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Annual Report 2017

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RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 CONTENTS Chairman’s Report Managing Director’s Report Review of Operations Glossary of Terms Native Title Statement Sustainability Statement Diversity Statement Corporate Governance Statement Annual Financial Report - Directors’ Report - Auditor’s Independence Declaration Income Statement - - Statement of Comprehensive Income - Balance Sheet - Statement of Changes in Equity - Statement of Cash Flows - Notes to the Financial Statements - Directors’ Declaration - Independent Auditor’s Report Shareholder Information Corporate Directory 1 7 8 33 38 39 41 42 43 44 63 64 65 66 67 68 69 107 108 113 (Back Cover) RAMELIUS RESOURCES LIMITED ACN 001 717 540 ABN 51 001 717 540 ANNUAL GENERAL MEETING The Annual General Meeting of Ramelius Resources Limited will be held at Pullman Adelaide, 16 Hindmarsh Square Adelaide 5000 SA, on Thursday 30 November 2017 at 11.00 am Adelaide time. STOCK EXCHANGE The Company is listed on the Australian Securities Exchange Limited. ASX CODE Shares: RMS Front Cover: Mt Magnet Operations below the Milky Way Photograph courtesy Ian Beattie, Paramedic – Mt Magnet CHAIRMAN’S REPORT RAMELIUS RESOURCES LIMITED CHAIRMAN’S REPORT – 2017 Dear fellow shareholders, Dear fellow shareholders, On behalf of the Board of Directors, I present to you the 2017 Annual Report of Ramelius Resources On behalf of the Board of Directors, I present to you the 2017 Annual Report of Ramelius Resources Limited. Limited. I am pleased to report that on the back of improved performance from the Company’s Western Australian gold I am pleased to report that on the back of improved performance from the Company’s Western Australian operations, Ramelius achieved a third consecutive annual profi t. For the year ended 30 June 2017, profi t before gold operations, Ramelius achieved a third consecutive annual profit. For the year ended 30 June 2017, tax was $25.1 million which was down slightly on the previous year result of $25.3 million. Profi t after tax was profit before tax was $25.1 million which was down slightly on the previous year result of $25.3 million. $17.7 million compared to $27.5 million in 2016. Sales revenue for the 2017 fi nancial year increased from $173.7 Profit after tax was $17.7 million compared to $27.7 million in 2016. Sales revenue for the 2017 financial million to $197.4 million. Cash fl ows from operating activities increased from $65.5 million to $83.4 million, total year increased from $173.7 million to $197.4 million. Cash flows from operating activities increased from net assets increased from $127.6 million to $169.8 million and cash at bank increased from $44.3 million to $78.6 $65.5 million to $83.4 million, total net assets increased from $127.6 million to $169.8 million and cash million. at bank increased from $44.3 million to $78.6 million. The Company’s share price at 30 June 2017 was 45 cents having risen to a high of 74.5 cents in February 2017 The Company’s share price at 30 June 2017 was 45 cents having risen to a high of 74.5 cents in February compared to 43.5 cents at the end of the previous fi nancial year. 2017 compared to 43.5 cents at the end of the previous financial year. The Australian gold price commenced the 2016/17 fi nancial year at A$1,773 per ounce, rose to a high of A$1,821 The Australian gold price commenced the 2016/17 financial year at A$1,773 per ounce, rose to a high of A$1,821 per ounce in early July 2016 and remained above A$1,700 per ounce for the whole of the first per ounce in early July 2016 and remained above A$1,700 per ounce for the whole of the fi rst quarter. Despite the quarter. Despite the good start to 2016/17, the price of gold fell to a low of A$1,531 per ounce in mid- good start to 2016/17, the price of gold fell to a low of A$1,531 per ounce in mid-December 2016 and then December 2016 and then remained above that level for the rest of the reporting period, generally trading remained above that level for the rest of the reporting period, generally trading in the A$1,600 to A$1,700 per in the A$1,600 to A$1,700 per ounce range and only exceeded A$1,700 per ounce for short periods on ounce range and only exceeded A$1,700 per ounce for short periods on several occasions during the last quarter several occasions during the last quarter of the financial year. The gold price at 30 June 2017 closed at of the fi nancial year. The gold price at 30 June 2017 closed at A$1,616 per ounce. A$1,616 per ounce. Australian dollar gold price (Source Gold Price .Org) Operationally, your Company continued mining at Mt Magnet and near Leinster in Western Australia. At the Galaxy mine area located at Mt Magnet, Ramelius continued cut-back mining of the Titan and Operationally, your Company continued mining at Mt Magnet and near Leinster in Western Australia. At the Perseverance open pits with the latter being completed in February 2017. By year end, Titan had Galaxy mine area located at Mt Magnet, Ramelius continued cut-back mining of the Titan and Perseverance open progressed close to the base of the pit where higher grade ore was being accessed. pits with the latter being completed in February 2017. By year end, Titan had progressed close to the base of the pit where higher grade ore was being accessed. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 1 “AT THE GALAXY MINE AREA LOCATED AT MT MAGNET, RAMELIUS CONTINUED CUT-BACK MINING OF THE TITAN AND PERSEVERANCE OPEN PITS.” 2 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Titan Pit at Mt Magnet CHAIRMAN’S REPORT In the second quarter of 2016/17, Ramelius commenced open pit mining at Blackmans, located 30km to the north of Mt Magnet. Gold ore from Blackmans was hauled to Mt Magnet for processing at the Checkers processing plant. This satellite pit was completed in the June 2017 quarter and was followed by a small extension mining operation of a shallow laterite ore zone stretching approximately 100 metres north of the pit. During the year, Ramelius also progressed the Vivien underground gold mine and completed open pit mining at Kathleen Valley, both located near Leinster in Western Australia. At Kathleen Valley, the focus during the September 2016 quarter was on mining the two small Yellow Aster North and Nil Desperandum pits followed by rehabilitation and mine closure activities. At the Vivien underground operation, stoping commenced early in the financial year and a significant increase in gold ore production followed from both ore stoping and development activities. The development of the underground decline was also progressed throughout the year, advancing 630 metres to the 200RL by 30 June 2017. Gold ore from both the Kathleen Valley and Vivien gold mines was trucked to Mt Magnet for processing. The Checkers processing plant processed 1.9 million tonnes of ore during the year at an average grade of 2.17g/t for 124,747 ounces of recovered gold. Fine gold production for the year was 125,488 ounces. This production result was very pleasing and compares to production of nearly 1.7 million tonnes at an average gold grade of 2.2g/t for 110,830 fine ounces of gold in 2016 and approximately 1.63 million tonnes at an average grade of 1.55g/t for 81,683 fine ounces in 2015. Regarding new project development, Ramelius successfully progressed the Water Tank Hill project located 1.5km to the west of the Mt Magnet township. Mining approvals for an underground mining operation were obtained and Byrnecut Australia Pty Ltd was engaged as the underground mining contractor. Access to the underground deposit was obtained by rehabilitating the nearby St George decline and developing link drives across to Water Tank Hill. Ore development commenced in the last quarter of 2016/17 and by year end, ore was being trucked to the Checkers processing plant. The Company also successfully progressed the Milky Way project located 3.6km south of the Mt Magnet Checkers processing facility. Geotechnical and hydrological studies and metallurgical test work were completed and as result of successful drilling at the nearby Stellar and Stellar West area as well as at Shannon, some 500 metres to the south-west of Milky Way, a new mining proposal was developed. Mining approval for the new Cosmos mine area comprising Milky Way, Stellar, Stellar West and Shannon open pits together with Brown Hill and Vegas pits in the Galaxy area was obtained in June 2017. Mining at the Milky Way and the Stellar West pits commenced early in 2017/18 and ore from this operation will be processed at the nearby Checkers processing plant. The Cosmos area is expected to underpin production at Mt Magnet over the next 2-3 years. In addition to drilling at the Cosmos mine area, Ramelius also conducted significant exploration activities at the following targets: • The Morning Star gold project at Mt Magnet, including the Eddie Carson Lode where significant mineralisation was intersected; • The Black Cat Deeps gold project immediately to the south of Morning Star where drilling resulted in encouraging intersections; • The Boogardie Basin area at Mt Magnet including Venus, Zeus, Artemis and Bundy Flats prospects, and the area east of the Hesperus Pit, where some good drilling results were returned, as well as at the Shannon pit where economic intersections were drilled; • The Paris pit, located half way between Morning Star and the St George/Water Tank Hill underground portal, where very encouraging gold intersections were returned from first pass drill testing; RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 3 “THE FUTURE AUGERS WELL AS WE CONTINUE TO GROW BY ACQUISITION AND DISCOVERY. I HAVE CONFIDENCE IN OUR MANAGEMENT TEAM TO TAKE THE STEPS WHICH WILL ENABLE US TO CONTINUE TO DEVELOP INTO A SIGNIFICANT GOLD COMPANY FOR THE BENEFIT OF SHAREHOLDERS.” 4 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Checkers Processing Plant at Mt Magnet CHAIRMAN’S REPORT • The Vivien gold project where successful underground diamond drilling and development sampling was carried out and a wider quartz vein approximately 200 metres below the mine plan was intersected; • The Yandan North gold project in Queensland where a ground magnetic survey defined several deeper drill targets; and • The Tanami joint venture gold project area in the Northern Territory where reconnaissance air-core drilling was carried out over the Highland Rocks tenement. The Company’s exploration success resulted in new Ore Reserves being generated for the Stellar, Stellar West, Brown Hill, Vegas and Shannon deposits as well as the Vivien gold mine. For the second successive year, Ramelius increased its Mineral Resource and Ore Reserve gold ounces after producing approximately 125,000 ounces of gold during the financial year, reporting the following estimates as at 30 June 2017: • Total Mineral Resources of 36,351 million tonnes at 2.2g/t for 2,549,000 ounces of gold (2016: 29.305 million tonnes at 2.3g/t for 2,196,000 ounces of gold); and • Total Ore Reserves of 6,583 million tonnes at 2.1g/t for 452,000 ounces of gold (2016: 5.430 million tonnes at 2.3g/t for 405,000 ounces of gold). In August 2016, the Company sold the Burbanks gold processing plant near Coolgardie in Western Australia for a total consideration of $2.5 million payable by instalments over a two-year period. This plant was originally purchased in late 2006 to process the high-grade gold ore from the Company’s first and very successful open pit and underground mining operation at Wattle Dam in the Eastern Goldfields of Western Australia. During the year your directors continued their search for new gold opportunities and in September 2017, Ramelius announced the acquisition of the Edna May gold mining operations near Westonia in Western Australian from Evolution Mining Limited for an upfront cash consideration of $40 million plus contingent further payments of up to $50 million including production based royalties above 200,000 ounces. The future augers well as we continue to grow by acquisition and discovery. I have confidence in our management team to take the steps which will enable us to continue to develop into a significant gold company for the benefit of shareholders. I thank all our employees and contractors for their ongoing efforts during what has been a busy and interesting year. I also thank our Managing Director, Mark Zeptner for his leadership of the management team and my fellow non-executive directors, Kevin Lines and Mike Bohm. Finally, on behalf of the Board, I thank all shareholders for your ongoing support and look forward to the year ahead as we integrate the Edna May gold mine with our existing Ramelius operations. Bob Kennedy Chairman Checkers Processing Plant at Mt Magnet RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 5 “YOUR COMPANY MADE FURTHER PROGRESS TOWARDS BECOMING A MID-TIER PRODUCER IN THE AUSTRALIAN GOLD SECTOR WITH PRODUCTION EXCEEDING 125,000 OUNCES.” 6 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Galaxy open pits at Mt Magnet MANAGING DIRECTOR’S REPORT Dear Shareholders, During the 2016/17 financial year, your Company made further progress towards becoming a mid-tier producer in the Australian gold sector with production exceeding 125,000 ounces, up from the 110,000 ounces in the previous year. Supported by a healthy gold price, cash and gold reserves grew further, ending the year close to A$90M. On top of this, the Company delivered a positive Net Profit after Tax for the third year running, something we are obviously proud of and looking to build on. In the first quarter of the year, Ramelius commenced mining at the Blackmans open pit project and worked to finalise approvals at the Water Tank Hill underground project, both located at Mt Magnet. The Vivien underground mine moved into stoping production after a successful development phase. The second quarter saw the completion of ore haulage and processing of the Kathleen Valley open pit project, a very successful venture for the Company which delivered almost tenfold returns on the initial $4M purchase price. Mt Magnet’s Perseverance open pit was completed late in the third quarter with the nearby Titan open pit coming online the following quarter, and mining activities at the new Cosmos Mine Area featuring the Milky Way, Stellar and Shannon open pits commencing immediately prior to the end of the financial year. The Water Tank Hill project intersected first ore during that last quarter and will be set up for stoping production early in the FY2018 year. The management and operations team has become adept at managing the processes involved with regularly commissioning new operations, both open pit and underground. Ramelius continued to both deliver into and add to its risk mitigating forward gold sales program, with coverage currently out to June 2019 at an average price above A$1,710 per ounce. The FY2017 year saw a record of almost $16M spent on exploration at Ramelius, with the benefits starting to be realised within a resource and reserve inventory that grew at 16% and 12% respectively, according to the recent inventory update. A further $11M has been budgeted for FY2018 to capitalise on the momentum gained in this area, especially at Mt Magnet, with almost 90% targeted at brownfield style targets. Subsequent to the end of the 2017 financial period, Ramelius successfully bid and settled on the purchase of the Edna May gold mine in Western Australia from Evolution Mining Limited. The upfront consideration was for $40M cash with further contingent payments up to $50M for production beyond an initial 200,000 ounces. The purchase, effective 3rd October 2017, immediately catapults Ramelius into the +200,000 ounces per year range and effectively doubles the ore reserve to a position exceeding 0.8Moz. The purchase is the next step in the growth ambitions of the Company, made possible by reliable, profitable operations and an enviable balance sheet allowing the upfront consideration to be fully funded from cash reserves. As always, I would like to thank the Board and staff for their support and ongoing efforts during the year, with the established mining teams at Mt Magnet and Vivien performing well. We look forward to integrating the new team at Edna May into the Ramelius portfolio and to build on the momentum that a 200,000 ounce per annum producer will undoubtedly bring us. The Aussie gold mid-tier here we come! Mark Zeptner Managing Director RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 7 REVIEW OF OPERATIONS Financial Summary • Profit before tax of $25.1 million (down from $25.3 million in 2016) • Sales revenue of $197.4 million (up 14% or $23.7 million from $173.7 million in 2016) • Gold sales of $197.0 million (up from $173.5 million in 2016) • Operating activities provided $83.4 million (up from $65.5 million in 2016). Investment in mine development and exploration totalled $67.2 million (up from $47.9 million in 2016) • Debt free with cash as at 30 June 2017 of $78.6 million (up from $44.3 million at 30 June 2016) which excludes gold on hand at spot value of $11.3 million (up from $5.4 million at 30 June 2016) • Forward gold sales at 30 June 2017 of 102,000 ounces at an average price of A$1,711 per ounce “THE COMPANY DELIVERED A POSITIVE NET PROFIT AFTER TAX FOR THE THIRD YEAR RUNNING,SOMETHING WE ARE OBVIOUSLY PROUD OF AND LOOKING TO BUILD ON.” Ore haulage trucks at Blackmans Gold Mine 8 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Total consolidated profit before income tax for the year ended 30 June 2017 was $25.1 million compared to $25.3 million in the previous corresponding period. Revenue from gold sales for the year ended 30 June 2017 increased by 14% to $197.0 million compared to $173.5 million reported in the previous corresponding period for the continuing operation. This increase in gold sales revenue has been driven by higher gold sales (11% to 121,031 ounces compared to 108,711 ounces in the prior period) and a greater average realised gold price of A$1,628/oz which was up 2% from the previous corresponding period. At 30 June 2017, the group was debt free and held cash assets of $78.6 million (excluding gold on hand of $11.3 million). Total net assets increased during the year from $127.6 million to $169.8 million. Net assets per share at 30 June 2017 was $0.32 compared to $0.27 at the end of the previous financial year. At 30 June 2017 forward gold sales totalled 102,000 ounces at an average gold price of A$1,711 for delivery during the period to 28 June 2019. Operational Summary • Total of 125,488 ounces of fine gold produced during the financial year • Mining activities at Kathleen Valley were completed during the year following the successful mining and haulage of ore from the Mossbecker, Yellow Aster Deeps, Nil Desperandum and Yellow Aster North open pits • Mining of the high-grade Vivien underground gold mine continued during the year with the mine achieving steady state production following the commencement of stoping in June 2016 • Commenced pre-strip mining of the Milky Way open pit ahead of schedule in late June 2017, ensuring a smooth transition from the current mining activity in Titan open pit. Mining of the Perseverance and Blackmans open pits were both completed during the year • Completed decline rehabilitation and decline access and commenced ore development at the Water Tank Hill underground gold mine at Mt Magnet • Upgraded open pit mineral resource established for the Morning Star gold project RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 9 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations Figure 1: Operations Location The Mt Magnet gold mine, 600km north-east from Perth in WA, was Ramelius’ core operation for the 2017 financial year, with mining and processing activities ongoing at Mt Magnet, supplemented by high grade ore feed from the Vivien and Kathleen Valley gold mines. Vivien and Kathleen Valley are located 300km and 370km by road from the processing plant at Mt Magnet respectively. The Kathleen Valley gold project was completed and subsequently sold to Liontown Resources Limited’s (ASX:LTR) subsidiary LRL (Aust) Pty Ltd on 9 December 2016, with Ramelius retaining 100% of the gold rights. The Blackmans gold project is located some 30km north of Mt Magnet and was developed and mined in the 2017 financial year with only a portion of ore haulage remaining at the end of the period (refer Figure 2). The Burbanks processing plant, 9km south of Coolgardie, was sold in the first Quarter of the financial year to Maximus Resources Ltd (ASX:MXR) for a total consideration of A$2.5M, to be paid in instalments up to final payment in August 2018 (refer Figure 1). 10 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017     Ramelius Resources Limited Review of Operations Figure 2: Mt Magnet & Leinster based project locations Total fine gold production for the year was 125,488 ounces (refer Table 1). 2016/17 2015/16 Operation Dry Tonnes Milled (t) Head Grade (g/t) Recovery (%) Fine Gold Produced (oz)* Fine Gold Produced (oz) Mt Magnet Vivien Kathleen Valley Burbanks Total Production 1,574,617 207,574 131,761 0 1,913,952 1.42 7.17 3.36 0 2.17 91% 96% 96% - 93% 66,073 46,144 13,271 0 125,488 51,636 7,230 51,973 0 110,839 * Calculation difference relates to timing between gold production which includes gold in circuit and fine gold outturned. Table 1: Total Gold Production OPERATIONS Mt Magnet Gold Mine The Mt Magnet Gold Mine consists of numerous deposits, situated on granted mining leases, covering a total area of 225km². Mt Magnet has produced over 6 million ounces of gold since its discovery in 1891. The Hill 50 underground mine was the major producer until 2007 and was mined to 1,500 metres below surface, whilst the Morning Star underground mine was mined to a depth of 980 metres. Gold is primarily associated with a number of Banded Iron Formation (BIF) units that occur within a typical greenstone stratigraphy of mafic and ultramafic units. In addition, gold occurs in a number of structurally controlled mafic hosted deposits (e.g. Morning Star) and felsic porphyry hosted deposits (e.g. Milky Way). RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 11 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations Mining by Ramelius at Mt Magnet has concentrated on the Galaxy area open pits over the past five years. The Galaxy mining area is located approximately 2 kilometres from the processing plant (Checker). The Cosmos area (Milky Way, Stellar, Stellar West & Shannon pits) is a further 1.5 kilometres south of Galaxy, has been a strong focus for reserve additions and mining approvals during the 2017 financial year, whilst the Water Tank Hill underground project commenced ore production June 2017 (refer Figure 3). Figure 3: Mt Magnet key mining areas During the year, the Mt Magnet operation saw a 13% increase in mill throughput due to changes to the SAG mill liner configuration. This increased ore throughput, combined with Kathleen Valley ore and increasing Vivien ore production lifted total gold production to a new record (refer Figures 4 & 5). Reconciled mill production for the year was 1.91 million dry tonnes at a head grade of 2.17 g/t Au for 125,488 ounces of fine gold and mill recovery of 93%. 12 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Review of Operations Figure 4: Mt Magnet mill throughput & head grade by Quarter Figure 5: Mt Magnet gold production and unit costs by Quarter RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 13 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations Open Pits Mining was completed at the Perseverance open pit in March 2017. The pit was mined over 27 months and the presence of significant underground voids from the upper portions of the Hill 50 mine slowed progress toward the base of the pit. Overall production was similar to forecast and mill reconciled total production was 1.11Mt @ 1.75g/t for 59,292 ounces. The Blackmans satellite open pit (refer Figure 6) located 30km north of Mt Magnet, was also mined within the 2017 FY. Activities commenced in September 2016 and the bulk of mining was completed by June 2017. A small extension of a shallow laterite ore zone was mined just after the end of the financial year. Due to complexity of the mineralisation, which comprises of narrow – discontinuous vein sets, mined ore grade was diluted and lower than reserve, however total claimed ounces were higher. Total high-grade claimed mined for the pit was 356,273t @ 1.61g/t for 18,418oz versus a Reserve of 243,718t @ 2.00g/t for 15,657oz. Milling of high-grade and low-grade ore was still in progress at the end of the financial year. Figure 6: Blackmans open pit April 2017 The major open pit focus for the 2017 financial year was at the Titan pit (refer Figure 7). Ore production commenced in July 2016 and ramped up considerably from February 2017, once the cutback reached the base of the old pit. At the end of FY2017 ore grade at Titan was performing significantly better than predicted reserve grades and ore production was exceeding mill capacity. Approximately 400,000 tonnes @ 1.25g/t of ore had been stockpiled at end of June 2017 to assist with transition to the new Cosmos pits. 14 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Review of Operations Figure 7: Galaxy open pits April 2017 with Titan ore stockpiles in foreground Water Tank Hill The Water Tank Hill underground project commenced in the December 2016 Quarter. Access was gained via rehabilitation of the St George underground decline, followed by the mining of two link drives 300m across to the Water Tank Hill orebody. Ore development and initial ore production occurred during June 2017. High grade BIF hosted ore (refer Figure 8) is occurring as modelled and appears to be reconciling well at this early stage. Reconciled mill production was 2,684 tonnes @ 7.19g/t for 583 ounces recovered. Figure 8: Water Tank Hill high grade ore face 235 level (yellow is Au g/t) RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 15 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations Vivien Gold Mine Significant progress was made at Vivien with mining achieving full production rates by the June 2017 quarter. This was later than initially planned, however alterations to the mine plan were made to allow for emplacement of cemented rock fill (CRF) floor pillars (300 & 260 levels) and use of CRF rib pillars in high- grade zones (refer Figure 9). The use of CRF pillars will allow for 100% extraction of high-grade lode zones and improve the project overall value. Mill reconciled production for the year was 207,574t @ 7.17g/t for 46,144 ounces of fine gold. Stope production accounted for 33% of mined ore. A resource model update was generated in January 2017 and a new ore reserve generated in February 2017. Inclusion of grade control data and increased geological confidence boosted the Resource and Reserve figures and the net Reserve change for 12 months was +5,000oz after mining depletions. Mine life will be extended to at least late 2019 based on these new Reserves. Ore Reserves at 30 June 2017 were 440,000 tonnes @ 7.3g/t for 103,000 ounces (refer Table 3). Eleven underground diamond holes totalling 3,703.1m were completed from the 247mRL hangingwall drill drive, with most holes intersecting the target quartz vein. Three deeper holes intersected a wider quartz vein in the lode position around 200 metres below the current mine plan, with results returned as below:  2.9m at 4.40 g/t Au from 367.09m in VVDD1059  2.8m at 3.10 g/t Au from 344.0m in VVDD1062  5.6m at 5.20 g/t Au from 330.4m in VVDD1064 Further infill drilling is being planned for the 2018 financial year. Figure 9: Vivien development progress (grey) – oblique view to west 16 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Review of Operations Kathleen Valley Gold Mine The Kathleen Valley gold project was completed in September 2016. The project lasted 16 months from initial clearing and setup to completed site rehabilitation (refer Figure 10). Four pits were mined and the project was a major success for Ramelius. Although it mostly contributed in the 2016 financial year, final mining of the Nil Desperandum pit and ore milling continued into FY2017, with production of 131,761t @ 3.36g/t for 13,271 ounces of fine gold. Total reconciled production for the project was 468,011t @ 4.53g/t for 65,244 ounces recovered. Ore tonnes, grade and mill recovery were all greater than feasibility figures resulting in a 54% increase over the expected feasibility study cash flow. Figure 10: Kathleen Valley rehabilitation – view to west RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 17 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations DEVELOPMENT PROJECTS Cosmos Project Cosmos consists of the Milky Way, Stellar, Stellar West and Shannon deposits located 1.5km south of Galaxy and 3.5km south-west of the Checker mill. The 2017 financial year saw significant progress in drilling, resource modelling, mine design and obtaining mining approval (June 2017) for the project. Milky Way is a large, lower grade resource, with gold occurring in stockwork style, sericite-silica-pyrite veining and alteration within a thick altered felsic porphyry unit. Stellar and Stellar West are of a similar style. Historic pits exist for Milky Way, Stellar and Shannon. Stellar West is a new pit. The existing 67m deep, Milky Way pit was mined in 1999 to 2000 by Mt Magnet Gold (WMC) and produced 626,723 tonnes @ 1.64 g/t for 33,073 ounces of gold. Mining of the Milky Way and Stellar West pits commenced in July 2017 at the start of the 2018 financial year. The Milky Way ore reserve is 1.84Mt @ 1.3g/t for 77,000oz, while Stellar West contributes 267,000t @ 1.8g/t for 15,000oz (refer Table 3). The Cosmos pits are expected to provide the major ore sources over the 2018 and 2019 financial years. The Shannon deposit is located 700m south of Milky Way. Resource drilling conducted during the 2017 financial year has extended and improved the resource considerably and a viable pit cutback was generated (refer Figure 11). Shannon, while also felsic hosted, is a shear or lode style deposit centred on a high-grade quartz vein. It is between 2 and 10m thick strikes north and has a moderate dip of 40 - 45°. Drilling during the year included many economic hits with examples such as:  6m at 14.4 g/t Au from 247m in GXRC0549  4m at 6.13 g/t Au from 104m in GXRC0550  9m at 19.7 g/t Au from 144m in GXRC0553  6.2m at 39.5 g/t Au from 168.8m in GXDD0056 At the end of FY2017 further drilling was in progress and a new resource update was planned. Potential for an underground mine will be evaluated. Figure 11: Shannon cross section 18 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Review of Operations Morning Star Open Pit A new open pit resource model was generated for Morning Star in April 2017, incorporating a significant amount of new drilling completed in the 2017 financial year. The total mineral resource is now 9.19Mt @ 1.7g/t for 506,000 ounces (refer Table 2). Pit optimisation and design work generated an updated Ore Reserve as shown below. Work has also commenced on environmental requirements with a view towards submitting a Mining Proposal in the 2018 financial year. Mineral Resources and Ore Reserves New estimates of Mineral Resources and Ore Reserves as at 30th June 2017 are shown below in Table 2 and 3 respectively. MINERAL RESOURCES AS AT 30 JUNE 2017 - INCLUSIVE OF RESERVES Measured Indicated Inferred Total Resource Deposit Tonnes Au ('000s) g/t Au Oz Tonnes ('000s) Au g/t 92 1.8 5,000 5,254 4,866 49 2.2 4,000 115 Eastern Jaspilite 146 2.2 10,000 199 2.5 16,000 277 Galaxy Morning Star Bartus Group Boomer Britannia Well Bullocks Eclipse Golden Stream Hill 60 Lone Pine Milky Way O'Meara Group Shannon Spearmont - Galtee Stellar Stellar West Welcome - Baxter Total Open Pit Deposits Hill 50 Deeps Morning Star Deeps Saturn UG Water Tank Hill UG Total UG deposits Mt Magnet Stockpiles Mt Magnet Total Western Queen South Coogee Vivien Kathleen Valley Other Projects Total 222 708 279 1.6 2.0 5.5 279 594 1,581 5.5 1.2 2.3 Au Oz Tonnes ('000s) 318,000 4,017 301,000 4,322 8,000 68,000 12,000 21,000 11,000 12,000 14,000 15,000 238 786 40 134 41 7 309 147 114,000 1,258 18,000 27,000 2,000 32,000 22,000 15,000 151 81 207 124 97 198 1,010,000 12,157 209,000 26,000 396 334 1,607 49,000 89 284,000 2,426 Au g/t 1.2 1.5 1.6 1.0 2.5 2.5 2.1 1.7 4.6 1.7 1.2 1.5 3.9 4.3 1.9 1.1 1.8 1.5 6.4 5.0 2.5 4.9 3.5 Au Oz 159,000 205,000 Tonnes ('000s) 9,364 9,188 12,000 402 26,000 1,980 3,000 11,000 3,000 - 46,000 8,000 179 242 401 208 160 309 623 50,000 3,918 7,000 10,000 28,000 7,000 3,000 11,000 383 330 232 761 511 696 589,000 29,886 81,000 1,607 53,000 528 127,000 1,607 14,000 318 275,000 4,060 1.9 1.9 2.1 1.8 2.0 3.3 2.8 2.2 2.9 1.7 1.3 2.5 3.3 2.9 1.5 1.7 1.6 1.8 7.0 4.2 6.6 6.5 2.2 3.6 3.6 6.7 3.4 5.4 2.3 1,294,000 14,582 12,000 4,000 114,000 24,000 154,000 81 65 174 523 844 1,448,000 15,426 1.8 3.4 3.3 5.5 2.5 3.3 1.9 864,000 34,539 9,000 7,000 31,000 42,000 185 96 785 745 89,000 1,812 953,000 36,351 Au g/t 1.6 1.7 1.8 1.5 2.0 3.2 2.4 2.1 2.8 4.6 1.9 1.3 2.1 3.5 4.1 1.6 1.6 1.7 1.7 6.6 4.7 2.5 6.1 4.7 1.2 2.0 3.5 3.4 6.9 2.8 4.7 2.2 Au Oz 482,000 506,000 24,000 94,000 12,000 24,000 32,000 15,000 14,000 46,000 39,000 164,000 25,000 37,000 30,000 39,000 25,000 37,000 1,645,000 339,000 79,000 127,000 63,000 608,000 23,000 2,276,000 21,000 11,000 175,000 66,000 273,000 2,549,000 1,194 179 202 121 167 154 2,660 231 249 25 637 414 276 11,000 46,000 17,021 49,000 932 195 229 49,000 1,355 118,000 18,376 104 31 530 222 886 23,000 - - - - 594 Total Resources 1,581 2.3 118,000 19,262 Note: Figures rounded to nearest 1,000 tonnes, 0.1 g/t and 1,000 ounces. Rounding errors may occur. Table 2: 2017 Mineral Resource Statement  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 19   REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations ORE RESERVE STATEMENT AS AT 30 JUNE 2017 Tonnes ('000s) Proven Au g/t Probable Total Reserve Au Oz Tonnes ('000s) Au g/t Au Oz Tonnes ('000s) Au g/t Au Oz Galaxy Pits Titan Brown Hill Brown Hill North Vegas Cosmos Pits Milky Way Stellar Stellar West Shannon Morning Star Pit Morning Star Satellite Pits Boomer Lone Pine O'Meara Golden Stream Underground Water Tank Hill Stockpiles Mt Magnet Total Vivien Underground Total Reserves 8 1.6 - 594 602 602 1.2 1.2 23,000 23,000 1.2 23,000 213 623 18 192 1,836 388 267 208 1,099 132 258 46 95 167 5,541 440 5,982 1.5 1.6 2.6 1.4 1.3 1.5 1.8 2.9 1.9 2.9 1.8 3.4 3.0 11,000 31,000 2,000 8,000 77,000 19,000 15,000 20,000 221 623 18 192 1,836 388 267 208 68,000 1,099 12,000 15,000 5,000 9,000 6.5 34,000 1.8 7.3 326,000 103,000 2.2 429,000 132 258 46 95 167 594 6,143 440 6,583 1.5 1.6 2.6 1.4 1.3 1.5 1.8 2.9 1.9 2.9 1.8 3.4 3.0 6.5 1.2 1.8 7.3 2.1 11,000 31,000 2,000 8,000 77,000 19,000 15,000 20,000 68,000 12,000 15,000 5,000 9,000 34,000 23,000 349,000 103,000 452,000 Note: Figures rounded to nearest 1,000 tonnes, 0.1 g/t and 1,000 ounces. Rounding errors may occur. Table 3: 2017 Ore Reserve Statement  20 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017       Ramelius Resources Limited Review of Operations EXPLORATION During the 2017 financial year Ramelius explored a suite of gold exploration projects at various stages of advancement, as shown on Figure 12. Figure 12: FY2017 Brownfields & Greenfields Exploration Projects Mt Magnet (WA) (Ramelius 100%) Exploration activity at Mt Magnet during the year focused on drilling the shallow depth extensions to the Morning Star deposit ahead of resource modelling as well as exploring the Morning Star Deeps, below 1km from surface, along with scoping for open pittable porphyry hosted gold mineralisation within the larger Boogardie Basin (refer Figure 13). An aggregate of 43,331m of exploration RC drilling and 7,208.7m of diamond drilling, as part of the Phase 1 Morning Star Deeps programme, was completed. The Company also commenced an aggressive campaign of Aircore drilling throughout the Boogardie Basin. The drilling aimed to penetrate well into fresh rock below the base of oxidation around 50m below surface. Truly representative fresh drill chip samples amenable to alteration mapping and bottom of hole trace element determinations were collected. An aggregate of 79,106m was drilled throughout the year. