowns following
outbreaks around Australia continue to have an
impact on Ramelius operations, primarily through
labour availability from interstate and overseas
and the corresponding pressure this puts on wages
within the mining industry.
During the year Ramelius continued with its range
of initiatives in response to COVID-19. Ramelius
believes the measures that it has in place go beyond
the formal guidance issued by State and Federal health
authorities. Ramelius has defined clear processes
throughout the organisation to ensure that all
employees and contractors do their absolute best
to control the risk of infection and transmission of
COVID-19. Initiatives implemented include:
•
•
•
•
•
Travel: suspending international travel and
restricting non essential domestic and intrastate
travel.
Social distancing: utilising video and phone
conference facilities, reducing face to face
interactions, and increasing flexible working
arrangements.
Health management: proactive temperature
testing and pre commute screening of individuals
prior to entering the company’s sites or corporate
offices, strict hygiene practices, along with the
securing of clinical masks, hand sanitiser, and
COVID-19 swab test kits. In addition, plans were
put in place for the isolation, testing, and rapid
removal from site of any employee or contractor
displaying flu like symptoms.
Planning: the addition of a number of casual
employees to be available in the event of the loss
of team members from any part of the business as
well as the constant management and review of the
supply chain.
Communication: constant liaison with WA Health
Department, through our consultant occupational
doctor and medical provider, to ensure best
practice as far as possible with the ever changing
regime around controlling the virus. In addition,
there was frequent communication across the
entire work force regarding COVID-19 and
company protocols.
All Ramelius mine operations are located within
Western Australia which has enabled the Group to
have a dynamic, rapid, and consistent approach to
the management of the COVID-19 virus. Whilst at
the date of this report the COVID-19 situation in
Western Australia seems to be largely under control,
management acknowledge that the situation can
change rapidly and continues to diligently monitor,
implement new restrictions as they are introduced
and be in a position to respond quickly to the
ongoing COVID-19 virus.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
KEY FINANCIAL
HIGHLIGHTS FOR
THE YEAR
FY21 PRODUCTION HIGHLIGHTS
277,450
22 % on 2020
oz sold
A$2,282
13 % on 2020
/ realised price
A$1,317
13 % on 2020
/ AISC oz
FY21 FINANCIAL
HIGHLIGHTS
$634.3M
Revenue
$341.0M
EBITDA
$126.8M
NPAT
$148.2M
Underlying cash flow
$234.0M
Cash & gold on hand
2.5 cps
Final dividend
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RAMELIUS RESOURCES ANNUAL REPORT 2021
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FINANCIAL PERFORMANCE
A$’000
Revenue
EBITDA
EBIT
Statutory Net profit after Tax#
Cash Flow from Operations
Underlying Cash Flow*
Group Cash Flow
Basic Earnings per share (cents)
Dividend per share (fully franked)
Units
A$’000
A$’000
A$’000
A$’000
A$’000
A$’000
A$’000
cps
cps
2021
634,283
340,975
177,439
126,778
305,649
148,153
62,832
15.6
2.5
2020
460,574
256,025
152,512
113,415
236,031
83,659
69,855
16.4
2.0
Change%
Y
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38%
33%
1 %
12%
30%
77%
(10%)
(5%)
25%
# Underlying NPAT is $126.4M after reversing $3.9M in a tax loss benefit and $3.5M in exploration write off (post tax)
* Cash flows before borrowings, dividends, acquisitions, contingent consideration, and income tax
CASHFLOW
Underlying Cashflow (% of Revenue)
23%
18%
14%
10%
5%
Dividend History
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
1.0
2.0
)
s
p
c
(
d
n
e
d
i
v
i
D
43.1
2.5
50.0
45.0
40.0
35.0
30.0
25.0
20.0
15.0
01.0
5.0
)
M
$
(
n
r
u
t
e
r
e
v
i
t
a
l
u
m
u
C
FY17
FY18
FY19
FY20
FY21
FY19
FY20
FY21
REVENUE & EARNINGS
Revenue (A$)
460.6
341.8
352.8
197.4
634.3
EBITDA (A$)
341.0
256.0
127.0
112.2
84.6
FY17
FY18
FY19
FY20
FY21
FY17
FY18
FY19
FY20
FY21
NPAT (A$)
126.8
Earnings Per Share (cps)
16.4
15.6
113.4
17.7
30.8
21.8
5.8
3.7
3.4
FY17
FY18
FY19
FY20
FY21
FY17
FY18
FY19
FY20
FY21
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RAMELIUS RESOURCES ANNUAL REPORT 2021
CORPORATE
STRATEGY
OUR MISSION
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OUR STRATEGIC PRIORITIES
1 Feed Existing Hubs
2 Acquire Third Hub
3 Ramp Up Greenfields
4 Grow Capability
5 Do the Essentials
OUR VALUES
We Empower our people
We achieve Fit-for-Purpose outcomes
We Deliver and do it safely
We are Authentic
Our culture is defined by a ‘fit-for-purpose’
and ‘can-do’ attitude
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RAMELIUS RESOURCES ANNUAL REPORT 2021
CHAIR’S REPORT
DEAR FELLOW SHAREHOLDERS,
I am very pleased to introduce myself as the new Chair of your Company. It is a role I am
privileged to take on and I look forward to continuing the good work of my immediate
predecessors, Mike Bohm and Kevin Lines. As you would be aware, Mike took up the
chairmanship in an acting capacity upon Kevin’s retirement in September 2020 after almost
12 years of service to the Company. I would like to thank both men for their efforts in
expertly guiding the Company.
When considering joining the Company last year, I was very
impressed by Ramelius’ recent achievements. Average year-
on-year production growth of 20% per year over five years is
truly remarkable for a gold miner. The way in which the growth
strategy has been executed, through very valuable organic
growth at existing mines and well-timed, discerning inorganic
growth from acquisitions, is equally impressive.
Continued operational excellence has provided the mainstay for
growth, with Ramelius recognised for its ability to run a ‘hub
and spoke’ model – multiple underground and opencut mines,
operated with our contracting partners, providing feed to our
two processing plants at Mt Magnet and Edna May –
very effectively.
This has led to the company Ramelius is today: a significant
midcap ASX200 gold producer with a strong balance sheet,
multiple operations, strong exploration portfolio and the ability
to grow further in a well-executed, valuable and sustainable
way. Across all parts of the business, it is the people that have
played a big part in this evolution and I am thrilled to now be
part of that accomplished team.
It was yet another strong year for Ramelius, with the Company
reporting new records for production, revenue, EBITDA, net
profit after tax, cash and bullion on hand and final dividend.
We should not lose sight of the fact that these records were
achieved at a time when the COVID-19 pandemic placed
significant restrictions on the industry. While it is fair to say
that the mining industry did very well in maintaining operations
across the country, it is easy to overlook how much extra effort
that took from our leaders, workforce and business partners
and I would like to thank them for that relentless focus during
the year.
A particular highlight for me, early in my role as Chair, was
to visit the Mt Magnet and Edna May operations, and witness
mining commencing at our new operation at Tampia in the
Wheatbelt of WA. The new mine came into production
exactly as planned, and, on top of that, our new operation at
Penny is well advanced. Again, this shows the team’s remarkable
ability to deliver growth.
As many of you will already know, there is a growing interest
amongst stakeholders in the themes of sustainability and ESG
(Environmental, Social and Governance). This extends to some
institutional investors and investor associations requiring listed
companies, especially those in the ASX200, to report to certain
frameworks or standards. Last year the Board formed a
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Risk & Sustainability Committee led by Dr Natalia Streltsova
to assist onour ESG journey, and our first Sustainability Report
released during that period was an excellent start in addressing
this area.
This Annual Report contains our second Sustainability Report in
which we provide an update on our performance but also lay out
a pathway to reporting against global frameworks such as TCFD
(Taskforce of Climate-Related Financial Disclosures).
At Ramelius we value sustainability as a fundamental element of
our licence to operate and seek to wholeheartedly embrace the
notion so that we can continue to operate in a way in which the
benefits to stakeholders far outweigh any impact from operations.
levels and supply lines. The tightness of the skilled labour market
has made the news recently and is exacerbated by the fact that
resource industry is growing at a time when COVID-19 is causing
disruption. We can only hope that the situation improves as
vaccination levels rise and restrictions are eased.
I wish all our shareholders all the best for this financial year and
the COVID-19 challenges ahead. There is ample reason to be
optimistic in Ramelius’ future.
Looking forward, the new financial year is forecast to be strong
again. We have provided production guidance of 260,000-
300,000oz, so even at the midpoint of guidance, we will set a new
record.
Bob Vassie
Non-Executive Chair
Ramelius Resources Ltd
There are, however, several challenges that Ramelius and the
broader industry face.
While continuing to take action to mitigate the risk of COVID-19
affecting any of our operations, the Company will also have to
deal with the impact of ongoing border restrictions on workforce
10
RAMELIUS RESOURCES ANNUAL REPORT 2021
MANAGING DIRECTOR’S REPORT
DEAR FELLOW SHAREHOLDERS,
This occasion always provides a useful opportunity for reflection and it is again with pride
that I think back over Ramelius’ 2021 financial year. In my view, during the period, the
Company only reinforced its standing as one of the most reliable mid-sized gold producers
on the ASX and a worthy option for those investors seeking the elusive double of growth
and capital returns.
Continuing a recent trend, we again achieved record full-year
gold production, with our Mt Magnet and Edna May production
centres combining to deliver 272,109 ounces, an increase
of 13% on the 2020 financial year. The record production
result was driven by higher grades and higher mill throughput,
particularly at Edna May, which returned to full capacity
following the long-awaited development of the Greenfinch
open pit and the ramp-up of our Marda operations.
Coupled with a 13% increase in our average realised gold price
to A$2,282 an ounce, record production translated into record
full-year sales revenue of $634.3 million. Despite the rising cost
pressures being felt in the WA gold industry, we were also able
to post a record net profit after tax of $126.8 million, while our
EBITDA margin – a key measure of operating profitability and
cashflow – remained gold sector-leading at 54%.
As a result of our strong operating and financial performance
over recent years, the Company’s balance sheet has never
looked so healthy. We finished the financial year with $234
million in net cash and bullion, up 26% on the previous
12-month period, and with about 70,000 ounces of gold in
stockpiles and as gold-in-carbon.
we retain ample financial capacity to fund exploration and
project development and to act on acquisition opportunities
as they arise.
This two-pronged approach to investing in growth is one we
have been pursuing for some time. The fact that it is serving us
well was abundantly clear in August 2021 when we released
our latest Mine Plan. The plan, which is based predominantly
on Ore Reserves and Indicated Resources, outlined production
of 1.84 million ounces of gold over seven years to financial year
2028 with a low-grade tail in financial years 2029 and 2030.
For the current financial year, we have budgeted to spend
$32 million on exploration and we continue to be very active
on the business development side of things, assessing potential
acquisitions that may help lift annual production beyond the
300,000 ounce a year mark.
This financial year will also see the completion of pre-feasibility
studies on the Stage 3 Open Pit at Edna May and the Galaxy
and Morning Star underground projects at Mt Magnet, as
well as progress the Eridanus underground scoping study at
Mt Magnet, all of which will provide further clarity around
future production.
In line with our dividend policy, we declared a fully franked final
dividend of 2.5 cents a share and, after making that payment,
It was pleasing to see mining commence at one of our key
growth projects, Tampia near Narembeen in WA’s Wheatbelt,
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RAMELIUS RESOURCES ANNUAL REPORT 2021
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provided since joining the Board. I also need to extend my
gratitude to the Company’s other directors David Southam,
Natalia Streltsova and Michael Bohm, who, like Bob, have greatly
assisted in steering the ship in the right direction.
While no one gets into this business for the accolades, it is always
nice to have your hard work recognised. In that sense, being named
Digger of the Year at the 2020 Diggers and Dealers Conference
in Kalgoorlie in October was a pleasant surprise. No single person
can take credit for an award like that; it really does belong to the
team and on that note, I would like to thank all our employees,
contractors and suppliers for their continued efforts and
contributions to making the Company great.
In conclusion, thank you for your support as shareholders.
I hope you can see there is a bright future ahead.
Mark Zeptner
Managing Director
Ramelius Resources Ltd
on schedule in April 2021. Trucking of ore from the new mine to
Edna May for processing also started as anticipated on 1 July 2021.
Tampia’s importance in the Ramelius portfolio is underscored
by the fact that this financial year it will be the second highest
contributor to our production target behind Mt Magnet. The next
cab off the rank from a growth perspective is the Penny Gold Mine,
which was acquired through the takeover of Spectrum Metals last
year and is progressing rapidly towards first production.
Open pit mining at Penny commenced in the September 2021
quarter, while underground development is scheduled to start
in the second half of this financial year. Ore from the project will
be trucked approximately 150km north-west to Mt Magnet for
processing, providing high-grade feed to supplement ore from
our local operations there.
At present, we are guiding for production of 260,000-300,000
ounces of gold at an all-in sustaining cost of A$1,425-1,525 an
ounce for financial year 2022. Should we achieve the mid-point of
this range, it would represent another record.
This September marked a year since Ramelius’ inclusion in the
S&P ASX200 index for the first time, a notable achievement that
has brought with it increased investor recognition – and added
scrutiny. We believe we are making solid progress on our journey
to becoming a sustainable gold producer that delivers superior
returns for all stakeholders. You will be able to judge that for
yourself by looking through our second Sustainability Report,
which has been issued with this Annual Report.
Following the retirement of Kevin Lines as Chairman at the end
of September 2020, a process commenced to identify a suitable
replacement. On Christmas Eve, we announced that former
St Barbara Managing Director and long-time Rio Tinto senior
executive Bob Vassie had been appointed to the role. Bob is as
passionate about the gold industry as anyone. From a personal
point of view, I am grateful for the support and wise counsel he has
12
RAMELIUS RESOURCES ANNUAL REPORT 2021
REVIEW OF OPERATIONS
Overview
Mt Magnet
Edna May
Development and exploration projects
13
15
18
20
CONTINUED
GROWTH
REFLECTS OUR
STRATEGY IN
ACTION
Figure 1: Ramelius’ operating locations
WESTERN AUSTRALIA
MT MAGNET
Mt Magnet
Geraldton
PENNY
Leinster
VIVIEN
Laverton
Leonora
MARDA
Coolgardie
Kalgoorlie
200km
EDNA MAY
Bullfinch
Westonia
Southern Cross
PERTH
Narembeen
Norseman
TAMPIA
Bunbury
Esperance
Albany
Ramelius Production Centres
Mine / Development Projects
Haulage Direction
RAMELIUS RESOURCES ANNUAL REPORT 2021
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Overview
Ramelius is an established mid tier ASX 200 gold production
and exploration company. Ramelius achieved record annual gold
production for the financial year of 272,109 ounces and has
produced over 1 million ounces over the last five
financial years.
Ramelius reported a 16% increase in earnings before interest and tax
(EBIT) compared to the 2020 financial year. The reported EBIT for
the 2021 financial year was $177.5 million (2020: $152.5 million).
Despite a higher cost profile than the prior year due in part to the
impact of COVID-19 and the consequential tightening of the labour
market, this result has been achieved through increased production
and the continued strength in the A$ gold price. In addition to the
strong EBIT the operating cashflows also reported a significant increase
of 29% to $305.6 million. Further details on the financial performance
of the group for the 2021 financial year can be found in the financial
review of this report.
Production guidance for the 2022 financial year has been set at
260,000 – 300,000 ounces which, if the midpoint is achieved, will
be another record year for Ramelius. Furthermore, a mine plan was
released on 2 August 2021 which detailed a new 1.84 million ounce
mine plan across nine years to 2030, which includes a low grade tail in
the 2029 and 2030 financial years. This represents a 27% increase on
the prior year’s mine plan.
The record production in the 2021 year of 272,109 ounces from
our Mt Magnet, Vivien, Edna May, and Marda gold mines was achieved
at an All In Sustaining Cost (AISC) of A$1,317 per ounce (see map
page 12).
Sales for the year increased 22% to 277,450 ounces at an average
realised gold price of A$2,282 generating a strong AISC margin of
A$965 per ounce.
Notwithstanding a 13% increase in the AISC per ounce from the prior
year, a similar % increase in the realised gold price ensured the AISC
margin remained high at 42%.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
RAMELIUS RESOURCES ANNUAL REPORT 2021
REVIEW OF OPERATIONS (CONTINUED)
Figure 2: AISC per ounce and realised gold price for 2015-2021
Operational summary
Unit
Mt Magnet1
Edna May1
2021
2020
Change
Change %
Open pit
Ore mined
Grade
Contained gold
Underground
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
- 13%
- 4%
- 16%
+ 41%
- 16%
+ 19%
3,062
1.30
3,506
1.35
(444)
(0.05)
127,553
151,880
(24,327)
749
1.40
33,625
656
5.10
2,313
1.26
93,928
246
3.80
107,520
30,007
137,527
116,028
902
4.74
641
5.63
261
(0.89)
21,499
1,405
2,559
3,964
4,147
(183)
- 4%
1,886
2.76
167,467
96.4
161,455
161,159
2,749
1.33
117,312
93.5
109,689
110,950
4,635
1.91
284,779
95.2
271,144
272,109
4,235
1.80
245,319
94.9
232,867
230,426
400
0.11
39,460
0.3
38,277
41,683
+ 9%
+ 6%
+ 16%
+ 0%
+ 16%
+ 18%
165,011
112,439
277,450
228,210
49,240
+ 22%
Table 1: Mine operations performance for the 2021 financial year
1
In the above table and throughout this report Mt Magnet includes the Vivien Gold Mine whilst the Edna May operation includes
the Marda & Tampia Gold Mines.
RAMELIUS RESOURCES ANNUAL REPORT 2021
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REVIEW OF OPERATIONS (CONTINUED)
MT MAGNET
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Figure 3: Mt Magnet key mining & exploration areas
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RAMELIUS RESOURCES ANNUAL REPORT 2021
REVIEW OF OPERATIONS (CONTINUED)
MT MAGNET (Continued)
Mining
Operations at Mt Magnet continued on a multi pit / underground basis throughout the 2021 financial year with ore being milled from four
open pits and four underground projects. A summary of the main projects for the year is provided below:
Area
Eridanus
Type
Operational commentary
Open pit
Stellar
Open pit
Milky Way
Open pit
Vegas
Open pit
Shannon
Underground
Hill 60
Underground
Water Tank Hill
Underground
Vivien
Underground
The large Eridanus open pit was the main source of ore feed for Mt Magnet for the year making
up 26% of the mill feed. A total of 492k tonnes of ore was milled at a grade of 1.37g/t and a
recovery of 94.3% for 20,471 ounces of recovered gold.
Mining operations at Eridanus continued throughout the year. The waste cutback of the Stage 2
pit almost reached the original pit floor with a consequential increase in ore production in the
second half of the year. A total of 671k tonnes of ore was mined at a grade of 0.96g/t for 20,723
ounces of contained gold.
At 30 June 2021 there were 1.5 million tonnes of Eridanus ore stockpiled awaiting processing.
Mining of the high grade ore zone was completed in September 2020.
A total of 116k tonnes were milled at a grade of 3.81g/t and recovery of 95.3% for recovered gold
of 13,591 ounces.
Mining at Milky Way was completed in the 2020 financial year.
A total of 322k tonnes was milled from stockpiles at a grade of 1.00g/t and recovery of 95.1% for
recovered gold of 9,816 ounces.
Mining at Vegas was completed in the 2020 financial year.
A total of 186k tonnes was milled from stockpiles at a grade of 1.26g/t and a recovery of 94.9%
for recovered gold of 7,154 ounces.
Shannon underground production continued strongly during the year and is generating excellent
quantities of high grade ore.
Mining at the Shannon underground enabled 233k tonnes of ore to be milled at a grade of 7.12g/t
and a recovery of 97.7% for 52,205 ounces of recovered gold.
An underground drill programme was completed and shows that although the main Shannon lode
narrows at depth, the orebody will continue for at least another 12 to 18 months providing high
grade ore well beyond its original mine plan.
Development for the year at Shannon totalled 3,256 metres.
Mining at the Hill 60 underground continued during the year with 242k tonnes of ore being milled
at a grade of 2.81g/t and a recovery of 95.9% for 20,950 ounces of recovered gold.
An additional level is now planned below the high grade base 140mRL level and the decline will be
recommenced as a result.
Mining at Water Tank Hill was completed in September 2020.
A total of 30k tonnes were milled at a grade of 3.15g/t and recovery of 97.2% for recovered gold
of 2,955 ounces.
Total mill production from Vivien was 204k tonnes at a grade of 5.21g/t and recovery of 97.4% for
recovered gold of 33,372 ounces.
Mining operations at Vivien have continued as planned, however the mine has been extended by
a further two years with a further year of underground mining before an open pit is planned to
mine the crown pillar on the north end of the deposit.
Underground drilling continues with the aim to extend the current resource further, both at the
Main Lode and the East (or hanging wall) Lode.
RAMELIUS RESOURCES ANNUAL REPORT 2021
17
REVIEW OF OPERATIONS (CONTINUED)
MT MAGNET (Continued)
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Milling
Mill Production
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
Unit
2021
2020
2019
Change (%)
kt
g/t
oz
%
oz
oz
oz
1,886
2.76
167,467
96.4
161,455
161,159
165,011
1,973
2.74
173,622
96.5
167,507
167,129
163,696
(87)
0.02
(6,155)
(0.1)
(6,052)
(5,970)
1,315
- 4%
+ 1%
- 4%
- 0%
- 4%
- 4%
+ 1%
Table 2: Mt Magnet mill production and sales for the 2021 financial year
A total of 1,886k tonnes were processed at the Mt Magnet mill during the year compared to 1,973k tonnes in the prior year.
The decrease in throughput, due to hardness of the ore, resulted in a 6,052 ounce or 4% decrease in recovered gold. The overall grades at
the processing facility were comparable to the prior year with lower grades from the open pit sources being offset by a higher proportion
of the mill feed being sourced from the higher grade underground mines.
Gold production from Mt Magnet is forecast to be in the range of 130,000 and 150,000 ounces in the 2022 financial year.
18
RAMELIUS RESOURCES ANNUAL REPORT 2021
REVIEW OF OPERATIONS (CONTINUED)
EDNA MAY
RAMELIUS RESOURCES ANNUAL REPORT 2021
19
REVIEW OF OPERATIONS (CONTINUED)
EDNA MAY (Continued)
Mining
Mining operations at Edna May focussed on the Edna May underground mine, Greenfinch open pit, and Marda Gold Mine (several open
pits). A summary of these projects for the year is provided as follows:
Area
Edna May
Underground
Type
Operational commentary
Underground
A total of 261k tonnes of ore was milled at a grade of 3.58g/t and recovery of 93.5% for
28,087 ounces of recovered gold.
Mining transitioned from the development phase into stope production in the first half
of the financial year.
Greenfinch
Open pit
Marda
Open pits
The Greenfinch open pit served as the major source of ore at Edna May for the year making up
56% of mill feed.
A total of 1,368k tonnes were milled at a grade of 1.00g/t and recovery of 93.4% for recovered
gold of 41,251 ounces.
Mining at Greenfinch is expected to be complete in the September 2021 quarter.
Mining continued at Marda with mill feed sourced from five separate pits during the year
comprising Goldstream, Dugite, Dolly Pott, Python and King Brown.
Site preparation activities are currently underway at the outlying Golden Orb pit and mining will
commence there in the 2022 financial year following the completion of mining at Goldstream and
Dugite.
A total of 593k tonnes were milled at a grade of 1.81g/t and recovery of 93.6% for recovered gold
of 32,281 ounces.
At 30 June 2021 a total of 360k tonnes of ore remained stockpiled at the mine site awaiting
haulage and processing.
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Milling
Mill Production
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
Unit
2021
kt
g/t
oz
%
oz
oz
oz
2,749
1.33
117,312
93.5
109,689
110,950
112,439
2020
2,262
0.99
71,697
91.2
65,360
63,297
64,514
Change
Change (%)
487
0.34
45,615
2.3
44,329
47,653
47,925
+ 22%
+ 34%
+ 64%
+ 3%
+ 68%
+ 75%
+ 74%
Table 3: Edna May mill production & sales for the 2021 financial year
A total of 2,749k tonnes were processed at the Edna May mill during the year compared to 2,262k tonnes in the prior year representing
a 22% increase in throughput. This increased throughput was achieved by the mill returning to full operations for the complete year
(the approval delays for Greenfinch required a 12 day on / 9 days off roster from October 2019 to March 2020 in the prior year).
Milled grades were also up 34% resulting in a 68% increase in recovered gold when compared to the prior year.
The increase in milled grades has been due to the main source of ore feed transitioning from the low grade stockpiles to the higher grade
open pit ore from Greenfinch and Marda. In the prior year 81% of ore feed was sourced from low grade stockpiles whilst in the current
period this dropped to 19% with Greenfinch and Marda making up 71% of the ore feed. The balance of the ore feed was from the Edna
May underground mine.
Gold production from Edna May is forecast to be in the range of 130,000 - 150,000 ounces in the 2022 financial year with the
introduction of higher grade Tampia ore.
20
RAMELIUS RESOURCES ANNUAL REPORT 2021
REVIEW OF OPERATIONS (CONTINUED)
Development and exploration projects
Development projects
Penny Gold Mine (Murchison region, WA)
The Penny Gold Mine is located approximately 20km south of Youanmi, or 170km by road south east of the Mt Magnet Gold Mine,
and approximately 500km north east of Perth in Western Australia. Ore production is planned to be processed through the Mt Magnet
processing plant as part of an overall feed blend. No capital modifications to the processing facility are required in order to process the
Penny ore.
On 9 November 2020 Ramelius released the results of the Penny Feasibility Study and advised the Board’s approval to commence the
project development. As a result of the compelling financial outcomes forecast from the Penny Feasibility Study, the Board also approved a
decision to mine.
In the March 2021 quarter, works commenced on regulatory approvals, contract negotiations, and the purchase of long lead items. All key
approvals were received in the June 2021 quarter and accordingly camp construction commenced and the open pit mining and catering
contracts were awarded. Open pit mining is expected to commence in the September 2021 quarter before underground development
commences in the second half of the 2022 financial year. In the coming year only modest amounts of ore will be sourced from the Penny
Gold Mine as operations focus on the development of the underground mine.
Tampia Gold Mine (Narembeen, WA)
The Tampia Gold Mine is located near Narembeen in Western Australia. The Feasibility Study was completed in April 2020 and focused
on the option to haul ore to Ramelius’ Edna May processing facility.
On 25 January 2021, it was announced that the Tampia 10% JV interest and freehold land had been purchased. Since the land purchase
settlement, development of the project has progressed with completion of the 100 person Narembeen camp and mobilisation of the
open pit mining contractor. Site establishment works, grade control drilling and mining has also commenced. First ore was mined in June
2021. Upgrade works on the local shire roads were completed and ore haulage to Edna May commenced on 1 July 2021.
Mining/processing studies and resources conversion
During the financial year progress has been made on various mining and processing studies, based around the Mt Magnet and Edna May
production centres. On 2 August 2021, Ramelius announced a new 1.84 million ounce mine plan across nine years to financial year 2030,
including a low grade tail in financial years 2029 and 2030. This mine plan resulted in a total increase in expected gold production of 27%.
Ramelius plans to continue to leverage its large resource base, particularly at Mt Magnet and Edna May, to produce longer mine plans with
a higher conversion of resources. Ramelius notes that any increase in production that is due solely to the higher gold price environment
will generally lead to higher underlying operating costs due to a lower cut off grade being applied to the design parameters. Mining and
processing studies in progress or planned for the 2022 financial year include:
Edna May
Edna May Stage 3 Pre Feasibility
Completion of Pre Feasibility to revisit the large cutback on the original Stage 2 pit to potentially unlock a significant volume of lower
grade resources which would potentially secure a mine life at Edna May out towards 7-8 years. With planned drilling in the northern
(Golden Point) area and recent market fluctuations affecting a number of study inputs, more time is required to appropriately finalise
minable resources, capital and operating costs.
