ANNUAL
REPORT
2022
www.rameliusresources.com.au
CORPORATE
DIRECTORY
Directors
Bob Vassie – FAusIMM, GAICD, B.MinTech (Hons) Mining
Independent Non-Executive Chair
Mark Zeptner – BEng (Hons) Mining, MAusIMM, MAICD
Managing Director and Chief Executive Officer
David Southam – B. Com, CPA, MAICD
Independent Non-Executive Director
Natalia Streltsova – MSc, PhD (Chem Eng), GAICD
Independent Non-Executive Director
Fiona Murdoch – LLB (Hons) MBA GAICD
Independent Non-Executive Director
Company Secretary
Richard Jones – BA (Hons), LLB
Chief Financial Officer
Tim Manners – BBus (Accounting), FCA, AGIA, MAICD
Chief Operating Officer
Duncan Coutts – BEng (Hons) Mining, MAusIMM
Executive General Manager
– Exploration
Peter Ruzicka – MSc (Ore Deposit Geology), BAppSc (Geology),
BSc, MAusIMM
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Stock Exchange Listing
Ramelius Resources Limited (RMS) shares are listed
on the Australian Securities Exchange (ASX)
Website
www.rameliusresources.com.au
Cover Image: Edna May Greenfinch Glow
Photo Competition Winner: Michael Lepre
1
TABLE OF
CONTENTS
Key Operational Highlights for the Year
Key Financial Highlights for the Year
Chair’s Report
Managing Director’s Report
Review of Operations
Overview
Mt Magnet Production Centre
Edna May Production Centre
Development and Exploration Projects
Resources and Reserves
Company Summary
Mineral Resources
Ore Reserves
Forward Looking Statement
Competent Persons
Sustainability Report
2022 Achievements
The CEO On Sustainability at Ramelius
Our Business
Our People
Our Communities
Our Environment
Performance Data
Annual Financial Report
Directors’ Report
Auditor’s Independence Declaration
Income Statement
Statement of Comprehensive Income
Balance Sheet
Statement of Changes In Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
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4
6
8
10
11
13
15
17
21
21
22
25
26
26
28
30
32
45
50
58
64
75
94
96
121
124
124
125
126
127
129
179
180
186
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022 KEY OPERATIONAL
HIGHLIGHTS FOR
THE YEAR
GOLD PRODUCTION
& GUIDANCE
PRODUCTION
258,625oz
@ AISC A$1,523/oz
FY23 GUIDANCE
240,000 –
280,000oz
@ AISC $1,750 – 1,950/oz
MINERAL RESOURCES
6.2Moz
at 30 June 2022
ORE RESERVES
1.1Moz
at 30 June 2022
ACQUISITION OF THE
REBECCA GOLD PROJECT
(APOLLO CONSOLIDATED LIMITED)
The Rebecca Gold Project (Rebecca) is the primary
asset of Apollo Consolidated Limited (Apollo) which
was acquired during the financial year. Rebecca comprises
160km2 of tenure located 153km east of Kalgoorlie in the
Eastern Goldfields of Western Australia. The Rebecca Gold
Project currently consists of four deposits being Rebecca,
Duke, and Duchess along with the Cleo discovery (located
1.5km west of the Rebecca deposit).
On 18 October 2021, Ramelius announced an off-
market takeover offer for Apollo. Under the offer, Apollo
shareholders were to receive 0.1375 Ramelius shares and
cash consideration of $0.34 for every Apollo share held. On
the same day, the Apollo Board unanimously recommended
that Apollo shareholders accept the Ramelius offer. On 1
November 2021, in response to a competing proposal from
Gold Road Resources Ltd, Ramelius increased its offer to
0.1778 Ramelius shares and cash consideration of $0.34 for
every Apollo share and made the offer unconditional, which
was again unanimously supported by the Apollo Board.
Control was obtained on 12 November 2021 with
Ramelius holding a relevant interest in Apollo of 51.6%, or
150,426,011 Apollo shares. The compulsory acquisition
process commenced on 7 December 2021 with Ramelius
obtaining 100% control on 17 December 2021.
A total of $67.8 million of cash consideration (net of cash
acquired) was paid along with 51,850,372 Ramelius shares
issued to Apollo share and option holders as part of the
takeover. Acquisition costs totalled $11.1 million of which
$8.0 million relates to stamp duty on the transaction which
remains payable at 30 June 2022.