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 21 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations Figure 13: Location of the Boogardie Basin and Morning Star pit relative to the active mining areas MORNING STAR OPEN PIT EXTENSION A series of deeper RC drill holes was completed below the Morning Star pit to test for blind mineralised porphyry and/or banded iron formation units away from the historically mined high grade lode positions (refer Figure 14). Better intersections returned from the Morning Star drilling include:  10m at 6.56 g/t Au from 290m in GXRC1464  21m at 1.91 g/t Au from 225m in GXRC1465 and  11m at 2.21 g/t Au from 259m in GXRC1465  7m at 5.16 g/t Au from 152m in GXRC1470, incl. 1m at 30.2 g/t Au  14m at 40.71 g/t Au from 39m in GXRC1471, incl. 3m at 186.3 g/t Au  12m at 2.06 g/t Au from 47m in GXRC1472  15m @ 3.49 g/t Au from 111m in GXRC1520, incl. 5m @ 6.25 g/t Au  10m @ 2.89 g/t Au from 166m in GXRC1524  3m @ 11.47 g/t Au from 180m in GXRC1524  4m @ 20.21 g/t Au from 113m in GXRC1525, incl. 1m @ 75.5 g/t Au  12m @ 5.53 g/t Au from 173m in GXRC1525, incl. 2m @ 24.48 g/t Au  41m at 1.95 g/t Au from 11m in GXRC0536  20m at 4.20 g/t Au from 24m in GXRC0540 22 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Review of Operations BLACK CAT SOUTH RC drilling targeted the saddle between the Morning Star pit and the Black Cat South pit (refer Figure 15). Drilling was testing the historically mined chert/banded iron hosted mineralisation as well as quartz veins in mafic volcaniclastics and mineralised porphyry lenses in the hangingwall (west of the historically mined main lode). Better reported results include:  7m at 5.98 g/t Au from 100m in GXRC1509, incl. 1m at 27.3 g/t Au  3m at 7.36 g/t Au from 83m in GXRC1510, incl. 1m at 17.35 g/t Au  3m at 9.08 g/t Au from 61m in GXRC1511, incl. 1m at 20.9 g/t Au  7m at 3.25 g/t Au from 109m in GXRC1540  7m at 4.06 g/t Au from 209m in GXRC1541  3m at 15.95 g/t Au from 119m in GXRC1578 PARIS OPEN PIT RC drilling was completed under the shallow Paris open pit located 1km south of Morning Star, half way towards the Water Tank Hill/St George portal. The mineralisation at Paris is hosted by banded iron formation, believed to be the strike extension of the Nathan BIF at Morning Star that extends southwards to Water Tank Hill/St George. Very encouraging gold intersections were encountered from this first pass test and additional step out drilling is planned during FY2018. Better results include:  22m at 5.85 g/t Au from 31m in GXRC0530, incl. 7m at 13.05 g/t Au  22m at 1.77 g/t Au from 25m in GXRC0533 HESPERUS EAST Broad zones of significant gold mineralisation were returned from selected RC drilling east of the Hesperus pit (refer Figure 13). The deeper RC holes have shown good dip continuity of mineralised intersections. Gold mineralisation is associated with a series of north-northwest striking felsic porphyry rocks intruding into the mafic/ultramafic stratigraphy. They are disrupted by the north-easterly trending Boogardie Breaks. Better porphyry hosted drill results occur where the Boogardie Breaks intersect the porphyry units, and include:  20m at 1.23 g/t Au from 31m in GXRC1501  16m at 1.32 g/t Au from 105m in GXRC1505  20m at 1.34 g/t Au from 44m in GXRC1506 and  12m at 2.44 g/t Au from 26m in GXRC1507 MORNING STAR UPPER ZONE Detailed logging and sampling of the Morning Star Deeps parent hole (MSD0056) identified gold mineralisation associated with the down dip projection of the Evening Star Chert around 700mbs (Figure 16). An encouraging drill intersection of 3.75m at 15.58 g/t Au from 714m was returned. While subsequent wedges (I and H) drilled up and down dip (35m away) failed to define any immediate plunge continuity, the result is considered encouraging as it highlights the potential for high grade mineralised shoots to be developed within the upper levels of the Evening Star Chert, between 300 – 700m below surface. The broader target (Morning Star Upper Zone) is very poorly drill tested to date. Further exploratory drilling is scheduled during FY2018. MORNING STAR DEEPS Deeper exploratory diamond drilling down to 1,500mbs was completed as follow-up to highly encouraging historical diamond drill hole intersections (completed in 1999), including:  16m at 9.05 g/t Au from 1,145m in MSD0044F and  11.6m at 9.99 g/t Au from 1,178m in MSD0044F and  8.0m at 10.20 g/t Au from 1,196m in MSD0044F RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 23 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations As part of its Phase 1 drilling campaign, Ramelius completed 13 wedges, including the parent diamond hole, MSD0056, for an aggregate 7,208.7m (refer Figure 17). Better results from the diamond drilling include:  4.90m at 26.49 g/t Au from 1277.30m in MSD0056C  4.80m at 4.70 g/t Au from 1293.0m in MSD0056C  6.89m at 8.78 g/t Au from 1,355.81m in MSD0056E, including 1.62m at 14.52 g/t Au  7.05m at 9.07 g/t Au from 1202.10m in MSD0056I, including 3.90m at 15.13 g/t Au  4.80m at 9.62 g/t Au from 1183.20m in MSD0056I, including 0.56m at 77.2 g/t Au  10.00m at 5.43 g/t Au from 1128.00m in MSD0056J, including 6.05m at 8.61 g/t Au  8m at 4.65 g/t Au from 1190.00m in MSD0056K  2.13m at 8.19 g/t Au from 1173.92m in MSD0056L The plunge of the high-grade shoots is depicted in Figure 17. The mineralised keel intersections sit along the folded contact between basaltic flows and andesitic tuffs. Younging indicators suggest the rocks are overturned, hence those lodes that lie above the contact in the overlying (older) basaltic flows are termed hangingwall lodes whilst those that lie below the contact in the underlying (younger) andesitic tuffs and flows are termed footwall lodes. Figure 14: Morning Star pit plan view highlighting the Morning Star Deeps section A-B’ and the saddle between Morning Star & Black Cat South pit B-C’ 24 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Review of Operations Figure 15: North-south section (B-C’) through the saddle region between the Morning Star and Black Cat South pit looking east (see Figure 14 for location) Open pit mining at Mt Magnet Gold Mine RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 25 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations Figure 16: Section through A-B’ (see Figure 14 for location) highlighting the recent Morning Star Upper drilling results and historical Deeps drilling assays The underground tag board at Vivien Gold Mine 26 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Review of Operations Figure 17: Zoom of Morning Star Deeps section through A-B’ (see Figure 14 for location) highlighting the recent Deeps drilling results. The mineralisation remains open with depth, plunging out of the plane of the diagram BOOGARDIE BASIN – AIRCORE DRILLING Regional Aircore drilling traverses within the Boogardie Basin continued throughout the year. The Aircore drilling was targeting porphyry-ultramafic contacts in areas of ineffective historical drilling coverage as well as targeting shallow plus 100ppb gold in regolith anomalies and/or historical bottom of shallow RAB/Aircore anomalies where present. The drilling successfully delineated coherent plus 100ppb gold in saprolite anomalies, below the limit of historical shallow drilling. Significant, mappable geochemical patterns are now being recognised along the northeast trending Boogardie Break corridors. Several new prospect areas have been identified from the drilling programmes and will be the focus of deeper RC drill testing during FY2018. ZEUS PROSPECT Exploration drilling adjacent to the Stellar West deposit delineated significant quartz vein hosted gold mineralisation along the western flank of the newly named Zeus Porphyry. A single reconnaissance RC drill hole (GXRC1492) returned a highly encouraging intersection of 8m @ 12.20 g/t Au from 65m, to end of hole, associated with the abundant quartz veining within altered porphyry on the contact with ultramafics. This intersection correlates well with the significant porphyry hosted Aircore drill results up to 19m @ 1.31 g/t Au from 32m, located 140m further north. Initial RC drilling showed very encouraging intersections, including 20m at 1.11 g/t Au from 70m in GXRC1542 and 18m at 3.40 g/t Au from 103m in GXRC1543 within broader, mineralised porphyry intervals up to 67m at 1.47 g/t Au from 54m. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 27 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations Subsequent step out RC drilling (50-100m spacings) over the 500m striking trend at Zeus (see Figures 18 and 19) returned broad intervals of gold mineralisation associated with a blue quartz eye diorite porphyry intrusion. Better intersections included:  229m at 0.41 g/t Au from 59m in GXRC1626  9m at 4.59 g/t Au from 116m to EOH in GXRC1634, including 1m at 28.3 g/t Au  101m at 0.59 g/t Au from 115m in GXRC1628, and  141m at 0.59 g/t Au from 36m in GXRC1646 True widths remain undetermined at the time of reporting given the multiple shear/lode orientations interpreted in the data, but the favoured interpretation is a series of tension gashes (ladder vein arrays) dipping 450 east and constrained by the quartz eye diorite host (refer Figure 18). Further infill drilling is planned for FY2018. Figure 18: RC drilling cross section through the Zeus Prospect. Gold mineralisation is interpreted to be preferentially controlled by zones of tension gashes (ladder vein sets) within the competent quartz eye diorite host 28 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Review of Operations Figure 19: Overview map of the Boogardie Basin highlighting maximum downhole gold ppm from drilling. The gold geochemistry is overlying a 1VD-RTP aeromagnetic image and the mapped/interpreted extent of the felsic porphyry intrusions; as constrained by the magnetic data and drilling to date. Litho-structural corridors favourable for the ingress and deposition of significant gold mineralisation are now being highlighted. The confluence of structures and/or their intersection with buried porphyry contacts represent primary targets for shallow plunging ore shoots to be developed. This interpretive 3-D modelling is ongoing. The newly discovered Zeus Prospect (highlighted) is shown in the top left hand corner of this figure and now extends over 500m on or near the confluence of the NE trending shear and an inferred NNW trending thrust. Kathleen Valley Gold Project (WA) (Ramelius 100% - Gold Rights Only) No significant results (>0.5 g/t Au) were returned from a programme of 6 deeper RC drill holes (1,267m) early in the year, targeting the down dip faulted offset to the Mossbecker pit mineralisation, referred to as the Boris Zone. Liontown Resources Limited (ASX: LTR) subsequently acquired the Kathleen Valley Project tenements from Ramelius; including 100% of the rare metal rights (lithium, tantalum and associated metals); see ASX Release from LTR dated 4 August 2016. Under the terms of the Tenement Sale Agreement Ramelius retains 100% of the gold rights to the tenement package and the Company will continue to explore for buried gold mineralisation within the project as new targets are identified. Coogee Gold Project (WA) (Ramelius 100%) Two shallow diamond drill holes were completed early in the year for an aggregate 240m. The drilling was testing below gold anomalous bottom of hole Aircore intersections reporting up to 1m at 1.38 g/t Au from 27m at the Coogee Beach prospect (refer Figure 20). No significant results were returned. Consequently, the decision was made to farm-out the Coogee Project. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 29 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations Figure 20: Coogee Beach (EL26/177) Aircore anomaly draped over a 1VD-RTP aeromagnetic image. Coogee Beach is 2km west of the now mined Coogee Pit Tanami JV (NT) (Ramelius 85%) Ramelius holds 85% equity in the Tanami Joint Venture and continues to sole fund the exploration expenditure, free carrying Tychean Resources Limited (ASX:TYK) through to any decision to mine. The package of joint venture tenements extends over 1,700km2 and is located within 100km radius of Newmont’s giant +20 million ounce Callie Gold mine (Figure 21). An aggregate 5,780m of reconnaissance Aircore drilling was completed over the Highland Rocks ELs during the year (HRAC0001 – 167). Disappointingly, only low order gold anomalism was returned from the drilling program (see ASX Release dated 19 December 2016). 30 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Review of Operations Figure 21: Tanami JV project location Vivien Gold Project (WA) (Ramelius 100%) No surface gold exploration was undertaken during the year over the Vivien leases. Underground mine extension drilling commenced once a suitable cuddie access was established, see Vivien Gold Mine Operations for details. Yandan Project (QLD) (Ramelius 100%) The Yandan North EPM is located 10km north and along strike of the abandoned Yandan gold mine which historically produced over 350,000oz of gold. Greenfields exploration was undertaken over the Yandan leases that included field mapping and rock chip sampling that identified several areas of outcropping hydrothermal sulphidic breccias. A ground magnetic survey (60 line km) and an induced polarisation (IP) survey (approximately 9 line km) were undertaken that defined several deeper drill targets which will be tested during the first quarter of the 2018 financial year. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 31 REVIEW OF OPERATIONS Ramelius Resources Limited Review of Operations Figure 22: Geology map of the Yandan North EPM showing the mapped hydrothermal breccia outcrops and rock chip sample locations Drillhole Intercepts Note: All drillhole intercepts listed or displayed above have previously been reported in RMS ASX JORC compliant releases during the 2017 Financial Year. The Information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Kevin Seymour (Exploration Results), Rob Hutchison (Mineral Resources) and Duncan Coutts (Ore Reserves). Kevin Seymour, Rob Hutchison and Duncan Coutts are all Members of the Australasian Institute of Mining and Metallurgy and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity they have 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”. Kevin Seymour, Rob Hutchison and Duncan Coutts are full-time employees of Ramelius Resources Limited and consent to the inclusion in this report of the matters based on their information in the form and context in which it appears. 32 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 GLOSSARY OF TERMS Ramelius Resources Limited Glossary of Terms ADSORPTION: AEROMAGNETICS: AIRCORE: ANOMALOUS: ANDESITE: ARCHAEAN: AURIFEROUS: AUGER: AS: ASX: AU: AZ: BASALT: BASE METAL: BCM: BERM: BIF: BIOTITE: BRECCIA: CALCRETE: CARBONATE: CHERT: CHLORITE: CIL CIRCUIT: COMPANY: CONGLOMERATE: COSTEAN: CU: CUDDY: CUT: DEAD BULLOCK FORMATION: DIAMOND DRILLING The attraction of molecules (of gold) in solution to the surface of solid bodies (carbon). A geophysical technique measuring changes in the earth’s magnetic field from an airborne craft. A method of rotary drilling whereby rock chips are recovered by air flow returning inside the drill rods rather than outside, thereby providing usually reliable samples. A departure from the expected norm. In mineral exploration this term is generally applied to either geochemical or geophysical values higher or lower than the norm. Fine grained intermediate volcanic rock, chemically similar to diorites. The oldest rocks of the Earth’s crust – older than 2,400 million years. Gold bearing material. A screw-like boring or drilling tool for use in clay or soft sediments. Arsenic. The Australian Securities Exchange Limited (ACN 008 629 691). Gold. Azimuth, a surveying term, the angle of horizontal difference, measured clockwise, of a bearing from a standard direction, as from north. Dark coloured fine grained extrusive igneous rock that is the most common rock type of lava flows. Non-precious metal, usually referring to copper, zinc and lead. Bank Cubic Metre. Usually refers to the volume of waste measured in situ. A horizontal bench left in the wall of an open pit to provide stability to the wall. Banded Iron Formation. A mineral of the mica group widely distributed in a variety of rock types. Poorly sorted cemented angular rock fragments. Soil and superficial material cemented by calcium carbonate. A common mineral type consisting of carbonates of calcium, iron and/or magnesium. A microcrystalline sedimentary rock consisting of silica and formed by chemical or biological processes. A representative of a group of micaceous greenish minerals which are common in low grade schists and is also is a common mineral associated with hydrothermal ore deposits. That part of the gold treatment plant where gold is dissolved from the pulverised rock and subsequently adsorbed onto carbon particles from which the gold is ultimately recovered. Ramelius Resources Limited (ACN 001 717 540) Rock consisting of rounded or sub-rounded fragments A trench dug through soil to expose the bedrock. Copper. Drill cuddy refers to an underground drill site excavated off the decline/development drive. A term used when referring to average assays where the grade of a particularly high- grade interval is reduced to a lesser value. Tanami Goldfield stratigraphically significant formation comprised of Blake Beds interbedded siltstones and carbonaceous siltstones, cherts and Callie laminated sedimentary beds/schists overlain by the Davidson Beds including the Orac cherts and schist overlain by the Coora Dolerite, in turn overlain by the Schist Hill Formation (BIF). Type of drilling where sample collection gives a continuous run of solid core which can be oriented, measured and sampled. Usually half core is sampled for analysis, leaving half core for future geological reference. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 33 GLOSSARY OF TERMS Ramelius Resources Limited Glossary of Terms DISSEMINATED: DIORITE: DIP: DYKE: EL: ELA: EM: EOH: EPM: EPMA: EPITHERMAL: FAULT: F.C.I: FELSIC: Usually referring to minerals of economic interest scattered or diffused through-out the host rock. A course grained intermediate plutonic rock (cf andesite). The angle at which rock stratum or structure is inclined from the horizontal. Tabular igneous intrusive cutting the bedding or planar features in the country rock. Exploration Licence. Exploration Licence Application. Electromagnetic, a geophysical technique used to detect conductive material in the earth. End of Hole. Exploration Permit for Minerals, Queensland State equivalent to an EL Exploration Permit for Minerals Application High level (shallow depths – less than 1km deep), low temperature (< 300deg C) hydrothermal (gold) mineralising processes formed in magmatic arc environments (including rifts). Distinguished as low or high sulphidation systems. A fracture in rocks along which rocks on one side have been moved relative to the rocks on the other. Free carried interest. Light coloured rock containing an abundance of any of the following: - feldspars, felspathoids and silica. Containing iron. A Mining Term for the different levels in an open pit. Lower surface sitting below an inclined vein or dipping fault, cf hangingwall. FERRUGINOUS: FLITCH: FOOTWALL: GEOCHEMICAL EXPLORATION: Used in this report to describe a prospecting technique, which measures the content GEOPHYSICAL EXPLORATION: G/CC: G.I.C: G/T: GOSSAN: GROSS GOLD ROYALTY: GRADE: GRANITE: GRATICULAR BLOCK: GRAVITY CIRCUIT: GSWA: HA: HANGINGWALL: HG: HYPOGENE: INTERFACE: IP: 3-D IP: of certain metals in soils and rocks and defines anomalies for further testing. The exploration of an area in which physical properties (e.g. Resistivity, gravity, conductivity and magnetic properties) unique to the rocks in the area quantitatively measured by one or more geophysical methods. Grams per cubic centimetre. Gold in circuit. Grams per tonne, equivalent to parts per million (ppm). The oxidised, near surface part of underlying primary sulphide minerals. A royalty payment based on the total amount of product (gold) produced. g/t – grams per tonne, ppb – part per billion, ppm – parts per million. A coarse grained igneous rock consisting of quartz, feldspar and biotite/muscovite plus accessory minerals With respect to Exploration Licences, that area of land contained within one minute of Latitude and one minute of Longitude. Part of the Gold Treatment Plant where gold particles are accumulated by virtue of their density. The Geological Survey of Western Australia. Hectare. Upper surface sitting above an inclined vein or dipping fault, cf footwall. Mercury. Term used to describe the formation of mineral deposits originating by ascending fluids, below any near surface supergene enrichment. Low level geochemical sampling medium located at the base of transported overburden and the top of the prospective host rock lithologies. Induced Polarisation, electrical, ground geophysical exploration technique. Three dimensional IP survey, designed to detect trends oblique to the IP survey grid, of conventional 2-D surveys grids established orthogonal to the targeted trends. 34 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Glossary of Terms IRG: JORC: KM: KOMATIITE: LAG: LATERITE: LEACHWELL: LODE DEPOSIT: LOW SULPHIDATION: LTI: MASSIVE: MINERALISED: M TONNES: M: MBS: MTPA: ML: MLA: NATIVE TITLE: NATIVE TITLE TRIBUNAL: NI: OPEN PIT: ORE GRADE: OVERCALL: OXIDISED: OZ: PALAEO: PB: PEDOGENIC: PENTLANDITE: PETROLOGICAL: PERCUSSION DRILLING: PD: PL: PLA: PLUNGE Intrusive related gold mineralised system, associated with vertically zoned (gold and base metals), skarned, veined or disseminated, often brecciated within or along margins of middle to high level magmatic intrusive rocks, being fractionated felsic/granitic plutons. The Australasian Code for Reporting of Mineral Resources and Ore Reserves. Kilometre. An ultramafic rock with high magnesium content extruded from a volcano. A residual deposit remaining after finer particles have been blown away by wind. Highly weathered residual material rich in secondary oxides or iron and/or aluminium. An analytical method. A vein or other tabular mineral deposit with distinct boundaries. Developed from near neutral pH circulating geothermal fluids at shallow levels in a rift (gold-silver+adularia rich mineralised veins) or an arc environment (quartz- sulphides-gold and affinities with magmatic source rocks). Loss Time Injury. Large in mass, having no stratification. Homogeneous structure. Rock impregnated with minerals of economic importance. Million tonnes. Metre. Metres below surface. Million tonnes per annum. Mining Lease. Mining Lease Application. Native Title is the recognition in Australian law of Indigenous Australian’s rights and interests in land and waters according to their own traditional laws and customs. In June 1992, the High Court of Australia, in the case of Mabo v Queensland (1992) 175 Commonwealth Law Reports 1, overturned the idea that the Australian continent belonged to no one at the time of European’s arrival. It recognised for the first time that indigenous Australians may continue to hold native title. Indigenous Australians may now make native title claimant applications seeking recognition under Australian law of their native title rights. The Native Title Tribunal set up under the Native Title Act 1993. Nickel. A mine excavation produced by quarrying or other surface earth-moving equipment. The grade of material that can be (or has been) mined and treated for an economic return. Refers to more metal (gold) being recovered than anticipated. Near surface decomposition by exposure to the atmosphere and groundwater, compare to weathering. Troy ounces = 31.103477 grams. Ancient or past times Lead. The development of soil. An important ore of nickel (FeNi)9S8 Pertains to a study of the origin, distribution, structure and history of rocks. Method of drilling where rock is broken by the hammering action of a bit and the cuttings are carried to the surface by pressurised air returning outside the drill pipe. Palladium. Prospecting Licence. Prospecting Licence Application. Being the angle between the axis and the horizontal line lying in a common vertical plane. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 35 GLOSSARY OF TERMS Ramelius Resources Limited Glossary of Terms PORPHYRY: PPB: PRIMARY GOLD: PROTEROZOIC: PT: PYRITE: PYRRHOTITE: QUARTZ: RAB DRILLING: RC DRILLING: REIDEL FAULT: REGOLITH: RESERVE: RESOURCE: RHYOLITE: ROCK CHIP SAMPLE: SAPROLITE: SB: SECONDARY GOLD: SEDIMENTARY ROCKS: SERICITE SHEAR ZONE: SILICIFIED/SILICA: STOCKWORK: STRATIGRAPHY: STRIKE: SULPHIDES: SUPERGENE: T: TEM: TENSION GASHES: TOLL TREATMENT: TONNE: TREMOLITE: TUFFS: ULTRAMAFIC: A felsic or sub volcanic rock with larger crystals set in a fine groundmass. Parts per billion. Gold mineralisation that has not been subject to weathering processes, as opposed to Secondary Gold. The Precambrian era after Archaean. Platinum. A common, pale bronze iron sulphide mineral. An iron sulphide mineral. Mineral species composed of crystalline silica. Rotary Air Blast Drilling: Method of drilling in which the cuttings from the bit are carried to the surface by pressurised air returning outside the drill pipe. Most “RAB” drills are very mobile and designed for shallow, low-cost drilling of relatively soft rocks. Reverse Circulation Drilling: A method of drilling whereby rock chips are recovered by air flow returning inside the drill rods rather than outside, thereby providing usually reliable samples. A slip surface that develops during the early stage of shearing. A layer of fragmented and unconsolidated material that overlies or covers basement. The mineable part of a resource to which a tonnage and grade has been assigned according to the JORC code. Mineralisation to which a tonnage and grade has been assigned according to the JORC code. Fine grained glassy acid (felsic) volcanic rock. A series of rock chips or fragments taken at regular intervals across a rock exposure. A chemically weathered rock typically representing deep weathering of bedrock. Antimony. Gold mineralisation that has been subject to and usually enriched by weathering processes. Rocks formed by deposition of particles carried by air, water or ice. Mica (layered lattice) mineral of the muscovite group typically found as a hydrothermal alteration mineral in gold deposits. A generally linear zone of stress along which deformation has occurred by translation of one part of a rock body relative to another part. Alteration of a rock by introduction of silica. Large scale ramifying and dichotomising series of fissures filled with mineral (silica-sulphides) material. The study of formation, composition and correlation of sedimentary rocks. The direction of bearing of a bed or layer of rock in the horizontal plane. Minerals consisting of a chemical combination of sulphur with a metal. Processes involving percolating groundwater including solution, hydration, oxidation and typically enrichment of immobile/insoluble metals or ions. Tonnes. Transient Electromagnetic, a geophysical technique used to detect conductive material in the earth. Ladder vein array or joint opened up as a result of tensional forces developed during deformation, usually becomes filled with quartz. The treatment of ores where payment is made to the operator of the treatment plant according to the amount of material being treated. 32,125 Troy ounces. A pale coloured amphibole mineral. General term for unconsolidated volcaniclastic/pyroclastic material, which upon consolidation becomes a tuff An igneous rock comprised chiefly of mafic minerals. 