The Edna May Stage 3 project is very sensitive to gold price, grade and operating costs, particularly mining and development costs.
The results of the Pre Feasibility Study for Stage 3 will determine if the project progresses to a Feasibility Study.
Mt Magnet
Galaxy Underground Scoping Study
The Galaxy Underground project (comprising Saturn, Mars, Titan, Perseverance & Hill 50) to convert existing resources was previously
considered for a Scoping Study for completion at the end of December 2021. Given opportunity to access the deposit reasonably quickly,
the mining study and potential project start date is to be brought forward.
Eridanus Underground Scoping Study
Further options for underground mining have been evaluated using the updated April 2021 resource model below the planned
Eridanus pit currently being mined. The overall lower grade nature of the deposit and lack of continuity of the higher grade zones, has
led to discontinuous mining areas at the higher cut off grades typically used in underground mine design. This is largely due to the lack of
RAMELIUS RESOURCES ANNUAL REPORT 2021
21
REVIEW OF OPERATIONS (CONTINUED)
DEVELOPMENT AND EXPLORATION PROJECTS (Continued)
close spaced drilling that an ore body of this nature requires, especially for any selective style underground mining method. It is therefore
important to (largely) complete the existing open cut mine and ensure adequate drill coverage into the potential underground deposit
before any future studies can be completed. This is another reason why the Galaxy mining study will take priority over
Eridanus underground.
Diamond drilling is ongoing at Eridanus, particularly along strike to the north east where mineralsation continues to be intersected.
Additional ounces per vertical metre and demonstrated continuity between high grade zones are expected to improve project economics
in the future.
Vivien
Mine extension
Developments during the 2021 financial year included identification of economic ore in the parallel East Lode (hanging wall) vein structure
and re modelling of oxide remnant resource above the underground, potentially leading to a pit cutback at the end of the mine life.
Whilst the current mine plan for Vivien continues production for the entire 2022 financial year an extensional underground drilling
program has commenced with the aim to add additional resources at depth on the Main Lode and East Lode.
An updated study summary for other mining/processing studies currently being undertaken is shown in the table below:
Site
Mt Magnet
Mt Magnet
Mt Magnet
Study Description
Morning Star underground: Scoping Study to convert a % of ~80koz Mineral Resource
Hill 50 underground: Concept Study to convert a % of ~340koz Mineral Resource
Processing facility upgrade: Feasibility Study on upgrade from 2.0 to 2.5-2.7 Mtpa
(depending on the outcomes of the underground studies above)
Estimated Completion
31 December 2021
31 March 2022
TBA
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Exploration projects
Ramelius’ exploration activities focussed on the Mt Magnet area during the year, supplemented by smaller work programs at the Penny,
Edna May, Marda and Tampia areas. A combined aggregate of 54,092m of aircore, reverse circulation (RC) and diamond core drilling has
been completed during the period.
Mt Magnet region
An aggregate of 15,075m of exploratory RC and 6,406m of diamond drilling has been completed in the Mt Magnet region during the year.
Drilling continues to focus on extensions of Eridanus mineralisation at depth and along strike. Programmes have also been completed at
Penny, Orion-Franks Tower and Macross.
Eridanus Deeps Prospect
Drilling tested the potential for higher grade mineralisation at depth below the Eridanus Stage 2 pit and along strike within the Eridanus
Granodiorite.
A preliminary evaluation has established scope for a bulk underground mining scenario beneath the Eridanus Stage 2 pit. More recent
deep drilling continues to evaluate upside to the underground potential both below that study area, and along strike to the east, testing the
potential for higher grade mineralisation.
Broad zones of granodiorite hosted stockwork mineralisation continue to be intersected at depth, with some higher grade zones of
mineralisation. Higher grade zones at Eridanus Deeps are associated with vein stockworking in the footwall position of the host intrusive
granodiorite (adjacent to an interpreted flexure in dip orientation), and more spectacularly with individual veins up to one metre in width.
The latter are interpreted as part of a previously recognised, sub vertically dipping, north northwest trending vein series. Abundance and
continuity of these broader high grade veins will be evaluated by further drilling.
Orion (Franks Tower Trend)
The Orion-Franks Tower Trend represents a north-easterly extension of the Eridanus Granodiorite. Broad zones of stockwork related and
supergene mineralisation have been previously intersected and infill drilling to define mineralisation continuity has been undertaken with
encouraging results. Drill programmes have culminated in an update of the Mineral Resource, and the inclusion of several smaller oxide pits
at Orion and Franks Tower in the latest mine plan.
Macross Prospect
Structural setting and presence of granodiorite intrusives at the Macross Prospect suggest a possible analogy of the Eridanus-Orion-Franks
Tower mineralised trend. RC drilling commenced at year end to evaluate the target area with all results pending.
22
RAMELIUS RESOURCES ANNUAL REPORT 2021
REVIEW OF OPERATIONS (CONTINUED)
DEVELOPMENT AND EXPLORATION PROJECTS (Continued)
Penny
Further exploration drilling has been conducted around the high grade Penny North. RC and diamond drilling targeted the
Penny Shear Zone, Penny Far North, and the parallel Buckshot Trend, as well as depth extensions to the Penny North Deposit
(Penny Deeps Prospect). The latter in two stages with a more recent phase targeting the mineralised Penny structure 200-300m below
previous deepest drill holes. Sub economic results have been returned to date. Down hole electromagnetic survey data is being reviewed
for off hole conductor zones that could indicate the presence of more abundant sulphides within the mineralised structure as potential
follow-up targets.
Edna May Region
An aggregate of 21,100m of exploratory aircore and 11,511m of RC drilling has been completed in the Edna May Region (including Tampia
and Marda) during the year. Drilling is subject to private landholder access and environmental permitting between Edna May and Tampia.
Edna May Mine
Evaluation of the Stage 3 cutback at the Edna May Mine is a key focus. The Golden Point Gneiss situated immediately east of the mine
area is an analogy of the Edna May Gneiss mine host, and delineation of shallow mineralisation at Golden Point has the potential to
improve financial metrics of the Stage 3 cutback. Approvals for RC drilling have recently been granted and work will commence in
August weather pending.
Greenfinch
Potential for westerly extensions of Edna May mineralisation have been tested by RC drilling, successfully identifying anomalous gold
intersections in amphibolite host rocks in an area previously believed to be geologically unprospective – further work is now being planned
but will be subject to environmental approvals.
Marda
A number of Banded Iron Formation (BIF) hosted deposits in the Marda area are currently being exploited by mining. At the Die Hardy,
Golden Orb and Redlegs Prospects, RC drilling has tested depth extensions of mineralisation beneath pre existing shallowly defined
resources in addition to some infill. The Die Hardy programme recorded an extension of mineralisation, but at lower tenor to shallower
mineralised zones. Golden Orb and Redlegs returned low level results. Surface geochemical targets at the Gopher and Prindiville Prospects
have been tested by aircore drilling with low level responses. Interpretation of recent aeromagnetic surveys in conjunction with geological,
regolith and surface geochemical review is defining new target areas.
Tampia
The Tampia Gold Mine is situated within a northerly trending surface geochemical trend that continues to be the focus of exploration
activity. Aircore drill testing of this extensive gold arsenic trend is continuing – low level results have been returned to date. Planning is also
in progress to evaluate mineralised RC drill intercepts from an area of surface geochemical anomalism to the south of the mine area.
More regionally, review of recent aeromagnetic surveys is underway to generate new geological targets.
Mt Hampton (including Symes’ Find)
Opportunities for resource extension around the Symes’ Find resource area are being evaluated. The resource area comprises extensive
mineralised laterite with underlying primary higher grade ore shoots within mafic and intermediate volcanic lithologies.
Holleton Mining Centre
Encouraging RC drilling results have been previously returned from the Calzoni and Columbus trends within the Holleton Mining Centre
and follow up work aimed at defining and extending previously intersected mineralisation is being planned. Flora and Fauna surveys have
been completed however some environmental permitting remains prior to ground disturbance activities.
Other
Nulla South Farm in & Joint Venture - Ramelius 75%
Ramelius has earnt 75% of the JV and will now review remaining targets. Regional aircore drilling during the year returned low level
anomalous results.
Gibb Rock Farm in & Joint Venture – Ramelius earning 75%
Aircore drilling of surface geochemical targets at the Brahma West Prospect and in regional areas has been conducted and returned low
level anomalous results.
Jupiter Farm in & Joint Venture Project (Nevada USA) – Ramelius earning 75%
Ramelius gave notice of its intention to withdraw from the Joint Venture during the financial year.
RAMELIUS RESOURCES ANNUAL REPORT 2021
23
RESOURCES & RESERVES
Company summary as at 30 June 2021
Mineral resources up 15%
Total Mineral Resources are estimated to be;
•
110 Mt at 1.6 g/t Au for 5.4 Moz of gold
Total Ore Reserves are estimated to be;
•
17 Mt at 2.0 g/t Au for 1.1 Moz of gold
Increases in Mineral Resources were achieved via exploration drilling and resource additions at Ramelius’ Eridanus, Galaxy and Edna
May gold projects in Western Australia. As in previous years, the Company’s ability to consistently meet production guidance has been
underpinned by realistic resource modelling and deliverable reserve estimates. Ore Reserves have been maintained, with mining depletions
matched by additions. Studies on conversion of the new resources to reserves are in progress.
S
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&
Figure 4: Ramelius historical Mineral Resources and Ore Reserves
24
RAMELIUS RESOURCES ANNUAL REPORT 2021
RESOURCES & RESERVES (CONTINUED)
Mineral Resources
MINERAL RESOURCES AS AT 30 JUNE 2021 - INCLUSIVE OF RESERVES
Project
Deposit
Morning Star
Bartus Group
Boomer
Britannia Well
Brown Hill
Bullocks
Eastern Jaspilite
Eclipse
Eridanus
Franks Tower
Golden Stream
Golden Treasure
Lone Pine
Milky Way
Orion
Spearmont-Galtee
Welcome - Baxter
Open Pit deposits
Galaxy UG
Hill 50 Deeps
Hill 60
Morning Star Deeps
Shannon
UG deposits
ROM & LG stocks
Total Mt Magnet
Edna May
Edna May UG
Greenfinch
ROM & LG stocks
Total Edna May
Mt
Magnet
Edna
May
Vivien Vivien UG
Symes Find
Symes
Dolly Pot
Marda
Python
Golden Orb
King Brown
Die Hardy
ROM & LG stocks
Total Marda
Tampia Tampia
Penny
North, West &
Magenta
Total Resource
Table 4: Mineral Resources
Measured
g/t
t
oz
49,000
2.2
4,000
150,000
980,000
2.2
1.1
10,000
35,000
t
4,900,000
110,000
120,000
180,000
1,100,000
200,000
120,000
170,000
14,000,000
2,000,000
150,000
780,000
490,000
82,000
1,900,000
220,000
1,400,000
280,000
310,000
56,000
640,000
4,200,000
6,300,000
1.6
1.3
5.5
3.7
19.2
5.8
0.6
1.3
600,000
600,0000
250,000
0.5
0.5
6.1
11,000
280,000
60,000 29,000,000
7,000,000
930,000
160,000
190,000
57,000
8,300,000
49,000
36,000
35,000
120,000
84,000
260,000 37,000,000
23,000,000
290,000
970,000
8,900
8,900 24,000,000
240,000
48,000
570,000
340,000
340,000
380,000
110,000
1,500,000
2,700,000
7,700,000
360,000
360,000
390,000
1.7
1.6
2.4
19,900
19,000
31,000
Indicated
g/t
Total Resource
g/t
t
4,300,000
240,000
790,000
oz
300,000
8,000
68,000
12,000
59,000
21,000
11,000
12,000
580,000
97,000
14,000
28,000
21,000
29,000
100,000
490,000
40,000
130,000
41,000
4,000,000
480,000
67,000
880,000
390,000
1,600,000
240,000
580,000
200,000
1,400,000 14,000,000
1,500,000
400,000
30,000
330,000
18,000
2,200,000
470,000
210,000
17,000
26,000
9,800
730,000
15,000
2,100,000 17,000,000
7,000,000
36,000
520,000
730,000
40,000
29,000
800,000
40,000
35,000
18,000
18,000
35,000
15,000
72,000
7,600,000
88,000
39,000
47,000
180,000
200,000
49,000
550,000
160,000
420,000
1,000,000
130,000
Inferred
g/t
1.5
1.6
1.0
1.2
2.5
2.5
2.1
1.0
1.5
1.2
1.0
1.7
1.1
2.8
2.6
1.8
1.3
2.0
6.4
2.0
5.0
5.0
3.2
1.6
1.0
5.2
0.8
1.0
3.7
1.2
1.6
1.8
1.7
1.8
1.3
1.5
1.8
6.6
1.9
2.1
1.8
2.0
1.6
3.3
2.8
2.2
1.3
1.5
2.9
1.1
1.3
1.1
1.7
1.6
1.5
2.1
7.0
3.3
4.2
5.4
2.7
1.8
1.0
4.3
0.9
1.0
5.1
1.9
1.7
1.7
2.9
4.3
1.5
1.9
1.7
oz
210,000
12,000
26,000
19,000
3,000
11,000
3,000
130,000
23,000
2,700
28,000
21,000
57,000
21,000
48,000
11,000
620,000
93,000
81,000
2,000
53,000
3,000
230,000
850,000
230,000
6,000
14,000
240,000
11,000
1,500
2,400
10,000
11,000
2,800
23,000
50,000
7,400
t
9,200,000
400,000
2,000,000
180,000
1,600,000
240,000
400,000
210,000
19,000,000
2,400,000
220,000
1,700,000
870,000
2,400,000
2,200,000
580,000
700,000
45,000,000
8,500,000
1,600,000
500,000
530,000
130,000
11,000,000
4,200,000
60,000,000
30,000,000
320,000
1,500,000
600,000
33,000,000
580,000
610,000
390,000
520,000
580,000
150,000
2,000,000
360,000
4,000,000
8,200,000
oz
510,000
24,000
94,000
12,000
78,000
24,000
32,000
15,000
750,000
120,000
17,000
56,000
42,000
86,000
120,000
48,000
37,000
2,100,000
560,000
340,000
56,000
79,000
47,000
1,100,000
84,000
3,200,000
960,000
46,000
43,000
8,900
1,100,000
99,0000
37,000
21,000
28,000
47,000
17,000
95,000
19,000
230,000
460,000
1.7
1.9
1.5
2.1
1.5
3.1
2.5
2.2
1.2
1.5
2.4
1.0
1.5
1.1
1.8
2.6
1.7
1.4
2.1
6.6
3.4
4.7
11.2
3.0
0.6
1.7
1.0
4.4
0.9
0.5
1.0
5.3
1.9
1.7
1.7
2.5
3.5
1.5
1.6
1.8
1.7
7,900,000
1.5
370,000 73,000,000
1.6
3,800,000 26,000,000
1.5
1,200,000 110,000,000
1.6
5,400,000
420,000
19.0
260,000
200,000
42,000
620,000
15.0
300,000
Figures rounded to 2 significant figures. Rounding errors may occur.
RAMELIUS RESOURCES ANNUAL REPORT 2021
25
RESOURCES & RESERVES (CONTINUED)
MINERAL RESOURCES (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
Checkers processing facility. Ramelius has operated the project continuously since 2012. Current and recent mining operations include the
Eridanus, Milky Way, Stellar and Vegas open pits and the Hill 60 and Shannon underground mines.
The Edna May mine was acquired in October 2017. It comprises of the large-scale Edna May granitoid hosted, stockwork deposit and the
related, adjacent Greenfinch deposit. Two higher grade cross-cutting quartz lodes, the Fuji and the Jonathan, are being mined underground
within the broader Edna May deposit. Mining at the Greenfinch open pit provided the major ore source during 2021 and has recently
been completed. Marda and Tampia will form major mill feed sources going forward.
Vivien is a high-grade quartz lode deposit, located near Leinster. Mining commenced in 2015 and Vivien has been a steady contributor with
ore trucked to the Mt Magnet mill.
Marda mining operations commenced in late 2019. It consists of seven mainly BIF hosted deposits being mined by open pit. It is located
130km north of Southern Cross and ore is hauled and milled at Edna May.
All deposits reported in this update have been depleted for mining during the 2021 financial year.
Continued exploration, resource definition and grade control drilling has delivered increases to resources and reserves for many of the
deposits including Eridanus, Galaxy, Edna May, Shannon and Vivien.
See RMS ASX releases below for additional Mineral Resource reporting details:
‘Penny & Edna May Study Updates’, 9 November 2020
‘Mt Magnet & Edna May Study Updates’, 28 January 2021
‘Ramelius Mine Plan Increases 27% to 1.84Moz’, 2 August 2021
•
•
•
Decreases were largely due to mining depletion with some minor re-modelling and/or re-classification.
526
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450
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0
0
0
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(
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5,500
5,000
4,500
4,000
3,500
3,000
June 2020
Resource
Mining
Depletion
Ore Stock
Change
Modelling &
Categorisation
Exploration,
Resource & GC
Drilling
Project
Aquisition
June 2021
Resource
Figure 5: Mineral Resource Change
4,7005,400
26
RAMELIUS RESOURCES ANNUAL REPORT 2021
RESOURCES & RESERVES (CONTINUED)
The Tampia deposit is hosted within amphibolite facies mafic rocks 12km SE of Narembeen in the WA wheatbelt. Gold is hosted within
shallow dipping lode/shear zones and associated with arsenopyrite. Mining commenced in April 2021 and ore is being hauled 140km to
Edna May for milling.
Symes Find is located 120km SSE of Edna May, also in the WA wheatbelt, and consists of lateritic and primary mineralisation hosted in
mafic gneiss units similar to Tampia.
The Penny project was acquired via the takeover of Spectrum Metals in early 2020. Penny West is a high grade quartz-sulphide lode
discovered and mined by open pit in the early 1990’s. Spectrum discovered the high grade Penny North lode in early 2019 and rapidly drill
defined a significant lode resource. Mining Approvals were received in 2021 and site infrastructure works are in progress.
All resources are based on combinations of RC and diamond drillholes. Sampling has been via riffle or cone splitters (RC) or by sawn half
core. Assay is carried out by commercial laboratories and accompanied by appropriate QAQC samples. Generally a substantial proportion
of drill data is historic in nature or gathered by previous owners, however Ramelius has added significant further drilling for all deposits,
especially those forming Ore Reserves. Mineralisation has been modelled via cross-sectional interpretations using deposit appropriate
lower cut-off grade envelopes and geological interpretations. Geological understanding has formed the basis of all ore interpretations and
is generated prior to grade interpretations. Ore domain interpretations have then been wireframed using geological software, including
Micromine, Leapfrog & Surpac. Mineralisation has been grouped by domain where required and statistical analysis, top-cutting and
estimation is 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 the resource classifications reflect
drillhole spacing, data quality, geological and grade continuity.
Density information for fresh rock is generally well established and new measurements have frequently been obtained. Nearly all deposits
listed, with the exceptions of Tampia and Symes, have had some degree of recent production or historic mining. Resources are reported
using cut-offs approximating an A$1,800 - $2,300/oz gold price.
Ore Reserves
ORE RESERVE STATEMENT AS AT 30 JUNE 2021
Project
Mine
Proven
g/t
t
oz
Total Reserve
g/t
Boomer
Brown Hill
Eridanus
Golden Stream
Morning Star
Total Open Pit
Hill 60
Shannon
Total Underground
ROM & LG Stocks
Mt Magnet Total
Edna May UG
Greenfinch
ROM & LG Stocks
Ednan May Total
Vivien UG
Dolly Pot
Python
Golden Orb
King Brown
Die Hardy
ROM & LG Stocks
Marda Total
Mt
Magnet
Edna
May
Vivien
Marda
Tampia Tampia
Penny
Total Reserve
Penny North & Magenta
t
130,000
620,000
3,900,000
91,000
1,100,000
5,800,000
110,000
16,000
470,000
6,000,000
380,000
200,000
590,000
180,000
100,000
38,000
290,000
65,000
790,000
Probable
g/t
2.7
1.6
1.3
2.9
1.9
1.5
3.2
3.8
3.7
1.5
3.2
1.2
2.5
5.1
1.6
3.8
2.7
3.9
1.5
2.0
2.4
14.0
2.5
40,000
7,800
oz
11,000
31,000
160,000
8,500
68,000
280,000
12,000
1,900
55,000
t
130,000
620,000
3,900,000
91,000
1,100,000
5,800,000
410,000
180,000
660,000
4,200,000
290,000 11,000,000
380,000
200,000
600,000
1,200,000
180,000
100,000
38,000
290,000
65,000
790,000
360,000
1,600,000
82,000
2,500,000
230,000
230,000
500,000
910,000 17,000,000
47,000
30,000
5,300
4,600
25,000
8,100
38,000
oz
11,000
31,000
160,000
8,500
68,000
280,000
43,000
39,000
91,000
84,000
440,000
40,000
7,800
8,900
56,000
30,000
5,300
4,600
25,000
8,100
38,000
19,000
100,000
230,000
230,000
1,100,000
2.7
1.6
1.3
2.9
1.9
1.5
3.2
6.9
4.3
0.6
1.3
3.2
1.2
0.5
1.5
5.1
1.6
3.8
2.7
3.9
1.5
1.6
1.9
2.7
14.0
2.0
290,000
160,000
190,000
4,200,000
4,700,00
600,000
600,000
3.2
7.2
5.9
0.6
1.0
0.5
0.5
31,000
37,000
36,000
84,000
150,000
8,900
8,900
360,000
360,000
1.7
1.6
5,600,000
1.0
19,000
19,000
1,300,000
3,000,000
500,000
180,000 11,000,000
Table 5: Ore Reserves
Figures rounded to 2 significant figures. Rounding errors may occur.
RAMELIUS RESOURCES ANNUAL REPORT 2021
RAMELIUS RESOURCES ANNUAL REPORT 2021
27
RESOURCES & RESERVES (CONTINUED)
Ore Reserve commentary
All Ore Reserves have been estimated from Measured and Indicated Resources only. All current pit and underground operations were
depleted to 30 June 2021.
All Ore Reserves have been generated from design studies using appropriate cost, geotechnical, slope angle, stope span, dilution, cut-off
grade and recovery parameters. Ore Reserves are utilised in the current Mine Plan. Mining approvals processes are in progress for the Die
Hardy open pit.
A maximum A$2,250/oz gold price has been used to estimate Ore Reserves and determine appropriate cut-offs.
Mining, milling and additional overhead costs are based on currently contracted and budgeted operating costs. Mill recoveries for all ore
types are based upon operating experience or metallurgical testwork. Stockpiles consist of ROM stocks & low-grade stocks mined under
Ramelius’s ownership.
FORWARD LOOKING STATEMENTS
This report contains forward looking statements. The forward looking statements are based on current expectations, estimates, assumptions,
forecasts and projections and the industry in which it operates as well as other factors that management believes to be relevant and reasonable in
the circumstances at the date such statements are made, but which may prove to be incorrect. The forward looking statements relate to future
matters and are subject to various inherent risks and uncertainties. Many known and unknown factors could cause actual events or results to differ
materially from the estimated or anticipated events or results expressed or implied by any forward looking statements. Such factors include, among
others, changes in market conditions, future prices of gold and exchange rate movements, the actual results of production, development and/or
exploration activities, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns. Neither Ramelius, its
related bodies corporate nor any of their directors, officers, employees, agents or contractors makes any representation or warranty (either express
or implied) as to the accuracy, correctness, completeness, adequacy, reliability or likelihood of fulfilment of any forward looking statement, or any
events or results expressed or implied in any forward looking statement, except to the extent required by law.
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 Paul Hucker (Ore Reserves), who are Competent Persons and Members of The Australasian Institute of Mining and Metallurgy.
Rob Hutchison and Paul Hucker are full-time employees of the company. Rob Hutchison and Paul Hucker 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 Paul Hucker consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
SUSTAINABILITY
REPORT 2021
RAMELIUS RESOURCES ANNUAL REPORT 2021
29
2021 Achievements
About Ramelius
Our Business
Our People
Our Communities
Our Environment
Performance Data
30
32
39
43
48
52
57
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RAMELIUS RESOURCES ANNUAL REPORT 2021
2021 ACHIEVEMENTS
FY21 HIGHLIGHTS
OUR BUSINESS
OUR PEOPLE
Economic performance:
RECORD CASH FLOW, DIVIDENDS
AND WAGE PAYMENTS
Health, safety and wellbeing:
20% REDUCTION IN TOTAL
RECORDABLE INJURY FREQUENCY RATE
Regulatory and compliance:
FIRST MODERN SLAVERY REPORT
SUBMITTED
Employment and contractors:
45% OF GRADUATE PROGRAM
MEMBERS WERE FEMALE
Organisational governance:
ZERO FINES OR
MATERIAL INCIDENTS
Talent attraction,
development and retention:
TALENT STRATEGY ALIGNED WITH A
STREAMLINED ONBOARDING PROCESS;
GROUP TURNOVER MEASURED AT
14.9%
RAMELIUS RESOURCES ANNUAL REPORT 2021
31
OUR COMMUNITIES
OUR ENVIRONMENT
Indigenous and native title:
TWO INDIGENOUS DEVELOPMENT
PROJECTS
Water:
13.5% OF WATER RECYCLED
Taxes, royalties
and supplier payments:
A$530m CONTRIBUTED TO
AUSTRALIAN ECONOMY
Emissions and energy:
COMPLETED FIRST PHASE OF
TCFD ALIGMENT FOR CLIMATE RISK
EMISSIONS INTENSITY
REDUCED 8%
Community relations
and investment:
CONTRIBUTED OVER $450,000 TO
COMMUNITY ORGANISATIONS
Waste, effluents, air pollution:
WASTEWATER TREATMENT
AT TAMPIA USING WASTEWATER FOR
IRRIGATION
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RAMELIUS RESOURCES ANNUAL REPORT 2021
SUSTAINABILITY REPORT (CONTINUED)
THE CEO ON
SUSTAINABILITY AT RAMELIUS
Dear Stakeholders,
This marks the second standalone annual Sustainability
Report produced by Ramelius and I am pleased to be able
to say that since the release of our maiden report, we
have continued to make solid progress towards our goal
of becoming a sustainable gold miner that focuses
on delivering superior returns for stakeholders.
As stated previously, what that means to us is delivering more than
just a financial benefit to shareholders. While creating shareholder
value will always remain at the heart of what we do, it must be
done in a way that considers the interests of all stakeholders, that
demonstrates we are a responsible corporate citizen and that
ensures our environmental footprint is as minimal as possible.
We don’t yet claim to have reached our goal, but in financial
year 2021 we built on the foundations laid in previous years,
gathering further information on best practice in sustainability in
the mining industry and getting ourselves to a point at which we
can start to think about putting in place firm targets in accordance
with Taskforce on Climate-related Financial Disclosures (TCFD)
recommendations.
On the whole, we believe we are heading in the right direction.
We have started participating in ESG benchmarking assessments
undertaken by organisations such as S&P Corporate Sustainability
Assessment and MSCI and improvement is evident. In financial year
2021 our rating in the MSCI ESG Ratings assessment for resilience
to long-term ESG risks went up from ‘BB’ to ‘BBB’, while our
ESG score as determined by Sustainalytics continues to improve.
Led by Non-Executive Director Natalia Streltsova, the
Company’s Risk & Sustainability Committee is doing a lot of
work assisting the Board in its responsibilities overseeing risk,
governance and sustainability activities which include setting the
objectives for environmental and community obligations, ethical
standards and compliance.
Our pursuit of sustainability has no doubt been aided by the
financial health of the Company, which is as strong as it has ever
been. In financial year 2021, we contributed over $530 million to
the Australian economy including approximately $10.2 million spent
with local businesses, employees and community organisations.
Along with our ongoing program of carefully selected sponsorships
and donations, we will continue to partner with our community
stakeholders on legacy projects that provide benefits to the
communities in which we operate well beyond the life of the mine.