Since gaining control of Rebecca, Ramelius commenced a
drill programme to further define the Mineral Resource
and continue to test the extensional exploration potential.
Based on this partially complete drill programme, Ramelius
has generated a new improved Mineral Resource which
increased the proportion of Indicated category material
(+22%) and generated an overall 9% increase in total
ounces. Further drilling and resource definition work is
planned in the coming financial year.
The Mineral Resource estimate is now 31.0Mt at 1.2g/t for
1.2Moz of contained gold.
2
RAMELIUS RESOURCES ANNUAL REPORT 2022
3
DEVELOPMENT OF
PENNY GOLD MINE
Open pit mining commenced at the Penny Gold Mine
(Penny) during the year with the small Magenta pit being
completed. The Magenta pit contained a small quartz lode
and will serve as a dewatering location for the Penny West
cutback and the main Penny North underground.
The Penny West pit cutback was completed during the
year which established a suitable long-term ramp access
and portal location in the north wall. With the completion
of these open pit activities, operations transitioned to
the underground with the first blast into the portal being
carried out on 26 April 2022. Work has now commenced
on the decline with good progress being made on capital
development. Towards the end of the year the decline was
approaching the first Penny North ore level with the first
ore scheduled for late in the September 2022 Quarter.
During the year 18kt of ore at 3.41g/t for 1,953 ounces of
contained gold was mined at the Magenta open pit. A total
of 8kt of this ore, at 3.27g/t, was hauled to Mt Magnet for
recovered gold of 810 ounces.
The Penny site is now largely developed with the last
remaining major infrastructure, the Penny airstrip, expected
to be completed in the September 2022 Quarter.
COVID-19
The opening of the WA borders on 3 March 2022, and
resultant increase in COVID-19 cases in WA, has had an
impact on site productivity and haulage through increased
absenteeism. During the year the Group recorded, both
on-site and off-site, 338 positive COVID-19 cases and 127
close contacts requiring isolation amongst its employees
and contractors.
Ramelius maintains certain preventative and detective
measures such as contact tracing, physical distancing, and
pre-commute testing and screening. During the year a
contact tracing system was implemented at the Mt Magnet
and Edna May sites allowing for faster and more accurate
assessment of close contacts to any positive cases on site.
GALAXY UNDERGROUND
PRE-FEASIBILITY STUDY
& APPROVAL TO
COMMENCE MINING
During the year a pre-feasibility study (PFS) was completed
on the Galaxy underground at Mt Magnet. The PFS showed
a maiden Ore Reserve of 2.4Mt at 2.6g/t for 200koz and a
mine life of 5.5 years.
Following the promising economic returns shown by
the PFS, the Board approved the commencement of the
Galaxy underground, which comprises the Mars and Saturn
deposits. Development has now commenced with first
ore expected late in the 2023 financial year. The Galaxy
underground will be able to leverage off existing processing
plant and mine infrastructure at Mt Magnet and has
potential for extensions given excellent depth continuity
typically seen in the area.
COMMENCEMENT
OF HAULAGE AND
PROCESSING OF TAMPIA
GOLD MINE ORE
Haulage and processing began in the 2022 financial year
following the commencement of mining at the Tampia
Gold Mine (Tampia) late in the 2021 financial year. Overall
haulage volumes for Marda and Tampia were initially not at
the levels forecasted due to labour shortages exacerbated
by the WA border closure followed, to a lesser extent, by
COVID-19 related absenteeism. However, given Tampia
is higher grade, the haulage levels were increased to that
forecasted, with Tampia’s ore taking priority over Marda
ore.