36 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Glossary of Terms UNCUT: VACUUM DRILLING: VOLCANICLASTIC ROCKS: YOUNGING: A term used when referring to average assays where the grade of a particularly high- grade interval is not reduced to a lesser value. A method of rotary drilling where the drill cuttings are recovered inside the drill rods by a vacuum system. Pyroclastic rocks where fragments of volcanic material have been blown into the atmosphere by explosive volcanic activity. Refers to orientation direction of the youngest (uppermost) rocks within the stratigraphic pile based upon volcanic textural evidence. Road Train from Blackmans Gold Mine RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 37 NATIVE TITLE STATEMENT Ramelius Resources Limited Native Title Statement Ramelius Resources Limited Native Title Statement Exploration and mining areas held by the Company may be subject to issues associated with Native Title. Whilst it is not appropriate to comment in any detail upon specific negotiations with Native title parties, the directors of Ramelius Exploration and mining areas held by the Company may be subject to issues associated with Native Title. Whilst it is believe it is important to state the Company’s policy and approach to Native Title and dealings with indigenous not appropriate to comment in any detail upon specific negotiations with Native title parties, the directors of Ramelius communities. believe it is important to state the Company’s policy and approach to Native Title and dealings with indigenous The directors believe that the following native title policy statement summarises the Company’s desire to develop a communities. spirit of cooperation in its dealings with indigenous people, create goodwill, mutual awareness and understanding and The directors believe that the following native title policy statement summarises the Company’s desire to develop a most importantly, respect and commitment. spirit of cooperation in its dealings with indigenous people, create goodwill, mutual awareness and understanding and Recognition and Respect most importantly, respect and commitment. Ramelius recognises Aboriginal regard for land and respects their culture, traditions and cultural sites. Recognition and Respect Ramelius recognises Aboriginal regard for land and respects their culture, traditions and cultural sites. Understanding and Trust Ramelius listens to Aboriginal community representatives to understand their views and beliefs. Recognising that Understanding and Trust communities may not be fully appreciative of how the Company’s business and industry operates, Ramelius works Ramelius listens to Aboriginal community representatives to understand their views and beliefs. Recognising that towards increasing their understanding, respect and trust and to promote the Company’s obligations and economic communities may not be fully appreciative of how the Company’s business and industry operates, Ramelius works constraints amongst indigenous communities. towards increasing their understanding, respect and trust and to promote the Company’s obligations and economic Ramelius ensures that its employees and contractors approach the Company’s activities at local sites with respect and a constraints amongst indigenous communities. clear understanding of important issues and priorities. Ramelius ensures that its employees and contractors approach the Company’s activities at local sites with respect and a Communication and Commitment clear understanding of important issues and priorities. Ramelius adopts practical measures to develop trust. Acknowledging that community leaders and representatives have Communication and Commitment an obligation to consult its people to determine their opinions and wishes and that this may often not be achieved as Ramelius adopts practical measures to develop trust. Acknowledging that community leaders and representatives have quickly as is desired, Ramelius uses its best endeavours to expedite the process and ensure that its commercial interests an obligation to consult its people to determine their opinions and wishes and that this may often not be achieved as are not adversely impacted. quickly as is desired, Ramelius uses its best endeavours to expedite the process and ensure that its commercial interests The Company also uses its best endeavours to ensure reasonable rights of consultation and continued access to land are are not adversely impacted. facilitated and the integrity of land is preserved. The Company also uses its best endeavours to ensure reasonable rights of consultation and continued access to land are The Company is committed to taking appropriate steps to identify and reduce the effects of any unforeseen impacts facilitated and the integrity of land is preserved. from its activities. The Company is committed to taking appropriate steps to identify and reduce the effects of any unforeseen impacts from its activities. Native vegetation in the Tanami area of Northern Territory Native vegetation in the Tanami area of Northern Territory 38 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 SUSTAINABILITY STATEMENT Ramelius Resources Limited Sustainability Statement The Ramelius Board of Directors maintains oversight of sustainability issues. Sustainability embraces how Ramelius conducts business and includes workforce occupational health and safety, social responsibility to the general community, minimising business operational impact on the environment and protecting the Company’s reputation as a gold producer in Australia. The following is a summary of how Ramelius deals with sustainability. Workforce health and safety Ramelius is committed to providing a healthy and safe environment for all employees and contractors. This is achieved as follows.  Creating a culture that promotes health and safety in the best interests of all workforce participants;  Regular site safety meetings which encourage identification of issues and continual improvement;  Strict mine site entry procedures and requirements including enforcement of a drug and alcohol policy and testing of site personnel;  Incident investigations and reporting to the Board;  Documented and regular review of emergency procedures and processes;  Ongoing staff training; and  Risk management. Social responsibility Ramelius endeavours to build and maintain a sustainable and diverse workforce focused on high performance. The Company publically reports to shareholders and investors to ensure they are informed on corporate governance issues and the entity’s approach to sustainability matters. The Company’s efforts in regards to social responsibility include the following.  Maintaining and reviewing the Company’s diversity policy which encourages a workforce comprised of individuals with diverse backgrounds, experiences, values and skills;  Encouraging staff training and ongoing professional development;  Acknowledgement of native title which promotes indigenous regard for land and respect of their culture, traditions and cultural sites;  Engagement of shareholders and investors through presentations, roadshows and information booths at various industry conferences;  Encouraging full participation of shareholders at the Annual General Meeting to ensure a high level of accountability and identification with the Company’s strategy and goals; providing security holders with an on- line voting facility to enable voting through a secure website or mobile device and providing the option to receive and send communications electronically;  Identification and ongoing management of economic and other business related risks including the maintenance of a risk register; and  Community support through sponsorships and donations. Environmental protection The Company has policies and procedures in place which aim to protect the environment. Ramelius seeks to comply with legislative requirements and to promote a high regard for the environment in conducting its business. Key areas on which Ramelius focuses to address this important sustainability issue are summarised below.  Environmental incidence documentation and reporting;  Addressing biodiversity issues as part of the Company’s planning for and conduct of exploration and mining activities including flora and fauna studies, native vegetation recording and disturbed land restoration;  Conducting environmental impact studies and preparing reports thereon including rehabilitation measures for government assessment as part of the process in seeking approval for proposed mining activities;  Undertaking appropriate waste product management activities including mine site sewage, tailings and other hazardous materials, dust and general waste;  Landfill rehabilitation and conducting ongoing restoration wherever possible;  Maintaining a focus on the efficient use of resources including water and power;  Implementing water and other resource recycling measures; and  Facilitating environmental pollution audits and reporting. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 39 SUSTAINABILITY STATEMENT Ramelius Resources Limited Sustainability Statement Water Resource Management Ramelius conducts open pit and underground gold mining and processing at Mt Magnet and underground gold mining at Vivien near Leinster in Western Australia where water management is an important and integral part of site operations. Mt Magnet Gold Project The Mt Magnet Gold Project is located in the Murchison province of Western Australia, on the border of desert and semi-desert Mediterranean climatic regions. Water availability can be scarce within these regions, particularly during the hotter, drier summer months. Water for the operations is sourced largely from a number of disused open pits which have filled with water over time. Utilising water from the disused pits reduces the operation’s reliance upon finite groundwater resources; however, a small number of groundwater abstraction bores are also maintained to supplement the water from these pits. A number of diversion drains have been installed to divert surface water into these pits during periods of high rainfall and these diversion drains have been installed in consultation with regulatory authorities. The majority of water used is in the processing of ore at the Checker Mill (processing plant), with the remainder utilised for dust suppression in surface mining areas and other incidental uses, such as offices and workshops. Water is also sourced from the dewatering of actively mined open pits and underground workings. Water from ore processing operations is recovered from the active tailings storage facility (TSF) and is recycled back through the processing plant. The project is located upstream from the Genga water reserve, managed by the Department of Water & Environmental Regulation (DWER), for the supply of water to the town of Mount Magnet, located to the south/south-west of the current active mining areas. The key recharge area for the Genga borefield is located approximately 5.3 km from the active mining areas. The wider Genga water reserve area, representing the surface water catchment area for the Genga borefield, is managed as a Priority 2 water source protection area and this is located approximately 1.7 km from current mining operations. Whilst previous hydrological studies by Ramelius and the DWER have determined that it’s unlikely that the active mining areas contribute surface water recharge to the Genga water reserve; Ramelius is committed to ensuring that mining operations do not impact upon the water quality or availability at the Genga borefield. Site personnel actively monitor groundwater quality and levels at all abstraction points and at a number of regional monitoring bores spread across the operation and also engage groundwater specialists to provide advice on the water supply network and for assessing any potential impacts to ground and surface waters. All statutory obligations are managed through annual reporting on the management of the Company’s operations activities to regulators responsible for the environment and water across several licence jurisdictions. The Mt Magnet Gold Project to date has not utilised the total volume allocation under its groundwater licence and always seeks where possible to minimise the utilisation of groundwater. Vivien Gold Project The Vivien Gold Project is an underground operation located directly below an existing open pit. All surplus water, in excess of site needs such as for dust suppression and mine services, is pumped to the Hidden Secret pit at Gold Fields’ Agnew gold mine approximately 8km away and used as process water for the Agnew processing plant. At mine closure, it is anticipated the local groundwater level will recover to levels similar to those currently seen in the base of the open pit. 40 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 DIVERSITY STATEMENT Ramelius Resources Limited Diversity Statement Ramelius Resources Limited Diversity Statement Ramelius acknowledges that benefits flow from a workforce comprised of individuals with diverse backgrounds, experiences, values and skills. The Company encourages recruitment based on qualifications, skills, abilities and merit to ensure workforce vacancies are filled with the most suitable employees available. Ramelius also encourages personal Ramelius acknowledges that benefits flow from a workforce comprised of individuals with diverse backgrounds, development and training of employees to achieve their full potential for the mutual benefit of Ramelius and employees. experiences, values and skills. The Company encourages recruitment based on qualifications, skills, abilities and merit to ensure workforce vacancies are filled with the most suitable employees available. Ramelius also encourages personal Workplace Gender Profile development and training of employees to achieve their full potential for the mutual benefit of Ramelius and employees. During the year, the Company updated its workplace gender profile as follows. Workplace Gender Profile During the year, the Company updated its workplace gender profile as follows. WORKPLACE PROFILE WORKPLACE PROFILE Women Men Casual % Full time Women Part time Full time Men Part time Women Men Total Staff Casual Women Men % Board* Senior Board* Executives/KMP’s Senior Managers Executives/KMP’s Professional Staff Managers Technical Staff Professional Staff Community & Technical Staff Personal Service Staff Community & Clerical & Personal Service Staff Administrative Staff Clerical & Machinery Operators Administrative Staff and Drivers Machinery Operators Other and Drivers Total Other 17 1 * Board includes Managing Director Total 17 Full time Part time Full 4 time 4 4 Part time Women Men Total 4 Staff 4 4 1 4 1 2 4 2 2 2 6 6 1 1 1 4 10 21 10 33 21 1 33 1 1 1 24 24 1 99 1 99 1 1 2 2 3 3 1 6 1 3 6 3 2 2 1 13 1 13 4 12 33 12 40 33 4 40 4 12 12 27 27 3 139 3 139 1 2 1 1 2 1 3 3 7 7 Women Men 100.0 100.0 100.0 100.0 91.7 81.8 91.7 90.0 81.8 25.0 90.0 8.3 18.2 8.3 10.0 18.2 75.0 10.0 75.0 91.7 25.0 8.3 91.7 3.7 8.3 96.3 3.7 33.3 19.4 33.3 19.4 96.3 66.7 80.6 66.7 80.6 * Board includes Managing Director Left to Right: John Dufall, Sarah Ferguson, Paul Marlow (behind), Danny Doherty, Gabe Crowe, Amanda Layther, Kylie Spark, Daniel Rooks and George Munroe at the Vivien Gold Mine near Leinster, WA. Left to Right: John Dufall, Sarah Ferguson, Paul Marlow (behind), Danny Doherty, Gabe Crowe, Amanda Layther, Kylie Spark, Daniel Rooks and George Munroe at the Vivien Gold Mine near Leinster, WA. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 41 CORPORATE GOVERNANCE STATEMENT Ramelius Resources Limited Corporate Governance Corporate Governance Statement Left to Right: Non-Executive Directors Kevin Lines, Mike Bohm and Bob Kennedy (Chairman) with Managing Director Mark Zeptner and Company Secretary Dom Francese The Board of Directors is responsible for the overall Corporate Governance of the Company including strategic direction, management goal setting and monitoring, internal control, risk management and financial reporting. In discharging this responsibility, the Board seeks to take into account the interests of all key stakeholders of the Company, including shareholders, employees, customers and the broader community. Ramelius Resources Limited is committed to conducting its business with high standards of ethics and corporate governance in the best interests of all stakeholders. The 2017 Corporate Governance Statement of Ramelius Resources Limited has been lodged with the Australian Securities Exchange Limited and is publically available from the investors section of the Company’s website at www.rameliusresources.com.au 42 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 R A M E L I U S R E S O U R C E S L I M I T E D ANNUAL FINANCIAL REPORT 2017 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 43 ANNUAL FINANCIAL REPORT 2017 DIRECTORS’ REPORT  Your directors present their report on the consolidated entity consisting of Ramelius Resources Limited and the entities  it controlled at the end of, or during, the year ended 30 June 2017.  Throughout the report, the consolidated entity is  referred to as the group.  Directors  The following persons were directors of Ramelius Resources Limited during the whole of the financial year and up to the  date of this report:  Robert Michael Kennedy  Mark William Zeptner  Kevin James Lines  Michael Andrew Bohm  Information on Directors  The following information is current as at the date of this report.  Robert Michael Kennedy  Qualifications  Independent Non‐Executive Chairman KSJ, ASAIT, Grad. Dip (Systems Analysis), Dip Financial Planning, Dip Financial  Services, FCA, CTA, AGIA, Life member AIM, FAICD, MRSASA  Experience  Mr Kennedy is a Chartered Accountant and brings to the Board his expertise and  extensive experience as Chairman and Non‐Executive Director of a range of listed  public companies in the resources sector.  Interest in Shares and  Options  Special responsibilities  Directorships held in other  listed entities in the last three  years  10,350,789 Ordinary Shares. Board Chairman, member of Audit & Risk Committee, and Nomination &  Remuneration Committee.  Chairman of Maximus Resources Limited, Monax Mining Limited, Tychean Resources  Limited and Non‐Executive Director of Flinders Mines Limited.  Previously a Non‐Executive Director of Crestal Petroleum Limited (formerly Tellus  Resources Limited and currently Firstwave Cloud Technology Limited) and Marmota  Energy Limited.  Mark William Zeptner  Qualifications  Managing Director BEng (Hons) Mining, MAusIMM, MAICD.  Experience  Interest in Shares and Options  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.  1,512,500 Ordinary Shares,  1,500,000 Options over Ordinary Shares exercisable at $0.299 expiring 11 June 2018,  1,500,000 Options over Ordinary Shares exercisable at $0.20 expiring 11 June 2019,  1,500,000 Options over Ordinary Shares exercisable at $0.20 vesting on 11 June 2018 and  expiring on 11 June 2020, and  500,000 Performance Rights over Ordinary Shares vesting on 11 June 2019 and expiring on 11  June 2026.   Special responsibilities  Chief Executive Officer.  Directorships held in other listed  entities in the last three years  None.  44 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 2                                                    DIRECTORS’ REPORT  Kevin James Lines  Qualifications  Experience  Independent Non‐Executive Director BSc (Geology), MAusIMM, MAICD.  Mr Lines is a geologist and has more than 35 years of experience in mineral exploration and  mining for gold, copper, lead, zinc and tin. He has held senior geological management  positions with Newmont Australia Limited, Normandy Mining Limited and the CRA group of  companies. He was the foundation Chief Geologist at Kalgoorlie Consolidated Gold Mines  where he led the team that developed the ore‐body models and geological systems for the  Super‐Pit Operations in Kalgoorlie and managed the Eastern Australian Exploration Division of  Newmont Australia Limited that included responsibility for the expansive tenement holdings  of the Tanami region. He brings to the Board his extensive experience in the assessment and  evaluation of exploration projects and development of properties and mining operations  overseas.  Interest in Shares and Options  1,000,000 Ordinary Shares.  Special responsibilities  Chairman of Audit & Risk Committee and member of Nomination & Remuneration  Committee.  Directorships held in other listed  entities in the last three years  None.  Michael Andrew Bohm  Qualifications  Independent Non‐Executive Director B.AppSc (Mining Eng.), MAusIMM, MAICD.  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 a number of project developments in the gold, base metals and  diamond sectors in both open pit and underground mining environments.  Interest in Shares and Options  1,237,500 Ordinary Shares.  Special responsibilities  Chairman of Nomination & Remuneration Committee and member of Audit & Risk  Committee.  Directorships held in other listed  entities in the last three years  Director of ASX‐TSX listed Perseus Mining Limited & ASX listed Mincor Resources NL.  Previously a Director of ASX listed Tawana Resources NL and Berkut Minerals Limited.  Directors’ Meetings  The number of directors’ meetings (including meetings of Committees of directors) and number of meetings attended by  each of the directors of Ramelius during the financial year are:  Director  Mr R M Kennedy  Mr M W Zeptner  Mr K J Lines  Mr M A Bohm  Board of Directors  A  14  14  14  14  B 14 14 14 14 A  Number of meetings attended  B  Number of meetings held whilst a director  C  Number of meetings held whilst a member  Audit & Risk Committee  Nomination & Remuneration  Committee  A 6 n/a 6 6 C 6 n/a 6 6 A  6   n/a  6  6  C 6 n/a 6 6 3  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 45                                                 ANNUAL FINANCIAL REPORT 2017 DIRECTORS’ REPORT  Company Secretary  Domenico Antonio Francese BEc., FCA, FFin, AGIA, ACIS  Appointed Company Secretary on 21 September 2001. Mr Francese is a Chartered Accountant with an audit and  investigations background and more than 12 years’ experience in a regulatory and supervisory role with the ASX. Principal Activities  The principal activities of the group during the year included exploration, mine development, mine operations and the  production and sale of gold.  There were no significant changes in those activities during the year.  Operating and Financial Review  Financial Review  Financial performance  Sales revenue  Cash cost of production  Gross margin excluding “non‐cash” items  Amortisation and depreciation  Inventory movements and write‐downs  Gross Profit (Loss)  Profit before income tax  Income tax expense  Profit for the year from continuing operations  $M $M  $M  $M  $M $M  $M  $M $M  Jun‐17 197.4 (119.0)  78.4  (60.0)  10.3 28.7  25.1  (7.4) 17.7  Jun‐16  173.7  (102.7)  71.0  (49.9)  11.8  32.9  25.3  2.4  27.7  Movement 23.7 (16.3)  7.4  (10.1)  (1.5) (4.2)  (0.2)  (9.8) 10.0  Sales revenue  Sales revenue for the year ended 30 June 2017 increased by 14% to $197.4 million compared to $173.7 million reported  in the previous corresponding period for the continuing operation, mainly due to:     greater gold production sold, up 11% to 121,031 ounces compared to 108,711 ounces sold greater average realised gold prices of A$1,628/oz, up 2% from the previous corresponding period greater silver sales, up 25% from $0.24 million to $0.30 million Sales revenue comparison ($M) $173.7 $3.5  $20.1 Gold price Production $0.1 Silver    sales    $197.4  250 200 150 100 50 0 Jun‐16 Jun‐17 Note: Excludes sales revenue from discontinued operations Profit after income tax from continuing operations  A profit after income tax was recorded for the year ended 30 June 2017 of $17.7 million, compared to a profit of $27.7  million in the previous corresponding. The gross profit was down on last year by $4.2 million primarily due to increased  costs of production which were offset by higher gold sales and average realised gold price. The higher tax expense in the  current year was because of a large tax benefit in the prior year due to $10.1 million of previously unrecognised tax losses  being recognised in 2016.  46 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 4      DIRECTORS’ REPORT  Cashflow  Net cash provided by operating activities for the year ended 30 June 2017 was $83.4 million compared to $65.5 million  in the prior year as a result of higher gold production and realised gold price. Net cash used in investing activities (which  included development and exploration activities) total $72.7 million for the year compared to $53.4 million in the prior  year. In July 2016, $25.0 million (before costs) was raised via the issuance of 50 million Ramelius shares at 50 cents per  share.  Cash on hand at the end of the financial year was $78.6 million, an increase of $34.3 million from the prior year.  Operations Review  Vivien mining area  The Vivien mining area performed well during the year and produced 37% of the group’s total fine gold production.  Area  Vivien  Operational commentary Type  Underground  Mining  activity  at  Vivien  continued  throughout  the  year  with  ore  extraction commencing  in  the  September  2016  quarter.  Ore  production  and  development  have  progressed  well  throughout  the  year.  Ore  continues  to  be  hauled  to  the  Checker processing facility at Mt Magnet and has been successfully blended with  both Kathleen Valley and Mt Magnet ore.  In  December  2016  an  updated  resource  model  was  generated  resulting  in  a  significant improvement in the Resource. This led to an updated life of mine plan for  the Vivien Mine.  Mt Magnet mining area  Operations at Mt Magnet continued on a multi pit basis throughout the 2017 financial year. A summary of the areas in  operation is provided as follows:  Area  Titan  Type  Open Pit  Operational commentary Initial mining of oxide and transition material saw high productivities with significant  low grade tonnages, additional to reserves, being identified and mined. A significant  jump in high grade ore production was achieved when operations reached the base  of the previous pit.  Mining is expected to continue into the second quarter of the 2018 financial year.  Perseverance  (Percy)  Open Pit  Produced the bulk of the ore in the early part of the year with grades performing  well although mining rates were lower due to working around stope voids.  Operations at the Perseverance pit concluded in February 2017.  Blackmans  Open Pit  Located 30km north of Mt Magnet. Works  commenced  in  September  2016  with  initial  ore  haulage  commencing  in  November 2016. Mining operations at the Blackmans satellite pit concluded in the  June 2017 quarter with ore haulage and processing to continue into the September  2017 quarter.   Water Tank Hill  (WTH)  Underground  Ore  development  commenced  in  early  June  2017  with  initial  mill  reconciled  production of 2,684 tonnes @ 7.19 g/t. Stoping production will commence in the  September 2017 quarter.  In conjunction with the Life of Mine (LoM) plan finalised in the June 2017 quarter, a tender process was conducted for  the open pit mining contract at Mt Magnet. Mining contractor MACA Mining Limited was the successful tenderer. MACA  commenced  operations at  the  Milky  Way  and Stellar West  open pits  in July 2017. The  incumbent  mining  contractor,  5  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 47                                       ANNUAL FINANCIAL REPORT 2017 DIRECTORS’ REPORT  WATPAC Mining & Civil, will continue operations into the September 2017 quarter at the Titan and Brown Hill North pits  and see these pits through to completion.  Kathleen Valley mine  Mining  activity  at  Kathleen  Valley  concluded  late  in  the  September  2016  quarter.  Rehabilitation  was  carried  out  concurrently  with  mining  activities  and  therefore  final  rehabilitation  work,  other  than  ongoing  monitoring,  was  also  completed. The Kathleen Valley project was very successful with recovered ounces of 65,244 being 22% higher than the  February 2015 Feasibility Study.  Processing  Processing  at  the  Checker  processing  facility  at  Mt  Magnet  resulted  in  robust  annual  production,  which  exceeded  expectations during the 2017 financial year. The Burbanks processing facility was sold in the September 2016 quarter  after being on care and maintenance throughout the 2016 financial year.  Total group fine gold production increased by 13% to 125,488 ounces in the financial year compared to 110,839 ounces  in the previous corresponding period.  Production  Mt Magnet Segment  Total Production  Jun‐17  Jun‐16  Dry Tonnes  Milled (High  Grade)  1,913,954 1,913,954  Fine Gold  Production (oz)  Dry Tonnes Milled   (High Grade)  Fine Gold  Production (oz)  125,488 125,488  1,694,883  1,694,883  110,839 110,839  Group  All‐In  Sustaining  Cost  (AISC)  averaged  A$1,169  per  ounce  for  the  financial  year  which  was  below  the  average  realised gold price of A$1,628 per ounce over the same period.  Average Realised Gold Price v All‐In Sustaining Cost  A$/oz 1,604  1,464  1,600  1,630  1,257  1,168  1,661  915  1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 600 All‐In Sustaining Cost Average Realised Gold Price Sep‐16 Dec‐16 Mar‐17 Jun‐17 Development Projects  Cosmos Project (WA)  The Cosmos Project at Mt Magnet consists of the Milky Way, Stellar, Stellar West, and Shannon open pits plus the Brown  Hill and Vegas pits at the Galaxy area. The Cosmos area is located 3.6km south west of the Mt Magnet Checker Processing  Plant.   Ramelius  has  undertaken  significant  new  drilling  (including  two  geotechnical  diamond  holes),  hydrological  and  geotechnical studies, metallurgical test work, and density measurements. An external consultant was engaged for open  pit optimisation and design work with a Pre‐Feasibility study generated.   The Milky Way, Stellar, and Shannon pits were previously mined in the 1990’s with production from this area expected  to underpin the Mt Magnet operations over the next 2 – 3 years.   48 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 6                            DIRECTORS’ REPORT  Approval for the Cosmos – Galaxy Mining Proposal was received from the Department of Mines and Petroleum (“DMP”)  (now the Department of Mines, Industry Regulation and Safety (DMIRS)) on the 13th June 2017 with mining at the Cosmos  area commencing in July 2017.  Morning Star Project (WA)  A new open pit resource model has been generated for Morning Star which incorporated a significant amount of new  drilling completed over the last 12 months. Geotechnical diamond drilling was also completed with pit optimisation and  design work on going. Work has commenced on the Mining Proposal with a view towards submission later in 2017.  Water Tank Hill (WA)  The Water Tank Hill project lies 1.5km west of Mt Magnet.  The deposit is also located 300m west of the St George deposit  which was mined by open pit and then underground methods between 2004 and 2007. During the year final approvals  were received and operations commenced with ore haulage and processing commencing in the March 2017 quarter.  Exploration  Morning Star (WA)  A series of deeper RC drill holes were completed below the Morning Star pit to test for blind mineralised porphyry and/or  banded  iron  formation  units  away  from  the  historically  mined  high  grade  lode  positions.  Highly  encouraging  results  continue to be returned from this exploration strategy.  Towards the end of the year, with the delineation of the revised open pit resource model for Morning Star, exploratory  RC drilling stepped away from the Morning Star and targeted depth / plunge extensions to the Nathan pit and other  shallow targets including Eclipse Ridge. Further drill testing is required to gauge the significance of drilling results to date.  Phase 1 of the drilling campaign at Morning Star Deeps is now complete after drilling 13 wedges off its parent diamond  hole  (MSD0056) for  an aggregate  7,208.7metres.  The  next  stage will be  spent  compiling all  the drill  hole  lithological,  alteration  and  structural  data  to  generate  a  3‐D  litho‐structural  model  of  the  entire  Morning  Star  system  which  will  provide the framework for future underground mineral resource modelling.  Black Cat (WA)  RC drilling targeted the saddle between the Morning Star Pit and the Black Cat South pit. Drilling is ongoing testing the  historically mined chert / banded iron hosted mineralisation’s as well as quartz veins.  Boogardie Basin (WA)  Regional Aircore drilling traverses over the Boogardie Basin commenced during the year targeting porphyry‐ultramafic  contacts in areas of ineffective historical drilling coverage as well as targeting shallow plus 100ppb (parts per billion) gold  in regolith anomalies and/or historical bottom of shallow RAB / Aircore anomalies where present. Several new target  areas including Zeus, Venus, Artemis, and Bundy Flats have been identified for follow up RC drilling.  Zeus Project (WA)  Exploration drilling adjacent to the Stellar West deposit has delineated significant quartz vein hosted gold mineralisation  along the western flank of the newly named Zeus Porphyry. The area became a focus for infill Aircore and deeper RC drill  testing with encouraging intersections. Deeper RC drilling returned broad intervals of anomalous gold mineralisation with  a blue quartz eye diorite porphyry intrusion. Infill drilling is required to better define continuity of the higher‐grade shoots  within the system.  Artemis Prospect (WA)  The Artemis Porphyry was tested by three Aircore traverses 400 to 600m apart. Historical drilling over this target area  has been too shallow to identify any gold anomalism. Follow up Aircore and RC drilling is planned.  Bundy Flats (WA)  At Bundy Flats encouraging intersections were returned with infill Aircore and RC drilling planned.  Tanami Joint Venture Gold Project (NT) ‐ Ramelius earning 85%   Reconnaissance  drilling  was  completed  during  the  year  with  disappointing  results.  The  balance  of  the  Tanami  joint  venture ELA’s have been delayed pending heritage surveys which are expected to be completed before the 2018 field  season allowing further work following up other areas of gold anomalism identified from previous soil sampling programs.  7  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 49                               ANNUAL FINANCIAL REPORT 2017 DIRECTORS’ REPORT  Geological  and  regolith  mapping  occurred  in  the  year  over  the  Highland  Rocks  EL  ahead  of  infill  soil  sampling  over  a  number of low order gold soil anomalies reported from the project in the prior year.  Coogee (WA)  Additional diamond drill holes were completed during the year with no significant results being recorded. In June 2017 a  binding term sheet for a Farm‐In and Joint Venture Agreement was executed. The term sheet allows for the third party  to earn up to an 80% joint venture interest by spending $2.1 million on the Coogee area over the next five years.  Kathleen Valley Gold Project (WA)  No significant results were returned for the Kathleen Valley gold project. A Tenement Sale Agreement for the sale of the  Kathleen Valley Project tenements (including 100% of the rare metal rights (lithium, tantalum, and associated metals))  was completed in December 2016. Under the Tenement Sale Agreement Ramelius retains 100% of the gold rights to the  tenement package and will continue to review any deeper gold exploration targets within the project.  