At the end of the day, our success in becoming a sustainable
gold miner rests with our employees. We need to ensure they
are clear on what the Company stands for so they can buy in
wholeheartedly. With this in mind, the Board signed off on a
new set of values earlier this year:
• We Empower our people
• We achieve Fit-for-Purpose outcomes
• We Deliver and do it safely
• We are Authentic
In finishing, I would like to thank all our employees and contractors
for their efforts to date on the sustainability front and urge them to
embrace our new values as we strive for continued improvement
and excellence.
Yours sincerely,
Mark Zeptner
Managing Director
ABOUT RAMELIUS
Mission statement
To be a sustainable gold
producer that focuses on
delivering superior returns
for stakeholders.
Our values
At Ramelius, we are defined by the following
core values:
We Empower our people
We achieve Fit-for-Purpose outcomes
We Deliver and do it safely
We are Authentic
Our culture is defined by a ‘fit-for-purpose’
and ‘can-do’ attitude.
RAMELIUS RESOURCES ANNUAL REPORT 2021
33
SUSTAINABILITY REPORT (CONTINUED)
Sustainability
statement
We believe a sustainable
gold producer should
deliver more than just
financial benefit. It’s about
the way we do business,
the relationships we build
with our people and
communities and the efforts
we make to conserve the
environment.
Our corporate
strategy
Our Strategic Priorities
1 Feed Existing Hubs
2 Acquire Third Hub
3 Ramp Up Greenfields
4 Grow Capability
5 Do the Essentials
Sustainability pillars
Our
business
• Economic performance
• Regulatory and
compliance
• Organisational
governance
Our
people
• Health, safety and
wellbeing
• Employment and
contractors
• Talent attraction,
development and
retention
Our
communities
• Indigenous and
native title
• Taxes, royalties and
supplier payments
• Community relations
and investment
Our
environment
• Water
• Emissions and
energy
• Waste, effluents,
air pollution
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SUSTAINABILITY REPORT (CONTINUED)
Sustainability at Ramelius
Through the Risk & Sustainability Committee, our Board of Directors maintains oversight of all sustainability impacts and activities across
Ramelius. We strive to conduct business in a sustainable manner, guided by the following hierarchy:
Risk & Sustainability Committee Charter
Sustainability Policies
Sustainability Statement & Pillars
Community
Consultation
Policy
Indigenous
People
Policy
Risk
Management
Policy
HSE
Policy
Diversity
Policy
Code of
Conduct
This Sustainability Report, approved for release by our Board of Directors, covers the period from 1 July 2020 to 30 June 2021 (FY21).
The report forms part of our annual corporate reporting suite. It offers an account of our interaction with our stakeholders and
complements Ramelius’ FY21 Annual Report. The currency used throughout this report is Australian Dollars (A$).
Group information
Ramelius Resources Limited (Ramelius) is a Western
Australian gold producer headquartered in East Perth with
approximately 300 employees. We were incorporated in
1979, listed on the Australian Securities Exchange in 2003
(ASX: RMS) and have been in production since 2006.
Ramelius and our subsidiaries are engaged in the
exploration, mine development, and production and sale of
gold in Australia.
We own and operate the Mt Magnet Gold Mine, the Vivien
Gold Mine, the Penny Gold Mine, the Edna May Gold
Mine, Tampia Gold Mine and the Marda Gold Mine and
associated processing plants around Western Australia.
In addition to the operations listed above, Ramelius is
involved in three WA-based exploration projects: Mt
Magnet, Edna May and Holleton (Symes’ Find). Further
information is available on our website.
WESTERN AUSTRALIA
MT MAGNET
Mt Magnet
Geraldton
PENNY
Leinster
VIVIEN
Laverton
Leonora
MARDA
Coolgardie
Kalgoorlie
200km
EDNA MAY
Bullfinch
Westonia
Southern Cross
PERTH
Narembeen
Norseman
TAMPIA
Bunbury
Esperance
Albany
Ramelius Production Centres
Mine / Development Projects
Haulage Direction
RAMELIUS RESOURCES ANNUAL REPORT 2021
35
SUSTAINABILITY REPORT (CONTINUED)
Supply chain
Contractors and suppliers are a critical part of our business and are relied upon to ensure that we deliver on our strategy.
The supply chain at Ramelius includes but is not limited to:
EXPLORATION
& PROJECT
DEVELOPMENT
Drilling contractors
Geology and geophysical
contractors
Analytical laboratories
Surveying
Earthmoving contractors
Environmental and water
consultants
MINING
Surface and underground mining
contractors
Cement supply
Fleet, maintenance, parts and
equipment
Fuel, oil and tyre supply
Mining communications
PROCESSING
Chemical supply
Lab services
Civil contractors
Fuel and gas supply
SUPPORT SERVICES
TRANSPORTATION
Camp management services
Freight services
Ore Haulage contractor
Security services
Aviation charter companies
Power, communication and
IT services
Insurance
Employee benefits
Personal protective equipment
and clothing
Medical, health and safety services
Labour supply
Water and waste management
REFINING AND
SALES
Refinery
Customers
Bullion freight and security
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SUSTAINABILITY REPORT (CONTINUED)
United Nations (UN) sustainable development goals
Ramelius is focused on aligning environmental, social and governance policies and activities across our operations in accordance with
the UN Sustainable Development Goals (SDGs). These are considered the blueprint to achieving a better and more sustainable future
for all and as such represent a major inspiration for the future prosperity of our stakeholders.
We have chosen the 10 most relevant SDGs that align to our business strategy and stakeholder priorities. The following table
summarises the ways in which we are striving to contribute to the 10 specific SDGs:
SDG number
SDG indicator
Ramelius contributions
Goal 3:
Good Health
and Well-being
3.5 Strengthen the prevention and
treatment
of substance abuse, including
narcotic drug abuse and harmful use
of alcohol
3.D Strengthen the capacity of all
countries, developing countries, for
early warning, risk reduction and
management of national and global
health risks.
• Established high on-site safety standards to minimise the risk of employee and
contractor harm from occupational hazards, air pollution, transport accidents
and other risks.
• Provide employee medical checks and a health assistance program across all
operations. Also developing employee health and wellness programs to help
reduce illness and disease.
• In response to the COVID-19 pandemic, we have put in place cleanliness and
social distancing measures in accordance with advice from State and Federal
health authorities.
SDG number
SDG indicator
Ramelius contributions
Goal 5:
Gender Equality
5.5 Ensure women’s full and
• We are committed to recruiting the best candidates regardless of
effective participation and equal
opportunities for leadership at
all levels of decision-making in
political, economic and public life
gender, age, religion or cultural background. Our Diversity Policy states our
commitment to a workforce comprised of individuals with a wide range of
backgrounds, skills and experiences.
• Ramelius has developed a Diversity & Inclusion Strategy which
articulates the targets of year-on-year improvement in gender diversity across
the Group and within leadership roles. Regular overall gender pay gap and like
for like remuneration analysis allows outcomes to be reviewed and measured.
SDG number
SDG indicator
Ramelius contributions
Goal 8:
Decent Work and
Economic Growth
8.7 Take immediate and effective
measures to eradicate forced
labour, end modern slavery and
human trafficking and secure the
prohibition and elimination of
the worst forms of child labour,
including recruitment and use of
child soldiers, and by 2025 end
child labour in all its forms
• We publicly report to shareholders and investors to ensure they are informed
on corporate governance issues and sustainability matters, including business-
related risks and maintenance of risk registers across all sites. In FY21 we
released the first Modern Slavery Statement which outlined an assessment
to identify key modern slavery risks in our operations and supply chain and
updated our supplier contracts with modern slavery provisions.
SDG number
SDG indicator
Ramelius contributions
Goal 9:
Industry, Innovation
and Infrastructure
9.5 Enhance scientific research,
upgrade the technological
capabilities of industrial sectors
in all countries, in particular
developing countries, including,
by 2030, encouraging innovation
and substantially increasing
the number of research and
development workers per
1 million people and public
and private research and
development spending.
• As a gold producer, we recognise the important contribution that we make to
the industrial use of gold as a conductor in electronics, including components
for clean energy products such as renewable energy and battery storage. Gold
is also used in other innovative industrial products and infrastructure in the
energy, medical, aerospace, dentistry and health sectors.
• Through our membership with the Gold Industry Group, we are involved in
cutting-edge research to improve efficiencies in gold exploration and to support
innovation in the Australian mining industry. We also partner with CSIRO on a
range of research and innovation projects.
RAMELIUS RESOURCES ANNUAL REPORT 2021
37
SUSTAINABILITY REPORT (CONTINUED)
SDG number
SDG indicator
Ramelius contributions
Goal 10:
Reduced Inequalities
10.2 By 2030, empower and
promote the social, economic
and political inclusion of
all, irrespective of age, sex,
disability, race, ethnicity, origin,
religion or economic or other
status
• We consider native titleholders/indigenous communities one of our core
stakeholder Groups across all of our operations. We strive to work from
a position of respect for local indigenous culture with the aim of creating
goodwill, mutual awareness, understanding and respect.
SDG number
SDG indicator
Ramelius contributions
Goal 11:
Sustainable Cities and
Communities
11.4 Strengthen efforts to protect
and safeguard the world’s
cultural and natural heritage
• As outlined in our Indigenous Peoples Policy, we work with Aboriginal
representatives to improve communication and to better understand the
views and beliefs of local indigenous communities. We aim to ensure that
employees and contractors approach local sites with respect and a clear
understanding of importance of the land to indigenous communities.
SDG number
SDG indicator
Ramelius contributions
Goal 12:
Responsible
Consumption and
Production
12.6 Encourage companies,
especially large and
transnational companies, to
adopt sustainable practices
and to integrate sustainability
information into their
reporting cycle
• In addition to this Sustainability Report, we acknowledge our social
responsibilities and the need to meet community expectations around
ESG reporting. We report in accordance with the National Pollutant
Inventory (NPI), National Greenhouse and Energy Reporting (NGER),
Workplace Gender Equality Agency (WGEA) and the Modern Slavery
Act 2018.
SDG number
SDG indicator
Ramelius contributions
Goal 13:
Climate Action
13.1 Strengthen resilience and
adaptive capacity to climate
related hazards and natural
disasters in all countries
13.3 Improve education, awareness-
raising and human and
institutional capacity on climate
change mitigation, adaptation,
impact reduction and early
warning
• We are committed to understanding and proactively managing the impact
of climate-related risks to our business and have started the first phase of
reporting against the TCFD framework. This includes integrating climate-
related risks, as well as energy considerations, into our strategic planning
and decision-making and working towards disclosure on the impact of
climate risk on our business and the ways in which we mitigate such risks.
• We understand and acknowledge that physical and transitional risks
associated with climate change have the potential to negatively impact
our business. Top priority climate-related risks include reduced water
availability, extreme weather events, changes to legislation and regulation,
reputational risk, and technological and market changes.
SDG number
SDG indicator
Ramelius contributions
Goal 17:
Partnership for
the goals
17.17 Encourage and promote
• Ramelius partners with an extended number of public, private and civil
effective public, public-private
and civil society partnerships,
building on the experience
and resourcing strategies of
partnerships Data, monitoring
and accountability
society organisations to benefit stakeholders and drive positive impacts in
communities. A selection of these can be found in the community section
of this report.
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Stakeholder engagement
One of our key sustainability pillars is the engagement of
stakeholders through regular consultation processes, which are
guided by our Community Consultation Policy. Proactive dialogue
allows us to keep the stakeholders informed about our activities
and to provide a forum through which they can provide feedback
to our business. In FY21 we have had regular meetings and
correspondence with government departments, local government
shires, pastoralists and native title Groups.
After the initial, largely internally focussed materiality process
in FY20, the Ramelius Board implemented a more thorough,
considered and comprehensive approach in FY21. This process
sought to ensure topics being prioritised were as important to
Ramelius stakeholders as they are to the business. Partnering with
specialist ESG agency Futureproof Consulting, feedback was sought
through surveys distributed to both internal staff and external
stakeholders including shareholders, investors, lenders, insurers,
key suppliers, customers, local community, landowners and shire
representatives. Almost a fifth of all Ramelius staff took the
opportunity to contribute which demonstrated a strong interest in
the strategic direction of the Company’s ESG activities.
The survey asked stakeholders to rate the importance of
economic, environmental, social and governance issues to
inform the new FY21 Materiality Matrix (below). Our stakeholder
Groups include:
•
•
•
•
•
Shareholders, lenders, investment community and insurers;
Suppliers, contractors, partners and customers;
Employees, unions and the Board;
Regulators and government;
Local communities, shires and landowners;
• Native title owners/indigenous groups;
• Media and non-governmental organisations (NGO)s; and
•
Education, research and training organisations.
Material topics and matrix
This report focuses on the economic, social and environmental topics identified as being of material value to our stakeholders and the
Ramelius business. Following Global Reporting Initiative (GRI) sustainability reporting best practice, in FY21 we prioritised our material
topics by combining feedback from internal and external stakeholders, the Board, Executive, internal Sustainability Project Team and an
analysis of peers and the external environment. Topics have been reviewed and prioritised to ensure the corporate mission and strategic
imperatives are considered. Our material issues are presented in the following matrix:
Extremely important
Extremely
important
Economic performance
Health, safety & wellbeing
Talent a(cid:7)rac(cid:6)on, development & reten(cid:6)on
Water
Employment & contractors
Community investment & engagement
Regulatory & compliance
S
t
a
k
e
h
o
d
e
r
s
l
Taxes, supplier payments & royal(cid:6)es
Biodiversity
Mine closure & rehabilita(cid:6)on
Ethics & Human Rights
Waste & tailings
Greenhouse gas emissions & energy
Indigenous Peoples & Na(cid:6)ve Title
Diversity
Innova(cid:6)on
Informa(cid:6)on technology
Economic performance
Health, safety & wellbeing
Water
Talent a(cid:7)rac(cid:6)on, development & reten(cid:6)on
Employment & contractors
Community investment & engagement
Taxes, supplier payments & royal(cid:6)es
Regulatory & compliance
Greenhouse gas emissions & energy
Biodiversity
Ethics & Human Rights
Mine closure & rehabilita(cid:6)on
Waste & tailings
Indigenous Peoples & Na(cid:6)ve Title
Diversity
Innova(cid:6)on
Informa(cid:6)on technology
Extremely important
Less
important
Ramelius Resources
Extremely
important
Health, safety & wellbeing
Economic performance
Talent a(cid:7)rac(cid:6)on, development & reten(cid:6)on
Community investment & engagement
Employment & contractors
Water
Regulatory & compliance
Ethics & Human Rights
Waste & tailings
Taxes, supplier payments & royal(cid:6)es
Mine closure & rehabilita(cid:6)on
Informa(cid:6)on technology
Biodiversity
Indigenous Peoples & Na(cid:6)ve Title
Diversity
Innova(cid:6)on
Greenhouse gas emissions & energy
Extremely important
S
t
a
k
e
h
o
d
e
r
s
l
Less important
Ramelius Resources
Extremely important
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ESG reporting agencies, benchmarking and memberships
Ramelius has recently started participating in ESG benchmarking assessments undertaken by organisations such as S&P Corporate
Sustainability Assessment (CSA) and MSCI and through membership of leading industry bodies.
In FY21 we continued to improve the scope and transparency of our disclosures and received an improved rating of ‘BBB’, up from a
‘BB’ in the MSCI ESG Ratings assessment for resilience to long- term ESG risks. We have also for the first time participated in the S&P
CSA from which the Dow Jones Sustainability Index is compiled from.
Together with our commitments, partnerships and stakeholder feedback, these assessments and memberships allow us to track our
ESG performance against relevant standards and peers to deliver continual improvement.
OUR BUSINESS
Health, Safety & Wellbeing:
20% REDUCTION IN TOTAL
RECORDABLE INJURY FREQUENCY RATE
Employment & Contractors:
45% OF GRADUATE PROGRAM
MEMBERS WERE FEMALE
Talent attraction,
development and retention:
TALENT STRATEGY ALIGNED WITH A
STREAMLINED ONBOARDING PROCESS;
GROUP TURNOVER MEASURED AT
14.9%
Economic performance
Maintaining high and stable levels of economic growth is one of
the key objectives of sustainable development (SDG 8). Economic
performance, and therefore sustainability, aims to improve
standards of living through efficient use of assets to maintain
long-term company profitability. Economic performance creates
economic value and therefore requires Ramelius to make decisions
in the most fiscally responsible way possible. Ramelius’ projects and
production decisions are made to create long-term value, rather
than just the short-term benefits. To be a sustainable business and
execute its sustainability strategies, Ramelius must have financial
stability. On a larger scale, Ramelius contributes to a sustainable
economy that is strong and resilient, environmentally conscientious
and creates value for communities. Without strong economic
performance, Ramelius would limit our capacity to provide jobs for
local workforces, generate tax revenue to fund public services or
support supplier businesses. Ramelius’ strategy aims to promote
a sustainable economy that fosters economic development, local
prosperity through goods and services, and through partnerships
within regions to generate jobs.
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Regulatory and compliance
Ramelius acknowledges the range of social responsibilities to which we must adhere to ensure our business meets community and
government expectations. We are pleased to report that there were no material compliance or regulatory breaches in FY21.
Further details on the way in which we report against the following frameworks is covered in more detail later in this report:
•
The National Pollutant Inventory
(NPI): provides the community,
industry and government with
information about substance
emissions in Australia.
•
Workplace Gender Equality
Agency (WGEA): an Australian
Government statutory agency
charged with promoting and
improving gender equality in
Australian workplaces.
•
•
National Greenhouse and
Energy Reporting (NGER): the
national framework for reporting
and disseminating company
information about greenhouse gas
emissions, energy production and
energy consumption.
Modern Slavery Act 2018: requires
certain large businesses and other
entities in Australia to make
annual public reports on their
actions to address modern slavery
risks in their operations and
supply chains.
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Organisational governance
Good corporate governance is the basis on which business
objectives and stakeholder value depend. Ramelius regularly reviews
governance practices and policies in order to incorporate changes
in law and best practice into our governance processes.
Through our Risk & Sustainability Committee, the Board oversees
sustainability strategy, measures performance and considers
sustainability risks and opportunities. Day-to-day oversight of
sustainability operations and administration is the responsibility
of our CEO, who in turn delegates specific responsibilities to the
senior management team.
From FY21, we follow the ASX Corporate Governance
Council’s Corporate Governance Principles and Recommendations:
4th Edition which require the Board to carefully consider the
appropriate corporate governance policies and practices needed
to meet stakeholder expectations.
We also take guidance where possible from the Mining
Principles published by the International Council on Mining
& Metals. These define good practice environmental, social and
governance requirements for the mining and metals industry
through a comprehensive set of performance expectations
related to tailings management, pollution, waste, resettlement
and mine closure.
Our Corporate Governance Statement is released in
October each year. The most recent statement is available on
our website.
Board of Directors
Risk & Sustainability
Committee
Audit
Committee
Nomination & Remuneration
Committee
CEO
Operations
Finance
& Business
Development
Exploration
Corporate
We updated our governance and sustainability policies in FY21, including our committee charters and our Whistleblower Policy, and issued
our first Modern Slavery Statement, which outlines our approach and management of the risk of modern slavery across our operations.
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Risk management
Risk management at Ramelius is overseen by our Board of
Directors. The Board, Executive Team, Audit and Risk &
Sustainability Committees regularly review the risk portfolio of
the business and the effective management of risks. In FY21 a
new project was initiated to create a best practice risk
management framework, called Ramelius Essentials. It is a
multi-year endeavour and we are pleased that development
and implementation have progressed according to plan.
The Essentials Program focuses on integrating our approach
to managing the fundamental requirements for our business
which are to:
•
•
•
•
maintain and apply good standard practices for
controlling our activities
understand and effectively manage key risks across
our business
learn, share and take action from these learnings
comply with the requirements of laws impacting
our business
• maintain a safe system of work
Assurance
Internal
Control
Business
Continuity
Risk
Management
Ramelius
Essentials
Sustainability
Compliance
Health &
Safety
•
•
•
operate in accordance with industry sustainability principles
remain resilient in the face of adverse and extreme events
constantly monitor and review our activities and performance
Risk registers are held for each of our sites as well as the
corporate office and are managed by the respective work
group with oversight provided by our HSE Managers. Each risk
register is formally reviewed and updated at least annually and is
used in the budget planning process to prioritise expenditure in an
effort to mitigate risk. Further information can be found in the
Risk & Sustainability Charter and Risk Management Policy.
Innovation and research
Innovation is a key element of the Ramelius business and is
recognised as a driver for efficiency, productivity improvement and
waste reduction. Ramelius recognises the power of partnerships
to develop innovative ways to unlock economic, environmental
and social value and is committed to collaborative research and
development.
Through our partnership with Australia’s national science agency
CSIRO, we are involved in cutting-edge research seeking to improve
efficiencies in gold exploration and to support innovation in the
Australian mining industry.
CASE STUDY 1: CSIRO Research
The research is a collaboration between CSIRO, Ramelius, together
with a number of other Australian gold producers and supported by
the Western Australian Government through the Minerals Research
Institute of WA (MRIWA). An exciting outcome of this project will
comprise a toolkit of exploration insights and workflows to support
the operation of mineral exploration companies in all stages of the
exploration process including selection of tenements, exploration
workflows, the planning of new exploration campaigns, and better
prioritisation of targets.
The three year project is aimed at re-evaluating the prospectivity
of the South West Terrane of the Yilgarn through application of
recent advances in geochemical technologies, targeting chemical and
isotopic anomalies in cover rocks that have been proven to provide
vectors to mineralisation in the more thoroughly explored central and
eastern terranes of the Yilgarn. It is producing a new understanding
of mineralisation in the WA’s Yilgarn Province and follows CSIRO’s
previous development of new technology for an environmentally-
superior gold recovery process.
Ramelius is supporting innovative research into mineral exploration being
undertaken by Australia’s national science agency the Commonwealth
Scientific and Industrial Research Organisation (CSIRO).
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OUR PEOPLE
Health, safety and wellbeing:
20% REDUCTION IN TOTAL
RECORDABLE INJURY FREQUENCY RATE
Employment and contractors:
45% OF GRADUATE PROGRAM
MEMBERS WERE FEMALE
Talent attraction,
development and retention:
TALENT STRATEGY ALIGNED WITH A
STREAMLINED ONBOARDING PROCESS;
GROUP TURNOVER MEASURED AT
14.9%
Ramelius recognises that employees are the heart of our current and future prosperity. At all times our priority is to keep
our people safe, healthy and fulfilling their potential.
Health, safety and wellbeing
Safety
Ramelius is committed to providing a working environment that
adheres to best practice health and safety requirements for all our
employees and contractors as well as any members of the public
that are impacted by our operations. This is achieved by:
•
An absolute commitment to harm minimisation and reduction
starting from the Board and leadership, top down through the
whole Ramelius business
Fostering a culture that promotes workplace health and safety
in the best interests of all participant
Regular site safety meetings to encourage identification
of issues and continual improvement, including incident
investigations and reporting to the Board
Strict mine site entry procedures and requirements, including
enforcement of our drug and alcohol policy and testing of site
personnel
Documented and regular review of emergency procedures
and processes, ongoing staff safety training and risk
management processes
Complying with legislation and standards relating to health and
safety in the workplace
•
•
•
•
•
In FY21, Ramelius achieved safety frequency rates of 14.98 for
Total Recordable Injury Frequency Rate (TRIFR) and 4.08 for Lost
Time Injury Frequency Rate (LTIFR). Pleasingly both are significantly
reduced from FY20, though we know we still have a lot of work
to do.
In FY22, we will focus on education and taking action across
our operations in order to further improve our TRIFR and LTIFR
rates. We will also continue developing and standardising HSE
systems across all our sites to identify areas in which we can
better understand and improve health and safety.
Management of health and safety is a line management
responsibility with system and process support handled by
our health and safety team. At all times, we strive to increase
the number of proactive safety systems and strategies being
implemented across all our sites. This includes undertaking regular
systems development and standardisation for existing sites and
rolling out the process for new sites.
Ramelius uses the INX system for management of health and
safety data including onboarding compliance, incident reporting,
investigation actions and outcomes and training records.
The Learning Management System (LMS) module, added to
Ramelius’ INX system in 2020 has improved onboarding processes
and site access compliance and continues to be developed for
online learning of procedures and other training requirements.
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Health and wellbeing
Ramelius takes a proactive approach to the health and wellbeing
of our workforce. Our vision is to create a physically and
mentally healthy working environment with improved workforce
participation and increased social inclusion. We aim to do this by
fostering more supportive and engaging team environments in
order to increase resilience, enhance positive early intervention and
reduce negative mental health outcomes.
The Ramelius medical services provider OccuMed, has continued
to deliver a comprehensive service for the business. The new
operations at Tampia and Penny have been able to set up with site
facilities and systems rapidly due to the relationship that is now well
established with OccuMed. Partnering with OccuMed, Ramelius
provides the following services:
•
•
•
Pre-employment medicals
Periodical medicals
Fitness-for-work testing
• Workers compensation and injury management services
•
•
•
Tele-health service
Remote medical support
Poisons Permit Licence Holder
To ensure our personnel are fit for the role that they are
employed to do, in FY21 we also created a further 9 Job Role
Profiles (JRP). This approach ensures that all new recruits and
contractors are now medically assessed against the correct JRP
before being employed. This ensures they are physically and
mentally fit for the required activities to fulfil the role.
COVID-19 response
To ensure the health and safety of every person working at
Ramelius, their families and communities during the COVID-19
pandemic, we operate all our sites in strict adherence to advice
from State and Federal health authorities. This minimises risk from
the COVID-19 pandemic to our employees and the communities
in which we operate.
In FY21, there was no material impact on the Ramelius operations
from COVID-19. Ramelius continues to employ a variety of
approaches to mitigate the impacts of the pandemic in accordance
with requirements outlined by the Australian Government Health
Department, the Government of Western Australia Health
Department and Department of Mines, Industry Regulation
and Safety.
Our medical service provider OccuMed has provided us with a
high level of support during the COVID-19 pandemic.
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Emergency response team (ERT)
Each site has a core group of ERT volunteers who support the fulltime emergency personnel in regard to emergency preparedness.
Site ERT target numbers are developed and agreed upon with site management teams and are based on a thorough analysis of the type of
activities being undertaken and the size of the workforce. The ERT is made up of both employee and contractor team members.
During FY21 we conducted three Certificate III in Mine Emergency Response and Rescue courses with a total of 60 people from five of
our operational sites completing the course. The overall growth in trained ERT members at all the Ramelius sites provides an increased
level of confidence in response capability and capacity at all times.
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Employment and contractors
Diversity and equal opportunity
Ramelius supports and promotes a working environment which
values equity and diversity.
As outlined in our Diversity Policy, Ramelius is committed to the
recruitment of the best candidates regardless of gender, religion,
cultural background or marital status and values the contribution
of all employees across the organisation.
Our Diversity Policy together with our Code of Conduct enshrine
our commitment to operate a workplace free from discrimination
and harassment, in which individuals are treated with respect,
equity, dignity and fairness. The Policies and Code set out the
procedures to address grievances and complaints including those
relating to discrimination, harassment and bullying.
To support our commitment, Ramelius have developed a
Gender Diversity & Inclusion Strategy which articulates the targets
of year-on-year improvement in gender diversity across the group
and within leadership roles. Regular overall gender pay gap and like
for like remuneration analysis allows outcomes to be reviewed
and measured.
Further information is provided in our Diversity Policy and 2021
Workplace Gender Equality Public Report.
Key diversity metrics in FY21
20%
of our Board of Directors
are female
19%
of leadership
are female
25%
of new hires in FY21
were female
45%
of graduate program
members were female
Human rights
Ramelius is guided by the UN Guiding Principles on Business and Human Rights and the Voluntary Principles on Security and Human Rights
(VPSHR) to respect the human rights of all stakeholders, ensuring the fundamental freedoms and basic human rights of all individuals.