For the year a total of 750kt of ore at a grade of 2.68g/t
was hauled to, and processed at, Edna May for total
recovered gold of 60,224 ounces.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022 KEY FINANCIAL
HIGHLIGHTS FOR
THE YEAR
FY22 FINANCIAL
HIGHLIGHTS
FY22 PRODUCTION
HIGHLIGHTS
REVENUE
OZ PRODUCED
$603.9M
258,625
UNDERLYING EBITDA1
REALISED PRICE
$292.8M
A$2,399
UNDERLYING NPAT1
ASIC OZ
$73.0M
A$1,523
UNDERLYING CASH FLOW2
ORE TONNES MINED
$36.2M
4,541kt
CASH & GOLD ON HAND
CONTAINED GOLD MINED
$172.9M
311,757oz
FINAL DIVIDEND
MINED GRADE
1.0 cps
2.14g/t
4
4
RAMELIUS RESOURCES ANNUAL REPORT 2022
5
FINANCIAL PERFORMANCE
Financials
Revenue
EBITDA
Underlying EBITDA1
EBIT
Underlying EBIT1
NPAT
Underlying NPAT1
Cash Flow from Operations
Underlying Cash Flow2
Group Cash Flow
Table 1: Financial performance
Units
A$’000
A$’000
A$’000
A$’000
A$’000
A$’000
A$’000
A$’000
A$’000
A$’000
2022
603,891
208,188
292,847
125,123
109,812
12,402
73,034
159,433
36,176
(80,721)
2021
634,283
340,975
338,098
177,439
174,562
126,778
120,879
305,649
148,153
62,832
Change
(5%)
(39%)
(13%)
(86%)
(37%)
(90%)
(40%)
(48%)
(76%)
(228%)
REVENUE & EARNINGS
REVENUE ($M)
UNDERLYING EBITDA ($M)1
634.3
603.9
338.1
292.8
261.0
460.6
341.8
352.8
129.2
113.0
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
UNDERLYING NPAT ($M)1
UNDERLYING EARNINGS PER SHARE (CPS)1
120.9
106.8
73.0
15.5
14.9
8.6
32.3
22.4
6.1
3.8
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
CAPITAL MANAGEMENT
NET ASSETS ($M)
DIVIDEND HISTORY
720.9
635.8
515.2
278.9
202.0
)
s
p
c
(
d
n
e
d
i
v
i
D
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
51.8
2.5
2.0
1.0
1.0
60.0
50.0
40.0
30.0
20.0
10.0
)
M
$
(
n
r
u
t
e
r
e
v
i
t
a
l
u
m
u
C
FY18
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
1. Underlying EBITDA, NPAT and EPS have been adjusted for impairment charges and on off asset sales, see page 98 for reconciliation.
2. Underlying cash flow is cash flows before acquisitions and asset sales, dividends paid, and income tax payments.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
CHAIR’S REPORT
7
The financial year started well, with the trucking of ore from the
new Tampia mine commencing as planned in early July. Tampia
very quickly became a key contributor to our production profile
with the ore trucked to the Edna May plant for processing. In a
similar vein, development of our next new mine, the high-grade
underground Penny mine, continued during the year with the
infrastructure established and the decline well advanced towards
the orebody by the end of the reporting period.
Tampia and Penny are both examples of timely and effective
development of new mines from the acquisition of companies.
This theme continued with the acquisition of Apollo in December
2021, which holds the exciting Rebecca project 153km east of
Kalgoorlie. Drilling under our ownership in the second half of the
financial year confirmed our view on the quality of the project
and, with a Resource of 1.2Moz confirmed, we will continue
to drill and hope to grow the deposit. Opportunities like this
in Western Australia that are transactable are rare, and we
are very pleased to have been able to get this project into our
development pipeline.
The financial report shows that we have been able to control
costs and deliver All in Sustaining Costs (AISC) within our
initial guidance range. Further, we have been able to maintain a
strong balance sheet after significant expenditure on the future
of the business, including the acquisition of Apollo, resource
development drilling, studies around our existing operations and
very encouraging exploration results. We did have to take a non-
cash impairment on the Edna May cash generating unit, largely as
a result of an updated valuation of the Tampia mine falling short of
its valuation of when we acquired it. However, there is significant
cashflow yet to be delivered from that asset. Pleasingly, the
Company was able to maintain its continuous dividend status.
The Board was able to visit the Marda and Vivien operations and
the Penny project during the year. The performance of Marda and
Vivien has exceeded our initial expectations by a significant margin
and, as Vivien comes to an end in the coming financial year, we are
pleased to have another high-grade operation in Penny to take its
place. We were able to review the Penny project and see the key
infrastructure in place as well as to go underground in the decline
as it develops towards the orebody. The key item remaining
at Penny was the completion of our airstrip. Built to modern
standards, it will reduce our costs and be able to better handle
some of the wet weather issues we have seen.