Yandan Gold Project (QLD) – Ramelius 100%  Yandan  North  EPM  is  located  10km  north  and  along  strike  of  the  abandoned  Yandan  gold  mine  which  historically  produced over 350,000oz of gold. Results are awaited from a small, three‐hole diamond drilling programme completed  over the Yandan North EPM during the year.   Jupiter Farm‐in & Joint Venture (Nevada) – Ramelius earning 75%  Ramelius has executed a binding term sheet with Kinetic Gold (US) Inc, a wholly owned subsidiary of Renaissance Gold  Inc (TSX.V: REN).  Ramelius may earn up to 75% interest in the Jupiter gold project, located in Nye County, Nevada USA,  by spending US$3 million within 5 years.  The project offers surface rock chip values up to 3.12 g/t Au.  Ramelius intends to complete geological mapping, soil  sampling and detailed gravity surveys ahead of drill testing several Long Canyon analogous targets along the Cambrian –  Ordovician unconformity in three priority areas.  The Long Canyon gold mine is owned and operated by Newmont and at  December 31, 2016 reported 1.2 million ounces of attributable gold reserves and 2.4 million ounces in resources (source:  www.newmont.com).   Corporate  The group finance team is in the process of being relocated from Adelaide, where it has been based since inception in  2003, to Perth alongside the operations and exploration teams. All corporate finance functions will be delivered out of  the Perth office, following full recruitment of the new team, expected by 1 September 2017. The Registered Office and  Company Secretarial function will remain in Adelaide.   To this end, Mr Tim Manners was appointed Chief Financial Officer effective 31 July 2017. Mr Manners replaces Mr Simon  Iacopetta who resigned to pursue Adelaide based opportunities.   Ramelius held forward gold sales contracts at 30 June 2017 totalling 102,000 ounces of gold at an average price A$1,711  per ounce.  In June 2017, the A$10M financing facility with the Commonwealth Bank of Australia (CBA) expired undrawn.  Dividends  Ramelius has not paid, declared or recommended a dividend in the current or preceding year.  Significant Changes in the State of Affairs  On  26th  July  2016,  Ramelius  raised  $25,000,000  from  the  issue  of  50,000,000  shares  at  $0.50  per  share  to  various  institutional investors.  There were no other significant changes in the state of affairs of the group that occurred during the financial year not  otherwise disclosed in this report or the consolidated financial statements.  50 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 8                                        DIRECTORS’ REPORT  Subsequent Events   No matter or circumstance has arisen since 30 June 2017 that has significantly affected the group’s operations, results,  or state of affairs, or may do so in the future.  Future Developments  In the 2018 financial year, Ramelius will continue its mining and gold production activities at Mt Magnet with a multi open  pit and underground operation incorporating the Titan, Brown Hill North, Milky Way, Stellar, and Stellar West open pits  and the Water Tank Hill underground project. Mining activities will also continue at the Vivien Gold Mine.  Exploration activities are mainly expected to be carried out at Mt Magnet and Vivien where further drilling is planned. In  addition to this, opportunities in the Tanami region (Northern Territory), Queensland, and the USA are being pursued.  Environmental Regulations and Performance  Regulations  The operations of the group in Australia are subject to environmental regulations under both Commonwealth and State  legislation.  In the mining industry, many activities are regulated by environmental laws as they may have the potential  to cause harm and/or otherwise impact upon the environment.  Therefore, the group conducts its operations under the  necessary State Licences and Works Approvals to carry out associated mining activities and operate a processing plant to  process  mined  resources.      The  group’s  licences  and  works  approvals  are  such  that  they  are  subject  to  audits  both  internally and externally by the various regulatory authorities.  These industry audits provide the group with valuable  information in regard to environmental performance and opportunities to further improve systems and processes, which  ultimately assist the business in minimising environmental risk.   Reporting  Due to the various licences and works approvals the group holds, annual environmental reporting (for a 12 month period)  is a licence and works approval condition.  The group did not experience any reportable environmental incidents for the  reporting year 2016‐2017.  Regulatory agencies requiring annual environmental reports are outlined below but are not  limited to the following:   Department of Water and Environment and Regulation (DWER);   Department of Mines, Industry Regulation and Safety (DMIRS);   Tenement Condition Report;   Native Vegetation Clearing Report;   Mining Rehabilitation Fund (MRF) Levy;   National Pollution Inventory (NPI); and   National Greenhouse and Energy Reporting (NGERS).  Sustainability  The  group  is  committed  to  environmental  performance  and  sustainability  and  works  closely  with  the  regulatory  authorities to achieve sustainability. 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.      Shares Under Option  Unissued ordinary shares of Ramelius under option at the date of this report are as follows:  Date Options Granted / Issued  16 April 2014  26 November 2015  26 November 2015  Vesting Date  11 June 2016 11 June 2017 11 June 2018 Expiry Date  11 June 2018 11 June 2019 11 June 2020 Exercise Price  0.299 0.200 0.200 Number Under  Option  1,500,000 1,500,000 1,500,000 No option holder has any right under the options to participate in any other share issue of the company or any other  entity.  9  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 51                           ANNUAL FINANCIAL REPORT 2017 DIRECTORS’ REPORT  Shares Issued on the Exercise of Options  The following ordinary shares of Ramelius were issued during the financial year ended 30 June 2017 as a result of the  exercise of options.  No amounts are unpaid on any of the shares.  Effective Date Share Option Granted  16 April 2014  Expiry Date 11 June 2017 Exercise Price of Options  0.249 Ordinary Shares Issued 1,500,000 Indemnification and Insurance of Directors and Officers  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 Ramelius  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  employ  the  auditor  (Grant  Thornton)  on  assignments  additional  to  their  statutory  audit  duties where the auditor’s expertise and experience with the company and/or the group are important. Details of the  amounts paid or payable to the auditor for audit and non‐audit services provided during the year are set out below.  The  Board  of  directors  has  considered  the  position,  and  in  accordance  with  advice  received  from  the  Audit  &  Risk  Committee,  is  satisfied  that  the  provision  of  the  non‐audit  services  is  compatible  with  the  general  standard  of  independence for auditors imposed by the Corporations Act 2001.  The directors are satisfied that the provision of non‐ audit  services  by  the  auditor,  as  set  out  below,  did  not  compromise  the  auditor  independence  requirements  of  the  Corporations Act 2001 for the following reasons:  - all non‐audit services have been reviewed by the Audit & Risk Committee to ensure they do not impact the impartiality  and objectivity of the auditor;  - none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code  of Ethics for Professional Accountants.  During the year the following fees were paid or payable for non‐audit services provided by the auditor of the parent  entity, its related practices and non‐related audit firms:  Non‐assurance services  Tax advice and compliance services  Other  Total  2017  2016       20,220        ‐  20,220       7,000      580 7,580 Auditor Independence  A copy of the auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 follows  the Directors Report.  52 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   10                                    DIRECTORS’ REPORT  Remuneration Report (audited) The directors are pleased to present your company’s remuneration report which sets out remuneration information for  the non‐executive directors, executive directors and other key management personnel of Ramelius.  This remuneration  report forms part of the directors’ report.  It outlines the overall remuneration strategy, framework and practices adopted  by Ramelius and its controlled entities for the period 1 July 2016 to 30 June 2017.  The remuneration report has been  prepared in accordance with Section 300A of the Corporations Act 2001 and its regulations and is designated as audited.  In  accordance  with  the  Corporations  Act  2001,  remuneration  details  are  disclosed  for  the  group’s  key  management  personnel.  The remuneration report:  - Details Board policies for determining remuneration of key management personnel,  - Specifies the relationship between remuneration policies and performance, and  - Identifies remuneration particulars for key management personnel.  Key management personnel  1. Key management personnel are those persons having authority and responsibility for planning, directing and controlling  major activities of the group, directly and indirectly, being the Ramelius directors and senior executives. Directors and  senior executives disclosed in this report are as follows:  Names  Directors of Ramelius  Mr R M Kennedy  Mr M W Zeptner  Mr K J Lines  Mr M A Bohm  Other senior executives  Mr D A Francese  Mr S Iacopetta  Mr D J Coutts  Mr K M Seymour  Position Non‐Executive Chairman Managing Director / Chief Executive Officer  Non‐Executive Director Non‐Executive Director Company Secretary Chief Financial Officer Chief Operating Officer General Manager ‐ Exploration & Business Development Changes since the end of the reporting period  Mr S Iacopetta resigned as Chief Financial Officer effective 31 July 2017.  Mr T Manners was appointed as Chief Financial Officer effective 31 July 2017.  Remuneration governance  2. The  Nomination  &  Remuneration  Committee  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 senior executives); and  - The executive remuneration framework and incentive plan policies.  The objective of the Nomination & Remuneration Committee 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  Nomination & Remuneration Committee may seek advice from independent remuneration consultants.  During  the  year  the  Nomination  &  Remuneration  Committee  engaged  Godfrey  Remuneration  Group  Pty  Limited  (Godfrey) to report on and provide recommendations on market competitiveness of non‐executive director remuneration  and the Chief Executive Officer remuneration profile, including short‐term incentives. Godfrey was paid $32,000 for these  services.   Godfrey has confirmed that any remuneration recommendations have been made free from undue influence by members  of the group’s key management personnel.     11  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 53                                    ANNUAL FINANCIAL REPORT 2017 DIRECTORS’ REPORT  The  following  arrangements  were  made  to  ensure  that  the  remuneration  recommendations  were  free  from  undue  influence:    Godfrey was engaged by, and reported directly to, the chair of the Nomination & Remuneration Committee. The  agreement for the provision of remuneration consulting services was executed by the chair of the Nomination &  Remuneration Committee under delegated authority on behalf of the board;   The report containing the remuneration recommendations was provided by Godfrey directly to the chair of the  Nomination & Remuneration Committee; and   Godfrey was permitted to speak to management throughout the engagement to understand company processes,  practices and other business issues and obtain management perspectives. However, Godfrey was not permitted  to provide any member of management with a copy of their draft or final report that contained the remuneration  recommendations.   As  a  consequence,  the  board  is  satisfied  that  the  recommendations  were  made  free  from  undue  influence  from  any  members of the key management personnel.  Executive remuneration policy and framework  3. 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 is formed on this  basis. The remuneration framework is based on a number of factors including the particular experience and performance  of the individual in meeting key objectives of Ramelius.   The objective of the senior executive remuneration framework includes incentives that seek to encourage alignment of  management  performance  and  shareholder  interests.  The  framework  aligns  senior  executive  rewards  with  strategic  objectives and the creation of value for shareholders, and conforms to market practices for delivery of rewards.   In determining senior executive remuneration, the Board aims to ensure that remuneration practices are:  - Competitive and reasonable, enabling the company to attract and retain key talent,  - Aligned to the company’s strategic and business objectives and the creation of shareholder value,  - Acceptable to shareholders, and  - Transparent.  The senior executive remuneration framework is designed to ensure market competitiveness and achievement of the  remuneration objective. The remuneration of senior 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 Employee Share Acquisition Plan, Performance Rights Plan and as  approved by the Board.  The  combination  of  these  comprises  a  senior  executive’s  total  remuneration  package.  Incentive  plans  are  regularly  reviewed to ensure continued alignment with financial and strategic objectives.   3.1 Remuneration framework  Ramelius remunerates its senior executives with a Total Reward Package (“TRP”) that consists of two components; Total  Fixed  Remuneration  and  Total  Variable  Remuneration.  Total  Fixed  Remuneration  (“TFR”)  comprises  of  base  salary,  superannuation  and  other  fixed  executive  benefits  (such  as  salary  sacrifice).  Total  Variable  Remuneration  (“TVR”)  comprises of Short Term Incentives (“STI”) and Long Term Incentives (“LTI”).  3.2 Executive remuneration mix   To  ensure  that  senior  executive  remuneration  is  aligned  to  company  performance,  where  appropriate,  a  portion  of  selected senior executives’ target pay is “at risk”.  54 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   12                          DIRECTORS’ REPORT  3.3 Base pay and benefits   Senior executives are offered a competitive base pay that comprises the fixed component of pay and rewards.  When  required, external remuneration consultants are utilised to provide analysis and advice to ensure base pay reflects the  market for a comparable role.   Base pay for senior executives is reviewed annually in order to ensure pay remains competitive with the market.  A senior  executive’s pay is also reviewed on promotion.  There is no guaranteed base pay increase included in any senior executive  contracts.  The Managing Director/Chief Executive Officer and senior executives may elect to salary sacrifice part of their  fixed remuneration for additional superannuation contributions and other benefits.  3.4 Short‐term incentives   Short‐term incentives (STI) are provided to certain executives under the direction of the Nomination & Remuneration  Committee.  The Nomination & Remuneration Committee may recommend to the Board the payment of cash bonuses  from time to time in order to reward individual executive performance in achieving key objectives that are given high  levels  of  importance  for  the  Company’s  growth  and  profitability.    To  assist  in  this  assessment,  the  Nomination  &  Remuneration  Committee  receives  recommendations  from  the  Managing  Director/Chief  Executive  Officer.    This  may  result in the proportion of remuneration related to performance varying between individuals.  STI’s are established to  encourage the achievement of specific goals that are given high levels of importance in relation to growth and profitability  of Ramelius.   From August 2017, a structured set of KPI’s have be adopted for STI measurement which include i) Net profit after tax, ii)  Gold  production  compared  to  budget,  iii)  Reserve  addition  to  Life  of  Mine  Plan,  and  iv)  All  In  Sustaining  Cost  (AISC)  compared to budget.  These KPI’s are subject to Threshold, Target and Stretch hurdles, which may be modified downward  at the board’s discretion and modified down to zero in the event of serious safety and environmental breaches.  3.5 Long‐term incentives (LTI’s)   Long‐term  incentives  are  provided  via  the  Ramelius  Performance  Rights  Plan,  Employee  Share  Acquisition  Plan  as  approved by the Board.  The LTI’s are designed to focus senior executives on delivering long‐term shareholder returns.  Performance Rights Plan  The Performance Rights Plan enables the Board to grant performance rights (being entitlements to shares in Ramelius  subject to satisfaction of vesting conditions) to selected key senior executives as a long‐term incentive as determined by  the Board in accordance with the terms and conditions of the plan.  The plan provides selected senior executives the  opportunity to participate in the equity of Ramelius through the issue of rights as a long‐term incentive that is aligned to  the long‐term interests of shareholders.  Under the Performance Rights Plan, the number of rights granted to senior executives ranges up to 40% of the executive’s  total  fixed  remuneration  (TFR)  and  is  dependent  upon  each  individual’s  skills,  responsibilities  and  ability  to  influence  financial or other key objectives of Ramelius.  The number of rights granted is calculated by dividing the LTI remuneration  dollar amount by the volume weighted average price of Ramelius shares traded on the Australian Securities Exchange  during the 5 trading day period prior to the date of the grant.   The vesting and measurement period has previously been set over three years with vesting and measurement for each  third of the granted rights occurring at the end of each year during the three year period. From August 2017, the vesting  and measurement period has been set at three years.  Rights are subject to vesting conditions related to achievement of total shareholder returns (TSR) and period of service.   TSR performance is measured against the TSR of a benchmark peer group.  The following companies have been identified  by Ramelius to comprise the peer group.  Company  Northern Star Resources Limited  Saracen Mineral Holdings Limited  Evolution Mining Limited  Regis Resources Limited  Silver Lake Resources Limited  Westgold Resources Limited Doray Minerals Limited  ASX Code NST SAR EVN RRL SLR WGX DRM Company Gold Road Resources Limited  Millennium Minerals Limited  Resolute Mining Limited  Dacian Gold Limited Excelsior Gold Limited St Barbara Limited Blackham Resources Limited  ASX Code GOR MOY RSG DCN EXG SBM BLK   13  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 55                         ANNUAL FINANCIAL REPORT 2017 DIRECTORS’ REPORT  The Nomination  &  Remuneration  Committee  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 senior executive rights that vest is dependent on how the Ramelius TSR compares to the peer group  as follows:  Relative TSR Over the Vesting and Measurement Period  Below the 50th percentile  At the 50th percentile  Between the 50th and 75th percentile  At and above the 75th percentile  Proportion of Performance Rights Vested  0% 50% Pro‐rata between 50% and 100%  100% Once vested, rights may be exercised within 7 years of the vesting date.  During the year 3,572,692 performance rights  were granted to employees under the Performance Rights Plan. At the date of this report 379,351 performance rights  had been forfeited.   Of these performance rights granted 976,448 vested on 1 July 2017, all other performance rights issued during the year  had not vested at the date of this report.  Employee Share Acquisition Plan  The Employee Share Acquisition Plan enables the Board to offer eligible employees ordinary fully paid shares in Ramelius  as a long‐term incentive, in accordance with the terms of the plan.  Shares may be offered at no consideration unless the  Board determines that market value or some other value is appropriate.  Other long‐term incentives  The Board may at its discretion provide share rights/options as a long‐term retention incentive to employees.  3.6 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 senior executive’s confirm compliance with the  policy and provide confirmation of dealings in Ramelius securities.  The ability for a senior 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.  Relationship between executive remuneration and Company performance  4. The following table shows key performance indicators for the group over the last five years:  Net profit (loss) after tax ($000)  Dividend / capital return ($000)  Share price 30 June ($)  Basic earnings per share (cents)  Diluted earnings per share (cents)  2017  17,765  ‐                0.450  3.39  3.36  2016  27,540  ‐                0.435  5.82  5.81  2015  16,068  ‐                0.115  3.48  3.48  2014  (85,512)  ‐                0.077  (23.8)  (23.8)  2013  (50,792) ‐                0.110  (15.1)  (15.1)  The total remuneration mix for the Managing Director/Chief Executive Officer and other senior executives and the key  links between remuneration and performance is detailed and explained according to each type of remuneration referred  to in the total remuneration mix below.    The  following  graph  illustrates  the  total  remuneration  mix  for  senior  executives  shown  separately  for  the  Managing  Director/Chief Executive Officer and other executives.  56 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   14                                    DIRECTORS’ REPORT  2017 total remuneration mix MD / CEO 57% 20% 23% Other executives 75% 13% 12% 0% 20% 40% 60% 80% 100% Base pay & salaries LTI STI 4.1 Base pay and salaries  Base pay and salary levels have remained reasonably consistent with the remuneration mix in the prior year.  Base pay  and salary levels are established in accordance with section 3.3 above.  4.2 Short term incentives  Short term incentives in the form of cash bonuses are paid to employees based on the operational achievements of the  organisation.  Operational achievements epitomise the accomplishment of key milestones including production, financial  performance and cost management.  These incentives are established in accordance with section 3.4 above.  4.3 Long term incentives  Long  term  incentives  provided  via  the  Ramelius  Performance  Rights  Plan  and  Employee  Share  Acquisition  Plan  as  approved by the Board, are granted to employees based on the long term operational performance of the organisation  Long term incentives are established in accordance with section 3.5 above.  5. Non‐executive directors remuneration policy  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 well‐balanced group of individuals with pertinent knowledge and experience.  In accordance with the Company’s Constitution, the total amount of remuneration of non‐executive directors is within  the aggregate limit of $550,000 per annum as approved by shareholders at the 2010 Annual General Meeting.    Non‐executive directors may apportion any amount up to this maximum level amongst the non‐executive directors as  determined by the Board.  Remuneration consists of non‐executive director fees, committee fees and superannuation  contributions.    Non‐executive directors are also entitled to be paid reasonable travelling, accommodation and other expenses incurred  in  performing  their  duties  as  directors.    Non‐executive  directors  do  not  participate  in  any  performance  based  pay  including  schemes  designed  for  the  remuneration  of  senior  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.  Voting and comments made at the company’s 2016 Annual General Meeting  6. Of the total valid available votes lodged, Ramelius received 90% of “FOR” votes on its remuneration report for the 2016  financial year.  The company did not receive any specific feedback at the AGM on its remuneration practices.    15  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 57                       ANNUAL FINANCIAL REPORT 2017 DIRECTORS’ REPORT  7. Details of remuneration  Details of remuneration fees paid to non‐executive directors are set out below:  Non‐Executive Directors  Mr R M Kennedy  Mr K J Lines  Mr M A Bohm  Total  Financial Year 2017  2016  2017  2016  2017  2016  2017  2016  Directors Fees 173,363  173,395  93,666  92,477  83,797  80,435  350,826  346,307  Superannuation   Total Remuneration 190,699  190,734  103,033  101,725  100,913  99,605  394,645  392,064  17,336  17,339  9,367  9,248  17,116  19,170  43,819  45,757  Details of the remuneration package by value and by component for executive directors and other senior executives in  the current and previous reporting period are set out below:  Senior Executives  Mr M W Zeptner 2  2017  2016  Mr D A Francese 3  2017  2016  Mr S Iacopetta 4  2017  2016  Mr D J Coutts 5  2017  2016  Mr K M Seymour  2017  2016  Mr T J Blyth 6  2017  2016  Total  2017  2016  Short‐Term  Salary and  Fees  STI Cash  Bonus  Post‐ Employment Super‐ annuation Long‐Term  Benefits  Long Service Leave  465,000  467,273  200,000  22,727  30,000 30,000 9,872 12,638 299,583  299,583  50,000  3,000  29,958 30,258 8,570 8,639 269,155  133,333  50,000  3,000  25,570 13,633 16,654 5,681 350,000  134,770  62,500  ‐  35,000 13,477 ‐ ‐ 251,000  260,000  50,000  3,000  35,000 26,300 4,950 10,356 ‐  185,753  ‐  20,000  ‐ 20,575 ‐ 1,499 1,634,738  1,480,712  412,500  51,727  155,528 134,243 40,046 38,813 Share‐Based  Payments 1  Termination  Benefits  Options   LTI  Rights  Total  136,249  102,801  38,881  ‐  880,002 635,439 ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐  62,380  ‐  450,491 341,480 41,587  ‐  402,966 155,647 72,777  ‐  520,277 148,247 54,063  ‐  395,013 299,656 ‐  ‐  ‐ 227,827 136,249  102,801  269,688  2,648,749 ‐  1,808,296 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Rights and options relate to rights and options over ordinary shares issued to key management personnel. The fair value of rights and options  granted shown above is non‐cash and was determined in accordance with applicable accounting standards and represents the fair value calculated  at the time rights and options were granted and not when shares were issued  2 Mr M W Zeptner was appointed Managing Director effective 1 July 2015  3 Mr D A Francese ceased as Chief Financial Officer on 31 October 2015  4 Mr S Iacopetta was appointed Chief Financial Officer effective 1 November 2015 (resigned 31 July 2017)  5 Mr D J Coutts commenced employment with the company on 12 February 2016  6 Mr T Blyth ceased as key management personnel on 12 February 2016  58 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   16                                                                                                                                              DIRECTORS’ REPORT  The relative proportions of remuneration that are ‘at risk’ and those that are fixed are as follows:  Senior Executives  Financial Year  Fixed Remuneration At Risk ‐ STI  At Risk ‐ LTI 1 Mr M W Zeptner 2  Mr D A Francese 3  Mr S Iacopetta 4  Mr D J Coutts 5  Mr K M Seymour  Mr T J Blyth 6  2017  2016  2017  2016  2017  2016  2017  2016  2017  2016  2017  2016  57.4%  80.2% 75.1%  99.1% 77.3%  98.1% 74.0%  100.0% 73.7%  99.0% ‐  91.2% 22.7%  3.6%  11.1%  0.9%  12.4%  1.9%  12.0%  ‐  12.7%  1.0%  ‐  8.8%  19.9%  16.2% 13.8%  ‐ 10.3%  ‐ 14.0%  ‐ 13.6%  ‐ ‐  ‐ 1 Since the LTI’s are provided exclusively by way of right and option, the percentages disclosed also reflect the value of remuneration consisting of  rights and options, based on the value of rights and options expensed in the year  2 Mr M W Zeptner was appointed Managing Director effective 1 July 2015  3 Mr D A Francese ceased as Chief Financial Officer on 31 October 2015  4 Mr S Iacopetta was appointed Chief Financial Officer effective 1 November 2015 (resigned 31 July 2017)  5 Mr D J Coutts commenced employment with the company on 12 February 2016  6 Mr T Blyth ceased as key management personnel on 12 February 2016  Service agreements  8. Remuneration and other terms of employment for senior 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  Mr M W Zeptner   Chief Executive Officer  Mr D A Francese   Company Secretary  Mr S Iacopetta  Chief Financial Officer  Mr D J Coutts  Chief Operating Officer  Mr K M Seymour  GM ‐ Business Development &  Exploration  Term of   Agreement  Base Salary incl. Super 1  Company /  Employee Notice  Period  On‐going commencing 1 Jul 2015  On‐going commencing 1 Nov 2015  On‐going commencing 1 Nov 2015  On‐going commencing 12 Feb 2016  On‐going commencing 1 Jul 2009  $495,000  6 / 3 months  $329,541  6 / 3 months  $275,000  6 / 3 months  $385,000  6 / 3 months  $286,000  3 / 3 months  Termination  Benefit 2  6 months  base salary 3  6 months  base salary 3  6 months  base salary  3 months  base salary  3 months  base salary  1 Base salaries quoted are as at 30 June 2017, they are reviewed annually by the Nomination & Remuneration Committee  2 Termination benefits are payable on early termination by the company, other than for gross misconduct, unless otherwise indicated  3 In certain circumstances the termination benefit may be 12 months base salary    17  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 59                                                                 ANNUAL FINANCIAL REPORT 2017 DIRECTORS’ REPORT  9. Details of share‐based compensation and bonuses  For grant of options or rights to deferred shares included in the remuneration tables above, the percentage of available  grant that was paid, or that vested, in the financial year, and the percentage forfeited because the person did not meet  the service and performance criteria is set out below in section 9.2 The minimum value of the rights yet to vest is nil, as  the rights will be forfeited if the key management persons fail to satisfy the vesting conditions.  The maximum value of  the 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.  9.1 Cash bonuses  Details of cash bonuses paid to key management personnel of the group are set out in Section 7 above.  Cash bonuses  are paid at the discretion of the Board on achievement of key milestones that are important for the company.  The cash  bonuses were paid as a short term incentive in December 2016 for reasons set out in Section 4 above.  No cash bonuses  have since been paid or recommended.   9.2 Terms and Conditions of Share Based Payment Arrangements  Options  The terms and conditions of each grant of options affecting remuneration in the current or a future reporting period are  as follows:  Grant Date  26 November 2015  26 November 2015  Vesting and  Exercise Date  11 June 2017  11 June 2018  Expiry Date  11 June 2019 11 June 2020 Exercise Price  $0.200 $0.200 Value Per Option  at Grant Date  $0.087  $0.095  Vested  100% n/a Details of options over ordinary shares in the company provided as remuneration to key management personnel are  shown  below.  Options  granted  under  the  plan  carry  no  dividend  or  voting  right.  When  exercisable,  each  option  is  convertible into one ordinary share of Ramelius.  The options were provided at no cost to the recipients.   The assessed fair value at grant date of options granted to the individual is allocated equally over the period from grant  date  to  vesting  date,  and  the  amount  is  included  in  the  remuneration  tables  above.  Fair  values  at  grant  date  are  determined using a Black‐Scholes option pricing model that takes into account the exercise price, the term of the option,  the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected  dividend yield and the risk free rate for the term of the option.  Performance Rights  The terms and conditions of each grant of performance right affecting remuneration in the current or a future reporting  period are as follows:  Grant Date  Vesting and  Exercise Date  Expiry Date  Exercise Price  23 November 2016 1  23 November 2016  23 November 2016  22 December 2016  1 July 2017  1 July 2018  1 July 2019  11 June 2019  1 July 2024 1 July 2025 1 July 2026 11 June 2026 $nil $nil $nil $mil 1 These performance rights vested subsequent to the end of the financial year on 1 July 2017.  Value Per  Performance  Right at Grant  Date  $0.33  $0.32  $0.37  $0.36  Vested  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. One third of the performance rights granted vest one year from the grant date, another third vest two  years  from  the  grant  date,  and  the  final  third  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.  