This commitment is reinforced by our Modern Slavery and Human Rights Policy.
Our Modern Slavery Statement was published in 2021 and covers our expectations regarding risks of modern slavery in our operations and
supply chains and the action being taken to address those risks. This is in accordance with the Commonwealth Modern Slavery Act 2018:
Guidance for Reporting Entities.
Ethical behaviour
All employees, including contractors working for or on behalf of
Ramelius are required to adhere to overarching principles set out
in our Code of Conduct Policy. This requires all employees and
contractors to observe appropriate standards of behaviour, ethics
and integrity as a condition of their employment.
In FY21 Ramelius reviewed our values to align with our unique
culture which is underpinned by a ‘fit-for purpose and can-do’
attitude. Through reviewing employee feedback, we have launched
our new values as part of Ramelius Essentials. Our new values are:
• We Empower our people
• We achieve Fit-for-Purpose outcomes
• We Deliver and do it safely
• We are Authentic
The Code of Conduct Policy includes the following expectations
from our employees and contractors:
•
•
•
•
•
Honesty and fairness in all dealings with customers,
co-workers, management and the public
Respect for our equipment, supplies and property
Zero tolerance for discrimination, harassment or offensive
language and/or behaviour in the workplace
Adherence to appropriate Professional Codes of Practice
and/or ethics
Zero tolerance for postings on any social media platform
material that could reasonably be deemed inappropriate
or unlawful, including posts that are bullying, threatening,
defamatory, racist, sexist, obscene, discriminatory or profane,
whether obscured by symbols or not, which contravene any
existing Company policy or standards
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Whistleblowing
In FY21, Ramelius have introduced an external whistleblower
platform with YourCall to enable all directors, employees,
prospective employees, contractors, consultants and external
stakeholders to raise disclosable matters with the option to
remain anonymous.
This is in accordance with the whistleblower protections
outlined in the Corporations Act 2001 (Corporations Act) which
were expanded to provide greater legal rights and protections
for whistleblowers as regulated by the Australian Securities
& Investments Commission (ASIC).
Talent attraction, development
and retention
Developing and rewarding our people
We provide opportunities and support to employees to improve
their skills, knowledge and qualifications as required for the
performance of their role and for improving their prospects of
promotion to other internal roles.
Informal annual performance reviews were conducted for all
employees in FY21. Additional training, including mines rescue
training, was also offered to enhance employee performance
and effectiveness.
Salaries are set on the basis of the level of responsibility of the
position, technical skills and qualifications required to perform
the role, and are benchmarked against internal relativities and
industry data.
Developing the next generation
Ramelius aims to create a bright future for students and graduates
entering the mining industry by offering work placements, graduate
programs and apprenticeships. Our graduate program offers
university graduates a flexible program that aims to support them
in their transition from study to career with options of open pit,
underground and exploration environments.
In FY21, we have two apprentices and eleven graduate students,
five of whom are female. These programs are designed to support,
challenge and reward employees in a work environment that will
foster and develop them into future leaders and technical experts.
Ramelius supports the WA School of Mines Wallabies, a non-profit,
student run organisation that participates in events and programs
like the Australian Institute of Mining and Metallurgy (AusIMM)
National Mining Competition and New Leaders Conferences,
international collegiate mining competitions and orientation weeks.
We also offer a scholarship to support students from all
backgrounds realise their full potential. More information can be
found in Case Study 2 below.
Kent Street High School (CoRE Foundation program) students inspecting
core samples at Edna May.
CASE STUDY 2: Bob Kennedy Scholarship
“I was born in Perth and hope to build a long term career in mining in
WA after I graduate. I am keen to bring my life experiences and academic
background to a new employer, gain in depth knowledge of the industry
and to make my mark as a young woman making a valuable contribution
in the workplace.”
2021 scholarship recipient Sophie Haynes - Bachelor of Commerce
(Finance and Human Resources)
In memory of former Chairman, Robert (Bob) Kennedy, Ramelius offer
a scholarship to support students from all backgrounds realise their full
potential. The scholarship is open to any Ramelius employee or those with
a family connection to Ramelius. The Scholarship provides up to $10,000
to the cost of course fees, books, computing and other related study fees.
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OUR COMMUNITIES
Indigenous and native title:
TWO INDIGENOUS DEVELOPMENT
PROJECTS
Taxes, royalties
and supplier payments:
A$530m CONTRIBUTED TO
AUSTRALIAN ECONOMY
Community relations
and investment:
CONTRIBUTED OVER $450,000 TO
COMMUNITY ORGANISATIONS
Shine Inspire Achieve Belong students
touring the Mt Magnet operation
Ramelius believes that meaningful stakeholder engagement and
partnerships empower the community, build trust and decrease
operational risk. Our approach to social responsibility ensures that
we deliver sustainable and long-lasting social and economic benefits
to native titleholders, local communities and interest holders in the
regions in which our projects are located. We are guided by our
Community Consultation Policy.
School children from the Mt Magnet Shine Program
Indigenous and native title
Native titleholders and indigenous
communities
Ramelius considers native titleholders and indigenous
communities as one of our core stakeholder groups. We strive
to work from a position of respect for indigenous culture, traditions
and cultural sites and endeavour to foster a spirit of cooperation,
with the aim of creating goodwill, mutual awareness, understanding
and respect.
As outlined in our Indigenous Peoples Policy, we work with
Aboriginal representatives to improve communication and better
understand the views and beliefs of the indigenous communities
local to our operations.
We aim to ensure that employees and contractors
approach culturally significant sites with respect and a clear
understanding of importance of the land to indigenous
communities. We are committed to taking appropriate steps to
identify and reduce the effects of any unforeseen impacts from
its activities on indigenous communities, land, culture, traditions
and cultural sites.
In order to increase our understanding of indigenous culture and
our connections with indigenous communities, we have been
involved in a number of educational, cultural and sporting initiatives,
examples of which are provided in Case Studies below.
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Taxes, royalties
and supplier payments
Through the payment of taxes, government royalties, workforce
wages and supplier payments, Ramelius makes a significant financial
contribution to local, regional and national economies. In FY21, we
contributed over $530 million to the Australian economy through
the following mechanisms:
• Goods & services: $399.2 million
• Wages: $50.2 million
• Taxes: $37.2 million
• Royalties: $23.1 million
• Dividends: $16.2 million
•
•
Interest: $0.4 million
State and shire rent: $3.0 million
• Community contributions and donations: over $450,000
Community relations
and investment
We are committed to involving local and indigenous communities
in the areas in which we operate in planning and decision-making
and ensuring accountability through effective communication and
consultation strategies.
In FY21 we engaged local community stakeholders throughout
our local Shires in which we operate. Our most recent project
Tampia Gold Mine, we established a Community Benefit Fund.
The purpose of the fund is to provide grants to Narembeen
community groups for programs and/or community infrastructure.
This fund represents a future-focussed partnership between the
Shire of Narembeen, Ramelius Resources and the Go Narembeen
Progress Association.
Ramelius recognises that financial and in-kind contributions
are a critical aspect of community investment and support.
Our community investments are carefully considered to ensure
they create a positive impact within the communities, as well
as aligning with our business priorities. In FY21, we donated
approximately $450,000 to support initiatives and groups seeking
to build lasting, positive community impact. We also made
$11,000 worth of in-kind donations towards additional events
and programs.
Some of our major donations went to the Shire of Mount
Magnet’s Community Benefit Fund, the CoRE Foundation
Merredin Program, the MACA Cancer 200 Challenge, Netball
WA, Royal Flying Doctor Service, Fortuna Foundation Positive
Spin Project, and the Gold Industry Group (GIG). An overview
of the wide range of community-related projects in which
Ramelius has been involved through our membership of GIG is
provided in the Case Study below which includes a snapshot of
grants provided to local community groups.
CASE STUDY 3:
Indigenous cultural contribution through the Mount Magnet
Benefit Fund
Since 2015, the Ramelius Community Benefit Fund (RCBF) has
helped support Indigenous community groups to undertake social,
community and recreational projects in the Mount Magnet area
through approximately $60,000 in total grants per year and over
$360,000 over the last 6 years. In FY21, the Fund supported the
following organisations:
•
Badimia Land Aboriginal Corporation (BLAC): manages
heritage and land projects for the Badimia People in
conjunction with Heritage Link, including promoting Badimia
art and culture, fostering training, employment and business
opportunities and operating the Wirnda Barna Art Centre:
badimia.org.au
Shine Inspire Achieve Belong Inc (SHINE): collaborates with
WA secondary schools to actively connect with adolescent
female students from Aboriginal and Torres Strait Islander
backgrounds who are at risk of disengaging from the
conventional education system: shinetoday.com.au
•
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CASE STUDY 4: Gold industry group community initiatives
Through our membership of the Gold Industry Group (GIG), Ramelius
supports a wide range of initiatives covering communities, education,
youth sport, diversity, tourism, indigenous advancement, health &
safety, environment and economic growth. These include:
•
Educational and sporting pathways for women and indigenous
communities through Netball WA of which GIG is a Premier
Partner. This includes annual scholarships to assist student
netballers pursue a career in gold mining and Leadership Camps
held with Netball WA’s Aboriginal All Stars to help young
indigenous players develop their leadership qualities, prioritise
health and well-being and improve their netball skills;
Sporting opportunities, facilities and equipment for young female
Aboriginal and Torres Strait Islanders through the Shooting Stars
netball team of which GIG is a Premier Partner;
Foodbank WA Community Kitchen Mega Meal Challenge;
Pathways in Australia’s gold industry for jobseekers, employees,
students and teachers through Gold Jobs, a central online hub of
employment opportunities;
Education in science, technology, engineering and mathematics
(STEM) in Australian primary and secondary schools across
four states through GIG’s National Gold Education Program in
conjunction with Earth Science WA (ESWA);
GIG’s annual Women in Gold Great Diversity Debate in Perth,
Sydney and Melbourne which promotes gender diversity in the
Australian gold mining industry;
Gold tourism initiatives and businesses to drive economic growth
across WA’s gold mining region through GIG’s Heart of Gold
Australia app which promotes Perth and Kalgoorlie Heart of Gold
Discovery Trails and the other gold tourism experiences.
•
•
•
•
•
•
Ramelius staff at Foodbank WA where the team made almost
1,200 meals for those in need.
CASE STUDY 5: CoRE Foundation wheatbelt hub
Ramelius is proud to sponsor the CoRE program at Merredin College.
This new program is focused in the greater Wheatbelt region of WA,
extending from Ravensthorpe in the south, Northampton in the north
and to the northern Goldfields in the east.
The CoRE program’s vision is to ‘imagine a better future where life-
long learning is unleashed in the classroom.’ This classroom is known
as #therealclassroom, where industry practices are embraced by the
students, and students are taken out into the real world to network
with industry professionals.
The program at Merredin College is focused on 60 primary students
from Years 5 & 6, 28 students from Years 7 & 8 and 32 students from
Year 10.
Managing Director, Mark Zeptner said ‘’It’s great to be giving back at a
local level in the greater Wheatbelt region of WA, supporting primary
and secondary students, and giving them the opportunities for real
world experiences at our mine sites. Hopefully this will motivate and
engage students to take a career pathway into the resources sector in
the future’’.
The next generation of miners from Kent Street High School
Year 12 CoRE program at the Edna May mine.
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CASE STUDY 6:
Royal flying doctor service
Hamilton T1 Ventilator installed into RFDS aircraft
Ramelius is proud to sponsor the Royal Flying Doctor Service WA.
Western Australia is a vast and remote state and making sure people
across the regions have access to health care and emergency, life-
saving treatment is what they do at the Royal Flying Doctor Service
Western Operations.
Our three-year commitment has seen our funding go towards the
purchase of a new Hamilton T1 Ventilator for their aircrafts, to
ensure patients receive the very best care, particularly with the
pressures of COVID 19.
CASE STUDY 7:
Fortuna foundation positive
spin project
The launch of the new Fortuna Foundation Positive Spin
washing van.
Fortuna Foundation is a registered Australian Charity with a core
vision to inspire the community to help the less fortunate than
ourselves, stand amongst them at their darkest of times, and not
give up until together, a difference is made. Further, they aim to
help alleviate poverty amongst children, homeless, sick, aged and
disabled people.
Their most recent project, of which Ramelius are a major sponsor
of, The Positive Spin Van, will endeavour to close the gap that
currently exists in the community, by providing free mobile laundry
services to the homeless and disadvantaged people of Perth and
surrounding areas.
The van will be parked at partnering Churches and Community
centres at designated times, with free soup, biscuits and food being
served by various community organisations, while the washing cycles
are in progress.
Local community employment
Ramelius actively engages with our local communities for
employment opportunities and have seen the benefits and rewards.
The new Tampia Gold Mine commenced operations in June
2021 and very pleasingly has a current local workforce of 33%.
This includes the Mine Manager who relocated to Narembeen to
be a part of the local community.
Another pleasing achievement is a local Badimia, Wadjarri and
Yued woman and Ramelius employee at the Mt Magnet Gold
Mine, Sharna Whitehurst. Sharna commenced as a Receptionist in
October 2018 and was supported to undertake training in Human
Resources. She has balanced remote study with her site-based
role and upon completing a Certificate IV in Human Resources
Management was given the opportunity to take on a newly created
Human Resources Officer role reporting directly to Liz Jones,
General Manager.
The new mining camp at Narembeen to support the
Ramelius Tampia Gold Mine.
“Sharna has been an amazing influence on the site from the
beginning. Her positive attitude is unshakable and Sharna
quickly became a go to person. Being local and indigenous
Sharna also helped us better understand how to work with the
local community. It was Sharna’s idea to do the hampers for
the elderly in Mount Magnet. I get a lot of positive feedback
from the town over the hampers, and I think people really look
forward to them. Sharna is also a big driving force behind
our involvement in the Shine Program.”
General Manager Mt Magnet Gold Mine, Liz Jones
Human Resources Officer
Sharna Whitehurst
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OUR ENVIRONMENT
Water:
13.5% OF WATER RECYCLED
Emissions and energy:
COMPLETED FIRST PHASE OF
TCFD ALIGMENT FOR CLIMATE RISK
EMISSIONS INTENSITY
REDUCED 8%
Waste, effluents, air pollution:
WASTEWATER TREATMENT
AT TAMPIA USING WASTEWATER FOR
IRRIGATION
Ramelius is committed to attaining an outstanding level of
environmental performance across all of our operations. We have
a social responsibility to not only achieve all legislative compliance
expectations but also to strive to meet the environmental
expectations of the communities in which we operate.
Our environmental activities are instructed by our HSE Policy
which outlines guiding environmental principles and a commitment
to environmental sustainability and conducting our business
activities in an environmentally responsible manner.
Ramelius operates all mine sites in accordance with the
policies, regulations and environmental requirements outlined
in Western Australia’s Mining Act 1978. All our operations
have been assessed under a rigorous risk and outcomes-based
environmental assessment process with clear objectives to ensure
the environmental risk assessment and setting of site-specific
environmental outcomes is consistent with the expectations of
our stakeholders. Approved projects are then commenced and
monitored to protect the environmental values of the areas in
which we operate.
Environmental data on water, air emissions and energy are collated
annually across our operations and verified by third party auditors.
Ramelius began formal reporting on sustainability in FY20 when
baseline environmental monitoring processes were established. This
assisted the company in measuring our environmental performance
and enabled us to strive for year-on-year improvements.
Water
Ramelius recognises that the semi-arid geographical locations of our
operations are in some of the most water-deprived regions of the
WA’s Wheatbelt and the Goldfields. The climate in these areas is
mostly hot and dry with variable annual rainfall of around 340mm
and 250mm per year respectively. We are cognisant of water being
a valuable resource, not just to our operations but also to the
towns and pastoralists of the districts in which we operate.
We aim to demonstrate optimal water management by using
this resource responsibly and efficiently and by maximising our
re-use of water from Tailings Storage Facilities (TSF), minimising
our reliance on natural surface and groundwater sources and
preferentially utilising sources of saline water instead of fresh water.
Each of our sites complies with stringent water licensing conditions
which have been placed on the mines to ensure our operational
impacts are ecologically-sustainable, environmentally-acceptable, not
prejudicial to other current and future needs for water and unlikely
to have a detrimental effect on another person or another source.
In FY21, we abstracted a total 6,009ML of raw (saline) water
for all our sites which is up from last years’ abstraction volume
of 3,551ML. A large percentage of this increase was due to
unexpected, higher volumes of water needing to be dewatered
from underground at the Vivien Gold Mine in which a licence
increase was sought. All water abstracted from the Vivien Gold
Mine was pumped to a third party, adjoining gold mine under
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agreement for use in their process plant. An additional 934ML of
wastewater was reused at Ramelius’ two processing plants; sourced
from the TSF’s. Recycling and re-using water from TSFs not only
reduces demand on natural sources of surface and groundwater,
but also saves on process plant chemical costs and maintains the
safe, dewatered operation of TSFs.
Where our sites are located in close proximity to WA’s electricity
grid, we preferentially utilise this source to power our sites
particularly for the energy-intensive processing hub operations at
Mt Magnet and Edna May. Our remote regional sites use diesel for
electricity provision which is closely monitored and rationalised
where possible.
In FY22, we will continue accessing sources of saline water for our
operations in preference to fresh water in order to free up more
potable water for the communities in which we operate.
Emissions and energy
The mining sector recognises the contributions the industry
makes to global greenhouse gas emissions (GHG) and climate
change. Ramelius recognises that climate-related risk may impact
our business and we have a responsibility to reduce our emissions.
As a first step, we are collating and reporting annual GHG
emissions, energy production and energy consumption data
and improvement initiatives in line with National Greenhouse
and Energy Reporting (NGER).
This year, we sourced a total 1,995,582 GJ of electricity from
the grid and diesel generation (a 9% increase on last year).
During the same period, our total Scope 1 and 2 emissions was
153,365 t CO2-e (a 9% increase on last year, but an 8% decrease
in emissions intensity i.e., emissions per unit of production).
These increases are in line with the growth of the company, with
new greenfields projects being commenced and expansion activities
at existing sites. In FY22, we will continue to focus on improving
efficiencies in consumption rate across all of our operations.
GHG Emissions (t CO2-e)
Scope 1
Scope 2
Total Scope 1 and 2
Emissions intensity (gold produced)
Energy (GJ)
Energy consumed
Net energy consumed
Energy produced
FY2021
FY2020
Change
112,501
40,865
153,365
0.56
105,215
35,227
140,442
0.61
2,253,720
1,995,582
258,138
2,073,976
1,847,953
226,023
7%
16%
9%
8%
9%
8%
14%
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Climate risk and the TCFD
One of the key topics for both Ramelius and relevant stakeholders is climate-related risk and the transition to a low-carbon economy.
With the increasing global spotlight and this year’s IPCC report emphasising the need for action on climate, Ramelius has begun its journey
to report against the Task Force on Climate-related Financial Disclosures (TCFD) framework. The TCFD framework is structured around
four headline areas: governance, strategy, risk management, and metrics and targets. The four recommendations will be implemented in a
multi-year roadmap with initial disclosures for the governance section outlined below.
Governance
Board oversight
Management’s role
Strategy
Climate-related risks
and opportunities over
short, medium, long-
term
Impact on business,
strategy and financial
planning
Resilient strategy and
scenario analysis
Risk Management
Processes for identifying
Metrics
and Targets
and assessing risks
Metrics
Processes for
managing risks
Integration into overall
risk management
Scope 1, 2 and 3
emissions and
related risks
Targets
The Risk & Sustainability Committee and senior management will
then identify potential next steps for strengthening risk mitigation
to reduce the residual risk rating over time, this will include setting
emissions reductions targets.
Ramelius board oversight of
climate-related risk
The Ramelius Board sets strategic direction and defines
strategic objectives coupled with defined levels of risk tolerance.
The Board also enacts policies that are relevant to the Company’s
management of climate-related risk, sustainability and other key
topics. The Board has delegated responsibility to oversee the
Company’s risk management systems, sustainability programs
and mitigating controls to the Risk & Sustainability Committee.
This Committee is comprised of Independent Non-Executive
Directors, including the Chairperson, and the CEO, and is
appointed by the Board on whose behalf it acts. The Committee
reports to the Board a minimum of four times per year on risk
management, HSE and sustainability activities. The Committee
periodically reviews company-wide policies and initiatives related
to HSE and risk management , with a view to ensuring effective
and suitable risk management strategies are in place. The Risk &
Sustainability Committee oversees the management of specific
climate-related risks and opportunities through regular review of
global best practice, internal compliance programs and relevant
sustainability frameworks.
FY21: Gap analysis and benchmarking
current TCFD governance disclosures
In FY21 the Board approved the adoption of the TCFD
Recommendations. Ramelius, in conjunction with Futureproof
(a specialist ESG consultancy):
•
•
•
Completed a benchmarking exercise against gold industry
peers to set a baseline reference point for Ramelius’ actions
and disclosures in relation to climate-related risks and
opportunities
Conducted a gap analysis between the TCFD required
governance disclosures, and Ramelius’ existing governance
and risk management processes
Considered the peer review and gap analysis, enabling the
Board and senior management to understand the relative
maturity of disclosures by Ramelius and its peers, and
to develop an action plan towards adopting the TCFD
Recommendations over the coming years.
FY22: Identify and validate physical and
transitional risks
In FY22 the company will identify and validate the key physical
(acute and chronic) and transitional risks (market shifts, reputational
risks, technology changes, regulatory and policy changes and legal
risks) to Ramelius’ business during a climate workshop involving the
Risk & Sustainability Committee and senior management.
FY23: Scenario planning and inherent risk
rating and mitigation
In FY23, a second workshop will assess the potential
consequences and likelihoods of the events identified occurring
over long-term time horizons for the company’s operations.
This will use scenario planning as outlined in the TCFD
guidelines and assess current mitigating practices and controls.
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Role of Ramelius management
of climate-related risk
At a management level, the Ramelius Leadership Team, led
by the CEO, is tasked with fulfilling Board-approved strategies
and policies and associated risk management plans. Management,
via the CEO, reports progress and activities to the Risk &
Sustainability Committee at each meeting. The Group
Environment Manager provides central coordination through
to the Leadership Team and CEO. At a site level, risk registers
include risks and mitigation plans at all operations. Senior
Managers prepare an annual Sustainability Report for
endorsement by the Risk & Sustainability Committee and
approval by the Board. In FY21 a new risk management
program, Ramelius Essentials, was adopted by the Board to
support the objective of being a sustainable gold producer
focused on delivering superior returns for stakeholders.
The new risk management program is being introduced by
Senior Managers across all functions to ensure strategic risk
management is embedded in our decision making at every
level of the company.
Waste, effluents and air pollution
Mining operations have the potential to generate significant
streams of non-hazardous and putrescible waste including tyres,
batteries, oil, grease and other hydrocarbon-contaminated wastes,
food scraps, metals, cardboard, glass, plastic, and aluminium.
The remote, isolated locations of our regional mine sites generally
mean recycling these wastes can be costly and impractical for the
business. To counter this, Ramelius continually aims to reduce the
burden of these waste streams in the first instance by limiting them
from coming to site and then being placed in landfill.
All sites contractually oblige suppliers to provide products with
minimal packaging where possible, and to use licensed waste
transport companies to send waste oils and other hydrocarbons
for recycling at dedicated facilities.
Dust pollution from mining and trucking activities can reduce
air quality. Procedures are in place across all our mine sites to
reduce dust generation by watering surfaces with saline water
and monitoring dust deposition levels at sensitive environmental
receptor locations.
Other waste products include effluent from wastewater
treatment plants which is treated in accordance with licensed
standards prior to discharge. An example of the way in which
we are working to improve the use of wastewater treatment is
outlined in Case Study 8 Wastewater Recycling at Tampia.
Tailings management
Ramelius builds, owns and operates two Tailings Storage Facilities
(TSF) across our mining operations. The design, construction,
operation and closure of these facilities is strictly controlled by
government regulation, codes of practice and relevant guidelines,
as well as our own internal standards, procurement policies and
contractor management processes.
The chosen location, design, construction method, operational
strategy, monitoring and surveillance, emergency response planning
CASE STUDY 8:
Wastewater recycling at Tampia
Climate change has seen rainfall in the Southwest of Western
Australia become more unreliable. This combined with population
growth has placed a great deal of pressure on existing traditional
sources of water for domestic, industrial and agricultural use.
Recognising these pressures on our natural resources, Tampia
Operations no longer considered wastewater a ‘waste’ product to
be discarded but a resource that can have potential value if used in a
‘fit for purpose’ manner if recycled. The company took advantage of
this sustainability opportunity at its Tampia Village, north of the town
of Narembeen where the wastewater treatment plant (WWTP)
services the village’s 120 rooms of the staff and contractors
employed by the Tampia project.
The scheme uses excess treated water from the Tampia Village
WWTP to irrigate the trees and gardens of the village, conserving
high quality water for drinking and other specialised high value uses.
Wastewater is treated to Class C standards that are suitable for
reuse in low-risk category applications, with the option available to
upgrade the system to Class A standards. Using an Activated Sludge
Bioreactor, wastewater is treated to a quality safe for this purpose
and includes the use of an enhanced nutrient removal system to
lower phosphorous and nitrogen levels in the effluent.
and rehabilitation of each TSF undergoes a rigorous risk and
environmental impact assessments prior to approval.
Specialist engineers are engaged by Ramelius to ensure all factors
that can potentially impact on the long-term performance of each
TSF are considered and all risks are addressed. The design process
is complex, but repeatable and rigorous, and ensures the integrity
and safety of each TSF’s during:
•
•
•
normal and irregular operation
extreme weather and events
decommissioning
The priority is to ensure that our TSFs are safe, stable, erosion-
resistant, and non-polluting after tenement relinquishment.
Ramelius also completes detailed and regular inspections and
auditing of our operating TSFs, including the preparation and
implementation of a site-specific TSF Operating Manual which sets
out the safe and environmentally-acceptable operating procedures,
monitoring and reporting requirements, trigger levels and actions
to be taken to rectify any potential deficiencies.
Audit reports are lodged with relevant regulators demonstrating
our compliance with all conditions. Regulations also require
Ramelius to use independent TSF consultant engineers for the
design and annual inspection of our TSFs as well as requirements
for the provision of information, instruction, training and
supervision that assures the integrity of facilities and the
occupational safety and health of personnel working at them.
More information can be found in the Church of England Pension
Board Tailings Report on our website.
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Rehabilitation and closure
management
Ramelius strives to revegetate our disturbances in a manner
that promotes biological diversity and ecological integrity.
All our operations work to keep land clearing and disturbed
ground to an absolute minimum. In order to develop the
knowledge and capabilities to meet stakeholder expectations
on mine rehabilitation and closure, we work to progressively
rehabilitate mining disturbances as effectively as possible during
the lifetime of our operations.
In FY21, each operation reviewed their approved Mine Closure
Plan and Ramelius conducted a review of our closure cost
provisioning in order to refine and improve our methodology,
address closure knowledge gaps and replace cost assumptions
with up-to-date rates. An independent external review of closure
cost provisioning will be undertaken in FY22.
During FY21, Ramelius had a total tenement land holding package
of 341,321 hectares, of which land disturbed by mining totalled
just 1,960 hectares (0.57%). The amount of land currently under
rehabilitation, which includes land that has been fully rehabilitated
and relinquished, is 687 hectares which equates to 35% of
disturbed land restored.
Biodiversity
Ramelius adheres to environmental objectives and regulations
that seek to protect fauna, flora and vegetation so that biological
diversity and ecological integrity are maintained. Each new
greenfield project and proposed operational expansion is subjected
to rigorous environmental baseline and impact assessment studies,
undertaken to a standard consistent with best practice guidance to
ensure our projects avoid and minimise impacts to biodiversity.
Occasionally, significant fauna, flora and vegetation are
encountered during surveys and additional levels of planning
are required to manage and mitigate unacceptable potential
impacts.