This Annual Report contains our third Sustainability Report
in which we provide an update on our performance in this
increasingly important area, including our progress on reporting
against global frameworks such as Taskforce of Climate-Related
Financial Disclosures (TCFD). It is one thing to meet growing
expectations on reporting and assessing the risk to the company
from Climate Change; planning for and taking action on
decarbonisation of the operations is a significant body of work.
I WOULD LIKE TO THANK THE
TEAM AT RAMELIUS FOR THE
SHEER EFFORT IT TOOK TO
DELIVER THESE RESULTS IN THE
FACE OF RELENTLESS LABOUR
SHORTAGES, COST PRESSURES
AND COVID DISRUPTIONS.
I am pleased to say that the Company has worked with third
party specialist consultants to baseline our emissions and forecast
them over our Life of Mine plan and to also identify candidate
decarbonisation technologies that fit with our style of operations.
Looking to the new financial year, we are forecasting production
at a guidance midpoint of 260,000oz from a combination of
existing and new operations. While we have weathered the storm
on COVID-related impacts, the tightness of the labour market,
rising input costs and general inflation are real issues for the
industry. Gold company forecast AISC in $/oz terms have shown
an upward trend, Ramelius included. Having said that, once we
bring the high-grade Penny project online, we expect to see a
positive impact on our cost per ounce.
With this industry backdrop, we have seen gold company share
prices drop significantly. At Ramelius we find ourselves valued at
half what we were only some months prior and we are not alone.
Analysts estimate that many gold stocks are trading at around
half their underlying asset valuations. To me, it is how companies
recover their value moving forward that will be the differentiator.
At Ramelius we have a strong balance sheet, we continue to pay
a dividend, we have a great project pipeline with a new, high-
grade mine coming on stream and we have exciting exploration
opportunities. Our management has a track record for delivery
and controlling costs.
I would like to thank Mike Bohm, who retired from the Board
this year, for his 10 years of excellent service that saw Ramelius
go from strength to strength. We welcomed Fiona Murdoch as
a Non-Executive Director this year, and her background as a
lawyer with considerable resources industry experience is a great
addition to the Board’s skill matrix as we pursue our growth
strategy.
DEAR FELLOW
SHAREHOLDERS,
It has been a very challenging
year for Ramelius and the
industry as a whole, with the
well-publicised impacts of
COVID-19 and the associated
skill shortages, supply line
stress and rising input costs.
However, I am very pleased
to report that the team at
Ramelius worked very hard
in the face of these challenges
and was able to deliver on our
operational plans as well as
make significant advances in
our growth strategy.
6
Finally, I would like to thank the team at Ramelius for the shear
effort it took to deliver these results in the face of relentless
labour shortages, cost pressures and COVID disruptions. It is easy
to underestimate what it takes to hold things together in that
environment, however, not only does it create a large workload,
it has been going on for a couple of years and some elements
continue to require this level of focus and dedication. I trust
that some easing of conditions in the coming year, coupled with
progress on our exciting new projects, will be a welcome change.
I wish all our shareholders all the best for this financial year.
Bob Vassie
Non-Executive Chair
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 MANAGING DIRECTOR’S
REPORT
Coming off a year (FY21) in which we smashed records for most
of our key financial and operational metrics, our best efforts to
replicate this were hampered by several issues:
•
As the West Australian border reopened to the rest of the
country and COVID-19 swept through the community,
workforce availability suffered;
• COVID-19-related pressures also impacted on supply chains
and the general inflationary environment resulted in rising
input costs across the industry;
• Heavier than forecast rain affected haulage routes to our Mt
Magnet and Edna May operations; and
• Head grades at the Tampia mine came in lower than forecast.
To deliver the results that we ultimately did is testament to the
resilience and tenacity of the Ramelius team.
On the operational front, we were able to mine a record 4.5 million
tonnes of ore for a record 312,000 ounces of contained gold.
However, gold production fell 5% year-on-year to 258,625 ounces
as we finished the period with significantly larger stockpiles than
usual at Marda and Tampia. These stockpiles will be worked through
this financial year as trucking movements gradually return to normal
following COVID-19 and weather-related disruptions.