As  this  is  the  first  year  in  which  the  Performance  Rights  Plan  has  been  in  place  the  grant  date  for  the  first  grant  of  performance  rights  for  valuation  purposes  is  deemed  to  be  the  date  on  which  the  shareholders  approved  the  Performance Rights Plan. This approval occurred at the AGM held on 23 November 2016.  60 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   18                          DIRECTORS’ REPORT  Reconciliation of options held by KMP  The table below shows a reconciliation of options held by each KMP from the beginning to the end of the 2017 financial  year. All vested options were exercisable.  2017  Name & grant dates  Mr M W Zeptner       16 April 2014       16 April 2014       26 November 2015       26 November 2015  Vested &  exercisable  1,500,000  1,500,000  ‐  Balance at the start of the  year  Vested Unvested  Number  %  Exercised  Balance at the end of the  year  Vested &  exercisable  Unvested  ‐  ‐  1,500,000  1,500,000  ‐  ‐  1,500,000  ‐  ‐  ‐  100  ‐  (1,500,000)  ‐  ‐  ‐  ‐  1,500,000  1,500,000  ‐  ‐  ‐  ‐  1,500,000  The  number  of  ordinary  shares  in  the  company  provided  as  a  result  of  the  exercise  of  remuneration  options  to  key  management personnel during the financial year is shown below.  Key Management Personnel  Date Options  Exercised  Ordinary Shares  Issued on Exercise of  Options  Exercise Price per  share  Value of Options at  Exercise Date 1  Mr M W Zeptner  8 Jun 2017 1,500,000 $0.24689  $256,965 1 The value at the date of exercise of options that were granted as part of remuneration and exercised during the year has been determined as the  intrinsic value of the options at the exercise date  Reconciliation of performance rights held by KMP  The table below shows a reconciliation of performance rights held by each KMP from the beginning to the end of the  2017 financial year.  2017  Name & grant dates  Balance at the start of  the year  Vested Exercised  Vested &   Unvested Number Mr M W Zeptner       22 December 2016  Mr D A Francese       23 November 2016  Mr S Iacopetta       23 November 2016  Mr D J Coutts       23 November 2016  Mr K M Seymour       23 November 2016  ‐  ‐  ‐  ‐  ‐  500,000  303,413  202,276  353,982  262,958  ‐  ‐  ‐  ‐  ‐  % ‐  ‐  ‐  ‐  ‐  Reconciliation of ordinary shares held by KMP  ‐  ‐  ‐  ‐  ‐  Balance at the end of  the year  Vested  Unvested ‐  ‐  ‐  ‐  ‐  500,000  303,413  202,276  353,982  262,958  2017  Name   Mr R M Kennedy  Mr M W Zeptner  Mr K J Lines  Mr M A Bohm  Mr D A Francese  Mr S Iacopetta  Mr D J Coutts  Mr K M Seymour  Received  during the  year on the  exercise of  options  ‐ 1,500,000 ‐ ‐ ‐ ‐ ‐ ‐ Balance at  the start of  the year   10,350,789 2,037,500 1,000,000 1,037,500 1,314,922 280,000 ‐ 224,860 Acquisition  of shares  Disposal of  shares  ‐ ‐ ‐ 200,000 ‐ ‐ ‐ ‐ ‐  2,025,000  ‐  ‐  ‐  ‐  ‐  ‐  Balance at  the end of  the year  10,350,789 1,512,500 1,000,000 1,237,500 1,314,922 280,000 ‐ 224,860   19  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 61                                                                             ANNUAL FINANCIAL REPORT 2017 DIRECTORS’ REPORT  Loans to key management personnel  There were no loans made to key management personnel or their personally related parties during the current or prior  period.  Other transactions with key management personnel  Lease payments were made during the year to an entity related to the Chairman, Mr R M Kennedy. The lease agreement  is for the office property in Adelaide, SA and has been based on normal commercial terms on conditions on an arm’s  length basis.  Aggregate amounts of each of the above types of transactions with key management personnel of Ramelius Resources  Limited:  Amounts recognised as an expense  Rent of office building   Amounts recognised as current other debtors  Security deposit on premises 2017  $  2016 $  97,749  93,816 13,935  13,935 The Chairman, Mr R M Kennedy, is the Chairman of Maximus Resources Limited. During the year Ramelius Resources  Limited entered into a Share Sale Agreement with Maximus Resources Limited for the sale of Ramelius Milling Services  Pty Limited (the owner and operator of the Burbanks Mill). The Share Sale Agreement was made on normal commercial  terms and conditions on an arm’s length basis.  Amounts recognised as other receivables  Current  Non ‐ current  Remuneration report ends.  2017  $  450,000  1,286,217  2016 $  ‐ ‐ Rounding of Amounts  Ramelius  Resources  Limited  is  a  type  of  company  referred  to  in  ASIC  Corporations  (Rounding  in  Financial/Directors’  Reports) Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been  rounded to the nearest $1,000, or in certain cases, to the nearest dollar.  The directors’ report, incorporating the remuneration report is signed in accordance with a resolution of the Board of  directors.  ____________________  Robert Michael Kennedy  Chairman  Adelaide 24 August 2017  62 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   20                                                          Grant Thornton House Level 3 170 Frome Street Adelaide, SA 5000 Correspondence to: GPO Box 1270 Adelaide SA 5001 T 61 8 8372 6666 F 61 8 8372 6677 E info.sa@au.gt.com W www.grantthornton.com.au Auditor’s Independence Declaration to the Directors of Ramelius Resources Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Ramelius Resources Limited for the year ended 30 June 2017, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. GRANT THORNTON AUDIT PTY LTD J L Humphrey Partner – Audit & Assurance Adelaide, 24 August 2017 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation. Our Ref: Ramelius Resources Limited_Indepedence Declaration_Jun 17.Docx RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 63 ANNUAL FINANCIAL REPORT 2017 CONSOLIDATED INCOME STATEMENT  FOR THE YEAR ENDED 30 JUNE 2017  CONSOLIDATED INCOME STATEMENT  FOR THE YEAR ENDED 30 JUNE 2017  Sales revenue  Cost of production  Gross profit  Other expenses  Sales revenue  Other income  Cost of production  Operating profit before interest income and finance cost  Gross profit  Interest income  Other expenses  Finance costs  Other income  Profit before income tax  Operating profit before interest income and finance cost  Income tax (expense) benefit   Interest income  Profit for the year from continuing operations  Finance costs  Profit before income tax  Profit (loss) for the year from discontinued operations  Profit for the year  Income tax (expense) benefit   Profit for the year from continuing operations  Profit (loss) for the year from discontinued operations  Earnings per share (cents per share)  Profit for the year  Basic earnings per share  - Continuing operations  - Discontinued operations  Earnings per share (cents per share)  Total basic earnings per share  Basic earnings per share  Diluted earnings per share  - Continuing operations  - Continuing operations  - Discontinued operations  - Discontinued operations  Total basic earnings per share  Total diluted earnings per share  Diluted earnings per share  - Continuing operations  - Discontinued operations  Total diluted earnings per share  Note  5(a)  5(b)  Note  5(c)  5(a)  5(d)  5(b)  5(e)  5(c)  5(e)  5(d)  7  5(e)  5(e)  32  7  32  8  8  8  8  8  8  8  8  2017  $000’s  2016 $000’s  197,358    (168,615)   2017  28,743    $000’s  (5,946)   197,358    1,790    (168,615)   24,587    28,743    1,154    (5,946)   (681)   1,790    25,060    24,587    (7,418)   1,154    17,642    (681)   25,060    33    17,675    (7,418)   17,642    173,744   (140,839)  2016 32,905   $000’s  (7,303)  173,744   7   (140,839)  25,609   32,905   568   (7,303)  (834)  7   25,343   25,609   2,422   568   27,765   (834)  25,343   (225)  27,540   2,422   27,765   33    17,675    (225)  27,540   3.38   0.01   3.39   3.38   3.35   0.01   0.01   3.39   3.36   3.35   0.01   3.36   5.87   (0.05)  5.82   5.87   5.86   (0.05)  (0.05)  5.82   5.81   5.86   (0.05)  5.81   The above Consolidated Income Statement should be read in conjunction with the accompanying notes    22  64 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   22  The above Consolidated Income Statement should be read in conjunction with the accompanying notes                                                                                                                                                                                                                                                                                                                                                                                                                                              CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME  FOR THE YEAR ENDED 30 JUNE 2017  CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME  FOR THE YEAR ENDED 30 JUNE 2017  Profit for the year  Other comprehensive income, net of tax  Items that may be reclassified to profit or loss:  Change in fair value of available‐for‐sale assets  Other comprehensive income for the year, net of tax  Profit for the year  Total comprehensive income for the year   Other comprehensive income, net of tax  Items that may be reclassified to profit or loss:  Change in fair value of available‐for‐sale assets  Other comprehensive income for the year, net of tax  Total comprehensive income for the year   2017  $000’s  2016 $000’s 17,675   27,540  2017  $000’s  (280)  (280)  17,675   2016 $000’s (202) (202) 27,540  17,395  27,338  (280)  (280)  (202) (202) 17,395  27,338  The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes   23  The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 65   23                                                                                                                                                                                              ANNUAL FINANCIAL REPORT 2017 CONSOLIDATED BALANCE SHEET  FOR THE YEAR ENDED 30 JUNE 2017  CONSOLIDATED BALANCE SHEET  FOR THE YEAR ENDED 30 JUNE 2017  Current assets  Cash and cash equivalents  Trade and other receivables  Inventories  Other assets  Current assets  Assets and disposal group classified as held for sale  Cash and cash equivalents  Total current assets  Trade and other receivables  Inventories  Non‐current assets  Other assets  Other receivables  Assets and disposal group classified as held for sale  Other assets  Total current assets  Available‐for‐sale financial assets  Property, plant and equipment  Non‐current assets  Development assets  Other receivables  Intangible assets  Other assets  Exploration and evaluation expenditure  Available‐for‐sale financial assets  Deferred tax assets   Property, plant and equipment  Total non‐current assets  Development assets  Total assets  Intangible assets  Exploration and evaluation expenditure  Current liabilities  Deferred tax assets   Trade and other payables  Total non‐current assets  Provisions  Total assets  Liabilities included in disposal group held for sale  Total current liabilities  Current liabilities  Trade and other payables  Non‐current liabilities  Provisions  Provisions  Liabilities included in disposal group held for sale  Deferred tax liabilities  Total current liabilities  Total non‐current liabilities  Total liabilities  Non‐current liabilities  Net assets  Provisions  Deferred tax liabilities  Equity  Total non‐current liabilities  Share capital  Total liabilities  Reserves  Net assets  Retained profits  Total equity  Equity  Share capital  Reserves  Retained profits  Total equity  Note  9  10  Note  11  12  32  9  10  11  12  10  32  12  13  14  15  10  16  12  17  13  7  14  15  16  17  7  18  19  32  18  19  19  32  7  19  7  20  21  20  21  2017  $000’s  2016 $000’s 78,567   2017  1,914   $000’s  29,231   891   ‐       78,567   110,603   1,914   29,231   891   1,286   ‐       412   110,603   292   19,239   53,455   1,286   ‐       412   19,101   292   30,944   19,239   124,729   53,455   235,332   ‐       19,101   30,944   22,398   124,729   2,714   235,332   ‐       25,112   22,398   2,714   21,429   ‐       18,989   25,112   40,418   65,530   169,802   21,429   18,989   40,418   149,122   65,530   920   169,802   19,760   169,802   149,122   920   19,760   169,802   44,272   2016 1,836   $000’s 18,947   868   3,225   44,272   69,148   1,836   18,947   868   ‐  3,225   526   69,148   132   20,539   60,634   ‐  73   526   7,784   132   35,410   20,539   125,098   60,634   194,246   73   7,784   35,410   22,255   125,098   3,392   194,246   2,070   27,717   22,255   3,392   22,336   2,070   16,605   27,717   38,941   66,658   127,588   22,336   16,605   38,941   125,080   66,658   423   127,588   2,085   127,588   125,080   423   2,085   127,588   The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes     24  66 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   24  The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                               CONSOLIDATED STATEMENT OF CHANGES IN EQUITY  FOR THE YEAR ENDED 30 JUNE 2017  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY  FOR THE YEAR ENDED 30 JUNE 2017  Share  capital  $000’s  Share‐based  payment reserve 1 $000’s Available‐ for‐sale  reserve 1  $000’s  Asset  revaluation  reserve 1  $000’s  Retained  profit (loss)  $000’s  Total  equity  $000’s  Share  124,251   capital  $000’s  ‐   ‐   ‐   124,251   Share‐based  payment 2,545   reserve 1 $000’s ‐   ‐   ‐   2,545   Available‐ for‐sale  (93)  reserve 1  $000’s  ‐   (202)   (202)   (93)  Asset  revaluation  634   reserve 1  $000’s  ‐    ‐    ‐    634   Retained  (28,033)   profit (loss)  $000’s  27,540   ‐    27,540   (28,033)   Balance at 30 June 2015  ‐   ‐   ‐   ‐   ‐   117   (2,578)  84   ‐   ‐   ‐   117   ‐   (2,578)  ‐   84   ‐   832   ‐   (3)  ‐   ‐   ‐   125,080   832   (3)  ‐   ‐   ‐   ‐   ‐   125,080   Profit for the year  Other comprehensive income  Total comprehensive income  Balance at 30 June 2015  Transactions with owners in their  Profit for the year  capacity as owners:  Share capital  Other comprehensive income  Transaction costs net of tax  Total comprehensive income  Share‐based payments  Transfer of reserves 2  Transactions with owners in their  capacity as owners:  Balance at 30 June 2016  Share capital  Transaction costs net of tax  Profit for the year  Share‐based payments  Other comprehensive income  Transfer of reserves 2 Total comprehensive income  Balance at 30 June 2016  Transactions with owners in their  Profit for the year  capacity as owners:  Share capital  Other comprehensive income  Transaction costs net of tax  Total comprehensive income  Share‐based payments  Transactions with owners in their  Balance at 30 June 2017  capacity as owners:  Share capital  1   Refer Note 21 for description of reserves.  Transaction costs net of tax  2   Represents the portion of share based payments which have either expired or vested.  Share‐based payments  Balance at 30 June 2017  ‐   25,373   ‐   (1,331)   ‐   ‐   149,122   25,373   (1,331)   ‐   149,122   ‐   ‐   ‐   ‐   ‐   777   861   ‐   ‐   777   861   ‐   ‐   (202)   ‐   (202)   ‐   ‐   (295)   ‐   ‐   ‐   ‐   (280)   ‐   (280)   (295)   ‐   ‐   (280)   ‐   (280)   ‐   (575)   ‐   ‐   ‐   (575)   ‐    ‐    ‐    ‐    ‐    ‐    ‐    634   ‐    ‐    ‐    ‐    ‐    ‐    ‐    634   ‐    ‐    ‐    ‐    ‐    ‐    634   ‐    ‐    ‐    634   27,540   ‐    ‐    ‐    27,540   ‐    2,578   2,085   ‐    ‐    17,675   ‐    ‐    2,578   17,675   2,085   17,675   ‐    ‐    ‐    17,675   ‐    19,760   ‐    ‐    ‐    19,760   Total  99,304   equity  $000’s  27,540   (202)  27,338   99,304   27,540   832   (202)  (3)  27,338   117   ‐   127,588   832   (3)  17,675   117   (280)  ‐   17,395   127,588   17,675   25,373   (280)  (1,331)  17,395   777   169,802   25,373   (1,331)  777   169,802   1   Refer Note 21 for description of reserves.  2   Represents the portion of share based payments which have either expired or vested.  The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes  The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes   25  The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes  The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes   25  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 67                                                                                                                         ANNUAL FINANCIAL REPORT 2017 CONSOLIDATED STATEMENT OF CASH FLOWS  FOR THE YEAR ENDED 30 JUNE 2017  CONSOLIDATED STATEMENT OF CASH FLOWS  FOR THE YEAR ENDED 30 JUNE 2017  Cash flows from operating activities  Receipts from operations  Payments to suppliers and employees  Interest received  Finance costs  Cash flows from operating activities  Net cash provided by (used in) discontinued operations  Receipts from operations  Net cash provided by operating activities  Payments to suppliers and employees  Interest received  Cash flows from investing activities  Finance costs  Payment for derivatives  Net cash provided by (used in) discontinued operations  Payments for property, plant and equipment  Net cash provided by operating activities  Payments for development  Proceeds from sale of property, plant and equipment  Cash flows from investing activities  Proceeds from the sale of subsidiary  Payment for derivatives  Payments for available‐for‐sale financial assets  Payments for property, plant and equipment  Payments for mining tenements and exploration  Payments for development  Payments for site rehabilitation and demobilisation  Proceeds from sale of property, plant and equipment  Net cash used in investing activities  Proceeds from the sale of subsidiary  Payments for available‐for‐sale financial assets  Cash flows from financing activities  Payments for mining tenements and exploration  Repayment of borrowings  Payments for site rehabilitation and demobilisation  Proceeds from issue of shares  Net cash used in investing activities  Transaction costs from issue of shares  Net cash provided by (used in) financing activities  Cash flows from financing activities  Repayment of borrowings  Net increase in cash and cash equivalents  Proceeds from issue of shares  Transaction costs from issue of shares  Cash at beginning of financial year  Net cash provided by (used in) financing activities  Effects of exchange rate changes on cash held   Net increase in cash and cash equivalents  Cash and cash equivalents at end of financial year  Cash at beginning of financial year  Note  2017  $000’s  2016  $000’s  Note  25 (b)  25 (b)  25 (a)  197,589  2017  (115,160)  $000’s  1,189  (280)  92  197,589  83,430  (115,160)  1,189  (280)  (80)  92  (4,850)   83,430  (52,407)  5  527  (80)  (15)  (4,850)   (14,840)  (52,407)  (946)  5  (72,606)  527  (15)  (14,840)  ‐  (946)  25,373  (72,606)  (1,902)  23,471  ‐  34,295  25,373  (1,902)  44,272  23,471  ‐   34,295  78,567  44,272  176,288  2016  (111,027)  $000’s  531  (116)  (160)  176,288  65,516  (111,027)  531  (116)  (186)  (160)  (5,152)  65,516  (43,104)  1  ‐  (186)  ‐  (5,152)  (4,795)  (43,104)  (203)  1  (53,439)  ‐  ‐  (4,795)  (1,062)  (203)  832  (53,439)  (4)  (234)  (1,062)  11,843  832  (4)  32,425  (234)  4  11,843  44,272  32,425  Effects of exchange rate changes on cash held   ‐   4  Cash and cash equivalents at end of financial year  25 (a)  78,567  44,272  The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes   26  68 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   26  The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes                                                                                                                                                                                                                                                                                                                                                                                                       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  The  financial  report  of  Ramelius  Resources  Limited  for  the  year  ended  30  June  2017  was  authorised  for  issue  in  accordance with a resolution of the directors on 24 August 2017.  Ramelius Resources Limited is a listed public company,  incorporated and domiciled in Australia whose shares are publicly listed on the Australian Securities Exchange Limited  (ASX).  Summary of Significant Accounting Policies  1  The principal accounting policies adopted in the preparation of this financial report are presented below.  These policies  have been consistently applied to all years presented, unless otherwise stated.  This annual financial report includes the  consolidated financial statements and notes of Ramelius Resources Limited and its controlled entities.  a) Basis of preparation and statement of compliance  These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and  Interpretations issued by the Australian Accounting Standard Board (AASB) and the Corporations Act 2001. Ramelius is a  for‐profit  entity  for  the  purposes  of  preparing  the  financial  statements.    The  financial  report  has  been  presented  in  Australian dollars and rounded to the nearest $1,000 unless otherwise stated.  Compliance with IFRS  (i) The consolidated financial statements of the group also comply with International Financial Reporting Standards (IFRS)  as issued by the International Accounting Standards Board (IASB).  Historical cost convention  (ii) These financial statements have been prepared under the historical cost convention, as modified by the revaluation of  available‐for‐sale financial assets, financial assets and liabilities at fair value through profit and loss and certain classes of  property, plant and equipment.  New and amended standards adopted by the group  (iii) There were no material new and revised standards which were effective for annual periods beginning on or after 1 July  2016 that were adopted by the group.   New standards and interpretations not yet adopted  (iv) Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2017  reporting periods and have not been early adopted by the group.  The group’s assessment of the impact of these new  standards and interpretations is set out below.  AASB 9 Financial Instruments (December 2014)  AASB  9  Financial  Instruments  addresses  the  classification,  measurement  and  derecognition  of  financial  assets  and  financial liabilities and introduces new rules for hedge accounting.  In December 2014, the AASB made further changes  to the classification and measurement rules and also introduced a new impairment model.  These latest amendments  now complete the new financial instruments standard. This standard does not apply mandatorily for reporting periods  beginning before 1 January 2018.  A preliminary assessment undertaken by management suggests that adoption of this  amendment will not result in a material impact on the Group’s financial statements.  AASB 15 Revenue from Contracts with Customers  AASB 15 replaces AASB 118 Revenue and AASB 111 Construction Contracts.  The new standard is based on the principle  that revenue is recognised when control of a good or service transfers to a customer ‐ so the notion of control replaces  the existing notion of risks and rewards.  The standard permits a modified retrospective approach for the adoption. Under  this approach entities will recognise transitional adjustments in retained earnings on the date of initial application, i.e.  without restating the comparative period.  They will only need to apply the new rules to contracts that are not completed  as of the date of initial application.  This standard does not apply mandatorily for reporting periods beginning before 1  January 2018. A preliminary assessment undertaken by management suggests that adoption of this amendment will not  result in a material impact on the Group’s financial statements   27  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 69                                     ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  AASB 16 Leases  AASB 16 replaces AASB 117 Leases and some lease related Interpretations.  The new standard requires all leases to be  accounted for as ‘on‐balance sheet’ by lessees, other than short term and low value asset leases.  The standard provides  new  guidance on  the  application  of  the  definition  of  lease  and on sale and  lease back accounting. The standard also  requires new and different disclosures about leases.  This standard does not apply mandatorily before 1 January 2019.   Adoption of this amendment will not result in a material impact on the Group’s financial statements.  AASB 2016‐2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107  AASB 2016‐2 amends AASB 107 Statement of Cash Flows to require entities preparing financial statements in accordance  with Tier 1 reporting requirements to provide disclosures that enable users of financial statements to evaluate changes  in liabilities arising from financing activities, including both changes arising from cash flows and non‐cash changes.  When these amendments are first adopted for the year ending 30 June 2018, there will be no material impact on the  financial statements.  AASB 2016‐5 Amendments to Australian Accounting Standards – Classification and Measurement of Share based Payment  Transactions  This Standard amends AASB 2 Share‐based Payment to address: a.) The accounting for the effects of vesting and non‐ vesting  conditions  on  the  measurement  of  cash‐settled  share‐based  payments;  b.)  The  classification  of  share‐based  payment  transactions  with  a  net  settlement  feature  for  withholding  tax  obligations;  and  c.)  The  accounting  for  a  modification to the terms and conditions of a share‐based payment that changes the classification of the transaction  from cash‐settled to equity‐settled.  When these amendments are first adopted for the year ending 30 June 2019, there will be no material impact on the  financial statements  Critical accounting estimates  (v) The preparation of financial statements requires the use of certain accounting estimates.  It also requires management  to exercise its judgement in the process of applying the group’s accounting policies.  The areas involving a higher degree  of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are  disclosed in Note 4.  b) Principles of consolidation  The  consolidated  financial  statements  incorporate  the  financial  statements  of  the  parent  entity,  Ramelius  Resources  Limited, and its controlled entities (referred to as the ‘consolidated group’ or ‘group’ in these financial statements).  A list  of controlled entities is contained in Note 28 to the consolidated financial statements.  All controlled entities have a 30  June financial year end.  Subsidiaries  (i) Subsidiaries are all entities over which the group has control.  The group controls an entity when the group is exposed to,  or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through  its  power  to  direct  the  activities  of  the  entity.    Subsidiaries  are  fully  consolidated  from  the  date  on  which  control  is  transferred  to  the  group.    They  are  deconsolidated  from  the  date  that  control  ceases.    The  acquisition  method  of  accounting is used to account for business combinations by the group.  Intercompany  transactions,  balances  and  unrealised  gains  on  transactions  between  group  companies  are  eliminated.    Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.   Accounting policies of subsidiaries are consistent with those adopted by the group.  Changes in ownership interests  (ii) When the group ceases to have control, any retained interest in the entity is remeasured to its fair value with the change  in carrying amount recognised in profit or loss.  This fair value becomes the initial carrying amount for the purposes of  subsequently  accounting  for  the  retained  interest  as  an  associate,  joint  venture  or  financial  asset.    In  addition,  any  amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group  had directly disposed of the related assets or liabilities.  This may mean that amounts previously recognised in other  comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is  reduced  but  joint  control  or  significant  influence  is  retained,  only  a  proportionate  share  of  the  amounts  previously  recognised in other comprehensive income are reclassified to profit or loss where appropriate.  70 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 28                        NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  c) Joint arrangements  Under AASB 11 Joint Arrangement 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. Details of the joint operations are shown in Note 29.  d) Segment reporting  Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating  Decision  Maker.    The  Chief  Operating  Decision  Maker,  who  is  responsible  for  allocating  resources  and  assessing  performance of the operating segments, has been identified as the Managing Director/Chief Executive Officer.       Functional and presentation currency   e) Foreign currency  (i) Items included in the financial statements of each of the group’s entities are measured using the currency of the primary  economic environment in which the entity operates.  The consolidated financial statements are presented in Australian  dollars ($), which is Ramelius Resources Limited and its controlled entities functional and presentation currency.  Transactions and balances  (ii) Transactions in foreign currencies are initially recorded in the functional currency at exchange rates prevailing at the date  of the transaction.  The subsequent payment or receipt of funds related to a transaction is translated at the rate applicable  on the date of payment or receipt.  Monetary assets and liabilities denominated in foreign currencies are translated at  the rate of exchange at the reporting date.  Non‐monetary items that are measured at fair value in a foreign currency are  translated using the exchange rates at the date when the fair value was determined.  Translation differences on assets  and liabilities carried at fair value are reported as part of the fair value gain or loss.  All exchange differences in the consolidated financial report are taken to the Income Statement.  Group companies  (iii) The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy)  that have a functional currency different from the presentation currency are translated into the presentation currency as  follows:     assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that   Balance Sheet,  income and expenses for each income statement and statement of comprehensive income are translated at  average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates  prevailing on the transaction dates, in which case income and expenses are translated at the dates of the  transactions), and   all resulting exchange differences are recognised in other comprehensive income.  f) Revenue recognition  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 significant risks and rewards of ownership of the goods and the cessation of all involvement with those goods.  Revenue from gold bullion and silver sales is brought to account when the significant risks and rewards of ownership have  transferred to the buyer and selling prices are known or can be reasonably estimated.  Interest revenue is recognised as it is accrued using the effective interest rate method.  All revenue is stated net of goods and services tax (GST).   g) Government grants  Grants from the government are recognised at their fair value when there is a reasonable assurance that the grant will  be  received  and  the  group  complies  with  the  attached  conditions.    Government  grants  relating  to  exploration  and  evaluation expenditure are recognised against the exploration and evaluation asset to match the grants with the costs  that the grants are intended to compensate.  29  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 71                         ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  h) Borrowing costs  General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a  qualifying  asset  are  capitalised  during  the  period  of  time  that  is  required  to  complete  and  prepare  the  asset  for  its  intended use or sale.  Qualifying assets are assets that necessarily take a substantial period of time to get ready for their  intended  use  or  sale.  Investment  income  earned  on  the  temporary  investment  of  specific  borrowings  pending  their  expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.  Other borrowing costs are expensed in the period in which they are incurred.  Income tax  i) The income tax expense (benefit) for the year comprises current income tax expense (benefit) and deferred tax expense  (benefit). Current and deferred income tax expense (benefit) is charged or credited directly to equity instead of the profit  or loss when the tax relates to items that are credited or charged directly to equity.  