All Ramelius baseline biodiversity study reports are submitted
to environmental regulators during the mining project permit
application process. The information contributes to the Western
Australian environmental and biodiversity datasets which provide
a broader decision-making base for regulators, an expanded
knowledge base of the State flora and fauna, and improved
availability of environmental information for the community to
create better environmental outcomes for the State.
Rows of Eucalyptus salmonophloia (Salmon Gum) seedlings before being
planted at Edna May Gold Mine.
Ramelius General Manager Edna May Gold Mine, Tim Blyth planting a
Eremophila seedling for rehabilitation.
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PERFORMANCE DATA
Safety
Safety performance
Employee fatalities
Contractor fatalities
Total Recordable Incident Frequency Rate (TRIFR)
Lost Time Injury Frequency (LTIF )
Lost Time Injuries
Restricted work
Medical treatment injuries
Unless specified, all classifications above include contractors.
Emergency Rescue Teams (ERT)
FY20
-
-
18.61
7.24
14
22
21
FY21
-
-
14.98
4.08
10
23
18
Change
-
-
- 20%
- 44%
- 29%
5%
- 14%
Number of ERT members
Total
Mt Magnet Edna May
32
14
Viven
18
Marda
5
Tampia
6
Penny
2
People
Diversity
Organisational
Level FY21
Number #
Percentage %
Board
M
4
80%
F
1
20%
Executive/
GM
Senior
Managers/
Managers Professional
Trade
Operator/
Technicians
Admin
Graduate/
Apprentice
TOTAL
M
6
86%
F
1
14%
M
66
80%
F
16
20%
M
45
80%
F
11
20%
M
39
100%
F
-
-
M
77
91%
F
8
9%
M
-
-
F
14
100%
M
8
62%
F
5
38%
M
245
81%
F
56
19%
Site profile FY21
Number #
Percentage %
New Employees
FY21
Number #
Percentage %
Turnover FY21
Total (12 month
rolling average) -
voluntary exits only
Corporate Mt Magnet
Edna May
Vivien
Marda
Tampia
Penny
Exploration
TOTAL
M
26
68%
F
13
32%
M
84
82%
F
19
18%
M
85
90%
F
9
10%
M
6
55%
F
5
45%
M
10
91%
F
1
9%
M
10
71%
F
4
29%
M
5
71%
F
2
29%
M
19
87%
F
3
13%
M
245
81%
F
56
19%
Corporate Mt Magnet
Edna May
Vivien
Marda
Tampia
Penny
Exploration
TOTAL
M
13
68%
F
6
32%
M
20
71%
F
8
29%
M
12
75%
F
4
25%
M
2
67%
F
1
33%
M
2
67%
F
1
33%
M
7
70%
F
3
30%
M
5
83%
F
1
17%
M
11
100%
F
-
-
M
72
75%
F
24
25%
14.90%
Environment
Environmental compliance and incidents
Monetary value of significant fines ($A)
FY21 environmental Incidents
Total volume of significant spills (ML)
-
-
-
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SUSTAINABILITY REPORT (CONTINUED)
PERFORMANCE DATA (continued)
Energy
Energy consumption (GJ)
Energy consumed
Net energy consumed
Energy produced
Total energy intensity (GJ per ounce of gold produced)
Emissions
Total direct and indirect emissions
Greenhouse gas emissions Scope 1 (t CO2-e)(1)
Greenhouse gas emissions Scope 2 (t CO2-e)(2)
Total of Scope 1 and Scope 2 (t CO2-e)
Total emissions intensity (t CO2-e per ounce of gold produced)
FY20
2,073,976
1,847,953
226,023
9.00
FY20
105,215
35,227
140,442
0.61
FY21
2,253,720
1,995,582
258,138
8.28
FY21
112,501
40,865
153,365
0.56
Change
9%
8%
14%
-8%
Change
7%
16%
9%
-8%
The energy and emissions boundary is based on operational control as defined by the National Greenhouse and Energy Reporting (NGER) Act 2007.
The applied global warming potential (GWP) rates and emission factors are based on the NGER Act (2007) and the National Pollutant Inventory.
(1) Scope 1 refers to emissions produced directly by operations, primarily resulting from combustion of various fuels and includes CO2-equivalent values
for greenhouse gases such as CH4, N20 and SF6.
(2) Scope 2 refers to indirect emissions resulting from the import of electricity from external parties; commonly the electricity grid.
Water
Water withdrawal Surface (ML) water
Bore water - saline (ML)
Total water withdrawal
Recycled (ML)
% Total reused
Waste
Mineral waste
Waste material mined (kt)
Total ore processed (kt)
FY20
3,551
3,551
677
19%
FY20
20,568
4,235
FY21
6,009
6,009
934
16%
FY21
28,869
4,629
Change
69%
69%
38%
-18%
Change
40%
9%
Tailings
Asset
Number of active TSF
Number of inactive TSF
Construction Type (eg Downstream, HDPE Lined, Upstream, IWL)
Mt Magnet
1
4
Upstream
Edna May
1
-
IWL
Acid-generating seepage
Asset
Predicted to occur
Actively mitigated
Under treatment or remediation
Rehabilitation and closure
Land management (ha)
Land disturbed
Land rehabilitated
Sites with protected conservation status
All Sites
-
-
-
FY20
1788
583
-
FY21
1960
687
-
Change
10%
18%
-
RAMELIUS RESOURCES ANNUAL REPORT 2021
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SUSTAINABILITY REPORT (CONTINUED)
PERFORMANCE DATA (continued)
Social responsibility
Socioeconomic contribution
(A$) million
Operations Employees
Payments to
providers of capital
Payments
to financial
Payments to government
Region
Supplier
payments
(Goods and
services)
Wages
Dividend payments
to share-holders
Interest
Taxes
Royalties
State
and Shire
Rent
Total
cont-
ribution
Local suppliers, rates & employees
National economy (exluding local
suppliers & employees)
Total
3.6
396.1
399.7
3.6
46.6
50.2
-
16.2
16.2
-
0.4
0.4
-
37.2
37.2
-
23.1
23.1
3.0
-
3.0
10.2
519.6
529.9
Economic contribution
Contributed into Australian Economy (A$) million
Direct spend with community organisations (A$) million
Reconciliation to income tax payable*
Profit before income tax expense
Permanent differences
Temporary differences:
– Accounting and tax depreciation differences
– Mine development
– Exploration and evaluation expenditure
– Provisions
– Other
Taxable income before utilisation of carried forward tax losses
Australian income tax payable
Corporate income tax paid during the year ended June 2020
Utilisation of carried forward losses
Net income tax payable/(receivable)
Community and cultural heritage
Material Cultural Heritage incidents
Material Community Impact incidents
FY20
476.1
8.2
FY21
529.9
10.2
30 Jun 2021
(A$) million
174.7
1.1
(4.5)
(13.9)
(8.0)
0.8
(11.0)
139.1
41.7
(3.9)
(7.5)
30.3
FY20
-
-
FY21
-
-
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RAMELIUS RESOURCES ANNUAL REPORT 2021
ANNUAL
FINANCIAL
REPORT
for the year ended 30 June 2021
RAMELIUS RESOURCES ANNUAL REPORT 2021
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CONTENTS
Directors’ Report
Directors and Company Secretary
Principal activities
Key highlights for the year
Dividends
Events since the end of the financial year
Operations review
Financial review
Development and exploration projects
Investor relations
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
Auditor independence
Rounding of amounts
Auditor’s independence declaration
Financial Statements
Financial Statements
Notes to the financial statements
Signed Reports
Directors’ declaration
62
62
62
62
62
62
62
63
66
67
67
68
70
72
72
82
82
82
82
82
82
83
84
85
89
132
132
Independent auditor’s report to the members 133
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RAMELIUS RESOURCES ANNUAL REPORT 2021
DIRECTORS’ REPORT
Your Directors present their report on the consolidated entity consisting of Ramelius Limited and
the entities it controlled at the end of, or during, the year ended 30 June 2021. Throughout the
report, the consolidated entity is referred to as Ramelius or 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 Limited during the financial year:
Mark Zeptner
Kevin Lines
David Southam
Bob Vassie
Michael Bohm
Natalia Streltsova
The above named Directors held office during the whole of the financial year, and up to the date of this report, except for:
•
•
Bob Vassie – appointed 1 January 2021
Kevin Lines – retired 30 September 2020
The Company Secretary is Richard Jones. 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 mine operations and the production and sale of gold, mine development and
exploration. There were no significant changes to those activities during the year.
Key highlights for the year
A review of the Group’s key highlights for the year is discussed in the ‘Key Operational Highlights for the Year’ section of this Annual
Report which commences on page 2.
Dividends
Dividends recommended but not yet paid
Since the end of the 2021 financial year the Directors have recommended the payment of a fully franked final dividend of 2.5 cents per
fully paid share. The fully franked final dividend will have a record date of 2 September 2021 and a payment date of 4 October 2021.
The financial effect of the final dividend has not been brought to account in the financial statements for the year ended 30 June 2021 but
will be recognised in subsequent financial reports.
Dividends paid
Final ordinary dividend for the 2020 financial year of 2 cents (2020: 1 cent) per fully paid share
paid on 2 October 2020
Table 6: Dividends paid to members during the 2021 financial year
2021
$M
16.2
2020
$M
6.6
Events since the end of the financial year
In August 2021 a binding agreement was executed with Liontown Resources Ltd (‘Liontown’) for the termination of the Lithium Royalty
owned by Ramelius over the majority of Liontown’s Kathleen Valley Lithium Project. Consideration of $30.3 million was paid upon
completion on 4 August 2021. The royalty was granted when Ramelius disposed of the Kathleen Valley Lithium – Tantalum Project to
Liontown in 2016. The royalty comprised both a production component of A$0.50/tonne of ore mined and a sales component of 1% of
the gross sales of the ore.
There were no other matters or circumstance that have arisen since 30 June 2021 that have, or may significantly affected the Group’s
operations, results, or state of affairs, or may do so in the future.
Operations review
A review of the group’s development and exploration projects for the year is discussed in the ‘Review of Operations’ section of this
Annual report, which commences on page 12.
RAMELIUS RESOURCES ANNUAL REPORT 2021
63
DIRECTORS’ REPORT (CONTINUED)
Financial review
Mt Magnet
$M
Edna May
$M
Corp &
other
$M
377.2
(136.7)
240.5
(85.1)
(4.2)
151.2
151.2
-
151.2
-
151.2
257.1
(144.8)
112.3
(77.9)
4.9
39.3
39.3
-
39.3
-
39.3
-
-
-
-
-
-
(13.0)
(2.7)
(15.7)
(48.0)
(63.7)
2021
$M
634.3
(281.5)
352.8
(163.0)
0.7
190.5
177.5
(2.7)
174.8
(48.0)
126.8
2020
$M
460.6
(242.4)
218.2
(103.1)
56.1
171.2
152.5
(3.0)
149.5
(36.1)
113.4
Change
$M
Change
%
173.7
(39.1)
134.6
(59.9)
(55.4)
19.3
25.0
0.3
25.3
(11.9)
13.4
+38%
+16%
+62%
+58%
-99%
+11%
+16%
-10%
+17%
+33%
+12%
Financial performance
Revenue
Cash costs of sales
Gross margin excluding
‘non cash’ items
Amortisation and depreciation
Inventory movements
Gross profit
Earnings before interest & tax (EBIT)
Net finance costs
Profit / (loss) before income tax
Income tax expense
Profit / (loss) after tax
Table 7: 2021 Financial performance
Profit
Figure 6: EBIT for the financial year ended 30 June 2021
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RAMELIUS RESOURCES ANNUAL REPORT 2021
DIRECTORS’ REPORT (CONTINUED)
The Group reported an EBIT of $177.5 million and net profit after tax (NPAT) of $126.8 million for the financial year ended 30 June
2021, a 16% and 12% increase respectively from the prior year (2020: EBIT $152.5 million and NPAT of $113.4 million).
The Mt Magnet operations reported an EBIT of $151.2 million, a 13% increase from the prior year (2020: $134.4 million), primarily due
to a higher gold price being realised. The benefit of this higher gold price was offset in part by higher operating costs, this is discussed
further below.
At Edna May an EBIT of $39.3 million was reported representing a 7% increase on the prior year (2020: $36.8 million). This increase was
driven by the higher gold production and higher realised gold price for the year. These benefits were offset by higher operating costs
driven by the changing ore sources at the Edna May operation (discussed further below).
Revenue
Revenue for the year ended 30 June 2021 increased by 38% to $634.3 million compared to $460.6 million for the prior year. This has
been achieved by a 22% increase in gold ounces sold (2021: 277,450oz / 2020: 228,210oz) and a 13% increase in the realised gold price
(2021: $2,282/oz / 2020: $2,014/oz).
The total gold sold of 277,450oz included deliveries into the hedge book of 127,850oz at a realised gold price of $2,037/oz and remaining
spot sales of 149,600oz at a realised gold price of $2,492/oz.
As at 30 June 2021 the Group’s hedge book totalled 206,000oz at a price of $2,335/oz representing a 17% decrease in ounces committed
and 9% increase in price (2020: 247,350oz at $2,135/oz).
EBIT – Mt Magnet
Whilst the EBIT at Mt Magnet has increased on the prior year, the cost per tonne milled also increased which in part reduced the benefit
of the higher realised gold price. The operating cost per tonne increased on the prior year in line with more tonnes being sourced from
the underground mines and Stellar open pit, all of which were higher cost, but importantly were also higher grade. To a lesser extent,
Eridanus costs were higher than the prior year, although this is due to Eridanus being a very low cost mine in 2020 due to shallow
operations and a positive Ore Reserve reconciliation in that year.
Despite a slightly lower grade profile from the bulk open pits in 2021, the higher proportion of underground material meant the head
grade through the mill remained largely unchanged.
The resulting cost per ounce at Mt Magnet increased $210 per ounce to $1,370 per ounce for the 2021 financial year, however the
EBIT margin per ounce increased 11% on the prior year to $912/oz (2020: $819/oz) due to the higher realised gold price.
EBIT – Edna May
Gold production from Edna May increased 75% on the prior year resulting in the EBIT increasing to $39.3 million. The free carry low
grade ore feed in 2020 at Edna May, which made up 81% of the feed in that year, was replaced in 2021 by ore from the higher grade
Greenfinch and Marda open pits. This changed the cost profile of the operation with the cost per tonne increasing on the prior year.
The impact of this cost increase was more than offset by the 34% increase in grades from the prior year to 1.33g/t (2020: 0.99g/t) with
the resulting costs being slightly higher than the prior year.
EBIT – Corporate & other
Other expenses, which include corporate costs, were up 6% on the prior year to $21.3M (2020: $20.0M). Excluding exploration
impairment charges other expenses equated to $59 per ounce sold which is in line with the prior year (2020: $60 per ounce sold).
During the year Ramelius disposed of non core projects and royalties including the First Hit Project ($1.0 million), the Spargo Royalty over
Wattle Dam ($3.0 million), the Coogee JV ($1.0 million) and Western Queen ($1.0 million). Other amounts included within other income
related to the fair value adjustments on ASX listed investments held.
Income tax
The effective tax rate for the Group for the year ended 30 June 2021 was 27% compared to 24% for the prior year. The effective tax
rate is lower than the statutory 30% rate as the Group recognised, and utilised in full, a $3.9 million one off tax benefit on the unused
tax losses transferred from Spectrum Metals Limited. The prior year was reduced with the Group recognising a $10.1 million one off tax
benefit on the unused tax losses of Tampia Operations Pty Limited (formerly Explaurum Operations Pty Limited). This is discussed further
in Note 3 to the financial statements.
RAMELIUS RESOURCES ANNUAL REPORT 2021
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DIRECTORS’ REPORT (CONTINUED)
Balance sheet
The net assets of the Group increased 23% to $635.8 million over the year (2020: $515.2 million) as a result of strong operational cash
flows and development of the Tampia and Penny Gold Mines. Importantly, and further strengthening our balance sheet, has been the 90%
increase in the working capital (current assets less current liabilities) over the year to $212.8 million (2020: $111.8 million) as shown in the
chart below.
Figure 7: Working capital movement over the year to 30 June 2021
Assets
The increase in current assets of 23% to $332.7 million (2020: $270.9 million) was the result of cash generation (see comments below)
and minor increases in inventories. As at 30 June 2021 the Group had over 2.1 million tonnes of ore stockpiled (excluding low grade
stockpiles) with a total of over 72,000 ounces in contained gold, gold in circuit, and bullion on hand (2020: over 2.4 million tonnes and
92,000 ounces of gold). Non current assets increased 6%, or $29.6 million on the prior year in line with the development of the Tampia
and Penny Gold Mines.
Liabilities
Current liabilities were $119.9 million at 30 June 2021 (2020: $159.2 million) principally due to the repayment in full of the borrowings as
well as a reduction in trade and other payables (relates in part to the payment of stamp duty on the Spectrum Metals Limited (Penny Gold
Mine) acquisition). These items were offset by a $9.1 million increase in the income tax payable resulting from the increased profitability
and smaller pool of available tax losses.
Non current liabilities increased to $90.6 million predominantly due to an increased deferred tax liability (DTL). The DTL increased in line
with exploration and development expenditure and utilisation of previously recognised tax losses.
Cash flows
Cash provided by operating activities of $305.6 million were up 29%, or $69.6 million, on the prior year despite $24.6 million of income
tax paid during the year. This has been achieved from the receipt of an additional $167.8 million in revenues from increased production
and gold price, offset in part by the accompanying increase in operating expenditure from the higher throughput and material movement
in the year.
Cash used in investing activities was $12.5 million higher than the prior year as a result of higher capital expenditure due to the
development of the Tampia and Penny Gold Mines. A total of $165.5 million was reinvested into the business, including:
•
•
•
Payments for the development of open pit and underground mines of $111.5 million;
Payments for property, plant, and equipment, at both existing and new sites, of $40.3 million; and
Payments for tenements and exploration of $13.7 million.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
DIRECTORS’ REPORT (CONTINUED)
DIRECTORS’ REPORT
A total of $59.5 million was used by financing activities in the year, predominantly relating to the repayment of borrowings, leases, and
dividends paid to shareholders.
The underlying cashflow of the business (as shown below) was $148.2 million (2020: $83.7 million) with the increased cash flow
generation of the business being attributable to the increased gold production.
Figure 8: Movement in cash for the year ended 30 June 2021.
Cash and gold at 30 June 2021 totalled $234.0 million (2020: $185.5 million) comprising cash and cash equivalents of $228.5 million
(2020: $165.7 million) and gold on hand of 2,341 ounces (2020: 7,681 ounces).
Financial risk management
Ramelius held forward gold sales contracts at 30 June 2021 totalling 206,000 ounces of gold at an average price of A$2,335 per ounce
over a period to March 2023. This compared to forward gold sales contracts at 30 June 2020 totalling 247,350 ounces of gold at an
average price of A$2,135 per ounce over a period to December 2022.
The hedge replacement percentage for the year equated to 68% with only selective additions to the hedge book. This approach resulted in
the average price of the forward gold sales contracts increasing by 9% over the year and the level of committed ounces reducing by 17%.
Development and exploration projects
A Review of the Group’s development and exploration projects for the year is discussed in the ’Review of Operations’ section of this
annual report which commences on page 12.
RAMELIUS RESOURCES ANNUAL REPORT 2021
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DIRECTORS’ REPORT (CONTINUED)
DIRECTORS’ REPORT
Investor relations
During the year the company presented at several conferences (both in person and virtually) and conducted road shows to existing and
prospective investors, analysts and stockbrokers. These included:
• Denver Gold Conference, Virtual, September 2020;
• Diggers and Dealers, Kalgoorlie, October 2020;
• Noosa Mining, Virtual, November 2020;
•
•
•
•
RIU Conference, Fremantle, February 2021;
Euroz Hartleys Conference, Rottnest, March 2021;
Various investor mine site visits; and
Various virtual investor presentations.
Each presentation that contained new content was released to the ASX and was made available on both the ASX (www.asx.com.au) and
the Ramelius Resources website (www.rameliusresources.com.au).
Material business risks
The material business risks for the Group include:
•
COVID-19: Ramelius continues to actively respond to the ongoing COVID-19 virus currently impacting people and businesses
globally. The health and safety of every person working at Ramelius, their families and our communities remains paramount during
this time.
Ramelius continues to operate under protocols developed internally and as prescribed by State and Federal health authorities to
minimise risks to our people and communities and ensure we continue to safely produce gold during this challenging period. All
Ramelius mine operations are located within Western Australia which has enabled the Group to have a dynamic, rapid, and consistent
approach to the management of the COVID-19 virus.
Initiatives implemented include:
-
-
-
-
-
Travel: suspending international travel and restricting non essential domestic and intrastate travel.
Social distancing: utilising video and phone conference facilities, reducing face to face interactions, and increasing flexible working
arrangements wherever necessary.
Health management: proactive temperature testing and pre commute screening of individuals prior to entering the company’s
sites or corporate offices, strict hygiene practices, along with the securing of clinical masks, hand sanitiser, and COVID-19 swab
test kits. In addition, plans were put in place for the isolation, testing, and rapid removal from site of any employee or contractor
displaying flulike symptoms.
Planning: the addition of a number of casual employees to be available in the event of the loss of team members from any part
of the business as well as the constant management and review of the supply chain.
Communication: constant liaison with WA Health Department, through our consultant occupational doctor and medical
provider, to ensure best practice as far as possible with the ever changing regime around controlling the virus. In addition there
was frequent communication across the entire work force regarding COVID-19 and company protocols.
•
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 Group’s 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.
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DIRECTORS’ REPORT (CONTINUED)
•
•
•
•
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.
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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
69
DIRECTORS’ REPORT (CONTINUED)
Reporting
Due to the various licences and works approvals the Group holds, annual environmental reporting (for a twelve month period) is a licence
and works approval condition. The Group did not experience any reportable environmental incidents for the reporting year 2020-2021.
Regulatory agencies requiring annual environmental reports are outlined below but are not limited to the following:
• Department of Water and Environmental Regulation
• Department of Mines, Industry Regulation and Safety
•
Tenement Condition Report
• Native Vegetation Clearing Report
• Mining Rehabilitation Fund Levy
• National Pollutant Inventory
• National Greenhouse and Energy Reporting Scheme
•
Bureau of Land Management.
Sustainability
The Group is committed to 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. Environmental, Social, and Corporate Governance (ESG) performance is critical to
maintaining our licences to operate, which in turn is fundamental to our financial performance. Details of the Group’s environmental and
social performance are set out in the annual Sustainability Report and details of the Group’s governance framework and compliance are
set out in the annual Corporate Governance Statement, both available at rameliusresources.com.au.
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DIRECTORS’ REPORT (CONTINUED)
Information on Directors
The following information is current as at the date of this report.
Bob Vassie
B.MinTech (Hons) Mining,
FAusIMM GAICD
Independent Chair
Non-Executive
Mark Zeptner
BEng (Hons) Mining,
MAusIMM, MAICD
Managing Director &
Chief Executive Officer
Michael Bohm
B.AppSc (Mining Eng),
MAusIMM, MAICD
Independent Director
Non-Executive
Experience
Mr Vassie is a mining engineer with
35 years multi commodity and international
experience. Mr Vassie spent 18 years with
Rio Tinto in global mining and resource
development executive roles followed by
MD & CEO positions in Ivanhoe Australia
and St Barbara Ltd with a focus on executive
leadership, resource development and
business development including M&A.
Mr Vassie served as a board member for
the Minerals Council of Australia from 2014
to 2020 where he chaired the MCA Gold
Forum and currently serves on the AusIMM
Council for Diversity and Inclusion.
Mr Vassie was appointed Non-Executive
Chair on 1 January 2021.
Interest in Shares and Options
80,000 Ordinary Shares
Special responsibilities
Chair of the Board
Member of Audit Committee
Member of Nomination & Remuneration
Committee
Member of Risk & Sustainability Committee
Directorships held in other listed
entities in the last three years
Non-Executive Director
Aurelia Metals Limited
Previously Non-Executive Director
Alita Resources Limited
Previously Managing Director of
St Barbara Limited
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 Resources
Limited 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
2,762,500 Ordinary Shares
500,000 Performance Rights over Ordinary
Shares expiring on 11 June 2026
322,342 Performance Rights over Ordinary
Shares expiring on 1 July 2027
568,956 Performance Rights over Ordinary
Shares vesting on 1 July 2021 and expiring
on 1 July 2028
644,683 Performance Rights over Ordinary
Shares vesting on 1 July 2022 and expiring
on 1 July 2029
355,392 Performance Rights over Ordinary
Shares vesting on 1 July 2023 and expiring
on 1 July 2030
Special responsibilities
Chief Executive Officer
Directorships held in other listed
entities in the last three years
None.
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
500,000 Ordinary Shares
Special responsibilities
Chair of Nomination & Remuneration
Committee
Member of Risk & Sustainability Committee
Directorships held in other listed
entities in the last three years
Non-Executive Chairman of Cygnus
Gold Limited
Non-Executive Chairman of Reidel
Resources Limited
Non-Executive Director Mincor
Resources NL
RAMELIUS RESOURCES ANNUAL REPORT 2021
71
DIRECTORS’ REPORT (CONTINUED)
Information on Directors (continued)
David Southam
B.Comm, CPA,
MAICD
Independent Director
Non-Executive
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
20,217 Ordinary Shares
Special responsibilities
Chair of Audit 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
Natalia Streltsova
MSc, PhD (Chem Eng),
GAICD
Independent Director
Non-Executive
Experience
Dr Streltsova is a PhD qualified Chemical
Engineer with more than25 years’ minerals
industry experience, including over 10 years
in senior technical and corporate roles
with mining majors – WMC, BHP and Vale.
She has a strong background in mineral
processing and metallurgy with specific
expertise in gold and base metals.
Dr Streltsova has considerable international
experience covering project development
and acquisitions in Africa, South America
and in the countries of the Former Soviet
Union.
Interest in Shares and Options
12,000 Ordinary Shares
Special responsibilities
Chair of Risk & Sustainability Committee
Member of Audit Committee
Directorships held in other listed
entities in the last three years
Non-Executive Director of Western
Areas Limited
Non-Executive Director of
Neometals Limited
Previously Non-Executive Director of
Parkway Minerals Limited
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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 2021,
and number of meetings attended by each Director were:
Director
Bob Vassie
Kevin Lines
Mark Zeptner
Michael Bohm
David Southam
Natalia Streltsova
Meetings of Committees
Full meetings
of Directors
Audit
Committee
Nomination &
Remuneration Committee
Risk & Sustainability
Committee
A
4
4
11
11
11
11
B
4
4
11
11
11
11
A
2
2
-
1
5
5
B
2
2
-
1
5
5
A
2
3
-
6
6
1
B
2
3
-
6
6
1
A
2
2
-
5
1
5
B
2
2
-
5
1
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 2021 remuneration report, outlining key aspects of our remuneration policy and
framework, and the 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, and is a
direct report to the Managing Director / Chief Executive Officer. This includes any directors (executive and non-executive) of Ramelius
Resources Limited, the Chief Financial Officer, Chief Operating Officer, General Manager – Exploration, and Company Secretary and
General Manager – Legal, HR, Risk & Sustainability.
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
Non-Executive Chair (appointed 1 January 2021)
Non-Executive Chairman (retired 30 September 2020)
Managing Director / Chief Executive Officer
Non-Executive Director
Non-Executive Director
Non-Executive Director
Directors of the Group during the financial year were:
Bob Vassie
Kevin Lines
Mark Zeptner
Michael Bohm1
David Southam
Natalia Streltsova
The KMP during the financial year were:
Tim Manners
Duncan Coutts
Peter Ruzicka
Kevin Seymour
Richard Jones
Chief Financial Officer
Chief Operating Officer
General Manager – Exploration (appointed 20 April 2021)
General Manager – Exploration (resigned 28 February 2021)
Company Secretary and General Manager – Legal, HR Risk & Sustainability
1. Mr Bohm was appointed acting Non-Executive Chair from 1 October 2020 to 31 December 2020.
Details on the Executive and Non-Executive Directors can be found on pages 70 to 71 of the Directors report.