Although we saw a 5% increase in average realised gold price to
A$2,399/oz, lower production resulted in a 5% fall in revenue to
$603.9 million. Underlying net profit after tax slipped 40% to $73.0
million. Our underlying EBITDA margin, a key measure of operating
profitability and cashflow, remained strong at 49%.
Pleasingly, we were able to maintain payment of a fully franked
annual dividend, albeit smaller at 1.0 cent per share, representing
a payout ratio of 24% of underlying cashflow. Demonstrating
our evolving maturity in this area, we have instituted a Dividend
Reinvestment Plan for the first time. We are proud of our record of
value generation over the past five years, with calculations showing
that total shareholder returns for that period have averaged 20.2%
per annum.
Always balanced against dividend considerations is the need to
invest in the future of the business. In FY22, Ramelius invested more
than $180 million into growth initiatives including the acquisition of
Apollo, the development of the very high grade Penny underground
mine and both greenfields and brownfields exploration.
The Apollo acquisition brought the Rebecca gold project 153km
east of Kalgoorlie into our portfolio, adding more than one million
ounces to Group Resources. It was already one of the country’s
best undeveloped gold projects, but we are confident that we can
improve its standing, through methodical exploration within the
160km2 tenement package. In tandem with the exploration, we
expect to complete a Pre-Feasibility Study on the project by
mid-2023.
DEAR FELLOW
SHAREHOLDERS,
Over recent years, Ramelius has
made a great deal of progress
in terms of establishing itself as
a reliable Australian gold miner,
delivering profitable production
growth and sustainable
shareholder returns. Insofar as
maintaining that momentum goes,
the past 12 months have been
challenging.
8
RAMELIUS RESOURCES ANNUAL REPORT 2022
9
Penny will have a more immediate impact on production and given
its grade of 15.0 g/t gold, our cost profile. Surface infrastructure
including the new airstrip is largely complete and the first
underground ore drive at the mine was intersected in late August
2022.
Production from the Galaxy underground mine at Mt Magnet will
also commence this financial year, while we expect to provide
updates on studies at Edna May, Bartus East and Hill 50 before the
end of the 2022 calendar year.
While Tampia, Penny and Rebecca have been vital additions to our
project pipeline as we seek to build our life-of-mine profile out
beyond 10 years, we remain on the hunt for a third production
centre to complement Mt Magnet and Edna May and add scale,
diversity and optionality.
In this regard, our balance sheet remains strong with $172.9million
cash and gold on hand at the end of June, an undrawn $100million
debt facility in place, and approximately 125,000 ounces of gold in
stockpiles and gold in circuit (GIC). We have also bolstered our
business development team, adding capacity to ensure we maintain
rigorous due diligence standards on any larger deal.
For this financial year, we are forecasting production 240,000 to
280,000 ounces of gold at an AISC of A$1,750-1,950/oz. We have
deliberately erred on the side of caution in providing a broad range
of guidance as there is still considerable uncertainty around what
might play out in terms of labour shortages and cost pressures.
production. Penny should then have a much larger positive impact
on AISC in FY24 and FY25.
The progress being made by the Company on the ESG front is
pleasing to see. As critical as it is to our licence to operate, it is
discussed in much more detail in the third annual Sustainability
Report we have prepared, which accompanies this Annual Report.
In finishing, I would like to thank all Ramelius employees, contractors
and suppliers for their efforts to keep the business running to plan
despite some unique operating conditions over the past 12 months.
I would also like to express my gratitude to my Chair Bob Vassie
and fellow Directors Natalia Streltsova, David Southam, Fiona
Murdoch and Mike Bohm and my executive team. Their expert
guidance and wise counsel have been invaluable as we have
navigated through the recent challenges.
Lastly, I thank you, the shareholders, for your support to date. We
have unfinished business in terms of building Ramelius into one of
the country’s great gold miners, and we firmly believe that we can
achieve this goal in the near future.