Current income tax  (i) Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable  income  tax  rates  that  have  been  enacted,  or  substantially  enacted  by  the  reporting  date.    Management  periodically  evaluates  positions  taken  in  tax  returns  with  respect  to  situations  in  which  applicable  tax  regulation  is  subject  to  interpretations. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered  from) the relevant taxation authority.  Deferred income tax  (ii) 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 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 manner in which management expects to recover or settle the carrying amount of the  related asset or liability.  Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is  probable that future taxable profits will be available against which the benefits of the deferred tax asset can be utilised.   The amount of benefits brought to account or which may be realised in the future is based on the assumption that no  adverse  change  will  occur  in  income  tax  legislation  and  the  anticipation  that  the  group  will  derive  sufficient  future  assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the  law.  Tax consolidated group  (iii) 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.  72 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 30                              NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  j) Goods and services tax (GST)  Revenues, expenses and assets are recognised net of the amount of goods and services tax, unless the GST incurred is  not recoverable from the Australian Tax Office (ATO).   In these circumstances the GST is recognised as part of the cost  of acquisition of the asset or as part of the expense.  Receivables  and  payables  are  stated  in  the  Consolidated  Balance  Sheet  inclusive  of  GST.  The  net  amount  of  GST  recoverable from, or payable to, the ATO is included as a current asset or liability in the Consolidated Balance Sheet.  Cash  flows  are  presented  on  a  gross  basis.    The  GST  components  of  cash  flows  arising  from  investing  and  financing  activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.  Commitments and  contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.  k) Cash and cash equivalents  Cash and cash equivalents in the Consolidated 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 Consolidated Statement of Cash Flows, cash and cash  equivalents consist of cash and cash equivalents as defined above.  l) Trade and other receivables  Trade  receivables  comprising  bullion  awaiting  settlement  are  initially  recorded  at  the  fair  value  of  contracted  sale  proceeds  expected  to  be  received  only  when  there  is  a  passing  of  significant  risks  and  rewards  of  ownership  to  the  customer.  Collectability of debtors is reviewed on an ongoing basis.  Receivables which are known to be uncollectible are  written off and an allowance account (provision for impairment of trade receivables) is raised where objective evidence  exists that the debt will not be collected.  Other receivables are initially measured at fair value then amortised at cost,  less an allowance for impairment.  m) Inventories  Gold ore, gold in circuit and poured gold bars are physically measured or estimated and valued at the lower of cost and  net  realisable  value.    Cost  represents  the  weighted  average  cost  incurred  in  converting  ore  into  finished  goods  and  includes direct costs and an appropriate allocation of fixed and variable production overhead costs, including depreciation  and amortisation.   By‐products inventory on hand obtained as a result of the gold production process are valued at the lower of cost and  net realisable value. Consumables and stores are valued at the lower of cost and net realisable value. Costs of purchased  inventory  are  determined  after  deducting  any  applicable  rebates  and  discounts.    A  periodic  review  is  undertaken  to  establish the extent of any surplus or obsolete items and where necessary a provision is made.  Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion  of sale.  Gold ore represents stockpiled ore that has been mined or otherwise acquired and is available for further processing. If  there is significant uncertainty as to whether the stockpiled ore will be processed, it is expensed.  Where future processing  of ore can be predicted with confidence (e.g. it exceeds the mine cut off grade), it is valued at the lower of cost and net  realisable value.  If ore is not expected to be processed within 12 months after reporting date, it is classified as non‐ current  assets.  Ramelius  believes  processing  ore  stockpiles  may  have  a  future  economic  benefit  to  the  group  and  accordingly ore is valued at lower of cost and net realisable value.  n) Property, plant and equipment  Cost  Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated  depreciation and impairment losses.  Properties are shown at fair value based on valuations by external independent valuers, less subsequent depreciation for  buildings.  Any accumulated depreciation at the date of revaluation is eliminated against the carrying amount of the asset  and the net amount is restated to the revalued amount of the asset.  All other plant and equipment are stated at historical  cost less depreciation.  Historical cost includes expenditure that is directly attributable to the acquisition of the items.  The net carrying amount of property, plant and equipment is reviewed for impairment in accordance with Note 1(u).  31  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 73                           ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  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.  Depreciation  Items of plant and equipment are depreciated on a straight line basis over their estimated useful lives, the duration of  which reflects the  useful  lives depending  on  the  nature of  the asset.   The  group  uses  the  straight  line  method when  depreciating property, plant and equipment, resulting in estimated useful lives for each class of depreciable assets as  follows:  Class of fixed asset  Properties  Plant and equipment – mine camp  Plant & equipment – mill refurbishments  Plant & equipment – tailings dam  Plant & equipment – computers  Plant & equipment – office equipment  Plant & equipment – office furniture  Plant & equipment – other  Mine and exploration equipment  Motor vehicles  Useful life 40 years 2 ‐ 15 years 5 years 5 years 4 years 3 – 10 years 10 – 25 years 2.5 – 25 years 2 ‐ 33.3 years 8 ‐ 12 years Estimates of remaining useful lives and depreciation methods are reviewed bi‐annually for all major items of plant and  equipment.  Gains and losses on disposals 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.  o) Leases  The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and  requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets  and the arrangement conveys the right to use the asset.   Leases  of  plant  and  equipment  under  which  the  group  assumes  substantially  all  the  risks  and  benefits  incidental  to  ownership are classified as finance leases. Other leases are classified as operating leases.   Finance leases are capitalised, with a lease asset and a lease liability equal to the fair value of the leased asset, or if lower,  at the present value of the minimum lease payments determined at the inception of the lease.  Lease payments are  apportioned between the finance charges and reduction of the lease liability.  The finance charge component within the  lease payments is expensed.  Capitalised leased assets are depreciated over the shorter of the estimated useful life of the  asset and the lease term if there is no reasonable certainty that the group will obtain ownership by the end of the lease  term.  Payments  made  under  operating  leases  are  expensed  on a  straight  line basis  over  the leased term,  except where an  alternative basis is more representative of the pattern of benefits to be derived from the leased property.  74 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 32                                      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  p) Exploration, evaluation and feasibility expenditure  Exploration and evaluation  Exploration and evaluation costs related to areas of interest are capitalised and carried forward to the extent that:  (i) Rights to tenure of the area of interest are current; and  (ii)  a)  Costs are expected to be recouped through successful development and exploitation of the area of interest or  alternatively by sale; or  b)  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, refer Note 1(r).   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.  q) 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.  r) 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.  Amortisation and impairment  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 Note 1(u).  33  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 75                                 ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  s) 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.  Surface mining costs  Mining  costs  incurred  during  the  production  stage  of  operations  are  deferred  as  part  of  determining  the  cost  of  inventories.  This is generally the case where there are fluctuations in deferred mining costs over the life of the mine, and  the effect is material.  The amount of mining costs deferred is based on the ratio obtained by dividing the amount of  waste mined by the quantity of gold ounces contained in the ore.  Mining costs incurred in the period are deferred to the  extent that the current period waste to contained gold ounce ratio exceeds the life‐of‐mine waste‐to‐ore (life‐of‐mine)  ratio. The life‐of‐mine ratio is based on economically recoverable reserves of the operation.  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.  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 release of deferred mining costs is included in site operating costs.  t) Intangible assets  Costs  incurred  in  acquiring  software  are  capitalised  as  intangible  assets.    Costs  capitalised  include  external  costs  of  materials and services.  Costs associated with administration and maintenance of software is expensed as incurred in  other expenses in the Income Statement.  Amortisation is calculated on the useful life, ranging from 3 to 5 years.   u) Impairment of non‐financial assets  The carrying amounts of all non‐financial assets are reviewed half‐yearly to determine whether there is an indication of  impairment.    Where  an  indicator  of  impairment  exists,  a  formal  estimate  of  the  recoverable  amount  is  made.  The  recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared  to the asset’s carrying value. For the purposes of assessing impairment, assets are grouped at the lowest levels for which  there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or  groups of assets (cash‐generating units).  Any excess of the asset’s carrying value over its recoverable amount is expensed  as an impairment loss to the Income Statement.  Non‐financial assets other than goodwill that suffered impairment are  reviewed for possible reversal of the impairment at the end of each reporting period.  v) Available‐for‐sale assets  The group’s investments are designated as available‐for‐sale financial assets.  The group’s investments in listed securities  are initially measured at fair value. Subsequent to initial recognition, available‐for‐sale financial assets are measured at  fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised  or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in  equity is recognised in the Income Statement.  Impairment losses on equity instruments that were recognised in profit  or  loss  are  not  reversed  through  profit  or  loss  in  a  subsequent  period.  The  fair  value  of  listed  equity  securities  are  determined by reference to quoted market prices.  w) 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.  76 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 34                            NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  x) Employee benefits  Wages, salaries, salary at risk, annual leave and sick leave  Liabilities arising in respect of wages and salaries, salary at risk, annual leave and any other employee benefits expected  to  be  wholly  settled  within  12  months  of  the  reporting  date  are  measured  at  their  nominal  amounts  based  on  remuneration rates which are expected to be paid when the liabilities are settled.  These amounts are recognised in ‘trade  and other payables’ (for amounts other than annual leave and salary at risk) and ‘current provisions’ (for annual leave  and salary at risk) in respect of employee services up to the reporting date.  Costs incurred in relation to non‐accumulating  sick leave are recognised when the leave is taken and are measured at the rate paid or payable.  Long service leave  The liability for long service leave is measured at the present value of the estimated future cash outflows to be made by  the group resulting from employees’ services provided up to the reporting date.  Liability for long service leave benefits  not expected to be settled within 12 months are discounted using the rates attaching to high quality corporate bonds at  the reporting date, which most closely match the terms of maturity of the related liability.  In determining the liability for  these long term employee benefits, consideration has been given to expected future increases in wage and salary rates,  the groups experience with staff departures and periods of service.  Related on‐costs have also been included in the  liability.  Provision is made for the group’s liability for employee benefits arising from services rendered by employees to reporting  date.  Employee benefits that are expected to be settled within one year are measured at the amounts expected to be  paid when the liability is settled, plus related on‐costs.  Employee benefits payable later than one year are measured at  the present value of the estimated future cash outflows to be made for those benefits.  Consideration is given to expected  future wage and salary levels, experience of employee departures and periods of service.  Those cash flows are discounted  using market yields on high quality corporate bonds with terms to maturity that match the expected timing of cash flows.  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.   Share‐based payments  The group provides benefits to employees (including the executive director/chief executive officer) in the form of share‐ based compensation, whereby employees render services in exchange for shares or options and/or rights over shares  (equity‐settled transactions).   The cost of these equity‐settled transactions with employees is measured by reference to the fair value of the equity  instruments at the date at which they are granted.  The group issues share‐based remuneration in accordance with the  employee share acquisition plan, the performance rights plan or as approved by the Board as follows:  (i) Employee share acquisition plan  The group operates an Employee Share Acquisition Plan where employees may be issued shares and/or options.  Fair  value  of  the  equity  to  which  employees  become  entitled  is  measured  at  grant  date  and  recognised  as  an  employee benefits expense over the vesting period with a corresponding increase in equity.  Fair value of shares  issued is determined with reference to the latest ASX share price. Options are valued using an appropriate valuation  technique which takes vesting conditions into account.  (ii) Performance rights plan  The group has a Performance Rights Plan where key management personnel may be provided with rights to shares  in Ramelius.  Fair values of rights issued are recognised as an employee benefits expense over the relevant service  period,  with  a  corresponding  increase  in  equity.    Fair  value  of  rights  are  measured  at  effective  grant  date  and  recognised over the vesting period during which key management personnel become entitled to the rights.  There  are a number of different methodologies that are appropriate to use in valuing rights.  Fair value of rights granted  is  measured  using  the  most  appropriate  method  in  the  circumstances,  taking  into  consideration  the  terms  and  conditions upon which the rights were issued.  35  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 77                             ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  (iii) Other long‐term incentives  The Board may at its discretion provide share rights either to recruit or as a long‐term retention incentive to key  executives and employees.  The  fair  value  of  options  and/or  rights  granted  is  recognised  as  an  employee  benefits  expense  with  a  corresponding  increase in equity.  The total amount to be expensed is determined by reference to the fair value of the options and/or  rights  granted,  which  includes  any  market  performance  conditions  and  the  impact  of  any  non‐vesting  conditions  but  excludes the impact of any service and non‐market performance vesting conditions.  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.  Termination benefits  Termination benefits are payable when employment is terminated by the group before the normal retirement date, or  when  an  employee  accepts  voluntary  redundancy  in  exchange  for  these  benefits.    The  group  recognises  termination  benefits at the earlier of the following dates: (a) when the group can no longer withdraw the offer of those benefits; and  (b) when the entity recognises costs for a restructuring that is within the scope of AASB 137 and involves the payment of  terminations benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are  measured based on the number of employees expected to accept the offer.  Benefits falling due more than 12 months  after the end of the reporting period are discounted to present value.   y) 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.  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.  78 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 36                                      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  z) Financial instruments  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.  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.  (i) Loans and receivables    Loans and receivables 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.  (ii) Financial liabilities    Non‐derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.  (iii) Derivative financial instruments    Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently  remeasured to their fair value at the end of each reporting period.  The group uses derivative financial instruments  to hedge its exposure to changes in commodity prices arising in the normal course of business.  The group does not  trade in derivatives for speculative purposes.  Derivative financial instruments are recognised at fair value on the  date a derivative contract is entered into.  Derivatives are valued on a mark‐to‐market valuation and the gain or loss  on re‐measurement to fair value is recognised through the Income Statement.   (iv) Available‐for‐sale financial assets  Available‐for‐sale  financial  assets  include  any  financial  assets  not  included  in  the  above  categories.  The  group’s  accounting policy for available‐for‐sale financial assets is discussed at Note 1(v).   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.  Impairment  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.  aa) Derivative activity  Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently  remeasured to their fair value at the end of each reporting period.  Changes in the fair value of any derivative instrument  (which does  not  qualify  for hedge  accounting) are  recognised  immediately  in profit  or  loss and are included in  other  income or other expenses.  bb)  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.  37  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 79                                       ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  cc)  Earnings per share  Basic earnings per share is calculated by dividing:  - the profit attributable to owners of the company, adjusted to exclude costs of servicing equity other than ordinary  shares,   - by  the  weighted average number  of  ordinary  shares outstanding  during  the  financial  year, adjusted  for bonus  elements in ordinary shares issued during the year.   Diluted earnings per share adjusts the figures used in determining basic earnings per share to take into account the:  - after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares,  - weighted  average  number  of  additional  ordinary  shares  that  would  have  been  outstanding  assuming  the  conversion of all dilutive potential ordinary shares.  -   dd)  Non‐current assets and liabilities classified as held for sale and discontinued operations   When the Group intends to sell a non‐current asset or a group of assets (a disposal group), and if sale within twelve (12)  months  is  highly  probable,  the  asset  or  disposal  group  is  classified  as  ‘held  for  sale’  and  presented  separately  in  the  Balance Sheet.  Liabilities are classified as ‘held for sale’ and presented as such in the Balance Sheet if they are directly  associated with a disposal group.   Assets  classified  as  ‘held  for  sale’  are  measured  at  the  lower  of  their  carrying  amounts  immediately  prior  to  their  classification as held for sale and their fair value less costs to sell.  However, some ‘held for sale’ assets such as financial  assets or deferred tax assets, continue to be measured in accordance with the Group's accounting policy for those assets.   Once classified as ‘held for sale’, the assets are not subject to depreciation or amortisation. Any profit or loss arising from  the  sale  or  re‐measurement  of  discontinued  operations  is  presented  as  part  of  a  single  line  item,  profit  or  loss  from  discontinued operations.  ee)  Parent entity information  The financial information of the parent entity, Ramelius Resources Limited, disclosed in Note 31 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.  ff) Rounding of amounts  Ramelius  Resources  Limited  is  a  type  of  company  referred  to  in  ASIC  Corporations  (Rounding  in  Financial/Directors’  Reports) Instrument 2016/191 and therefore the amounts contained in the financial report have been rounded to the  nearest $1,000, or in certain cases, to the nearest dollar.  Financial Risk Management Policies  2  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).   80 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 38                                            NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  The directors are responsible for monitoring and managing financial risk exposures of the group. The group holds the  following financial instruments:  Financial assets  Cash at bank  Term deposits  Trade and other receivables (including refundable deposits) Available‐for‐sale financial assets  Total financial assets  Financial liabilities  Trade and other payables  Total financial liabilities  2017  $000’s  2016 $000’s  71,752    6,815    3,612    292    82,471    35,781   8,491   2,362   132   46,766   22,398    22,398    22,255   22,255   a) Liquidity risk  Liquidity risk arises from the possibility that the group might encounter difficulty in settling its debts or otherwise meeting  its obligations related to financial liabilities. Prudent liquidity risk management implies maintaining sufficient cash to meet  obligations when due.  The group manages liquidity risk by regularly monitoring forecast cash flows.  i. Maturities of financial liabilities  (a) Payables                  Trade and other payables are expected to be settled within 6 months.   (b) Borrowings           The group has no outstanding borrowings as at 30 June 2017.  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 Consolidated 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 2017, there were no trade or other receivables considered past due but not impaired (2016: 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:   significant financial difficulties of the debtor,   probability that the debtor will enter bankruptcy or financial reorganisation, and   default or delinquency in payments (past due)  Receivables for which an impairment provision was recognised are written off against the provision when there is no  expectation  of  recovering  additional  cash.    Impairment  losses  are  recognised  in  profit  or  loss  within  other  expenses.  Subsequent recoveries of amounts previously written off are credited against other expenses.  39  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 81                                                         ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  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.  Commodity price risk  ii. 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.  The group is exposed to commodity price risk due to the sale of gold on  physical delivery at prices determined by market at the time of sale. The group manages commodity price risk as follows:  Forward sales contracts  Gold price risk is managed through the use of forward sales contracts which effectively fix the Australian Dollar gold price  and thus provide cash flow certainty.  Put options  Gold price risk may be managed with the use of hedging strategies through the purchase of gold put options to establish  gold “floor prices” in Australian dollars over the group’s gold production; however, this is generally at levels lower than  current market prices.  These put options enable Ramelius to retain full exposure to current, and any future rises in the  gold price while providing protection to a fall in the gold price below the strike price.  Gold put options are marked to  market at fair value through profit and loss.  Gold prices, cash flows and economic conditions are constantly monitored to determine whether to implement a hedging  program. At 30 June 2017, the group had 102,000 ounces in forward sales contracts at an average price of A$1,711. Refer  to note 23 for further details.  Gold price sensitivity analysis  The group has performed a sensitivity analysis relating to its exposure to gold price risk at reporting date.  This sensitivity  analysis demonstrates the effect on the current year results and equity which could result in a change in these risks.  Any  impacts from such hedging would be in relation to revenue from gold sales.  Based on gold sales of 25,185oz (121,031oz less forward sales of 95,846oz) in 2017 and 40,635oz (108,711oz less forward  sales of 68,076oz) in 2016, if gold price in Australian dollars 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 (loss)  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  2017  $000’s  2,519  (2,519)  2016 $000’s  4,064 (4,064) 2,519  (2,519)  4,064 (4,064) d) Capital risk management  The objective when managing capital is to maintain a strong capital base capable of withstanding cash flow variability,  whilst providing flexibility to pursue its growth aspirations.  Ramelius aims to maintain an optimal capital structure to  reduce the cost of capital and maximise shareholder returns.  The capital structure is equity as shown in the Balance  Sheet.  The group is not subject to any externally imposed capital requirements.  82 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 40                                          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  e) Fair value measurement  The financial assets and liabilities of the group are recognised on the Consolidated Balance Sheet at their fair value in  accordance with the accounting policies in Note 1. 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).  Fair value measurement of financial instruments  Derivative financial assets are measured at fair value using the valuation provided from the relevant financial institution.   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.   Fair value measurement of non‐financial instruments  Properties  are  measured  at  fair  value  using  2011  valuations  made  by  an  independent  valuer.    At  30  June  2017,  the  directors are of the opinion that the carrying amounts of properties approximate their fair value.  The valuations would  be recognised as a Level 2 in the fair value hierarchy.   The valuation depends on a number of characteristics of observable market transactions in similar properties that are  used for  valuation.    Although  this  input  is a subjective  judgement,  management  considers  that the carrying amounts  would not be materially affected by reasonably possible alternative assumptions.  3  Operating Segments  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), the Managing Director/Chief Executive Officer, in  order to make strategic decisions.  Reportable operating segments are Mt Magnet, Burbanks and Exploration.  The group  operates primarily in one business segment, namely the exploration, development and production of minerals with a  focus on gold.  The CODM monitors performance in these areas separately. Unless stated otherwise, all amounts reported to the CODM  are  determined  in  accordance  with  accounting  policies  that  are  consistent  to  those  adopted  in  the  annual  financial  statements of the group.  Operating segment performance details for financial years 2017 and 2016 are set out below:   2017 Segment performance  Segment revenue  Sales revenue  Segment cost of production  Cost of production before:  Amortisation and depreciation  Movement in inventory  Deferred stripping costs Segment cost of production  Gross margin  Mt Magnet $’000  Burbanks $’000  Exploration  $’000  ‐ (13) ‐ ‐ ‐ (13) (13) ‐  ‐  ‐  ‐  ‐  ‐  ‐  Total $’000  197,358 (160,040) (59,972) 10,343 41,054 (168,615) 28,743 197,358 (160,027) (59,972) 10,343 41,054 (168,602) 28,756 41  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 83                                       ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  2017 Segment performance (continued)  Impairment and exploration write‐off  Reversal of prior period impairments  Segment margin  Interest income  Finance cost  Other expenses  Profit before income tax from continuing operations 2016 Segment performance  Segment revenue  Sales revenue  Segment cost of production  Cost of production before:  Amortisation and depreciation  Movement in inventory  Deferred stripping costs Segment cost of production  Gross margin  Impairment and exploration write‐off  Segment margin  Interest income  Finance cost  Other expenses  Profit before income tax from continuing operations 2017 Segment position  Capitalised expenditure  Property, plant, and equipment  Site development  Exploration assets  Segment assets  Segment assets from continuing operations  Total segment assets  Corporate and unallocated assets  Cash and cash equivalents  Trade and other receivables  Other current assets  Available for sale financial assets  Property, plant, and equipment  Deferred tax assets  Total consolidated assets  Mt Magnet $’000  (8) 1,581 30,329 Burbanks $’000  47 34 Exploration  $’000  (1,312)  ‐  (1,312)  Mt Magnet $’000  Burbanks $’000  Exploration  $’000  173,744 (151,898) (49,880) 11,763 49,196 (140,819) 32,925 (183) 32,742 ‐ (20) ‐ ‐ ‐ (20) (20) 53 33 ‐  ‐  ‐  ‐  ‐  ‐  ‐  (1,441)  (1,441)  Mt Magnet $’000  Burbanks $’000  Exploration  $’000  254  ‐  15,422  4,681 43,219 ‐ 102,258 102,258 ‐ ‐ ‐ ‐ ‐ Total $’000  (1,320) 1,628 29,051 1,154 (681) (4,464) 25,060 Total $’000  173,744 (151,918) (49,880) 11,763 49,196 (140,839) 32,905 (1,571) 31,334 568 (834) (5,725) 25,343 Total $’000  4,935 43,219 15,422 19,653  19,653  121,911 121,911 78,567 3,112 259 292 246 30,944 235,332 84 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 42                                                                                              NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  2016 Segment position  Capitalised expenditure  Property, plant, and equipment  Site development  Exploration assets  Segment assets  Segment assets from continuing operations  Assets and disposal group classified as held for sale Total segment assets  Mt Magnet $’000  Burbanks $’000  Exploration  $’000  4,865 51,004 ‐ 100,296 ‐ 100,926 ‐ ‐ ‐ 176 3,225 3,401 ‐  ‐  5,270  8,100  ‐  8,100  Corporate and unallocated assets  Cash and cash equivalents  Trade and other receivables  Other current assets  Available for sale financial assets  Property, plant, and equipment  Deferred tax assets  Total consolidated assets  Total $’000  4,865 51,004 5,270 109,202 3,225 112,427 44,272 1,608 198 132 199 35,410 194,246 2017 Segment position  Segment liabilities  Segment liabilities from continuing operations Total segment liabilities  Mt Magnet $’000  Burbanks $’000  Exploration  $’000  Total $’000  (43,359) (43,359) (21) (21) (2,123)  (2,123)  (45,503) (45,503) Corporate and unallocated liabilities  Trade and other payables  Current provisions  Non‐current provisions  Deferred tax liabilities  Total consolidated liabilities  2016 Segment position  Segment liabilities  Segment liabilities from continuing operations Liabilities included in disposal group held for sale Total segment liabilities  Mt Magnet $’000  Burbanks $’000  Exploration  $’000  (45,162) ‐ (45,162) (133) (2,070) (2,203) (1,342)  ‐  (1,342)  Corporate and unallocated liabilities  Trade and other payables  Current provisions  Non‐current provisions  Deferred tax liabilities  Total consolidated liabilities  (206) (728) (104) (18,989) (65,530) Total $’000  (46,637) (2,070) (48,707) (665) (621) (60) (16,605) (66,658) The Burbanks operating segment includes assets, liabilities, revenues and expenses of the asset and disposal group which  are classified as held for sale and discontinued operations (Note 32).  