RAMELIUS RESOURCES ANNUAL REPORT 2021
73
DIRECTORS’ REPORT (CONTINUED)
Remuneration report (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.
(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 remuneration;
•
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 (TFR); and
Total variable remuneration (includes short term and long term incentives).
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 a short term incentive (STI) and / or a long term
incentive (LTI).
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RAMELIUS RESOURCES ANNUAL REPORT 2021
DIRECTORS’ REPORT (CONTINUED)
Remuneration report (continued)
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 performance and the 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 allow executives to earn an annual incentive which is linked the Group’s annual performance.
How is it paid?
Any STI awards are typically paid in cash after the assessment of the annual performance is made.
How much can an
executive earn?
In the 2021 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.
How is
performance
measured?
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, heritage, or community related breach.
During the 2021 financial year the KPIs used to measure performance for the Managing Director / Chief Executive Officer
were:
• Net profit after tax relative to budget
• Gold production relative to budget
• All in sustaining cost (AISC) relative to budget
• Discovery/Reserve addition to mine plan
30%
20%
20%
30%
The KPIs used to measure performance for the other KMPs were 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
• All in sustaining cost (AISC) relative to budget
• Discovery/Reserve addition to mine plan
20 - 30%
20 - 25%
20 - 30%
20 - 40%
The performance is measured relative to the budget with threshold, target, and stretch cases considered.
The STIs 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 STIs paid. As of July 2021, an additional
Environmental, Social, and Corporate Governance (ESG) KPI, which incorporates safety, has been added
to the KPIs listed above.
The STI outcomes and cash payments for the 2020 financial year which were paid in the 2021 financial year
are detailed in the following table
Annual KPI1
Net profit after tax
Gold production
Reserve addition
AISC
Weighting
Threshold
Target
Stretch
Outcome
20-30%
20-25%
20-30%
20-40%
115%
102.5%
-
97.5%
130%
105%
1 year
95%
150%
110%
2 years
90%
Stretch
Target
Target
Stretch
1. The KPI percentages for threshold, target and stretch categories in the table above are relative to the board approved
budgets or Life of Mine Plan.
What were the
FY2020 STI
measures and
outcomes?
When is it paid?
The STI award is determined following a review of the financial results, operations, changes to the 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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
75
DIRECTORS’ REPORT (CONTINUED)
Remuneration report (continued)
Based on this assessment, the STI cash payments for the 2020 financial year which were paid in the 2021 financial year are detailed in the
following table:
Name
Position
Managing Director / Chief Executive Officer
Chief Financial Officer
Mark Zeptner
Tim Manners
Duncan Coutts Chief Operating Officer
Kevin Seymour General Manger – Exploration
Richard Jones
Company Secretary and General Manager –
Legal, HR Risk & Sustainability
Target STI1
%
$
214,500
30%
132,495
30%
154,275
30%
98,193
30%
Maximum STI1
$
%
268,125
38%
198,743
45%
231,413
45%
147,289
45%
Achieved STI1
%
$
223,438
31%
172,700
39%
192,500
37%
117,700
36%
30%
99,825
45%
149,738
37%
124,300
1. Amounts disclosed above include superannuation attributable to the STI.
Mr Zeptner was set a ‘once off’ STI for the 2020 financial year of up to 75% of TFR of which 50% was paid in cash (as disclosed in the
table above) and up to 50% via performance rights. A total of 100% of the 322,342 performance rights granted to Mr Zeptner on 29
November 2019 vested in the 2021 financial year. These rights remain unexercised at the date of this report.
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 LTIs are designed to focus executives on delivering long term shareholder returns.
How is it paid?
LTIs 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.
How much can an
executive earn?
In the 2021 financial year, under the Performance Rights Plan, the number of rights granted to executives ranges up to 40%
(100% 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.
How is
performance
measured?
For performance rights issued prior to 1 July 2020 there was one performance hurdle, relative total shareholder return (TSR).
Performance rights granted from 1 July 2020 have two equally weighted performance hurdles, relative TSR and absolute TSR.
Relative TSR
Half of the performance rights issued under the LTI plan will vest depending on total shareholder returns (TSR) measured
against a benchmark peer Group. The following companies have been identified by Ramelius to comprise the peer Group:
Company
ASX Code
Regis Resources Limited
Silver Lake Resources Limited
Westgold Resources Limited
Northern Star Resources Limited
Resolute Mining Limited
Gold Road Resources Limited
Dacian Gold Limited
St Barbara Limited
Pantoro Limited
Evolution Mining Limited
Perseus Mining Limited
De Grey Mining Limited
Bellevue Gold Limited
Red 5 Limited
Capricorn Metals Limited
Aurelia Metals Limited
Alkane Resources Limited#
OceanaGold Corporation#
RRL
SLR
WGX
NST
RSG
GOR
DCN
SBM
PNR
EVN
PRU
DEG
BGL
RED
CMM
AMI
ALK
OGC
# Companies added to the peer Group after
30 June 2021 but not applied retrospectively.
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%
Absolute total shareholder returns
The remaining half of performance rights granted will vest if the
Ramelius TSR over the measurement period is greater than 15%
compounded annual growth.
Once vested, rights may be exercised within seven years of the
vesting date.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
DIRECTORS’ REPORT (CONTINUED)
Remuneration report (continued)
When is
performance
measured?
What happens
if an executive
leaves?
Performance rights have a three year vesting and measurement period.
Any performance rights that do not vest will lapse after testing. There is no retesting of performance rights.
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 2021 financial year (for the 2020 financial year
performance) are detailed in the following table:
Name
Position
Mark Zeptner Managing Director / Executive Officer
Chief Financial Officer
Tim Manners
Duncan Coutts Chief Operating Officer
Kevin Seymour General Manger – Exploration
Richard Jones
Company Secretary and General Manager –
Legal, HR Risk & Sustainability
Issued 1
355,392
86,275
102,451
59,510
64,706
322,342
317,778
342,222
254,222
-
All performance rights
1,830,658
3,582,888
1. Performance rights issued during the financial year will be measured for vesting as at 30 June 2023.
Performance
rights measured
for vesting
Percentage
vested
%
Number
vested
322,342
317,778
342,222
254,222
-
3,582,888
100%
100%
100%
100%
0%
100%
Other long term incentives
The Board may at its discretion provide share rights/options as a long term retention incentive to employees. No such options were
offered during the 2021 financial year.
(e) Link between remuneration and performance
The following table shows key performance indicators for the Group over the last five years:
Net profit after tax
Dividend
Share price 30 June
Basic earnings per share
Diluted earnings per share
Unit
$’000
cps
$
cents
cents
2021
126,778
2.5
1.70
15.64
15.45
2020
113,415
2.0
1.99
16.43
16.13
2019
21,832
1.0
0.73
3.74
3.67
2018
30,760
-
0.58
5.84
5.75
2017
17,765
-
0.45
3.39
3.36
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.
2021 Total remuneration mix1
Managing Director /
CEO
Other executives
0%
20%
TFR
40%
STI
60%
LTI
80%
100%
STI Forgone
1. 2021 total remuneration mix excludes KMPs Mr Seymour (resigned 28 February 2021) and Mr Ruzicka (appointed 19 April 2021).
45%30%22%3%55%21%20%4%
RAMELIUS RESOURCES ANNUAL REPORT 2021
77
DIRECTORS’ REPORT (CONTINUED)
Remuneration report (continued)
(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
Mark Zeptner
Managing Director / Chief Executive Officer
Tim Manners
Chief Financial Officer
Duncan Coutts
Chief Operating Officer
Kevin Seymour
General Manager – Exploration
Peter Ruzicka
General Manager – Exploration
Richard Jones
Company Secretary and General Manager –
Legal, HR Risk & Sustainability
Term of
Agreement
Base Salary incl.
Super1
Company /
Employee Notice
Period
Termination
Benefit2
Ongoing commencing
1 July 2015
Ongoing commencing
31 July 2017
Ongoing commencing
12 February 2016
Resigned
28 February 2021
Ongoing commencing
19 April 2021
Ongoing commencing
26 October 2018
$725,000
6 / 3 months
$440,000
6 / 3 months
$522,500
6 / 3 months
$303,505
3 / 3 months
$302,500
3 / 3 months
$330,000
6 / 3 months
6 months
base salary
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 2021, they are reviewed annually by the NRC.
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 twelve months base salary. All service agreements with Executives comply with the provisions of Part 2 D.2, Division 2 of the
Corporations Act 2001.
(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 Ramelius’ Constitution, the total amount of remuneration of Non-Executive Directors is within the aggregate
limit of $750,000 per annum as approved by shareholders at the 2019 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 in the following table.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
DIRECTORS’ REPORT (CONTINUED)
Remuneration report (continued)
Non-executive Directors
Bob Vassie1
Kevin Lines2
Michael Bohm
David Southam
Natalia Streltsova3
Total
Year
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Director fees
Superannuation
Total remuneration
96,250
-
48,125
176,136
122,500
110,000
122,500
110,000
122,500
78,750
511,875
474,886
9,625
-
4,813
17,614
12,250
11,000
12,250
11,000
12,250
7,875
51,188
47,489
105,875
-
52,938
193,750
134,750
121,000
134,750
121,000
134,750
86,625
563,063
522,375
1. Bob Vassie was appointed as Non-Executive Chair on 1 January 2021.
2. Kevin Lines retired as Non-Executive Chairman on 30 September 2020.
3. Natalia Streltsova was appointed as a Non-Executive Director on 1 October 2019.
(h) Details of KMP remuneration
The following table shows details of the remuneration expense recognised for the Group’s executive KMP for the current and previous
financial year measured in accordance with the requirements of the accounting standards.
FIXED REMUNERATION
VARIABLE REMUNERATION
Cash Salary1
Non
Monetary
Benefits1
Annual and
Long Service
Leave2
Super-
annuation
STI1, 4
Share Rights3
Total
Perform.
Related
6,402
6,518
6,402
6,518
25,000
20,833
21,694
17,581
22,449
37,367
39,275
(41,877)
172,700
165,000
223,438
254,100
418,306
383,919
497,500
446,665
Executive Director
Mark Zeptner – Managing Director / Chief Executive Officer
700,000
2021
2020
632,500
Executives
Tim Manners – Chief Financial Officer
2021
2020
Duncan Coutts – Chief Operating Officer
6,402
2021
2020
6,518
Peter Ruzicka – General Manager – Exploration5
1,309
2021
2020
-
Kevin Seymour – General Manager – Exploration6
117,700
4,356
2021
2020
115,500
6,518
Richard Jones – Company Secretary and General Manager – Legal, HR Risk & Sustainability
124,300
6,402
2021
2020
93,500
6,518
Total
2021
2020
2,138,619
2,021,449
(20,905)
(6,922)
162,461
276,698
305,000
281,667
116,812
100,933
830,638
793,100
192,500
165,000
88,296
45,418
19,262
33,853
23,343
22,997
31,273
32,590
25,000
20,830
14,583
20,856
25,000
20,833
55,352
-
5,535
-
4,872
-
-
-
351,539
462,003
1,345,654
1,334,077
42.7%
53.7%
167,181
161,251
192,815
186,550
-
-
(103,661)
128,122
118,460
76,122
808,732
771,636
933,479
859,416
67,068
-
174,534
540,772
602,505
501,637
726,334
1,014,048
3,931,972
4,007,538
42.0%
42.3%
41.3%
40.9%
0.0%
-
8.0%
45.1%
40.3%
33.8%
39.6%
45.1%
1.
2.
3.
Short term benefits as per Corporations Regulation 2M.3.03(1) Item 6.
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 or has been paid out for entitlements on
termination.
Share rights relate to rights over ordinary shares issued to key management personnel. The fair value of rights 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 were granted and not when shares
were issued.
4. Refer to section (d) of this remuneration report for further information on the short term incentives paid.
5. Mr Ruzicka was appointed on 20 April 2021.
6.
Mr Seymour resigned on 28 February 2021. In addition to the amounts above Mr Seymour was paid $112,000 in 2021 for annual and long service leave
which had been accrued but not paid during his employment.
RAMELIUS RESOURCES ANNUAL REPORT 2021
79
DIRECTORS’ REPORT (CONTINUED)
Remuneration report (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
5 September 2018
29 November 2018
9 October 2019
29 November 2019
29 November 2019
1 October 2020
1 October 2020
26 November 2020
26 November 2020
Vesting and
Exercise Date
Expiry Date
Exercise Price
1 July 2021
1 July 2021
1 July 2022
1 July 2022
1 July 2022
1 July 2023
1 July 2023
1 July 2023
1 July 2023
1 July 2028
1 July 2028
1 July 2029
1 July 2029
1 July 2029
1 July 2030
1 July 2030
1 July 2030
1 July 2030
$nil
$nil
$nil
$nil
$nil
$nil
$nil
$nil
$nil
Value Per
Performance
Right at Grant
Date
$0.39
$0.27
$1.22
$0.86
$0.65
$1.31
$1.81
$0.94
$1.42
Vested
0%
0%
0%
0%
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.
Generally, performance rights granted 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.
Performance rights
The table below shows a reconciliation of performance rights held by each KMP from the beginning to the end of the 2021 financial year.
All vested performance rights were exercisable.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
DIRECTORS’ REPORT (CONTINUED)
Remuneration report (continued)
Balance
at start of
year
Granted
during the
year
Vested
Exercised
Forfeited /
Cessation as KMP
Balance at the
end of the year
Value to
vest1
Number
Number
%
Number
Number
%
Vested
Unvested
$
-
967,025
568,956
500,000
-
212,382
260,966
317,778
247,294
284,483
342,222
-
157,398
201,186
254,222
-
160,014
189,655
355,392
-
-
-
86,275
-
-
-
102,451
-
-
-
59,510
-
-
-
64,706
-
-
-
322,342
-
-
-
-
-
317,778
-
-
-
342,222
-
-
-
254,222
-
-
-
-
33%
-
-
-
-
-
100%
-
-
-
100%
-
-
-
100%
-
-
-
-
-
-
-
-
-
-
(317,778)
-
-
-
(342,222)
-
-
-
(254,222)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(59,510)
(157,398)
(201,186)
-
-
-
100%
100%
100%
-
-
-
-
-
322,342
-
500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
355,392
644,683
568,956
-
86,275
212,382
260,966
-
102,451
247,294
284,483
-
-
-
-
-
324,805
196,899
-
-
97,789
94,220
-
-
116,124
109,709
-
-
-
-
-
-
64,706
160,014
189,655
73,341
70,988
-
Name
Grant year
Mark Zeptner
2021
2020
2019
2017
Tim Manners
2021
2020
2019
2018
Duncan Coutts
2021
2020
2019
2018
Kevin Seymour
2021
2020
2019
2018
Richard Jones
2021
2020
2019
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 2021 financial year.
All shareholdings noted are held either directly or by the KMP or their associate.
Name
Mark Zeptner
Bob Vassie
Kevin Lines
Michael Bohm
David Southam
Natalia Streltsova
Kevin Seymour1
Duncan Coutts2
Tim Manners1
Balance at
start of year
Received during
year on exercising
of performance
rights
Sold during year
Net change
other3
Balance at
end of year
4,512,500
-
1,000,000
637,500
-
-
135,215
-
-
-
-
-
-
-
-
254,222
342,222
317,778
(1,750,000)
-
-
(237,500)
-
-
-
(245,000)
(317,778)
-
80,000
(1,000,000)
100,000
20,217
12,000
(389,437)
-
-
2,762,500
80,000
-
500,000
20,217
12,000
-
97,222
-
All shareholdings noted above are held either directly by the KMP or their associate.
1. The share price on the date of exercise was $2.02.
2. The share price on the date of exercise was $2.36.
3. Net change other relates to on market purchases and sale of shares or holdings as at the date of resignation / retirement.
RAMELIUS RESOURCES ANNUAL REPORT 2021
81
DIRECTORS’ REPORT (CONTINUED)
Remuneration report (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.
Voting and comments made at the company’s 2020 Annual General Meeting
Of the total valid available votes lodged, Ramelius received 99% of ‘FOR’ votes on its remuneration report for the 2020 financial year.
The company did not receive any specific feedback at the meeting 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.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
DIRECTORS’ REPORT (CONTINUED)
Shares under option
(a) Unissued ordinary shares
No unissued ordinary shares of Ramelius Resources Limited are under option at the date of this report.
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) on assignments additional to their statutory audit duties
where the auditor’s expertise and experience with the company and/or the Group are important.
Prior to the provision of any non audit services the Board of Directors considers the position and, in accordance with advice received
from the Audit Committee, ensures that it 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.
During the year no 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 (2020: $nil).
Auditor independence
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 83.
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 financial
statements. Amounts in the financial statements 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.
Bob Vassie
Chair
Perth
26 August 2021
RAMELIUS RESOURCES ANNUAL REPORT 2021
83
DIRECTORS’ REPORT (CONTINUED)
Auditor’s independence declaration
26 August 2021
The Directors
Ramelius Resources Limited
Level 1, 130 Royal Street
East Perth WA 6004
Dear Board Members
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
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
26 August 2021
AAuuddiittoorr’’ss IInnddeeppeennddeennccee DDeeccllaarraattiioonn ttoo RRaammeelliiuuss RReessoouurrcceess LLiimmiitteedd
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
The Directors
of independence to the directors of Ramelius Resources Limited.
Ramelius Resources Limited
Level 1, 130 Royal Street
As lead audit partner for the audit of the financial report of Ramelius Resources Limited for the year ended 30
East Perth WA 6004
June 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of:
• The auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
Dear Board Members
• Any applicable code of professional conduct in relation to the audit.
AAuuddiittoorr’’ss IInnddeeppeennddeennccee DDeeccllaarraattiioonn ttoo RRaammeelliiuuss RReessoouurrcceess LLiimmiitteedd
Yours faithfully
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.
As lead audit partner for the audit of the financial report of Ramelius Resources Limited for the year ended 30
June 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of:
DELOITTE TOUCHE TOHMATSU
• The auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
• Any applicable code of professional conduct in relation to the audit.
David Newman
Partner
Yours faithfully
Chartered Accountants
DELOITTE TOUCHE TOHMATSU
David Newman
Partner
Chartered Accountants
Liability limited by a scheme approved under Professional Standards Legislation
Member of Deloitte Asia Pacific Limited and the Deloitte organisation
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Liability limited by a scheme approved under Professional Standards Legislation
Member of Deloitte Asia Pacific Limited and the Deloitte organisation
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RAMELIUS RESOURCES ANNUAL REPORT 2021
FINANCIAL STATEMENTS
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 to the members
85
85
86
87
88
89
132
133
RAMELIUS RESOURCES ANNUAL REPORT 2021
85
INCOME STATEMENT
For the year ended 30 June 2021
Revenue
Cost of sales
Gross profit
Other expenses
Other income
Interest income
Finance costs
Profit before income tax
Income tax expense
Profit for the year
Earnings per share
Basic earnings per share
Diluted earnings per share
Note
1(a)
2(a)
2(b)
1(b)
2(c)
3
28(a)
28(b)
2021
$’000
634,283
(443,825)
190,458
(21,280)
8,261
715
(3,414)
174,740
(47,962)
126,778
Cents
15.64
15.45
STATEMENT OF
COMPREHENSIVE INCOME
For the year ended 30 June 2021
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 investments
Other comprehensive income for the year
Note
17
17
2021
$’000
126,778
156
377
533
2020
$’000
460,574
(289,358)
171,216
(20,050)
1,346
998
(4,025)
149,485
(36,070)
113,415
Cents
16.43
16.13
2020
$’000
113,415
(18)
672
654
Total comprehensive income for the year
127,311
114,069
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RAMELIUS RESOURCES ANNUAL REPORT 2021
BALANCE SHEET
As at 30 June 2021
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total current assets
Non current assets
Other assets
Investments
Property, plant, and equipment
Mine development
Exploration and evaluation assets
Total non current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Lease liability
Contingent consideration
Current tax liabilities
Provisions
Current liabilities
Non current liabilities
Lease liability
Contingent consideration
Deferred tax liabilities
Provisions
Total non current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Retained earnings
Total equity
Note
4(a)
5
6
6
7
8
9
10
11
12
13
14
15
13
14
3
15
16
17
2021
$’000
228,502
1,920
100,813
1,484
332,719
503
6,308
100,177
375,338
31,253
513,579
846,298
58,479
-
16,673
5,186
30,342
9,205
119,885
9,364
3,353
35,417
42,498
90,632
210,517
635,781
379,391
(33,277)
289,667
635,781
2020
$’000
165,670
3,234
97,553
4,475
270,932
503
624
78,368
208,268
196,247
484,010
754,942
82,302
23,475
16,643
6,261
21,272
9,219
159,172
13,846
6,923
21,061
38,720
80,550
239,722
515,220
370,781
(34,707)
179,146
515,220
RAMELIUS RESOURCES ANNUAL REPORT 2021
87
STATEMENT OF
CHANGES IN EQUITY
For the year ended 30 June 2021
Balance at 30 June 2019
Adoption of AASB16 Leases (net of tax)
At 1 July 2019 (re stated)
Profit for the year
Other comprehensive loss
Total comprehensive (loss) / income
Transactions with owners in their capacity as owners:
Shares issued for acquisition of Spectrum Metals Limited (see Notes 17 & 20)
Payment of dividends
Shares issued on exercise of options
Share based payments
Balance at 30 June 2020
Share
based
payment
reserve
$’000
2,032
-
2,032
-
-
-
-
-
-
1,390
3,422
Share
capital
$’000
214,218
-
214,218
-
-
-
155,523
-
300
740
370,781
Other
reserves
$’000
Retained
profits
$’000
(9,706)
-
(9,706)
-
46
46
(28,469)
-
-
-
(38,129)
72,398
(696)
71,702
113,415
608
114,023
-
(6,579)
-
-
179,146
Total
equity
$’000
278,942
(696)
278,246
113,415
654
114,069
127,054
(6,579)
300
2,130
515,220
Balance at 1 July 2020
370,781
3,422
(38,129)
179,146
515,220
Profit for the year
Other comprehensive gain
Total comprehensive (loss) / income
Transfer of loss on disposal of equity investments at FVOCI
Transactions with owners in their capacity as owners:
Payment of dividends
Contributions of equity (Note 16)
Share based payments
Balance at 30 June 2021
-
-
-
-
-
-
-
-
-
533
533
87
126,778
-
126,778
126,778
533
127,311
(87)
-
-
7,650
960
379,391
-
-
810
4,232
-
-
-
(37,509)
(16,170)
-
-
289,667
(16,170)
7,650
1,770
635,781
Share based payment reserve
Share based payments reserve records items recognised as expenses on valuation of employees share options and rights.
Other reserves - investments at FVOCI
The Group has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income
(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 disposed.
Other reserves - Non controlling interest (NCI) acquisition reserve
The NCI acquisition reserve represents the incremental increase in the Ramelius share price on the acquisition of non controlling interest
post the date control was obtained. This reserve relates to the acquisition of Spectrum Metals Limited and Explaurum Limited.
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 functional currency is different to the presentation currency of the reporting entity.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
STATEMENT OF CASH FLOWS
For the year ended 30 June 2021
Cash flows from operating activities
Receipts from operations
Payments to suppliers and employees
Interest received
Income tax paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for property, plant, and equipment
Payments for mine development
Proceeds from sale of property, plant, and equipment
Proceeds from the sale of subsidiary
Proceeds from the sale of non core projects and royalties
Payments for the acquisition of subsidiary, net of cash acquired
Payments for investments
Proceeds from the sale of investments
Payments for mining tenements and exploration
Payments for contingent consideration
Payments for site rehabilitation
Net cash used in investing activities
Cash flows from financing activities
Proceeds from the issue of shares
Proceeds from borrowings
Repayment of borrowings
Borrowing costs and interest paid
Principal elements of lease payments
Return of secured deposits
Dividends paid
Net cash (used in) / provided by financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Note
4(b)
14
15
16
12
13
6
2021
$’000
634,129
(304,622)
713
(24,571)
305,649
(40,335)
(111,485)
55
1,000
2,000
(14,352)
(308)
314
(13,725)
(5,813)
(699)
(183,348)
-
-
(24,375)
(408)
(21,886)
3,370
(16,170)
(59,469)
62,832
165,670
2020
$’000
466,333
(230,024)
930
(1,208)
236,031
(16,207)
(105,037)
107
-
950
(30,692)
(30)
-
(18,356)
-
(1,540)
(170,805)
300
32,500
(8,125)
(1,860)
(15,737)
4,130
(6,579)
4,629
69,855
95,815
Cash and cash equivalents at the end of the financial year
4(a)
228,502
165,670
RAMELIUS RESOURCES ANNUAL REPORT 2021
89
CONTENTS OF THE
NOTES TO THE FINANCIAL
STATEMENTS
Group structure
Note 20: Asset acquisitions
Note 21: Interests in other entities
Unrecognised items
Note 22: Contingent liabilities
Note 23: Commitments
Other information
Note 24: Events occurring after the
reporting period
Note 25: Related party transactions
Note 26: Share based payments
Note 27: Remuneration of auditors
Note 28: Earnings per share
Note 29: Assets pledged as security
Note 30: Deed of cross guarantee
Note 31: Parent entity information
Note 32: Accounting policies
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:
Inventories
Note 6: Other assets
Note 7:
Investments
Note 8: Property, plant, and equipment
Note 9: Mine development
Note 10: Exploration and evaluation assets
Note 11: Trade and other payables
Note 12: Borrowings
Note 13: Lease liabilities
Note 14: Contingent consideration
Note 15: Provisions
Note 16: Share capital
Note 17: Reserves
Risk
Note 18: Financial instruments and
financial risk management
Note 19: Capital risk management
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92
92
94
95
96
99
100
101
101
102
104
106
107
108
108
111
112
114
115
115
115
119
120
120
120
121
121
122
123
123
123
123
126
126
127
127
130
131
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
ABOUT THIS REPORT
Ramelius Resources Limited (referred to as ‘Ramelius’ or ‘company’) 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 2021 was authorised for issue in accordance
with a resolution of the Directors on 26 August 2021. 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 investments, which have been measured at fair value through
profit and loss (FVPL) or fair value through other comprehensive income (FVOCI);
has been presented in Australian dollars and rounded to the nearest $1,000 unless otherwise stated, in accordance with ASIC
Legislative Instrument (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 2020. Refer to Note 32 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 32 for further details.
Key judgements, estimates and assumptions
In the process of applying the Group’s 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
Note
98
103, 105, & 107
103 & 105
105
105
105
107
110
111
113
113
Note 3
Note 8, 9, & 10
Note 8 & 9
Note 9
Note 9
Note 9
Note 10
Note 13
Note 14
Note 15
Note 15
Recovery of deferred tax assets
Impairment of assets
Depreciation and amortisation
Production stripping
Deferred mining expenditure
Ore Reserves
Exploration and evaluation expenditure
Leases
Contingent consideration
Provision for restoration and rehabilitation
Provision for long service leave
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 21 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 21. 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 translation are taken directly to a separate
component of equity.
RAMELIUS RESOURCES ANNUAL REPORT 2021
91
NOTES TO THE
FINANCIAL STATEMENTS
Foreign currency (continued)
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 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 or
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 finalisation of the Penny Gold Mine Feasibility Study and consequently the Boards approval to commence project
development which resulted in the transfer of the asset from exploration and evaluation expenditure to a mine development
asset (Notes 9 & 10).
For a detailed discussion about the Group’s performance and financial position please refer to our operating and financial review on
pages 62 to 66.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
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.
The Group has identified three reportable segments of its business:
• Mt Magnet: mining and processing of gold from the Mt Magnet region including the Vivien and Penny Gold Mines.
Edna May: mining and processing of gold from the Edna May region including the Marda and Tampia Gold Mines.
•
Exploration: exploration and evaluation of gold mineralisation.