Yours Sincerely,
AISC will be adversely affected by the depletion of high-grade,
low-cost ore sources such as the Shannon and Vivien underground
mines. However, we expect to see improvement in the second
half as Penny swings from primarily development towards stoping
Mark Zeptner
Managing Director
Ramelius Resources Ltd
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022 RAMELIUS RESOURCES ANNUAL REPORT 2022
11
REVIEW OF
OPERATIONS
Overview
Mt Magnet Production Centre
Edna May Production Centre
Development and exploration projects
11
13
15
17
Figure 1: Ramelius’ operating locations
WESTERN AUSTRALIA
MT MAGNET
Mt Magnet
Geraldton
PENNY
Leinster
VIVIEN
Laverton
Leonora
MARDA
REBECCA
Coolgardie
Kalgoorlie
200km
EDNA MAY
Bullfinch
Westonia
Southern Cross
PERTH
Narembeen
Norseman
TAMPIA
Bunbury
Esperance
Albany
Ramelius Production Centres
Mine / Development Projects
Haulage Direction
CONTINUED
GROWTH
REFLECTS
OUR
STRATEGY IN
ACTION
10
OVERVIEW
Ramelius is an established mid-tier ASX gold production
and exploration company. Ramelius produced 258,625
ounces in the 2022 financial year, narrowly missing the
bottom end of initial guidance for the year of 260,000
ounces. This production was achieved at an AISC of
A$1,523/oz.
Ramelius has not been immune to the cost pressures facing the
industry and has reported underlying earnings before interest and
tax (EBIT)1 of $109.8 million which decreased 37% compared to
the 2021 financial year (2021: $174.6 million). The statutory EBIT
of $25.1 million was 86% down on the prior year. The underlying
EBIT has been impacted by lower production and higher costs
per tonne (industry wide inflationary pressures, more tonnes
being sourced from higher cost underground mines, and increased
haulage costs with tonnes hauled from Tampia & Marda being
double that of 2021).
The underlying Net Profit after Tax1 (NPAT) was $73.0 million,
down 40% from last year’s amount of $120.9 million.
The impact of the higher cost per tonne has been offset in part
by a 5% increase in the milled grade across the Group, better than
expected recoveries at Tampia, and a 5% increase in the realised
gold price. In line with the reduced earnings, the cash flows from
operations also reported a decrease of 48% to $159.4 million
(2021: $305.6 million). In addition to the operational performance,
the cash flows were impacted by a $68.3 million cash investment
in inventories, income tax payments, with 2022 including two
years of income tax payments totalling $50.5 million. As at 30
June 2022 Ramelius has no outstanding tax liabilities, with a tax
refund for the 2022 financial year of $5.2 million now due to the
Company. Further details on the financial performance of the
Group for the 2022 financial year can be found in the financial
review section of this report.
Production guidance for the 2023 financial year has been set at
240,000 – 280,000 ounces at an AISC of A$1,750 – 1,950/oz.
Sales for the year decreased 9% to 251,355 ounces at an average
realised gold price of A$2,399/oz. Sales were down on the prior
year due to lower production as well as the timing of gold sales
with just over 7,000 ounces being in transit at the reporting date.
Despite the cost pressures across the business the operations
continued to generate a strong AISC margin of A$876/oz.
The AISC increased 16% from the prior year, however, a 5%
increase in the realised gold price ensured the AISC margin
remained high at 37%.
1. Underlying EBIT & NPAT has been adjusted for the impact of asset
impairments and asset sales not in the ordinary course of business.
Refer to Table 6 & Figure 6 in this report.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022 7 YEAR AISC MARGIN
2600
2400
2200
2000
1800
1600
1400
1200
1000
e
c
n
u
o
r
e
p
$
A
28%
MARGIN
28%
MARGIN
29%
MARGIN
42%
MARGIN
31%
MARGIN
37%
MARGIN
42%
MARGIN
2016
2017
2018
2019
FY20
2021
2022
Figure 2: AISC per ounce and realised gold price for 2016 to 2022
AISC
Gold Price
13
MT MAGNET PRODUCTION CENTRE
The Mt Magnet production centre includes the multi pit / underground projects of the Mt Magnet Gold Mine along with high grade
underground ore which is hauled from the Vivien and Penny Gold Mines (with commercial production from Penny expected for the
2023 financial year onwards). Gold production from the Mt Magnet production centre totalled 126,511 ounces for the year at an AISC of
A$1,465 (2021: 161,159 ounces at an AISC of A$1,195/oz)
MINING – MT MAGNET GOLD MINE
Operations at the Mt Magnet Gold Mine focussed on one open pit (Eridanus) and two underground mines (Shannon and Hill 60) during
the year. A summary of the mine operations for the year is provided below:
Area
Eridanus
Type
Open pit
Operational commentary
The large Eridanus open pit was the main source of ore feed for the Mt Magnet production
centre for the year making up 45% of the mill feed.