43  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 85                                                                                               ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Major customers  Ramelius provides goods that are more than 10% of external revenue through the Western Australian Mint in Perth,  Australia. Goods provided through the Western Australian Mint account for 100% (2016: 100%) of sales revenue.  Segments assets by geographical location   Segment assets of Ramelius are geographically located in Australia.  4  Critical Accounting Judgements, Estimates and Assumptions  Judgements, estimates and assumptions are continually evaluated and are based on historical experience and other factors,  including expectations of future events that are believed to be reasonable in the circumstances. Estimates and assumptions  made assume a reasonable expectation of future events and are based on current trends and economic data, obtained  both externally and within the group. The judgements, estimates and assumptions will, by definition, seldom equal actual  results. The judgements, estimates and assumptions having a significant risk of causing material adjustments to the carrying  amount of assets and liabilities within the next financial year are detailed below.  a) Exploration and evaluation expenditure  The  group’s  policy  for  exploration  and  evaluation  is  discussed  at  Note  1(p).  Application  of  this  policy  requires  management to make 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.  b) Deferred mining expenditure  The group defers mining costs incurred during the production stage of its operations, which are calculated in accordance  with accounting policy Note 1(s). Changes in an individual mine’s design will generally result in changes to the life‐of‐ mine waste to contained gold ounces (life‐of‐mine) ratio. Changes in other technical and economic parameters that  impact reserves will also have an impact on the life‐of‐mine ratio even if they do not affect the mine’s design. Changes  to the life‐of‐mine are accounted for prospectively.  c) Ore reserve estimates  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.  d) Recovery of deferred tax assets  Deferred tax assets, including those arising from unutilised tax losses require management to assess the likelihood that  the group complies with the relevant taxation legislation and will generate sufficient taxable earnings in future periods,  in order to recognise and utilise those deferred tax assets. Estimates of future taxable income are based on forecast  cash flows from operations and existing tax laws in the relevant jurisdictions. 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 deductions in future periods.  e) 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 calculated in accordance with accounting policy Note 1(u). 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.   86 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 44                          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  f) Unit‐of‐production method of depreciation and amortisation  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.  g) Provision for restoration and rehabilitation  The group assesses its mine restoration and rehabilitation provision bi‐annually in accordance with the accounting  policy Note 1(y). 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 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.  h) Share based payments  The group measures the cost of equity settled transactions with employees by reference to the fair value of equity  instruments at the date at which they are granted. Fair value is determined using assumptions detailed in Note 22.  i) Impairment of available‐for‐sale financial assets  The group follows the guidance of AASB 139 Financial Instruments: Recognition and Measurement to determine when  an available‐for‐sale financial asset is impaired. This determination requires significant judgement. In making this  judgement, the group evaluates, among other factors, the duration and extent to which the fair value of an  investment is less than its cost and the financial health of and short‐term business outlook for the investee, including  factors such as industry and sector performance, changes in technology and operational and financing cash flows.  5  Revenue and Expenses  Profit before tax includes the following revenue, income and expenses whose disclosure is relevant in explaining the  performance of the group:  Note  2017  $000’s  2016 $000’s  a) Sales revenue  Gold sales  Silver sales  Other revenue  Total sales revenue from continuing operations  b) Cost of production  Amortisation and depreciation Employee benefits expense  Inventory movements  Mining and milling production costs  Royalty costs  Total cost of production from continuing operations 197,012  304  42  197,358  173,453 242 49 173,744 59,972  16,213  (10,343)  92,823  9,950  168,615  49,880 14,168 (11,763) 83,917 4,637 140,839 45  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 87                               ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  c) Other expenses  Amortisation and depreciation Employee benefits expense  Equity settled share‐based payments  Exploration costs written off  Impairment of development assets  Impairment of exploration and evaluation assets Impairment of debtors  Loss on derivative financial instruments  Loss on disposal of property, plant and equipment assets Foreign exchange losses  Other expenses  Total other expenses from continuing operations d) Other income  Gain on disposal of tenements Gain on sale of subsidiary  Foreign exchange gains  Total other income  e) Net finance expenses (income)  Discount unwind on provisions and borrowings  Interest and finance charges  Total finance costs  Interest income  Net finance expenses (income) from continuing operations 6  Remuneration of Auditors  Audit and other assurance services  Audit and review of financial statements ($)  Non‐assurance services  Tax advice and compliance services ($)  Gender survey assistance Total remuneration of Grant Thornton ($)  Note  2017  $000’s  2016 $000’s  22 15 17 10 32 19 60   3,019   777   680   (1,629)  632   8   80   16   6   2,297   5,946   425   1,362   3   1,790   565   116   681   (1,154)  (473)  76   2,446   117   650   130   791   ‐   1,196   ‐   8   1,889   7,303   ‐   ‐   7   7   553   281   834   (568) 266 99,296   101,500   20,220   ‐   119,516   7,000   580   109,080   88 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   46                                    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Income Tax (Benefit) Expense  7  The components of tax (benefit) expense comprise: Current tax  Deferred tax  Income tax from discontinued operations  Income tax (benefit) expense from continuing operations Reconciliation of income tax (benefit) expense to prima facie tax payable: Accounting profit before tax  Income tax expense calculated at 30% (2016: 30%) Tax effects of amounts which are not deductible  (taxable) in calculating taxable income:  ‐ share‐based payments  ‐ other non‐allowable items ‐ non‐assessable income from disposal of subsidiary ‐ losses not previously recognised  Income tax (benefit) expense  Applicable weighted average effective tax rate  30 June 2017 deferred tax movement  Note  2017  $000’s  2016 $000’s  32 ‐  7,432  (14)  7,418  ‐ (2,519) 97 (2,422) 25,060  7,518  25,343 7,603 233  403  (736)  ‐  7,418  35 77 ‐ (10,137) (2,422) 30%  (10%) Deferred tax liability  Exploration and evaluation  Development  Inventory ‐ consumables  Unrealised foreign exchange gain (loss)  Group deferred tax liability (DTL)  DTL from discontinued operation (Note 32)  DTL from continuing operations Deferred tax asset  Equity transaction costs   Inventory ‐ deferred mining costs  Property, plant and equipment Receivables  Provisions  Tax losses  Borrowing costs  Other  Group deferred tax asset (DTA) DTA from discontinued operation (Note 32)  DTA from continuing operations Balance  at 1 July  2016  $000’s  Charged /  (credited) to  income  $000’s  Charged /  (credited) to  equity  $000’s  Balance at  30 June  2017  $000’s  2,096 14,405 103 3 16,607 (2) 16,605 78 1,149 1,179 ‐ 8,339 25,447 91 129 36,412 (1,002) 35,410 3,634 (1,278) 31 (3) 2,384 ‐ 2,384 (143) 600 100 3 (476) (5,053) (91) 12 (5,048) 14 (5,034) ‐  ‐  ‐  ‐  ‐  ‐  ‐  568  ‐  ‐  ‐  ‐  ‐  ‐  ‐  568  ‐  568  5,730 13,127 134 ‐ 18,991 (2) 18,989 503 1,749 1,279 3 7,863 20,394 ‐ 141 31,932 (988) 30,944   47  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 89                                       ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  30 June 2016 deferred tax movement  Deferred tax liability  Exploration and evaluation  Development  Inventory ‐ consumables  Unrealised foreign exchange gain (loss)  Group deferred tax liability (DTL)  DTL from discontinued operation (Note 32)  DTL from continuing operations Deferred tax asset  Equity transaction costs   Inventory ‐ deferred mining costs  Property, plant and equipment Receivables  Provisions  Tax losses  Borrowing costs  Other  Group deferred tax asset (DTA) DTA from discontinued operation (Note 32)  DTA from continuing operations Tax effects relating to comprehensive income    Balance  at 1 July  2015  $000’s  Charged /  (credited) to  income  $000’s  Charged /  (credited) to  equity  $000’s  Balance at  30 June  2016  $000’s  1,511 10,734 136 95 12,476 (2) 12,474   285 2,678 1,160 65 7,988 17,463 ‐ 160 29,799 (1,136) 28,663 585   3,671   (33) (92) 4,131   ‐   4,131   (209) (1,529) 19 (65) 351 7,984 91 8 6,650 134 6,784 ‐  ‐  ‐  ‐  ‐  ‐  ‐  2  ‐    ‐    ‐    ‐    ‐    ‐    (39)  (37)  ‐  (37)  2,096 14,405 103 3 16,607 (2) 16,605 78 1,149 1,179 ‐ 8,339 25,447 91 129 36,412 (1,002) 35,410 Revaluation of available‐for‐sale assets  280   ‐   280   162   40   202   Pre‐tax  $000’s  2017 Tax effect $000’s  Net of tax  $000’s  Pre‐tax   $000’s  2016  Tax effect  $000’s  Net of tax  $000’s  2017  $000’s  2016 $000’s Franking credits  Franking credits available for subsequent years based on a tax rate of 30% (2016: 30%) 21,826   21,826   The above represents the balance of the franking account as at the end of the reporting period, adjusted for:  a) franking credits (debits) that will arise from payment of the current tax liability (current tax asset), and  b) franking debits that will arise from the payment of dividends recognised as a liability at the reporting date. Tax losses  Unused tax losses for which no deferred tax asset has been recognised Potential tax benefit at 30%  4,080   1,224   3,137   941   All unused tax losses have been recognised as a deferred tax asset, with the exception of capital losses. The Directors  have assessed that it is probable the group will generate sufficient taxable profits to utilise the losses recognised as a  deferred tax asset. All unused tax losses were incurred by Australian entities that are part of the tax consolidated group.  See Note 4(d) for information about recognised tax losses and significant judgements made in relation to them.  90 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   48                                                  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  8  Earnings Per Share  Classification of securities  All ordinary shares have been included in basic earnings per share.  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.  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.  Weighted average number of shares used as the denominator   Number for basic earnings per share  Ordinary shares  Number of dilutive securities  Share rights and options  Total number of securities for dilutive earnings per share 9  Cash and Cash Equivalents  Cash at bank and in hand  Deposits at call  Secured deposits 1  Total cash and cash equivalents  2017  2016 521,082   473,328   5,629   526,711   838   474,166   2017  $000’s  2016 $000’s  71,752   15   6,800   78,567   35,781   15   8,476   44,272   1  Includes $2,687,312 (2016: $2,595,145) of deposits provided as security against unconditional bank guarantees in favour of the Minister for Mines  and Energy (Northern Territory), Central Land Council in the Northern Territory for exploration purposes and in favour of other entities to secure  supply of gas and electricity. Also includes a minimum reserve amount of $2,500,000 (2016: $5,000,000) as security under the finance facility.  Risk exposure  The group’s exposure to interest rate risk is discussed in Note 2.  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.  10  Trade and Other Receivables  Current  Trade receivables  Provision for impairment  Trade receivables  Other receivables  Total current trade and other receivables  Non‐current  Other receivables  Total non‐current trade and other receivables  32  (8)  24  1,890  1,914  1,286  1,286  106 ‐ 106 1,730 1,836 ‐ ‐   49  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 91                                                                     ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Classification of trade and other receivables  Trade  receivables  are  amounts  due  from  customers  for  goods sold  and services  performed in the  ordinary  course of  business.  Trade  receivables  are  generally  due  for  settlement  within  30  days  and  therefore  classified  as  current.  The  group’s impairment and other accounting policies for trade and other receivables are outlined in Notes 1(l) and 2(b).  Other receivables comprise accrued interest and amounts due from taxation authorities. If collection of the amounts is  expected in one year or less they are classified as current assets. If not, they are classified as non‐current assets.   Fair values of trade and other receivables  Due to the short‐term nature of the current receivables, their carrying amount is assumed to be the same as their fair  value. For non‐current receivables, the fair values are also not significantly different to their carrying amounts.  Impairment and risk exposure  Refer Note 2 for more information on the risk management policy of the group and credit quality of trade receivables.   Other receivables – Share Sale Agreement – Ramelius Milling Services Pty Limited  Other receivables include $450,000 (current) and $1,286,000 (non‐current) receivable from Maximus Resources Limited  in relation to the Share Sale Agreement for Ramelius Milling Services Pty Limited.  Inventories  11  Gold nuggets at cost  Ore stockpiles  Gold in circuit  Bullion  Consumables and supplies  Total inventories from continuing operations  2017  $000’s  2016 $000’s  80   12,824   8,097   3,623   4,607   29,231   80   7,410   7,343   ‐   4,114   18,947   Inventory expense  There were no write‐downs of inventories to net realisable value during the year ended 30 June 2017 (2016: Nil).  12  Other Assets  Current  Prepayments  Non‐current  Refundable deposits  891   868   412   526   Fair values of other assets  Due to the short‐term nature of other assets, their carrying amount is assumed to be the same as their fair value. For  non‐current other assets, the fair values are also not significantly different to their carrying amounts.  13  Available‐For‐Sale Financial Assets  Shares in listed corporations at fair value  292   132   Classification of financial assets as available‐for‐sale  Investments  are  designated  as  available‐for‐sale  financial  assets  if  they  do  not  have  fixed  maturities  and  fixed  or determinable payments, and management intends to hold them for the medium to long‐term. The financial assets are  presented as non‐current assets unless they mature, or management intends to dispose of them within 12 months of the  end of the reporting period.  92 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   50                                                    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Risk exposures and fair value measurements  Available‐for‐sale financial assets are recognised as a Level 1 in the fair value hierarchy as defined under AASB 7  Financial Instruments: Disclosures. Information about the group’s exposure to credit risk and the methods and  assumptions used in determining fair values is provided in Note 2.  14  Property, Plant and Equipment  Property  Properties at fair value (a)   Additions  Less accumulated depreciation Total property  Plant and equipment  Plant and equipment at cost  Less accumulated depreciation Total plant and equipment  Total property, plant and equipment   2017  $000’s  2016 $000’s  1,588  30  (210)  1,408  60,246  (42,415)  17,831  19,239  1,588   (170) 1,418   55,470   (36,349) 19,121   20,539   14(d) 14(d) (a) Valuation of property  Properties are recognised as a Level 2 in the fair value hierarchy as defined under AASB 13 Fair Value Measurements. The valuation  basis  of  property  is  fair  value  being  the  amounts  for  which  the  assets  could  be  exchanged  between  willing  parties in an arm’s length transaction, based on current prices in an active market for similar properties in the same location and condition. The 2011 valuations were made by independent valuers. At 30 June 2017, the directors are of the  opinion that the carrying amounts of properties approximate their fair values.  (b) Carrying amounts that would have been recognised if land and buildings were stated at cost  If properties were stated on the historical cost basis, the amounts would be as follows:  Property  Properties at cost  Additions  Accumulated depreciation  Total property assets  666  30  (81)  615  607 59 (65) 601 (c) Assets in the course of construction  Plant and equipment includes the following expenditure which is in the course of construction:  Plant and equipment in the course of construction 1,744   625   (d) Property, plant and equipment asset reconciliation  Property asset reconciliation  Balance at beginning of financial year  Additions  Depreciation  Total property  Plant and equipment asset reconciliation  Balance at beginning of financial year  Additions  Disposals  Depreciation  Plant and equipment from discontinued operation Total plant and equipment  1,418  30  (40)  1,408  19,121  4,863  (21)  (6,132)  ‐  17,831  1,397 59 (38) 1,418 24,486 4,903 (1) (8,604) (1,663) 19,121   51  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 93                                     ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  (e) Re‐assessment of depreciation   In July 2016, the group reassessed the useful life of a fixed asset class and made adjustments to the net book value  through depreciation. The asset class is depreciated using the straight line method and the useful life of the asset  reflects the revised life of mine plan. The overall impact is a $1.0 million reduction in depreciation in the 2017 financial  year (2016: $2.3 million).  15  Development Assets  Development assets at cost  Less accumulated amortisation Total development assets  (a) Development asset reconciliation  Balance at beginning of financial year  Additions  Restoration and rehabilitation adjustment  Impairment  Transfer from exploration and evaluation expenditure Amortisation  Total development assets  Intangible Assets  16  Software at cost  Accumulated amortisation  Total intangible assets  (a) Intangible asset reconciliation  Balance at beginning of financial year  Amortisation  Total intangible assets  17  Exploration and Evaluation Expenditure  Exploration and evaluation  (a) Exploration and evaluation expenditure reconciliation Balance at beginning of financial year  Additions  Transfers to development assets  Impairment expense 1  Total exploration and evaluation expenditure  2017  $000’s  2016 $000’s  164,230  (110,775)  53,455  117,537 (56,903) 60,634 60,634  43,392  (1,802)  1,629  3,474  (53,872)  53,455  46,607 50,678 456 (130) 4,429 (41,406) 60,634 874  (874)  ‐  73  (73)  ‐  874 (801) 73 191 (118) 73 19,101  7,784 7,784  15,423  (3,474)  (632)  19,101  7,734 5,270 (4,429) (791) 7,784 1  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  18  Trade and Other Payables  Trade payables  Other payables and accrued expenditure  Total trade and other payables  5,008   17,390   22,398   9,192   13,063   22,255   94 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   52                                              NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Classification of trade and other payables  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 2.  19  Provisions  Current  Employee benefits  Rehabilitation and restoration costs  Total current provisions  Non‐current  Employee benefits  Rehabilitation and restoration costs  Total non‐current provisions   2017  $000’s  2016 $000’s  2,693   21   2,714   536   20,893   21,429   2,408   984   3,392   444   21,892   22,336   Provision for long service leave  Provision for long service leave is recognised for employee benefits. In calculating its present value, the probability of leave being taken is based on historical data. Refer Note 1(x) for measurement and recognition criteria.  Provision for rehabilitation and restoration   Provision for rehabilitation and restoration represents management’s assessment of expenditure expected to be incurred for various mines and processing plant. Refer Note 1(y) for measurement and recognition criteria.  Rehabilitation and restoration reconciliation  Current  Balance at beginning of financial year  Revision of provision 1  Expenditure on restoration and rehabilitation  Discount unwind  Total current provision for rehabilitation and restoration Non‐current  Balance at beginning of financial year  Revision of provision 1  Expenditure on restoration and rehabilitation  Discount unwind  Provision associated with assets from discontinued operation Total non‐current provision for rehabilitation and restoration 984  (257)  (725)  19  21  21,892  (1,545)  ‐  546  ‐  20,893  ‐ 983 ‐ 1 984 24,111 (551) (203) 603 (2,068) 21,892 1 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.    53  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 95                                                   ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  20  Share Capital a)  Ordinary shares  Share capital at 30 June 2015  Share capital during the 2015‐16 financial year  Issue of shares resulting from vesting of rights  Shares issued from exercise of options  Less cost of share issues (net of tax)  Share capital at 30 June 2016  Share capital during the 2016‐17 financial year  Shares issued from exercise of options  Shares issued under placement Less cost of share issues (net of tax)  Share capital at 30 June 2017  Number of  Shares  $  469,217,969  124,251,185 70,000  5,946,279  ‐  475,234,248  ‐ 831,588 (2,483) 125,080,290 1,500,000  50,000,000  ‐  526,734,248  373,035 25,000,000 (1,331,374) 149,121,951 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.  b)  Options over shares  Refer Note 22 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.  c)  Rights over shares  Refer Note 22 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.  21  Reserves   Share‐based payments reserve 1  Available‐for‐sale reserve 2  Asset revaluation reserve 3  Total reserves  2017  $000’s  2016 $000’s  861   (575)  634   920   84   (295) 634   423   1  Share‐based payments reserve records items recognised as expenses on valuation of employees share options and rights.  2  Available‐for‐sale reserve records changes in the fair value of available‐for‐sale financial assets.  3  Asset revaluation reserve records revaluations of non‐current assets.  22  Share‐Based Payments   Shares  Under the Employee Share Acquisition Plan, which was approved by shareholders in November 2007, eligible employees  are granted ordinary fully paid shares in Ramelius for no cash consideration. All Australian resident permanent employees  who  are  employed  by  the  group  are  eligible  to  participate  in  the  plan.  Members  of  the  plan  receive  all  the  rights  of  ordinary shareholders. Unrestricted possession of these shares occurs at the earliest of, three years from date of issue or  the date employment ceases.   No shares were issued to employees during the 2017 financial year (2016: nil).   96 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   54                                                  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Effective  grant date  Options  No employees were granted options in the 2017 financial year. Details of the movements in options issued in prior years  and those outstanding at the end of the financial year are detailed below.  Fair  value  per  option  $0.027  $0.029  $0.087  $0.095  Expiry  date  11 Jun 17  11 Jun 18  11 Jun 19  11 Jun 20  Exercise  price 1  $0.249  $0.299  $0.200  $0.200  Vesting  date  11 Jun 15 11 Jun 16 11 Jun 17 11 Jun 18 Vested  options at  end of  year  ‐  1,500,000  1,500,000  ‐  3,000,000  Unvested  options at  end of  year  ‐ ‐ ‐ 1,500,000 1,500,000 Options  exercised or  lapsed  (1,500,000) ‐ ‐ ‐ (1,500,000) Options at  start of  year  1,500,000 1,500,000 1,500,000 1,500,000 6,000,000 Number  granted  1,500,000 1,500,000 1,500,000 1,500,000 6,000,000 Options  vested  ‐ ‐ 1,500,000 ‐ 1,500,000 2017  16 Apr 14  16 Apr 14  26 Nov 15  20 Nov 15  Total  1 The exercise price of the options has been adjusted for a 1 for 4 pro‐rata rights issue in the 2015 financial year in accordance with the terms of  the options.  Effective  grant date  2016  16 Apr 14  16 Apr 14  16 Apr 14  26 Nov 15  20 Nov 15  Total  Expiry  date  11 Jun 16  11 Jun 17  11 Jun 18  11 Jun 19  11 Jun 20  Exercise  price 1  $0.199  $0.249  $0.299  $0.200  $0.200  Fair  value  per  option  $0.028  $0.027  $0.029  $0.087  $0.095  Number  granted  1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 7,500,000 Options at  start of  year  1,500,000 1,500,000 ‐ ‐ ‐ 3,000,000 Options  vested  ‐ ‐ 1,500,000 ‐ ‐ 1,500,000 Options  exercised or  lapsed  (1,500,000) ‐ ‐ ‐ ‐ (1,500,000) Vested  options at  end of  year  ‐  1,500,000  1,500,000  ‐  ‐  3,000,000  Unvested  options at  end of  year  ‐ ‐ ‐ 1,500,000 1,500,000 3,000,000 Vesting  date  11 Jun 14 11 Jun 15 11 Jun 16 11 Jun 17 11 Jun 18 1 The exercise price of the options has been adjusted for a 1 for 4 pro‐rata rights issue in the 2015 financial year in accordance with the terms of  the options.  Weighted average remaining contractual life of granted options at the end of the period is 1.95 years (2016: 1.77 years).  The  fair  value  at  grant  date  is  independently  determined  using  a  Black‐Scholes  option  pricing  model  that  takes  into  account the exercise price, the term of the option, the share price at grant date, expected price volatility of the underlying  share and the risk free rate for the term of the option. The expected price volatility is based on historic volatility (based  on the remaining life of the options). Model inputs for options granted are as follows:  Metric    Exercise price    Grant date    Expiry date    Share price at grant date    Expected price volatility    Risk free rate  Options expiring  11 June 2017  $0.25 16 Apr 2014 11 Jun 2017 $0.11 65.83% 2.74% Options expiring  11 June 2018  $0.30 16 Apr 2014 11 Jun 2018 $0.11 62.79% 2.93% Options expiring  11 June 2019  $0.20  26 Nov 2015  11 Jun 2019  $0.18  70.48%  2.06%  Options expiring 11 June 2020  $0.20 26 Nov 2015 11 Jun 2020 $0.18 68.46% 2.13% Performance Rights  Under the Performance Rights Plan, which was approved by shareholders at the 2016 Annual General Meeting, eligible  employees are granted performance rights (each being an entitlement to an ordinary fully paid share) subject to the  satisfaction of vesting conditions and on the terms and conditions as determined by the board. Performance rights are  issued for no consideration and have a nil exercise price.  The amount of performance rights that vest depends on Ramelius Resources Limited’s total return to shareholders  (TSR), including share price growth, dividends and capital returns, and ranking within a peer group. Once vested  performance rights remain exercisable for a period of seven years.    55  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 97                                                                                         ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Performance rights issued under the plan carry no voting or dividend rights.  Effective grant date  23 November 2016  23 November 2016  23 November 2016  22 December 2016  Total  Expiry date  1 July 2024  1 July 2025  1 July 2026  11 June 2026  Fair value per  performance  right  $0.333  $0.325  $0.365  $0.363  Number  granted  976,448 976,443 976,439 500,000 3,429,330 Performance rights at  start of year  Vested  Unvested  Performance  rights vested  Performance rights at  end of year  Vested  Unvested  ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐  ‐  ‐  ‐  ‐  976,448 976,443 976,439 500,000 3,429,330 Vesting &  exercise date  1 July 2017 1 July 2018 1 July 2019 11 June 2019 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  are as follows:  Metric    Exercise price    Grant date    Life    Share price at grant date    Expected price volatility    Risk free rate  Performance rights granted  23 November 2016  Performance rights granted  22 December 2016  $nil 23 November 2016 0.6 yrs / 1.6 yrs / 2.6 years $0.49 68.4% 1.70% $nil  22 December 2016  2.6 years  $0.49  68.4%  1.70%  Expenses arising from share‐based payment transactions  Total expenses arising from share‐based payment transaction recognised during the period as part of employee benefits  expense.  Rights   Performance rights  Options   Total share‐based payment expense  2017  $000’s  ‐   641   136   777   2016 $000’s  13   - 104   117   23  Commitments  a) Gold delivery commitments  Forward  sale  contracts  are  accounted  for  as  sale  contracts  with  revenue  recognised  once  gold  has  been  physically  delivered. The physical gold delivery contracts are considered own use contracts and therefore do not fall within the  scope of AASB 139 Financial Instruments: Recognition and Measurement. As a result no derivatives are required to be  recognised. Forward gold sale contract delivery commitments are shown below:   Gold Delivery   Commitments  As at 30 June 2017  Within one year  Between one and five years  Total / weighted average  Gold for Physical Delivery oz  Contracted Sale Price  A$/oz  Committed Gold Sale Value $000’s  67,000 35,000 102,000 1,714.87 1,702.89 1,710.76 114,896 59,601 174,497 98 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   56                                                                          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Gold Delivery   Commitments  As at 30 June 2016  Within one year  Between one and five years  Total / weighted average  Gold for Physical Delivery oz  73,846 32,000 105,846 Contracted Sale Price  A$/oz  Committed Gold Sale Value $000’s  1,598.06 1,608.72 1,601.28 118,010 51,479 169,489 b) Capital expenditure commitments  Capital expenditure contracted but not provided for in the financial statements.  Within 1 year  Later than 1 year but not later than 5 years  Total capital expenditure commitments  c) Operating lease commitments  Future minimum rentals payable on non‐cancellable operating leases due:   Within 1 year  Later than 1 year but not later than 5 years  Total operating lease commitments  2017  $000’s  2016 $000’s  868   ‐   868   585   161   746   1,058   800   1,858   739   782   1,521   Significant operating leases include the following:  The group has a 3 year non‐cancellable operating lease for office space in Adelaide effective from December 2014 at a  cost of $91,067 per annum plus CPI adjustments.  The group has a 3 year non‐cancellable operating lease for office space in Perth effective from May 2016 at a cost of  $144,075 per annum plus CPI adjustments.  The group has a 2 year non‐cancellable operating lease for the hire of two items of plant and equipment at Mt Magnet  effective from April 2016 at a cost of $204,600 per annum.  