•
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 2021 and 2020 are set out below:
(b) Segment results
2021 Segment results
Segment revenue
Cost of production
Amortisation and depreciation
Movement in inventory
Deferred mining costs
Gross margin
Exploration and evaluation costs and impairments
Segment margin
Interest income
Other income
Finance costs
Other expenses
Profit before income tax
Total segment assets
Total segment liabilities
2020 Segment results
Segment revenue
Cost of production
Amortisation and depreciation
Movement in inventory
Deferred mining costs
Gross margin
Exploration and evaluation costs and impairments
Segment margin
Interest income
Other income
Finance costs
Other expenses
Profit before income tax
Total segment assets
Total segment liabilities
Mt Magnet
$’000
Edna May
$’000
Exploration
$’000
Total
$’000
377,205
(200,388)
(85,105)
(4,218)
63,637
151,131
-
151,131
257,078
(173,735)
(77,901)
4,882
29,003
39,327
-
39,327
-
-
-
-
-
-
(5,274)
(5,274)
365,380
66,300
212,913
72,608
31,777
723
634,283
(374,123)
(163,006)
664
92,640
190,458
(5,274)
185,184
715
8,261
(3,414)
(16,006)
174,740
610,070
139,631
Mt Magnet
$’000
Edna May
$’000
Exploration
$’000
Total
$’000
324,322
(211,659)
(70,465)
38,444
53,756
134,398
-
134,398
136,252
(117,877)
(32,620)
17,728
33,335
36,818
-
36,818
-
-
-
-
-
-
(6,774)
(6,774)
183,486
92,011
204,249
75,821
196,892
907
460,574
(329,536)
(103,085)
56,172
87,091
171,216
(6,774)
164,442
998
1,346
(4,025)
(13,276)
149,485
584,627
168,739
RAMELIUS RESOURCES ANNUAL REPORT 2021
93
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Segment information (continued)
(c) Segment gross margin reconciliation
Segment margin reconciles to profit before income tax for the year ended 30 June 2021 and 30 June 2020 as follows:
Segment margin
Other income
Interest income
Depreciation and amortisation
Employee benefit expense
Equity settled share based payments
Fair value gains / (loss) on investments at FVPL
Foreign exchange gain / (loss)
Gain on sale of non core projects and royalties
Finance costs
Other expenses
Profit before income tax
(d) Segment assets
Operating segment assets are reconciled to total assets as follows:
Segment assets
Unallocated assets:
Cash and cash equivalents
Other current assets
Other non current assets
Investments at FVOCI
Property, plant, & equipment
Total assets as per the balance sheet
(e) Segment liabilities
Operating segment liabilities are reconciled to total liabilities as follows:
Segment liabilities
Unallocated liabilities:
Trade and other payables
Current tax liabilities
Current provisions
Current lease liabilities
Borrowings
Non current provisions
Deferred tax liabilities
Total liabilities as per the balance sheet
2021
$’000
185,184
3,261
715
(530)
(8,827)
(1,770)
(364)
(164)
5,000
(3,414)
(4,351)
174,740
2021
$’000
610,070
228,502
828
13
6,308
577
846,298
2021
$’000
139,631
4,333
30,342
581
130
-
83
35,417
210,517
2020
$’000
164,442
31
998
(428)
(6,737)
(2,130)
173
-
1,142
(4,025)
(3,981)
149,485
2020
$’000
584,627
165,670
3,630
13
624
378
754,942
2020
$’000
168,739
4,290
21,272
555
288
23,475
42
21,061
239,722
(f) Major customers
Ramelius sells its gold production to either The Perth Mint or delivers it into forward gold contracts.
(g) Segments assets by geographical location
There are no non current assets situated outside the geographic region of Australia.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
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
(b) Other income
Fair value gains on investments at FVPL
Change in fair value of Edna May contingent consideration
Gain on sale of non core projects and royalties
Gain on sale of subsidiary
Foreign exchange gains
Total other income
Note
Note
7
2021
$’000
633,132
824
327
634,283
2021
$’000
2,279
-
5,000
982
-
8,261
2020
$’000
459,609
767
198
460,574
2020
$’000
-
173
1,142
-
31
1,346
(c) Recognising revenue from major business activities
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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
95
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 2: Expenses
Profit before tax includes the following expenses whose disclosure is relevant in explaining the performance of the Group:
(a) Cost of sales
Mining and milling production costs
Employee benefits expense
Royalties
Amortisation and depreciation
Inventory movements
Total cost of sales
(b) Other expenses
Employee benefit expense
Equity settled share based payments
Other expenses
Change in fair value of Edna May contingent consideration
Amortisation and depreciation
Exploration and evaluation costs
Impairment of exploration and evaluation assets
Foreign exchange losses
Total other expenses
(c) Finance costs
Provisions: unwinding of discount
Contingent consideration: unwinding of discount
Interest on leases
Interest and finance charges
Total finance costs
Note
Note
26
14
10
Note
15
14
13
2021
$’000
214,198
41,236
26,049
163,006
(664)
443,825
2021
$’000
8,827
1,770
4,351
364
530
260
5,014
164
21,280
2021
$’000
368
804
933
1,309
3,414
2020
$’000
182,020
38,388
22,036
103,085
(56,171)
289,358
2020
$’000
6,737
2,130
3,981
-
428
438
6,336
-
20,050
2020
$’000
639
1,236
1,009
1,141
4,025
(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 15. The policy relating to share
based payments is set out in Note 26.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 3: Income tax expense
This note provides an analysis of the Group’s income tax expense, shows what amounts are recognised directly in equity and how the
tax expense is affected by non assessable and non deductible items. It also explains significant estimates made in relation to the Groups
tax position.
(a) The components of tax expense comprise
Current tax
Deferred tax
Income tax expense
(b) Reconciliation 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
Tax losses utilised in current year previously not brought to account
Tax losses brought to account
Income tax expense
Applicable effective tax rate
(c) Deferred tax movement
2021
$’000
33,640
14,322
47,962
2021
$’000
174,740
52,422
531
(1,105)
(3,886)
-
47,962
27%
2020
$’000
22,480
13,590
36,070
2020
$’000
149,485
44,846
639
671
(2,996)
(7,090)
36,070
24%
30 June 2021
Deferred tax liability (DTL)
Exploration and evaluation
Development
Inventory – consumables
Investments at FVPL
Total DTL
Deferred tax asset (DTA)
Inventory – deferred mining costs
Inventory – stock
Property, plant, and equipment
Provisions
Leases (see Note 13)
Investments at FVOCI
Tax losses
Other
Total DTA
Net deferred tax liability #
1 July 2020
$’000
Transfers
$’000
Other
comp.
income
$’000
Income
statement
$’000
30 June 2021
$’000
22,266
26,158
314
-
48,738
1,044
1,469
1,816
14,583
237
(28)
7,090
1,466
27,677
(21,061)
(16,241)
16,241
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(34)
-
-
(34)
3,351
4,465
922
683
9,421
-
(1,204)
(1,478)
1,340
(156)
-
(3,598)
195
(4,901)
(14,322)
9,376
46,864
1,236
683
58,159
1,044
265
338
15,923
81
(62)
3,492
1,661
22,742
(35,417)
# Deferred tax assets and liabilities have been offset for presentation on the balance sheet pursuant to set off provisions
RAMELIUS RESOURCES ANNUAL REPORT 2021
97
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 3: Income tax expense (continued)
(c) Deferred tax movement (continued)
30 June 2020
Deferred tax liability (DTL)
Exploration and evaluation
Development
Inventory – consumables
Total DTL
Deferred tax asset (DTA)
Inventory – deferred mining costs
Inventory – stock
Property, plant, and equipment
Provisions
Leases (see Note 13)
Investments at FVOCI
Tax losses
Tax losses brought to account
Other
Total DTA
Net deferred tax liability #
1 July 2019
$’000
Adoption
of AASB 16
$’000
Transfers
$’000
Other
comp.
income
$’000
Income
statement
$’000
30 June 2020
$’000
8,726
22,234
319
31,279
2,236
-
1,944
15,554
-
-
2,115
-
1,689
23,538
(7,741)
-
-
-
-
-
-
-
-
298
-
-
-
-
298
3,021
(3,021)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(28)
-
-
-
(28)
10,519
6,945
(5)
17,459
(1,192)
1,469
(128)
(971)
(61)
-
(2,115)
7,090
(223)
3,869
(13,590)
22,266
26,158
314
48,738
1,044
1,469
1,816
14,583
237
(28)
-
7,090
1,466
27,677
(21,061)
# Deferred tax assets and liabilities have been offset for presentation on the balance sheet pursuant to set off provisions.
(d) Tax losses
Unused tax losses:
- for which a deferred asset has been recognised
- for which no deferred asset has been recognised
Total potential unused tax losses
2021
2020
Gross
Net (30%)
Gross
Net (30%)
11,639
13,987
25,626
3,492
4,196
7,688
23,632
25,402
49,034
7,090
7,620
14,710
Tax losses arising from the acquisition of the Spectrum Metals Limited during the 2020 financial year of $12,953,000 (with a tax benefit of
$3,886,000) were recognised and fully utilised within the current financial year.
Tax losses arising from the acquisition of Explaurum Operations Pty Limited during the 2019 year of $11,993,000 (with a tax benefit of
$3,598,000 brought to account in the 2020 financial year) were utilised during the current financial year. The balance of unused Explaurum
Operations Pty Limited tax losses is $11,639,000 (with a tax benefit of $3,492,000) at 30 June 2021. A deferred tax asset has been
recognised for these unused tax losses.
The utilisation of losses depends upon the generation of future taxable profits which Ramelius believes to be recoverable based on current
taxable income projections. Utilisation will also be subject to relevant tax legislation associated with recoupment.
The unused tax losses for which no deferred tax asset has been recognised relates to capital losses.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 3: Income tax expense (continued)
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 unused 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, the timing of production
profiles, 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.
(e) Recognition and measurement of income tax
Current income tax
Current income tax expense charged to the income statement 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 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.
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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
99
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
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
Equity settled share based payments
Amortisation and depreciation
Write off and impairment of exploration assets
Discount unwind on provisions
Discount unwind on contingent consideration
Change in fair value of contingent consideration
Net exchange differences
Fair value gains on investments at FVPL
Items presented as investing or financing activities
Gain on sale of non core projects and royalties
Gain on sale of subsidiaries
Other
(Increase) / decrease in assets
Prepayments
Trade and other receivables
Inventories
Increase / (decrease) in liabilities
Trade and other payables
Current tax payable
Provisions
Deferred tax liabilities
Net cash provided by operating activities
2021
$’000
108,502
120,000
228,502
2021
$’000
126,778
1,770
163,536
5,274
368
804
364
164
(2,279)
(5,000)
(982)
2,316
(379)
1,314
(3,260)
(9,759)
9,070
1,160
14,390
305,649
2020
$’000
125,670
40,000
165,670
2020
$’000
113,415
2,130
103,513
6,336
639
1,236
(173)
(31)
-
-
-
1,121
918
3,725
(56,486)
24,347
21,272
721
13,348
236,031
(c) Recognition and measurement
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 18. 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.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 4: Cash and cash equivalents (continued)
(d) Net cash reconciliation
This section sets out an analysis of net cash and the movements in the net cash for each of the financial years presented.
Net cash
Cash and cash equivalents
Borrowings – bank loans repayable within one year
Borrowings – leases repayable within one year
Borrowings – leases repayable after one year
Net cash
2021
$’000
228,502
-
(16,673)
(9,364)
202,465
Balance at 1 July 2019
Adoption of AASB 16 Leases
At 1 July 2019 (re stated)
Cash flows
Lease additions (including interest)
Balance at 30 June 2020
Cash flows
Lease additions (including interest)
Balance at 30 June 2021
Note 5: Inventories
Ore stockpiles
Gold in circuit
Gold bullion & doré
Gold nuggets
Consumables and supplies
Total inventories
Borrowings
$’000
Leases
$’000
Sub total
$’000
-
-
-
(24,375)
-
(24,375)
24,375
-
-
-
(21,256)
(21,256)
15,737
(24,970)
(30,489)
21,886
(17,434)
(26,037)
-
(21,256)
(21,256)
(8,638)
(24,970)
(54,864)
46,261
(17,434)
(26,037)
Cash
$’000
95,815
-
95,815
69,855
-
165,670
62,832
-
228,502
2021
$’000
76,792
5,889
4,048
80
14,004
100,813
2020
$’000
165,670
(24,375)
(16,643)
(13,846)
110,806
Net Cash
$’000
95,815
(21,256)
74,559
61,217
(24,970)
110,806
109,093
(17,434)
202,465
2020
$’000
73,308
5,382
7,376
80
11,407
97,553
(a) Inventory expense
The reversal of prior period net realisable value write downs through cost of sales amounted to $3,920,000 (2020: $4,802,000 write
down). A large component of the net realisable value provision recognised at 30 June 2020 was reversed over the 2021 financial year as
stockpile grades increased or the lower grade (predominantly Stellar) ore was milled.
(b) Recognition and measurement
Inventories
Ore stockpiles, gold in circuit and poured gold bars (bullion and doré) 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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
101
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 5: Inventories (continued)
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.
Ore stockpiles 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 twelve months after reporting date, it is classified as a non current asset. 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.
Note 6: Other assets
Current
Prepayments
Secured term deposits with financial institutions
Total other current assets
Non current
Other security bonds & deposits
Total other non current assets
2021
$’000
1,484
-
1,484
503
503
2020
$’000
1,105
3,370
4,475
503
503
(a) Other non current assets
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 7: Investments
Listed investment financial assets are measured at fair value and depending on their nature classified as either fair value through profit and
loss or fair value through other comprehensive income.
Investments at fair value through profit and loss
Investments at fair value through other comprehensive income
Total investments
Gains recognised through profit and loss
Gains recognised in other comprehensive income
2021
$’000
3,279
3,029
6,308
2,279
377
2020
$’000
-
624
624
-
672
(a) Investments at fair value through profit and loss
An investment is classified at fair value through profit and loss if it is classified as held for trading or is designated as such on initial
recognition. Investments are designated at fair value through the profit and loss if Ramelius manages such investments and makes purchase
and sale decisions based on their fair value in accordance with the risk management or investment strategy. Attributable transaction costs
are recognised in the profit and loss as incurred.
(b) Investments at fair value through other comprehensive income
An investment at fair value through other comprehensive income comprise equity securities which are not held for trading, and which the
Group has irrevocably elected at initial recognition to recognise in this category. These are strategic investments and Ramelius considered
this classification to be more relevant.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 8: Property, plant, and equipment
2021
As at 1 July 2020
Cost
Accumulated depreciation
Net book amount
Year ended 30 June 2021
Opening net book amount
Transfers to mine development
Additions
Disposals
Transfers
Depreciation charge
Closing net book amount
As at 30 June 2021
Cost
Accumulated depreciation
Net book amount
2020
As at 1 July 2019
Cost
Accumulated depreciation
Net book amount
Adoption of AASB 16 Leases
As at 1 July 2019 (restated)
Year ended 30 June 2020
Opening net book amount
Acquisition of subsidiary
Additions
Disposals
Transfers
Depreciation charge
Closing net book amount
As at 30 June 2020
Cost
Accumulated depreciation
Net book amount
Land and
buildings
$’000
Plant and
equipment
$’000
Assets under
construction
$’000
Right of use
assets
$’000
9,411
(2,185)
7,226
7,226
-
8,522
-
10
(751)
15,007
17,943
(2,936)
15,007
118,781
(84,678)
34,103
34,103
-
12,650
(127)
6,239
(13,535)
39,330
137,292
(97,962)
39,330
7,340
-
7,340
7,340
(181)
19,163
-
(6,249)
-
20,073
20,073
-
20,073
44,223
(14,524)
29,699
29,699
-
16,501
-
-
(20,433)
25,767
60,724
(34,957)
25,767
Land and
buildings
$’000
Plant and
equipment
$’000
Assets under
construction
$’000
Right of use
assets
$’000
8,651
(1,577)
7,074
-
7,074
7,074
-
692
(127)
177
(590)
7,226
9,411
(2,185)
7,226
107,852
(73,831)
34,021
-
34,021
34,021
365
7,193
(93)
3,533
(10,916)
34,103
118,781
(84,678)
34,103
2,728
-
2,728
-
2,728
2,728
-
8,322
-
(3,710)
-
7,340
7,340
-
7,340
-
-
-
20,262
20,262
20,262
-
23,961
-
-
(14,524)
29,699
44,223
(14,524)
29,699
Total
$’000
179,755
(101,387)
78,368
78,368
(181)
56,836
(127)
-
(34,719)
100,177
236,032
(135,855)
100,177
Total
$’000
119,231
(75,408)
43,823
20,262
64,085
64,085
365
40,168
(220)
-
(26,030)
78,368
179,755
(101,387)
78,368
(a) 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:
RAMELIUS RESOURCES ANNUAL REPORT 2021
103
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 8: Property, plant, and equipment (continued)
(a) Depreciation (continued)
Class of fixed asset
Land and buildings
Motor vehicles
Computers and communication equipment
Furniture and equipment
Plant and equipment
Useful life
1 - 40 years
2 - 12 years
2 - 10 years
1 - 20 years
1 – 30 years
Key judgement, estimates and assumptions: Depreciation
The estimations of useful lives, residual value and depreciation methods require management judgement and are reviewed biannually
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).
(b) 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.
(c) 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
CGUs included:
•
•
•
• Acquisitions complementing the existing CGUs of the Group.
Strong operational and financial performance of the CGUs;
The extension of mine life across all CGUs;
Positive gold price environment against budget; and
(d) 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.
Property, 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.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 9: Mine development
Mine development
Less: accumulated amortisation
Net book amount
Mine development
Opening net book amount
Additions
Restoration and rehabilitation adjustment
Transfer from property, plant, and equipment
Transfer from exploration and evaluation asset
Amortisation
Closing net book amount
Note
15
8
10
2021
$’000
812,021
(436,683)
375,338
208,268
119,163
2,935
181
173,608
(128,817)
375,338
2020
$’000
516,134
(307,866)
208,268
99,430
107,537
(4,753)
-
83,537
(77,483)
208,268
(a) Impairment
No impairment of development assets arose during the 2021 financial year. Refer to Note 8(c) for further discussion on the impairment
of assets and the process undertaken by management in forming this conclusion.
(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.
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 volume of waste material moved by the volume of ore mined. Mining costs incurred in the period are deferred
to the extent that the current period waste to ore ratio exceeds the life of mine waste to ore (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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
105
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 9: Mine development (continued)
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 ore (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 ratio are accounted for prospectively.
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.
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.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
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
Disposal
Impairment
Exchange differences
Transfer to development asset
Closing net book amount
Note
20
26(b)
9
2021
$’000
31,253
196,247
-
13,652
(18)
(5,014)
(6)
(173,608)
31,253
2020
$’000
196,247
99,442
168,515
18,355
(208)
(6,336)
16
(83,537)
196,247
(a) Transfer to development assets
During the year a total of $173,608,000 was transferred from exploration and evaluation assets to a mine development asset.
This included $171,506,000 relating to the Penny Gold Mine. The Penny Gold Mine’s costs were transferred to mine development upon
the completion of the Feasibility Study and subsequent investment decision with the project now moving into development.
During 2020, a total of $83,537,000 was transferred from exploration and evaluation assets to a mine development asset. These amounts
related to the Tampia Gold Mine and the Eridanus open pit project (Mt Magnet). Details of the transfer were disclosed in Note 10 of the
Group’s annual financial statements for the year ended 30 June 2020.
(b) Recognition and measurement
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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
107
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 10: Exploration and evaluation assets (continued)
Key judgement, estimates and assumptions: 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 $5,014,000 (2020: $6,336,000) 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.
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. The recoverable amount of capitalised expenditure relating to undeveloped mining projects can be particularly
sensitive to variations in key estimates and assumptions. If variation in key estimates or assumptions has a negative impact on
recoverable amount it could result in a requirement for impairment.
Note 11: Trade and other payables
Trade payables
Other payables and accruals
Total trade and other payables
2021
$’000
19,941
38,538
58,479
2020
$’000
23,350
58,952
82,302
(a) Recognition and measurement
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 18.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 12: Borrowings
Current
Secured bank loans
Less: capitalised borrowing costs
Total current borrowings
2021
$’000
-
-
-
2020
$’000
24,375
(900)
23,475
(a) Secured liabilities and assets pledged as security
Secured Bank Loans
The secured bank loan under the Syndicated Financial Agreement (SFA) entered into last year has been fully repaid at 30 June 2021.
Whilst the secured bank loan has been fully repaid the facility itself, and security structure, remains in place to facilitate forward gold sales
for hedging purposes. The Group has granted a security interest over all of its assets in favour of CBA Corporate Services (NSW) Pty
Ltd as security trustee. The carrying amounts of the financial and non financial assets pledged as security for the secured borrowings are
disclosed in Note 29.
(b) Compliance with loan covenants
Ramelius Resources Limited has complied with the financial and non financial covenants of the SFA during the 2021 reporting period.
(c) Fair value
For the secured bank loans under the SFA, the fair values are not materially different from their carrying amounts, since the interest
payable on the secured bank loan is close to current market rates and the secured bank loan is of a short term nature.
(d) Risk exposures
Details of the Group’s exposure to risks arising from borrowings are set out in Note 18.
Note 13: Lease liabilities
Current
Current
Non current
Total lease liability
Set out below are the carrying amounts of lease liabilities and the movements during the year:
Opening lease liability
Additions
Interest expense (Note 2(c))
Payments
Closing lease liability
Maturity analysis:
Year 1
Year 2
Year 3
Year 4
Gross lease liability
Less future interest charges
Total lease liability
2021
$’000
16,673
9,364
26,037
2021
$’000
30,489
16,501
933
(21,886)
26,037
17,240
7,246
2,356
-
26,842
(805)
26,037
2020
$’000
16,643
13,846
30,489
2020
$’000
21,256
23,961
1,009
(15,737)
30,489
17,431
8,064
4,269
2,057
31,821
(1,332)
30,489
RAMELIUS RESOURCES ANNUAL REPORT 2021
109
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 13: Lease liabilities (continued)
Right of use assets
The Group has lease contracts for various items of mining equipment, power infrastructure, motor vehicles and buildings used in its
operations. These leases generally have lease terms between two and five years. The Group’s obligations under its leases are secured by
the lessor’s title to the leased assets. Generally, the Group is restricted from assigning and subleasing the leased assets.
The Group also has certain leases of assets with lease terms of twelve months or less and leases of storage containers and equipment
for which the assets are of low value. The Group applies the short term lease and lease of low value assets recognition exemptions for
these leases.
Set out below are the carrying amounts of right of use assets recognised and the movements during the period (as shown in property,
plant, and equipment):
2021
As at 1 July 2020
Additions
Depreciation charge
As at 30 June 2021
As at 1 July 2019
Additions
Depreciation charge
As at 30 June 2020
Land and
buildings
$’000
Plant and
equipment
$’000
Vehicles
$’000
Total
$’000
277
115
(209)
183
428
-
(151)
277
29,133
13,397
(19,204)
23,326
19,654
23,708
(14,229)
29,133
289
2,989
(1,020)
2,258
180
253
(144)
289
29,699
16,501
(20,433)
25,767
20,262
23,961
(14,524)
29,699
Impact on the income statement
The following amounts are recognised in the income statement:
Impact on income statement:
The application of AASB 16 has resulted in the following amounts being recorded in the
income statement:
Depreciation of right of use asset
Interest expense
Income tax expense
Total amount recorded in the income statement resulting from AASB 16
Note
8
2(c)
3
2021
$’000
20,433
933
(156)
21,210
2020
$’000
14,524
1,009
61
15,594
Payments of $2,874,000 (2020: $6,180,000) for short term leases (lease terns of 12 months or less) were expensed in the income
statement for the year ended 30 June 2021.
(a) Accounting policy - leases
When a contract is entered into the Group assesses whether the contract contains a lease. A lease arises when the Group has the right
to direct the use of an identified asset which is not substitutable and to obtain substantially all economic benefits from the use of the
assets throughout the period of use. The Group separates the lease and non lease components of the contract and accounts for these
separately.
The Group applies a single recognition and measurement approach for all leases, except for short term leases and leases of low value
assets. The Group recognises lease liabilities to make lease payments and right of use assets representing the right to use the underlying
assets.
Right of use assets
The Group recognises right of use assets at the commencement date of the lease (i.e., the date when the underlying asset is available
for use). Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before the commencement date plus any make good obligations.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 13: Lease liabilities (continued)
Right of use assets (continued)
Right of use assets are depreciated using the straight line method over the shorter of their useful life and the lease term as follows:
• Mining equipment
• Motor vehicles
Buildings
•
2 to 5 years
2 to 3 years
2 to 3 years
Periodic adjustments are made for any remeasurement of the lease liabilities and for impairment losses, assessed in accordance with the
Group’s impairment policies.
Lease liabilities
Lease liabilities are initially measured as the present value of future minimum lease payments, discounted using the Group’s incremental
borrowing rate if the rate explicit in the lease cannot be readily measured at amortised cost using the effective interest rate over the lease
term. Minimum lease payments are fixed payments or index based variable payments incorporating the Group’s expectations of extension
options and do not include non lease component of a contract. Variable lease payments that do not depend on an index or a rate are
recognised as expenses in the period in which the event or condition that triggers the payment occurs.
The lease liability is remeasured when there are changes in the future lease payments arising from a change in rates, index, or lease terms
from exercising an extension or termination options. A corresponding adjustment is made to the carrying amount of the lease assets, with
any excess recognised in the income statement.
Short term leases and leases of low value assets
The Group applies the short term lease recognition exemption to its short term leases (i.e., those leases that have a lease term of
twelve months or less from the commencement date and do not contain a purchase option). It also applies the lease of low value assets
recognition exemption to leases of plant and equipment that are of low value. Lease payments on short term leases and leases of low
value assets are recognised as expense as they are incurred.
Key judgements, estimates and assumptions: Leases
Identification of non lease components
In addition to containing a lease, the Group’s mining services contracts involves the provision of additional services, including
personnel cost, low value materials, drilling, hauling related activities and other items. These are non lease components and the
Group has elected to separate these from the lease components.
Judgement is required to identify each of the lease and non lease components. The consideration in the contract is then allocated
between the lease and non lease components on a relative stand alone price basis. This requires the Group to estimate stand alone
prices for each lease and non lease component based on quoted prices within the contract.
Identifying in substance fixed rates versus variable lease payments
The lease payments used to calculate the lease related balances under AASB 16 include fixed payments, in substance fixed
payments and variable payments based on an index or rate. Variable payments not based on an index or rate are excluded from the
measurement of lease liabilities and related assets.
For the Group’s mining services contracts, in addition to the fixed payments, there are payments that are variable payments because
the contract terms require payment based on a rate per hour. In terms of AASB 16, the Group uses judgement to determine that
no minimum hours or volumes within the contract are a fixed minimum that results in an amount payable that is unavoidable.
Therefore, the Group has had to apply judgement to determine that there are no in substance fixed payments included in the lease
payments used to calculate the lease related balances. Payments identified as variable not based on an index or rate, are excluded
from recognition and measurement of the lease related balances.
Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in its leases. Therefore, it uses the relevant incremental borrowing rate
(IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term,
and with a similar security, the funds necessary to obtain an asset of a similar value to the right of use asset in a similar economic
environment. The IBR, therefore, reflects what the Group would have to pay, which requires estimation when no observable
rates are available and to make adjustments to reflect the terms and conditions of the lease. The Group estimates the IBR using
observable inputs (such as market interest rates) when available and considered certain contract and entity specific judgements
estimates (such as the lease term and credit rating). The IBR range used by the Group was between 2.53% and 3.75%.
RAMELIUS RESOURCES ANNUAL REPORT 2021
111
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 14: Contingent consideration
Current
Edna May contingent consideration
Non current
Edna May contingent consideration
Total contingent consideration
Movements
Opening book amount
Payments
Unwinding of discount rate
Change in fair value of contingent consideration
Total contingent consideration
Note
2(c)
2(b)
2021
$’000
5,186
3,353
8,539
13,184
(5,813)
804
364
8,539
2020
$’000
6,261
6,923
13,184
12,121
-
1,236
(173)
13,184
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 $44,187,000.