d) Minimum exploration and evaluation commitments  In  order  to  maintain  current  rights  of  tenure  to  exploration  tenements,  the  group  is  required  to  perform  minimum  exploration work to meet minimum expenditure requirements. These obligations are subject to renegotiation and may  be farmed out or relinquished. These obligations are not provided for in the financial statements.  Within 1 year  Later than 1 year but not later than 5 years  Due later than 5 years  Total minimum exploration and evaluation commitments 3,198   11,094   23,329   37,621   3,193   14,541   27,257   44,991   e) Other commitments  The group has contractual obligations for various expenditures such as royalties, production based payments, exploration  and the cost of goods and services supplied to the group. Such expenditures are predominantly related to the earning of revenue in the ordinary course of business. These obligations are not provided for in the financial statements.    57  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 99                                              ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  24  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  $2,687,312  (2016:  $2,595,145).  These  bank  guarantees are fully secured by cash on term deposit.  Note 2017  $000’s  2016 $000’s  25  Cash Flow Information  a) Reconciliation of cash  For the purposes of the Consolidated Statement of Cash Flows, cash includes cash on hand and at bank and highly liquid  investments in money market instruments, net of outstanding bank overdrafts. Cash at end of the financial year as shown  in the Consolidated Statement of Cash Flows is reconciled to the related items in the Consolidated Balance Sheet as  follows:  Cash   Cash on deposit  Total cash and cash equivalents  71,752  6,815  78,567  35,781 8,491 44,272 9  b) Reconciliation of net profit to net cash provided by operating activities  Profit (loss) after income tax  17,675  27,540 Non‐cash items  ‐ Share‐based payments  ‐ Depreciation and amortisation  ‐ Impairment of assets     ‐ Tenement costs written‐off  ‐ Discount unwind on provisions  ‐ Effect of exchange rate  ‐ Net fair value of derivative instruments  ‐ Discontinued operations  Items presented as investing or financing activities  ‐ (Gain) loss on disposal of non‐current assets   ‐ Available for sale investments  ‐ Demobilisation and restoration activities  Changes in assets and liabilities  (Increase) decrease:  ‐ Prepayments  ‐ Trade and other receivables  ‐ Inventories  ‐ Deferred tax assets  (Decrease) increase:  ‐ Trade and other payables  ‐ Provisions  ‐ Deferred tax liabilities  Net cash provided by operating activities  100 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   58  777  60,057  (997)  ‐  566  1  80  92  16  (425)  946  3  (1,446)  (10,282)  5,050  10,480  (1,546)  2,383  83,430  117 49,956 921 34 553 (4) 1,196 215 ‐ 203 (120) 1,532 (11,104) (6,652) (3,183) 180 4,132 65,516                                                                                                       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  2017  $  2016 $  26  Related Parties  Transactions  with  related  parties  are  on  normal  commercial  terms  and  at  conditions  no  more  favourable  than  those  available to other parties unless otherwise stated.  a) Key management personnel compensation  Short‐term employee benefits Post‐employment benefits  Other long‐term benefits  Share‐based payments  Total key management personnel compensation Detailed remuneration disclosures are provided in the Remuneration Report.  b) Subsidiaries  Interests in subsidiaries are set out in Note 28.  2,398,064   199,347   40,046   405,937   3,043,394   1,878,746   180,000   38,813   102,801   2,200,360 c) Transactions with other related parties  Lease payments were made during the year to an entity related to the Chairman, Mr R M Kennedy. The lease agreement  is for the office property in Adelaide, SA and has been based on normal commercial terms on conditions on an arm’s  length basis.  Aggregate amounts of each of the above types of transactions with key management personnel of Ramelius Resources  Limited:  Amounts recognised as an expense  Rent of office building   Amounts recognised as current other debtors  Security deposit on premises 2017  $  2016 $  97,749  93,816 13,935  13,935 The Chairman, Mr R M Kennedy, is the Chairman of Maximus Resources Limited. During the year Ramelius Resources  Limited entered into a Share Sale Agreement with Maximus Resources Limited for the sale of Ramelius Milling Services  Pty Limited (the owner and operator of the Burbanks Mill). The Share Sale Agreement was made on normal commercial  terms and conditions on an arm’s length basis.  Amounts recognised as other receivables  Current  Non ‐ current  2017  $  450,000  1,286,217  2016 $  ‐ ‐ There was no other amount receivable from or payable to directors and their related entities at reporting date.    59  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 101                                                         ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  27  Deed of Cross Guarantee  Pursuant  to  Class  Order  98/1418,  wholly‐owned  subsidiary  Mt  Magnet  Gold  Pty  Ltd  (formerly  Mt  Magnet  Gold  NL)  (Subsidiary)  is  relieved  from  the  Corporations  Act  requirements  for  preparation,  audit  and  lodgement  of  its  financial  reports.  As a condition of the Class Order, Ramelius and Mt Magnet Gold Pty Ltd (the Closed Group) entered into a Deed of Cross  Guarantee on 15 December 2011 (Deed). The effect of the Deed is that Ramelius has guaranteed to pay any deficiency  in the event of winding up of the abovementioned Subsidiary under certain provisions of the Corporations Act 2001. Mt  Magnet Gold Pty Ltd has also given a similar guarantee in the event that Ramelius is wound up.   The Consolidated Statement of Comprehensive Income and Balance Sheet of the Closed Group are as follows:  Consolidated Statement of Comprehensive Income  Sales revenue  Cost of production  Gross profit (loss)  Other expenses  Other income  Operating profit (loss) before interest income and finance cost Interest income  Finance costs  Profit (loss) before income tax Income tax benefit (expense)  Profit (loss) for the year  Other comprehensive income  Net change in fair value of available‐for‐sale assets Other comprehensive income for the year, net of tax Total comprehensive income for the year  Closed Group 2017  $000’s  2016 $000’s  197,358   (168,615)  28,743   173,744   (140,839) 32,905   (5,946)  1,790   24,587   1,154   (681)  25,060   (7,418)  17,642   (280)  (280)  17,362   (7,303) 7   25,609   568   (834) 25,343   2,422   27,765 (202) (202) 27,563   102 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   60                                        NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Consolidated Balance Sheet  Current assets  Cash and cash equivalents  Trade and other receivables  Inventories  Other current assets  Total current assets  Non‐current assets  Available‐for‐sale financial assets  Trade and other receivables  Exploration and evaluation expenditure  Property, plant, equipment and development assets Intangible assets  Deferred tax assets   Total non‐current assets  Total assets  Current liabilities  Trade and other payables  Provisions  Total current liabilities  Non‐current liabilities  Provisions  Deferred tax liabilities  Total non‐current liabilities  Total liabilities  Net assets  Equity  Share capital  Reserves  Retained earnings (losses)  Total equity  Closed Group 2017  $000’s  2016 $000’s  78,567   1,914   29,231   891   110,603   292   1,698   19,101   72,694   ‐   30,944   124,729   235,332   43,304   1,772   18,947   827   64,850   132   1,330   7,784   81,173   73   35,410   125,902   190,752   22,398   2,714   25,112   22,268   3,392   25,660   21,429   18,989   40,418   65,530   169,802   149,122   920   19,760   169,802   22,336   16,604   38,940 64,600   126,152   125,080   423   649 126,152   Investments in Controlled Entities  28  The consolidated financial statements incorporate assets, liabilities and results of the ultimate parent entity, Ramelius  Resources Limited, and the following subsidiaries in accordance with the accounting policy described in Note 1(b).  Parent entity  Ramelius Resources Limited  Country of Incorporation Percentage Owned (%) 1 2017  2016 Australia Subsidiaries of Ramelius Resources Limited  Mt Magnet Gold Pty Ltd  Ramelius Milling Services Pty Ltd 2  RMSXG Pty Limited3  1 Percentage of voting power is in proportion to ownership.  2 Company discontinued and sold to Maximus Resources Limited 31 August 2016, (see Note 32)  3 RMSXG Pty Limited was incorporated on 12 August 2016.  Australia Australia Australia 100  ‐  100  100 100 ‐   61  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 103                                                     ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Interests in Joint Operations  29  The group has the following direct interest in unincorporated joint operations at 30 June 2017 and 30 June 2016:  Joint operation project  Tanami   Bonalbo  Jupiter  South Monitor  Joint operation partner Tychean Resources Ltd Unlisted entity Kinetic Gold Newmont Principal activities Gold Gold Gold Gold 2017  85%  80%  75%  51%  2016 85% ‐ ‐ ‐ Interest (%) The share of assets in unincorporated joint operations is as follows:  Non‐current assets  Exploration and evaluation expenditure (Note 17) 2017  $000’s  2016 $000’s  2,247   1,112   30  Subsequent Events  No matters or circumstances have arisen since 30 June 2017 that have significantly affected, or may significantly affect:  (a) The group’s operations in future financial years,  (b) The results of operations in future financial years, or  (c) The group’s state of affairs in future financial years.  31  Parent Entity Information  a) Summary of financial information  Financial statements 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     Available‐for‐sale reserve  Retained losses  Total equity  b) Income Statement  Profit (loss) after income tax  Total comprehensive income (loss)  c) Commitments   (i)  Operating lease commitments   Future minimum rentals payable on non‐cancellable operating leases due:   Within 1 year  Later than 1 year but not later than 5 years  Total operating lease commitments  104 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   62  Parent entity 2017  $000’s  2016 $000’s  73,637  163,537  (5,274)  (12,998)  147,838  37,906 145,980 (11,665) (22,311) 123,669 149,122  125,080 861  (575)  (1,570)  147,838  84 (295) (1,200) 123,669 (370)  (650)  28,539 28,337 335   135   470   442   466   908                                                   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Parent entity 2017  $000’s  2016 $000’s  (ii)  Minimum exploration and evaluation commitments  In  order  to  maintain  current  rights  of  tenure  to  exploration  tenements,  Ramelius  is  required  to  perform  minimum  exploration work to meet minimum expenditure requirements. These obligations are subject to renegotiation and may  be farmed out or relinquished. These obligations are not provided for in the parent entity financial statements.  Within 1 year  Later than 1 year but not later than 5 years  Later than 5 years  Total minimum exploration and evaluation commitments 1,215   6,813   4,990   13,018   1,253   3,325   2,134   6,712   Significant operating leases include the following:  The group has a 3 year non‐cancellable operating lease for office space in Adelaide effective from December 2014 at a  cost of $91,067 per annum plus CPI adjustments.  The group has a 3 year non‐cancellable operating lease for office space in Perth effective from May 2016 at a cost of  $144,075 per annum plus CPI adjustments.  (iii) Other commitments  Ramelius  Resources  Limited  has  contractual  obligations  for  various  expenditures  such  as  royalties,  production  based  payments,  exploration  and  the  cost  of  goods  and  services  supplied  to  the  parent  entity.  Such  expenditures  are  predominantly related to the earning of revenue in the ordinary course of business. These obligations are not provided  for in the parent entity financial statements.  d) 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.   (i) Bank guarantees  Ramelius has negotiated a number of bank guarantees in favour of various government authorities and service providers. The  total  nominal  amount  of  these  guarantees  at  the  reporting  date  is  $2,687,312  (2016:  $2,578,145).  These  bank  guarantees are fully secured by cash on term deposit.  e) Guarantees in relation to debts of subsidiaries  Ramelius and Mt Magnet Gold Pty Ltd (the Closed Group) entered into a Deed of Cross Guarantee on 15 December 2011  (Deed) as noted in Note 27. The effect of the Deed is that Ramelius has guaranteed to pay any deficiency in the event of  winding up of the abovementioned Subsidiary under certain provisions of the Corporations Act 2001. Mt Magnet Gold  Pty Ltd has also given a similar guarantee in the event that Ramelius is wound up.  32  Assets and Disposal Group Classified as Held For Sale and Discontinued Operations During  the  financial  year  the  Company  decided  to  sell  Ramelius  Milling  Services  Pty  Ltd  which  owns  the  Burbanks  processing  facility.  This  decision  was  taken  in  line  with  the  Group’s  strategy  to  focus  on  its  producing  operations.  Consequently, certain assets and liabilities allocable to Ramelius Milling Services Pty Ltd are classified as a disposal group.   Revenue and expenses, gains and losses relating to the discontinuation of this subgroup have been eliminated from profit  or loss from the Group’s continuing operations and are shown as a single line item on the face of the statement of profit  or loss.   Ramelius Resources Limited and Maximus Resources Limited (ASX: MXR), a director related entity, signed a Share Sale  Agreement in August 2016 whereby Ramelius Milling Services Pty Ltd was sold for a total of $2,500,000 which includes  staged payments over a 24 month period.     63  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 105                                           ANNUAL FINANCIAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEAR ENDED 30 JUNE 2017  Note  2017  $000’s  2016 $000’s  Operating profit of Ramelius Milling Services Pty Ltd are shown below: Profit and loss  Sales revenue  Cost of production  Other expenses  Net finance costs  Profit (loss) from discontinued operations before tax Income tax  benefit (expense)  Profit (loss) for year from discontinued operations 7 Assets and liabilities of Ramelius Milling Services Pty Ltd classified as held for sale are below:    Balance Sheet  Current Inventories  Non‐current plant and equipment  Non‐current deferred tax assets  Assets and disposal group classified as held for sale Non‐current provisions  Non‐current deferred tax liabilities  Liabilities included in disposal group held for sale 122  (75)  ‐  ‐  47  (14)  33  ‐   ‐   ‐   ‐   ‐   ‐   ‐   ‐ (534) 243 (31) (322) 97 (225) 560 1,663 1,002 3,225 2,068 2 2,070 Cash flows generated by Ramelius Milling Services Pty Ltd are shown below : Operating activities  Net cash used in discontinued operations  92   92   (160)   (160)   Gain on sale of subsidiary is reconciled below:  Cash received  Deferred consideration  Total proceeds received/receivable from sale of subsidiary  Net assets of discontinued operation  Gain on sale of subsidiary  30 Aug 2016  $000’s  527   1,976   2,503   (1,141)  1,362   33  Company Details  Details of the principal place of business and registered office of Ramelius are as follows:  Head Office  Level 1, 130 Royal Street   East Perth, Western Australia 6004  Registered Office  Suite 4, 148 Greenhill Road  Parkside, South Australia 5063  106 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017   64                                                              DIRECTORS’ DECLARATION  FOR THE YEAR ENDED 30 JUNE 2017  In the directors’ opinion:  a) the financial statements and notes set out on pages 64 to 106, are in accordance with the Corporations Act 2001, including: (i) complying  with  Accounting  Standards,  the  Corporations  Regulations  2001  and  other  mandatory professional reporting requirements, and (ii) giving  a  true  and  fair  view  of  the  consolidated  group’s  financial  position  as  at  30  June  2017  and  of  its performance for the financial year ended on that date, and b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable, and c) at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed group identified in Note 27 will be able to meet any obligations or liabilities to which they are, or may become, subject by the virtue of the deed of cross guarantee described in Note 27. Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards as  issued by the International Australian 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.  The declaration is made in accordance with a resolution of the directors.  ____________________  Robert Michael Kennedy  Chairman  Adelaide 24 August 2017    65  RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 107   ANNUAL FINANCIAL REPORT 2017 Grant Thornton House Level 3 170 Frome Street Adelaide, SA 5000 Correspondence to: GPO Box 1270 Adelaide SA 5001 T 61 8 8372 6666 F 61 8 8372 6677 E info.sa@au.gt.com W www.grantthornton.com.au Independent Auditor’s Report to the Members of Ramelius Resources Limited Report on the audit of the financial report Opinion We have audited the financial report of Ramelius Resources Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated balance sheet as at 30 June 2017, the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of the Group, is in accordance with the Corporations Act 2001, including: a Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its performance for the year ended on that date; and b 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 independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation. 108 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 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 of 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. Key audit matter How our audit addressed the key audit matter Inventory – Note 1(m) and 11 At 30 June 2017, the Group has inventory in the form of consumable stores including critical spares ($4.61 million), ore stockpiles ($12.82 million), gold in circuit ($8.10 million) and gold bullion on hand ($3.62 million). The determination of the carrying value and existence of ore stockpiles, gold in circuit and ore mined, are significant areas of judgement. This includes consideration of production through the application of IFRIC 20 – Stripping Costs in the Production Phase of a Surface Mine. This is a key audit matter due to the estimates utilised in determining the quantities and valuing the inventory from the various mines. Provision for Restoration and Rehabilitation – Note 1(y), 4(g) and 19 As at 30 June 2017, the Group has a liability of $20.89 million relating to the estimated cost of rehabilitation, decommissioning and restoring the Checker Plant site in addition to the current and previous operating mines. The provision is based upon current cost estimates and has been determined on a discounted basis with reference to current legal requirements and technology. At each reporting date the rehabilitation liability is reviewed and re-measured in line with any changes in observable assumptions, timing and the latest estimates of the costs to be incurred based on area of disturbance at reporting date. The area is a key audit matter as the determination of the costs of restoration and rehabilitation involves complexity and significant management judgement. Our procedures included, amongst others: • Documenting the processes and assessing the internal controls relating to the costing of inventory; • Reconciling the costs of production to the inventory costing, including testing a sample of production costs to determine if allocated appropriately; • Attending the stocktake at the Mount Magnet site where a sample of stores and consumable items were selected from inventory records and physically verified; • Attending the Mount Magnet site and physically verifying the ore stockpiles at year end to supporting survey data; • Testing the reasonability of the costs absorbed into year-end ore, gold in circuit and bullion on hand; • Reviewing management’s methodology and assumptions in quantifying stock obsolescence; and • Reviewing the appropriateness of the related disclosures within the financial statements. Our procedures included, amongst others: • Obtaining the restoration provision calculation prepared by management and agreeing to the general ledger; • Undertaking an evaluation of managements experts used in the assessment of the provision and its assumptions; • Testing the additions to the provision against our understanding of the business including new mines commenced during the year; • Recalculating the implied interest charges associated with the time value of money; • Obtaining an understanding of any restoration undertaken during the year; • Considering the inputs into the calculation including the discount and inflation rates for comparison to external sources as well as the expected timing of cash flows; and • Reviewing the appropriateness of the related disclosures within the financial statements. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 109 ANNUAL FINANCIAL REPORT 2017 Key audit matter How our audit addressed the key audit matter Capital & Development Assets – Notes 1(n), (q), (r), (s), 4(b), (c), (e) and (f), 14 and 15 The Group incurred expenditure during the year totalling $43.39 million, associated with stripping of various pits or development of underground mines within the Mount Magnet Gold (MMG) cash generating unit. In addition, there were three exploration interests totalling $3.47 million that were transferred to development relating to interests set to commence stripping or decline within the next 12 months from 30 June 2017. The evaluation of the recoverable amount of the assets requires significant judgement in determining key assumptions supporting the expected future cash flows and the utilisation of the relevant assets. This area is a key audit matter due to the level of judgement and estimation used in the discounted cashflow models supporting the asset recoverable values. Deferred Tax Assets – Notes 1(i), 4(d) and 7 The Group has recognised deferred tax assets, which include $20.39 million of prior period’s losses as at 30 June 2017. Management have brought to account those losses that are estimated to be probable of utilisation over the life of mine within the MMG cash generating unit. This area is a key audit matter given the judgement required by management in the computation of losses to be brought to account. Our procedures included, amongst others: • Documenting the processes and assessing the internal controls relating to management’s assessment of impairment, calculation of deferred stripping costs and amortisation; • Obtaining management's reconciliation of capital and development assets and agreeing to the general ledger; • Assessing the determination of cash generating unit's based on understanding how the Chief Operating Decision Maker monitors the Group's operations and makes decisions about the assets that generate independent cash flows; • Obtaining management's discounted cash flow model for the MMG cash generating unit and analysing for appropriateness against AASB 136 Impairment of Assets, including: - Understanding management’s assumptions; - Performing sensitivity analysis on assumptions; - Comparing forecast production against available reserves; - Comparing realised production data for the year against historical forecasts; • Evaluating management’s experts in relation to compilation of reserves used in the model prepared by management; • Analysing the stripping ratio against management's experts estimates; • Comparing amortisation calculations to production data; • Comparing the market capitalisation of the company at 30 June 2017 against the carrying value of assets; and • Reviewing the appropriateness of the related disclosures within the financial statements. Our procedures included, amongst others: • Obtaining management's assessment of the ability to utilise tax losses in the future, including continuation of ownership analysis and identifying and assessing the appropriateness of key assumptions utilised in the model; • Obtaining available evidence to support the key assumptions and compared against the life of mine model used for AASB 136 purposes; • Testing the mathematical accuracy of the model used as a basis for the capitalisation of deferred taxes, as well as its inputs to supporting data; • Consulting with Grant Thornton tax specialists, who reviewed the tax computations and undertook discussions with management; and • Reviewing the appropriateness of the related disclosures within the financial statements. 110 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Information Other than the Financial Report and Auditor’s Report Thereon 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 2017, but does not include the financial report and our auditor’s report thereon. The annual report is expected to be made available to us after the date of this auditor’s report. 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 Group’s ability 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 have 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. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2017. In our opinion, the Remuneration Report of Ramelius Resources Limited, for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 111 ANNUAL FINANCIAL REPORT 2017 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. GRANT THORNTON AUDIT PTY LTD J L Humphrey Partner – Audit & Assurance Adelaide, 24 August 2017 112 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 SHAREHOLDER INFORMATION Ramelius Resources Limited 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 14 September 2017 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 Ruffer LLP Van Eck Associates Corporation Number of fully paid ordinary shares held 38,085,104 31,314,882 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 Details of options and performance rights on issue by the Company as at 14 September 2017 are as follows. Expiry date 11/6/2018 ^ 11/6/2019 ^ 11/6/2020 # 1/7/2024 ^ 1/7/2025 # 11/6/2026 # 1/7/2026 # 1/7/2027 # Exercise price Number of Options Number of Performance Rights 1,500,000 1,500,000 1,500,000 $0.29869 * $0.20 $0.20 Nil Nil Nil Nil Nil 909,022 858,451 500,000 858,442 3,257,833 Option and performance right holders will be entitled on payment of the exercise price shown above to be allotted one ordinary fully paid share in the Company for each option/performance right exercised. * As result of 1:4 Rights issue in July 2014, exercise price reduced from $0.30 to $0.29869 in accordance with the terms of the options. ^ These options/performance rights are exercisable in whole or in part at any time until the expiry dates. Any options / performance rights not exercised before expiry will lapse. # These options/performance rights are subject to vesting conditions and once vested are exercisable in whole or in part at any time until the expiry dates. Any vested options/performance rights not exercised before expiry will lapse. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 113 SHAREHOLDER INFORMATION Ramelius Resources Limited Shareholder Information Distribution of equity security holders Ordinary Shares & Options Category Holders of Quoted Ordinary shares Holders of Unquoted 11 June 2018 $0.29869 Options Holders of Unquoted 11 June 2019 $0.20 Options Holders of Unquoted 11 June 2020 $0.20 Options 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over Total number of security holders 899 1,702 1,102 2,741 546 6,990 1 1 1 1 1 1 The number of shareholders holding less than a marketable parcel of ordinary shares is 1,027. All unquoted options are held by the Company’s Managing Director and Chief Executive Officer, Mr Mark Zeptner. Performance Rights Category Holders of Unquoted 1 July 2024 Performance Rights Holders of Unquoted 1 July 2025 Performance Rights Holders of Unquoted 11 June 2026 Performance Rights Holders of Unquoted 1 July 2026 Performance Rights Holders of Unquoted 1 July 2027 Performance Rights 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over Total number of security holders On market buy-back There is no current on-market buy-back. 10 3 13 9 3 12 1 1 9 3 12 16 16 114 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 Ramelius Resources Limited Shareholder Information Twenty largest shareholders The names of the 20 largest holders of fully paid ordinary shares constituting a class of quoted equity securities on the Australian Securities Exchange Limited including the number and percentage held by those holders at 14 September 2017 are as follows. Name HSBC Custody Nominees (Australia) Limited Citicorp Nominees Pty Limited J P Morgan Nominees Australia Limited Stramig Holdings Pty Ltd CS Fourth Nominees Pty Limited BNP Paribas Noms Pty Ltd Mandurang Pty Ltd Bell Potter Nominees Ltd Pershing Australia Nominees Pty Ltd Brispot Nominees Pty Ltd Citicorp Nominees Pty Limited Buttonwood Nominees Pty Ltd ABN Amro Clearing Sydney Nominees Pty Ltd BNP Paribas Nominees Pty Ltd National Nominees Limited Mr George Chien Hsun Lu & Mrs Jenny Chin Pao Lu Aurelius Resources Pty Ltd Pershing Australia Nominees Pty Ltd Southern Cross Capital Pty Ltd Triple Eight Gold Pty Ltd Unquoted and restricted equity securities Fully paid ordinary Shares There are no unquoted restricted fully paid ordinary shares on issue. Number of fully paid ordinary shares held 114,739,955 49,155,339 24,461,600 9,500,000 9,146,382 8,372,180 8,053,570 5,000,000 4,250,000 4,148,977 3,883,669 3,255,000 3,225,000 3,202,049 2,648,555 2,489,000 2,074,091 2,000,000 1,905,000 1,747,219 263,257,586 Percentage held 21.78 9.33 4.64 1.80 1.74 1.59 1.53 0.95 0.81 0.79 0.74 0.62 0.61 0.61 0.50 0.47 0.39 0.38 0.36 0.33 49.97 Options and performance rights Details of options and performance rights on issue as at 14 September 2017 which are unquoted restricted securities held by employees as long term incentives are as follows. Date until securities are restricted 11 June 2018 * 11 June 2019 * 11 June 2020 ** 1 July 2024 ^ 1 July 2025 ^^ 11 June 2026 ^^ 1 July 2026 ^^ 1 July 2027 ^^ Number of unquoted securities on issue 1,500,000 1,500,000 1,500,000 909,022 858,451 500,000 858,442 3,257,883 Number of holders 1 1 1 13 12 1 12 16 Vesting date - - 11 June 2018 - 1 July 2018 11 June 2019 1 July 2019 1 July 2020 Exercise Price $0.29869 $0.20 $0.20 Nil Nil Nil Nil Nil Exercisable until 11 June 2018 11 June 2019 11 June 2020 1 July 2024 1 July 2025 11 June 2026 1 July 2026 1 July 2027 These securities are vested options which may not be transferred or used as collateral. * ** These securities are unvested options exercisable when vested 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 These securities are vested performance rights which may not be transferred or used as collateral. collateral. RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 115 AUSTRALIAN SECURITIES EXCHANGE Code: RMS Listed on Australian Securities Exchange Limited Exchange Centre, 20 Bridge Street SYDNEY, NSW, 2000 SHARE REGISTRAR Location of Share Register Computershare Investor Services Pty Limited Level 5, 115 Grenfell Street ADELAIDE SA 5000 Telephone: 1300 556 161 (within Australia), + 61 3 9415 4000 (outside Australia) Facsimile: 1300 534 987 (within Australia), + 61 3 9473 2408 (outside Australia) Enquiries: www.investorcentre.com/contact AUDITORS Grant Thornton Chartered Accountants Level 3, 170 Frome Street ADELAIDE SA 5000 LAWYERS DMAW Lawyers Pty Ltd Level 3, 80 King William Street ADELAIDE SA 5000 CORPORATE DIRECTORY PRINCIPAL REGISTERED OFFICE RAMELIUS RESOURCES LIMITED Suite 4, 148 Greenhill Road PARKSIDE SA 5063 PO Box 506 UNLEY SA 5061 Telephone: (08) 8271 1999 Facsimile: (08) 8271 1988 Email: info@rameliusresources.com.au Website: www.rameliusresources.com.au PERTH OPERATIONS OFFICE Level 1, 130 Royal Street EAST PERTH WA 6004 PO Box 6070 EAST PERTH WA 6892 Telephone: (08) 9202 1127 DIRECTORS, SENIOR MANAGEMENT AND CONSULTANTS ROBERT MICHAEL KENNEDY KSJ, ASAIT, Grad. Dip. (Systems Analysis), Dip. Financial Planning, Dip. Financial Services, FCA, CTA, AGIA, Life Member AIM, FAICD, MRSASA Independent Non-Executive Chairman MARK WILLIAM ZEPTNER BEng (Hons) Mining, MAusIMM, MAICD Managing Director and Chief Executive Officer KEVIN JAMES LINES BSc (Geology), MAusIMM, MAICD Independent Non-Executive Director MICHAEL ANDREW BOHM BAppSc (Mining Engineering), MAusIMM, MAICD Independent Non-Executive Director DOMENICO ANTONIO FRANCESE BEc, FCA, FFin, ACIS, AGIA Company Secretary TIMOTHY PETER MANNERS BBus (accounting), FCA, AGIA, MAICD Chief Financial Officer DUNCAN COUTTS BEng (Hons) Mining, MAusIMM, MAICD Chief Operating Officer KEVIN MARK SEYMOUR BSc, (Geology), MAusIMM, General Manager, Exploration & Business Development 

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