The fair value of the contingent consideration has been revalued at 30 June 2021 which resulted in an increase of the contingent
consideration of $364,000 which has been recorded in the income statement.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 15: 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
Revision of provision during the year
Expenditure on rehabilitation and restoration
Discount unwind
Total provision for rehabilitation and restoration
Note
9
2(c)
2021
$’000
7,875
1,330
9,205
507
41,991
42,498
40,717
2,935
(699)
368
43,321
2020
$’000
6,804
2,415
9,219
418
38,302
38,720
46,371
(4,753)
(1,540)
639
40,717
(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.
(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 twelve 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 twelve 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 Group’s 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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
113
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 15: Provisions (continued)
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 biannually 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.
Key judgement, estimates and assumptions: Provision for 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
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 16: Share capital
Ordinary shares
Share capital at 30 June 2019
Shares issued as part of the acquisition of Spectrum1
Shares issued from exercise of performance rights
Shares issued from exercise of options
Transfer from share based payments reserve
At 30 June 2020
Shares issued from exercise of performance rights
Shares issues as consideration for asset acquisition2
At 30 June 2021
Number
of shares
657,872,969
145,203,969
1,377,522
1,500,000
-
805,954,460
3,062,806
5,000,000
814,017,266
$’000
214,218
155,523
598
300
142
370,781
960
7,650
379,391
1. Represents the value of shares at the date of issue. Details of the acquisition were disclosed in Note 20 of the Group’s financial statements for the
year ended 30 June 2020.
2. Represents the shares issued for the acquisition of the minority interest of the Tampia Gold Mine.
(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 26 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 26 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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
115
NOTES TO THE
FINANCIAL STATEMENTS
KEY NUMBERS (CONTINUED)
Note 17: Reserves
Share based payments reserve
Investments at FVOCI
Other
NCI acquisition reserve
Foreign currency translation reserve
Total reserves
2021
$’000
4,232
147
634
(38,395)
105
(33,277)
2020
$’000
3,422
(317)
634
(38,395)
(51)
(34,707)
Share based payment reserve
Share based payments reserve records items recognised as expenses on valuation of employees share options and rights.
Investments at FVOCI
The Group has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income
(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 disposed.
Non Controlling Interest (NCI) acquisition reserve
The NCI acquisition reserve represents the incremental increase in the Ramelius share price on the acquisition of non controlling interest
post the date control was obtained. This reserve relates to the acquisition of Spectrum Metals Limited and Explaurum Limited.
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 functional currency is different to the presentation currency of the reporting entity.
RISK
Note 18: 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
Investments
Total financial assets
Financial liabilities
Trade and other payables
Lease Liabilities
Contingent consideration
Borrowings
Total financial liabilities
2021
$’000
108,502
120,000
1,920
-
503
6,308
237,233
58,479
26,037
8,539
-
93,055
2020
$’000
125,670
40,000
3,234
3,370
503
624
173,401
82,302
30,489
13,184
23,475
149,450
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
RISK (CONTINUED)
Note 18: Financial instruments and financial risk management (continued)
(a) Recognition and measurement
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.
(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 investments include any investment 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
The Group manages liquidity risk by monitoring immediate and forecasted cash requirements and ensures adequate cash reserves are
maintained to pay debts as and when due.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due. At the end of the financial year the Group held short term
on demand cash balances of $108,502,000 (2020: $125,670,000) that is available for managing liquidity risk. In addition to this short term
deposits at call totalled $120,000,000 (2020: $40,000,000).
Management monitors rolling forecasts of the Group’s available cash reserve on the basis of expected cash flows to manage any potential
future liquidity risks.
i) Maturities of financial liabilities
The tables below analyse the Group’s financial liabilities into relevant Groupings based on their contractual maturities. The amounts
disclosed in the table are the contractual undiscounted cash flows. Balances due within twelve months equal their carrying balances as the
impact of discounting is not significant.
RAMELIUS RESOURCES ANNUAL REPORT 2021
117
NOTES TO THE
FINANCIAL STATEMENTS
RISK (CONTINUED)
Note 18: Financial instruments and financial risk management (continued)
Maturities of financial liabilities
As at 30 June 2021
Trade and other payables
Lease liabilities
Contingent consideration
Total non derivatives
As at 30 June 2020
Trade and other payables
Borrowings
Lease liabilities
Contingent consideration
Total non derivatives
Less than
6 months
$’000
6 – 12 months
$’000
Between |1
and 2 years
$’000
Between
2 and 5 years
$’000
Total
contractual
cash flows
$’000
Carrying
amount of
liabilities
$’000
58,479
9,077
3,861
71,417
72,412
16,250
9,238
1,964
99,864
-
7,596
1,738
9,334
9,890
8,125
7,404
4,298
29,717
-
7,051
3,180
10,231
-
-
7,711
6,025
13,736
-
2,313
405
2,718
-
-
6,136
2,118
8,254
58,479
26,037
9,184
93,700
82,302
24,375
30,489
14,405
151,571
58,479
26,037
8,539
93,055
82,302
23,475
30,489
13,184
149,450
(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.
Past due but not impaired
i.
As at 30 June 2021 there were no receivables past due but not impaired (2020: NIL).
Impaired trade receivables
ii.
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:
•
•
•
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.
significant financial difficulties of the debtor,
probability that the debtor will enter bankruptcy or financial reorganisation, and
default or delinquency in payments (past due).
Foreign currency risk
(c) Market risk
i.
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:
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
RISK (CONTINUED)
Note 18: Financial instruments and financial risk management (continued)
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 2021, the Group had 206,000 ounces in forward sales contracts at an average price of
A$2,335. Refer to Note 23 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 the income statement.
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.
Based on gold sales of 149,600oz (277,450oz less forward sales of 127,850oz) in 2021 and 67,410oz (228,210oz less forward sales of
160,800oz) in 2020, 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:
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
2021
$’000
14,960
(14,960)
14,960
(14,960)
2020
$’000
6,741
(6,741)
6,741
(6,741)
(e) Fair value measurement
The financial assets and liabilities of the Group are recognised on the 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).
(f) 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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
119
NOTES TO THE
FINANCIAL STATEMENTS
RISK (CONTINUED)
Note 19: Capital risk management
(a) Risk management
The Group’s objectives when managing capital are to:
•
Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits
for other stakeholders, and
• Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to
shareholders, or issue new shares.
Loan covenants
Under the terms of the SFA the Group is required to comply with financial and non financial covenants. The Group has complied with these
covenants throughout the financial year.
(b) Dividends
Ordinary shares
Final ordinary dividend for the 2020 financial year of 2 cents (2019: 1 cent) per fully paid
share paid on 2 October 2020
Total dividends paid
Franked dividends
Franking credits available for subsequent reporting periods based on a tax rate of 30%
2021
$’000
16,170
16,170
2021
$’000
68,203
2020
$’000
6,579
6,579
2020
$’000
41,486
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.
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NOTES TO THE
FINANCIAL STATEMENTS
GROUP STRUCTURE
Note 20: Asset acquisitions
(a) Penny Gold Mine (Spectrum Metals Limited)
On 23 June 2020, the company completed the acquisition of Spectrum Metals Limited. The total purchase consideration was
$170,806,000 comprising cash paid of $31,433,000, shares issued (net of NCI reserve and revaluation of on market acquisitions) of
$127,662,000, and acquisitions related costs of $11,711,000. The Group determined that the transaction did not constitute a business
combination in accordance with AASB 3 Business Combinations. The acquisition of net assets meets the definition of, and has been
accounted for, as an asset acquisition.
Details of the acquisition were disclosed in Note 20 of the Group’s annual financial statements for the year ended 30 June 2020.
(b) Amounts paid in current year
During the year Ramelius paid acquisition costs (being transaction stamp duty) that it previously provided for, but not paid. The stamp duty
related to the Tampia, Marda, and Penny Gold Mine acquisitions. The final stamp duty on these acquisitions paid in the current year was
$14,352,000.
Note 21: Interests in other entities
(a) Controlled entities
The Group’s principal subsidiaries at 30 June 2021 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
Ramelius Resources Limited
Subsidiaries of Ramelius Resources Limited
Mt Magnet Gold Pty Limited
RMSXG Pty Limited
Ramelius USA Corporation
Ramelius Operations Pty Limited
Explaurum Limited
Subsidiaries of Mt Magnet Gold Pty Limited
Spectrum Metals Limited
Country of
incorporation
Functional
currency
Percentage
owned
2021
%
Percentage
owned
2020
%
Australia
Australian dollars
n/a
Australia
Australia
USA
Australia
Australia
Australian dollars
Australian dollars
US dollars
Australian dollars
Australian dollars
100
100
100
100
100
Australia
Australian dollars
100
Subsidiaries of Spectrum Metals Limited
Penny Operations Pty Limited (Formerly Zebra Minerals Pty Limited)
Red Dirt Mining Pty Limited
Subsidiaries of Ramelius Operations Pty Limited
Edna May Operations Pty Limited
Marda Operations Pty Limited
Australia
Australia
Australian dollars
Australian dollars
Australia
Australia
Australian dollars
Australian dollars
Subsidiaries of Explaurum Limited
Tampia Operations Pty Limited (Formerly Explaurum Operations Pty Limited)
Ninghan Exploration Pty Limited
Australia
Australia
Australian dollars
Australian dollars
100
-
100
100
100
100
The parent entity and all subsidiaries of Ramelius, except for Ramelius USA Corporation (including all of its subsidiaries), form part of
the closed Group.
n/a
100
100
100
100
100
100
100
100
100
100
100
100
RAMELIUS RESOURCES ANNUAL REPORT 2021
121
NOTES TO THE
FINANCIAL STATEMENTS
GROUP STRUCTURE (CONTINUED)
Note 21: Interests in other entities (continued)
(b) Joint operations
The Group has the following direct interests in unincorporated joint operations at 30 June 2021 and 30 June 2020:
Joint operation project
Joint operation partner
Nulla South
Gibb Rock
Coogee Farm out
Parker Dome
Mt Finnerty
Jupiter
Chalice Gold Mines Limited
Chalice Gold Mines Limited
Unlisted entity
Unlisted entity
Unlisted entity
Kinetic Gold#
* Ramelius is earning into the joint ventures by undertaking exploration and evaluation activities.
# Kinetic Gold is a subsidiary of Renaissance Gold Inc.
The share of assets in unincorporated joint operations is as follows:
Non current assets
Exploration and evaluation assets (Note 10)
(c) Recognition and measurement
Principal
activity
Gold
Gold
Gold
Gold
Gold
Gold
Interest %
2021
75%*
0%*
0%*
0%*
0%*
0%*
2020
0%*
0%*
Diluting 90%
0%*
0%*
0%*
2021
$’000
248
2020
$’000
684
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.
UNRECOGNISED ITEMS
Note 22: 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 $172,103 (2020: $120,145). These bank guarantees are fully secured by
cash on term deposit.
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NOTES TO THE
FINANCIAL STATEMENTS
UNRECOGNISED ITEMS (CONTINUED)
Note 23: Commitments
(a) Gold delivery commitments
Forward sale contracts are accounted for as sale contracts with revenue recognised once gold has been physically delivered. The physical
gold delivery contracts are considered own use contracts and therefore do not fall within the scope of AASB 9 Financial Instruments:
Recognition and Measurement. As a result, no derivatives are required to be recognised. Forward gold sale contract delivery commitments
are shown below:
Gold delivery commitments
As at 30 June 2021
Within one year
Between one and five years
Total
As at 30 June 2020
Within one year
Between one and five years
Total
Gold for
physical delivery
Oz
Contracted
sales price
A$/oz
Committed
gold sales value
$’000
142,500
63,500
206,000
125,850
121,500
247,350
$2,308
$2,393
$2,335
$2,046
$2,227
$2,135
328,927
151,994
480,921
257,456
270,525
527,981
(b) Capital expenditure commitments
Capital expenditure contracted but not provided for in the financial statements:
Within one year
2021
$’000
4,461
2020
$’000
3,575
(c) 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
2021
$’000
4,958
14,488
17,140
36,586
2020
$’000
5,077
17,572
21,580
44,229
RAMELIUS RESOURCES ANNUAL REPORT 2021
123
NOTES TO THE
FINANCIAL STATEMENTS
OTHER INFORMATION
Note 24: Events occurring after the reporting period
In August 2021 a binding agreement was executed with Liontown Resources Ltd (‘’Liontown’’) for the termination of the Lithium
Royalty owned by Ramelius over the majority of Liontown’s Kathleen Valley Lithium Project. Consideration of $30.3 million was paid upon
completion on 4 August 2021. The royalty was granted when Ramelius disposed of the Kathleen Valley Lithium – Tantalum project to
Liontown in 2016. The royalty comprised both a production component of A$0.50/tonne of ore mined and a sales component of 1%
of the gross sales of the ore.
There were no other matters or circumstances that have arisen since 30 June 2021 that have 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 25: 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 benefits1
Post employment benefits
Other long term benefits
Share based payments
Total key management personnel compensation
1.
Short term benefits as per Corporations Regulation 2M.3.03(1) Item 6.
Detailed remuneration disclosures are provided in the Remuneration Report.
(a) Subsidiaries
Interests in subsidiaries are set out in Note 21.
2021
$
3,512,405
168,000
88,296
726,334
4,495,035
2020
$
3,321,883
148,422
45,560
1,014,048
4,529,913
(b) Transactions with other related parties
There were no other transactions with related parties during the year. There were no amounts receivable from or payable to
Directors and their related entities at reporting date.
Note 26: Share based payments
(a) Performance rights
Under the Performance Rights Plan, which was approved by shareholders at the 2019 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.
From 1 July 2020, there are two equally weighted performance hurdles, relative total shareholder returns (TSR) measured against a
benchmark peer Group and 15% absolute TSR. Prior to 1 July 2020, the only performance hurdle was relative TSR. Once vested,
performance rights remain exercisable for a period of seven years.
Performance rights issued under the plan carry no voting or dividend rights.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
OTHER INFORMATION (CONTINUED)
Note 26: Share based payments (continued)
The table set out below summarises the performance rights granted:
As at 1 July
Performance rights forfeited
Performance rights granted
Performance rights exercised
As at 30 June
Vested and exercisable at 30 June
2021
Performance rights
2020
Performance rights
11,762,913
(1,120,354)
1,830,658
(3,062,806)
9,410,411
1,744,707
10,075,033
(618,601)
3,684,003
(1,377,522)
11,762,913
1,224,625
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:
1 Oct 2020
1 Oct 2020
26 Nov 2020
26 Nov 2020
$nil
1 Oct 2020
2.8 years
$2.07
65%
0.90%
$nil
1 Oct 2020
2.8 years
$2.07
65%
0.90%
$nil
26 Nov 2020
2.6 years
$1.70
65%
1.16%
$nil
29 Nov 2020
2.6 years
$1.70
65%
1.16%
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
9 October 2019
22 November 2019
22 November 2019
1 October 2020
26 November 2020
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
1 July 2028
1 July 2029
1 July 2027
1 July 2029
1 July 2030
1 July 2030
2021
Performance rights
2020
Performance rights
101,138
129,593
241,043
500,000
772,933
-
-
1,976,026
1,081,024
2,146,509
322,342
644,683
1,139,728
355,392
9,410,411
202,276
213,881
308,468
500,000
2,342,388
464,445
580,500
2,437,039
1,156,469
2,590,422
322,342
644,683
-
-
11,762,913
Weighted average remaining contractual
life of performance rights outstanding at
the end of the year
7.23 years
7.92 years
RAMELIUS RESOURCES ANNUAL REPORT 2021
125
NOTES TO THE
FINANCIAL STATEMENTS
OTHER INFORMATION (CONTINUED)
Note 26: Share based payments (continued)
(b) Expenses arising from share based payment transactions
Total expenses arising from share based payment transactions recognised during the period as part of employee benefits expense
were as follows:
Performance rights
Total share based payment expense
2021
$’000
1,770
1,770
2020
$’000
2,130
2,130
(c) Recognition and measurement
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) 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.
(ii) 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.
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.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
OTHER INFORMATION (CONTINUED)
Note 27: 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:
Total remuneration of Deloitte Touche Tohmatsu for audit or review of
financial reports of the Group
Note 28: Earnings per share
(a) Basic earnings per share
Basic earnings per share attributable to the ordinary equity holders of the company
(b) Diluted earnings per share
Diluted earnings per share attributable to the ordinary equity holders of the company
(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
Adjustments for calculation of diluted earnings per share:
Share rights and options
Weighted average number of ordinary shares used as the denominator in
calculating diluted earnings per share
(d) Calculation of earnings per share
Basic earnings per share is calculated by dividing:
2021
$’000
2020
$’000
188,700
156,175
2021
Cents
2020
Cents
15.64
15.45
16.43
16.13
2021
Number
2020
Number
810,528,504
690,240,811
9,952,989
820,481,493
12,922,406
703,163,217
-
-
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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
127
NOTES TO THE
FINANCIAL STATEMENTS
OTHER INFORMATION (CONTINUED)
Note 29: Assets pledged as security
The carrying amounts of assets pledged as security for current borrowings are:
Current
Floating
Cash and cash equivalents
Receivables
Inventories
Other Assets
Total current assets pledged as security
Non current
Floating charge
Investments
Property, plant and equipment
Development assets
Exploration and development assets
Total non current assets pledged as security
Total assets pledged as security
2021
$’000
228,502
1,920
100,813
1,484
332,719
6,308
100,177
373,237
35,837
515,559
848,278
2020
$’000
164,951
3,221
97,553
4,475
270,200
624
78,058
208,268
26,038
312,988
583,188
Note 30: Deed of cross guarantee
Pursuant to ASIC Instrument 2016/785, wholly owned controlled entities Mt Magnet Gold Pty Ltd, RMSXG Pty Ltd, Ramelius Operations
Pty Ltd, Edna May Operations Pty Ltd, Marda Operations Pty Ltd, Tampia Operations Pty Ltd, Ninghan Exploration Pty Ltd and Penny
Operations 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 Pty Ltd 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 Ltd, Tampia 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. In March 2021,
Spectrum Metals Ltd and Penny Operations Pty Ltd joined the closed Group by entering the Deed of Cross Guarantee by way of
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 Ltd, Tampia Operations Pty Ltd,
Ninghan Exploration Pty Ltd and Penny Operations Pty Ltd have also given a similar guarantee in the event that Ramelius Resources
Limited is wound up.
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.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
OTHER INFORMATION (CONTINUED)
Note 30: Deed of cross guarantee (continued)
Statement of comprehensive income
Sales revenue
Cost of sales
Gross profit
Other expenses
Other income
Interest income
Finance costs
Profit before income tax
Income tax expense
Profit for the year
Other comprehensive income
Net change in fair value of investments
Other comprehensive income for the year
2021
$’000
634,283
(443,825)
190,458
(21,158)
8,261
715
(3,414)
174,862
(47,962)
126,900
376
376
2020
$’000
460,486
(289,358)
171,128
(18,021)
1,346
996
(4,025)
151,424
(36,070)
115,354
655
655
Total comprehensive income for the year
127,276
116,009
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
Investments
Property, plant, and equipment
Mine development
Exploration and evaluation assets
Total non current assets
Total assets
2021
$’000
228,502
1,920
100,813
1,484
332,719
1,754
503
6,308
100,177
375,338
31,253
515,333
848,052
2020
$’000
164,951
3,221
97,553
4,475
270,200
2,745
171,309
624
78,057
208,268
26,038
487,041
757,241
RAMELIUS RESOURCES ANNUAL REPORT 2021
129
NOTES TO THE
FINANCIAL STATEMENTS
OTHER INFORMATION (CONTINUED)
Note 30: Deed of cross guarantee (continued)
Balance sheet (continued)
Current liabilities
Trade and other payables
Borrowings
Lease liability
Contingent consideration
Tax payable
Provisions
Current liabilities
Non current liabilities
Lease liability
Contingent consideration
Deferred tax liabilities
Provisions
Total non current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Retained earnings
Total equity
2021
$’000
58,479
-
16,673
5,186
30,342
9,205
119,885
9,364
3,353
35,417
42,498
90,632
210,517
637,535
379,391
(33,384)
291,528
637,535
2020
$’000
82,126
23,475
16,643
6,262
21,272
9,200
158,978
13,846
6,923
21,061
38,720
80,550
239,528
517,713
370,781
(34,657)
181,589
517,713
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RAMELIUS RESOURCES ANNUAL REPORT 2021
NOTES TO THE
FINANCIAL STATEMENTS
OTHER INFORMATION (CONTINUED)
Note 31: 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 after income tax
Total comprehensive income
2021
$’000
134,319
515,384
(31,034)
(25,892)
489,492
379,391
4,232
12
105,857
489,492
24,913
24,652
2020
$’000
161,546
499,027
(34,709)
(27,772)
471,255
370,781
3,288
(317)
97,503
471,255
122,476
122,410
(i) 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
2021
$’000
393
1,020
1,113
2,526
2020
$’000
511
1,392
1,404
3,307
(c) 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.
(d) 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 $172,103 (2020: $120,145). These bank guarantees are fully secured by
cash on term deposit.
RAMELIUS RESOURCES ANNUAL REPORT 2021
131
NOTES TO THE
FINANCIAL STATEMENTS
OTHER INFORMATION (CONTINUED)
Note 31: Parent entity information (continued)
(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 Pty Ltd 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 Ltd, Tampia 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. In March 2021,
Spectrum Metals Ltd and Penny Operations Pty Ltd joined the closed Group by entering the Deed of Cross Guarantee by way of
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.
Note 32: 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 2020.
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2021 reporting periods
and have not been early adopted by the Group. The Group has assessed that these new standards and interpretations will not have a
material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
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RAMELIUS RESOURCES ANNUAL REPORT 2021
DIRECTORS’
DECLARATION
In the Directors’ opinion:
(a)
the financial statements and notes set out on pages 84 to 131 are in accordance with the Corporations Act 2001, including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements, and
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 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 30 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 30.
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.
Bob Vassie
Chair
Perth
26 August 2021
RAMELIUS RESOURCES ANNUAL REPORT 2021
133
INDEPENDENT AUDITOR’S REPORT
To the members of Ramelius Resources Limited
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
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
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 2021, 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:
• Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance
for the year then ended; and
• 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 & Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (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.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
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134
RAMELIUS RESOURCES ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT
To the members of Ramelius Resources Limited
KKeeyy AAuuddiitt MMaatttteerr
HHooww tthhee ssccooppee ooff oouurr aauuddiitt rreessppoonnddeedd ttoo tthhee KKeeyy AAuuddiitt MMaatttteerr
AAccccoouunnttiinngg ffoorr mmiinnee ddeevveellooppmmeenntt aasssseettss
As at 30 June 2021, the carrying value of
mine development assets amounts to
$375.3 million as disclosed in Note 9.
During the year the Group incurred $119.2
million of capital expenditure related to
mine development assets and recognised
related amortisation expenses of $128.8
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, 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
the
capitalisation of both underground and open pit mining
costs and the production of physical mining data; and
in place
relation
to
in
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 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.
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
including:
the
inputs
to source documentation,
▪
▪
▪
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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
135
INDEPENDENT AUDITOR’S REPORT
To the members of Ramelius Resources Limited
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 2021, 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.
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 directors’ 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.
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136
RAMELIUS RESOURCES ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT
To the members of Ramelius Resources Limited
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
businessactivities 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, actions taken to eliminate threats
or safeguards applied.
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.
RReeppoorrtt oonn tthhee RReemmuunneerraattiioonn RReeppoorrtt
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 72 to 81 of the Directors’ Report for the year
ended 30 June 2021.
In our opinion, the Remuneration Report of Ramelius Resources Limited, for the year ended 30 June 2021,
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
DDaavviidd NNeewwmmaann
Partner
Chartered Accountants
Perth, 26 August 2021
RAMELIUS RESOURCES ANNUAL REPORT 2021
137
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 11 October 2021
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
Van Eck Associates Corporation
Vanguard Group
86,794,884
42,747,141
Voting rights
Fully paid ordinary shares
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
There are no options on issue by the Company.
Details of performance rights on issue by the Company as at 11 October 2021 are as follows:
Expiry date
Exercise price
Number of
Performance Rights
01/07/2024*
01/07/2025*
11/06/2026*
01/07/2026*
01/07/2027*
01/07/2028*
01/07/2029#
01/07/2030#
01/07/2031#
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
101,138
129,593
500,000
161,819
1,095,275
2,441,528
2,791,192
1,459,532
1,531,807
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 performance right exercised.
* These performance rights are exercisable in whole or in part at any time until the expiry date. Any performance 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.
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138
RAMELIUS RESOURCES ANNUAL REPORT 2021
SHAREHOLDER INFORMATION (CONTINUED)
ORDINARY FULLY PAID SHARES (Total)
Range of units as of 11 October 2021 Composition: ORD
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Rounding
Total
Unmarketable parcels
Range
Total Holders
2,999
4,219
2,051
3,233
437
12,939
Units
1,475,789
11,918,610
16,175,578
99,432,067
685,709,968
814,712,012
Minimum Parcel Size
Holders
Minimum $ 500.00 parcel at $1.4950 per unit
335
1,088
% Units
0.18
1.46
1.99
12.20
84.17
0.00
100.00
Units
134,174
UNQUOTED AND RESTRICTED EQUITY SHARES
Fully paid oridinary shares
There are no unquoted restricted fully paid shares on issue.
Performance rights
Details of options and performance rights on issue as at 11 October 2021 which are unquoted restricted securities held by employees as
long-term incentives are as follows:
Date until
securities are
vested
01/07/2024*
01/07/2025*
11/06/2026*
01/07/2026*
01/07/2027*
01/07/2028*
01/07/2029**
01/07/2030**
01/07/2031**
Number of unquoted
securities on issue
Number of holders
Vesting date
Exercise price
Exercisable until
101,138
129,593
500,000
161,819
1,095,275
2,441,529
2,791,192
1,459,532
1,531,807
1
2
1
2
5
13
26
29
29
-
-
-
-
-
-
01/07/2022
01/07/2023
01/07/2024
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
01/07/2024
01/07/2025
11/06/2026
01/07/2026
01/07/2027
01/07/2028
01/07/2029
01/07/2030
01/07/2031
* 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.
RAMELIUS RESOURCES ANNUAL REPORT 2021
139
SHAREHOLDER INFORMATION (CONTINUED)
Top holders as of 11 October 2021
Rank Name
Units
% Units
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
1 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
2 CITICORP NOMINEES PTY LIMITED
3
4 NATIONAL NOMINEES LIMITED
5 BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
6 BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
7 BNP PARIBAS NOMS PTY LTD
8
9 WEST TRADE ENTERPRISES PTY LTD
STRAMIG HOLDINGS PTY LTD
10 NATIONAL NOMINEES LIMITED
11 MR RICHARD ARTHUR LOCKWOOD
12 BNP PARIBAS NOMINEES PTY LTD
13 BNP PARIBAS NOMINEES PTY LTD
14 BRAZIL FARMING PTY LTD
15
16 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
17 CITICORP NOMINEES PTY LIMITED
18
19 MR LEONID CHARUCKYJ
20 MRS AMANDA JANE CROSER
PATINA RESOURCES PTY LTD
EPOCC PTY LTD
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
Total Remaining Holders Balance
292,616,525
95,938,443
68,886,110
17,745,672
17,202,560
15,344,573
12,171,401
9,500,000
5,515,333
4,674,589
4,500,000
4,390,075
4,079,364
3,610,000
2,525,884
2,139,647
2,081,692
1,954,934
1,886,674
1,710,000
568,473,476
246,238,536
35.92
11.78
8.46
2.18
2.11
1.88
1.49
1.17
0.68
0.57
0.55
0.54
0.50
0.44
0.31
0.26
0.26
0.24
0.23
0.21
69.78
30.22
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www.rameliusresources.com.au