Eridanus was the sole open pit mine at Mt Magnet during the year with a total of 1,596kt of
ore being mined at a grade of 1.10g/t for contained gold of 56,472 ounces.
As the mine matures, and the strip ratio decreases, mining is taking place at a higher rate than
milling. A total of 770kt of ore was milled at a grade of 1.32g/t for 31,056 ounces of recovered
gold.
At 30 June 2022, there was 2.4Mt of Eridanus ore stockpiled awaiting processing which
provides a significant processing buffer should there be any interruptions to mining activities in
the near future.
Shannon
Underground
Development of the Shannon underground mine was completed to the 1205 Level during the
year with the mine moving primarily into stope production.
Given the impacts of COVID, increasing cost pressures and with the backdrop of increasing interest rates, the company underwent an
impairment assessment over its two main Cash Generating Units (CGUs), being Mt Magnet and Edna May. Whilst no impairment charges
were recorded against the Mt Magnet CGU, a non-cash pre-tax impairment of $94.5 million was made against Edna May ($68.7 million
post-tax). This is discussed further in the Financial Report.
Operational summary
Unit
Mt Magnet
Edna May
2022
2021
Change
Change %
Hill 60
Underground
A total of 252kt of Shannon ore was milled in the year at a grade of 4.53g/t for 36,023 ounces
of recovered gold.
The Shannon underground mine is currently scheduled to be completed early in the 2023
financial year.
The Hill 60 underground mine continued throughout the year with a focus on stope
production. Evaluation of the adjacent St George underground remnants continued with the
assessment of additional resources currently underway.
Rehabilitation of the St George decline has commenced which will enable development and
stope ore to be accessed in the 2023 financial year.
A total of 272kt of Hill 60 ore was milled in the year at a grade of 3.05g/t for 25,313 ounces of
recovered gold.
MINING – VIVIEN GOLD MINE
Area
Vivien
Type
Operational commentary
Underground
An underground drill programme was completed during the year with the potential below the
current deepest level (-020mRL) appearing to reduce the likelihood of deeper extensions to
Vivien as the vein narrowed and reduced in grade. Mining focussed on effective extraction of
the remaining reserves and any remnant resource areas.
Mining studies are in progress for a potential cutback of the historic Vivien open pit to access a
mainly oxidised lode between the pit base and top of the underground mine.
Total mill production from Vivien was 221kt at a grade of 4.42g/t for 30,564 ounces of
recovered gold.
Open pit
Ore mined
Grade
Contained gold
Underground
Ore mined
Grade
Contained gold
Total ore mined
Mill production
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
kt
g/t
oz
kt
g/t
oz
kt
kt
g/t
oz
%
oz
oz
oz
1,615
1.13
58,438
734
3.98
1,981
2.10
3,596
1.66
3,062
1.30
534
0.36
133,877
192,315
127,553
64,762
211
3.74
945
3.93
902
4.74
43
(0.81)
94,072
25,370
119,442
137,527
(18,085)
+ 17 %
+ 28 %
+ 51 %
+ 5 %
- 17 %
- 13 %
2,349
2,192
4,541
3,964
577
+ 15 %
1,732
2.37
131,830
96.2
126,860
126,511
2,507
1.76
142,166
93.6
133,089
132,114
4,239
2.01
273,996
94.9
259,949
258,625
4,635
1.91
284,779
95.2
271,144
272,109
(396)
0.10
(10,783)
(0.3)
(11,195)
(13,484)
- 9 %
+ 5 %
- 4 %
- 0 %
- 4 %
- 5 %
123,112
128,243
251,355
277,450
(26,095)
- 9 %
Table 2: Summary of mining and milling operations for the 2022 financial year
12
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
MINING – PENNY GOLD MINE
Area
Magenta
Type
Open pit
Operational commentary
Open pit mining commenced at Penny during the year with the small Magenta pit being
completed. The Magenta pit contained a small quartz lode and will also serve as a dewatering
location for the Penny West cut back and Penny North underground.
Penny West
Open pit
The Penny West pit cutback was also completed during the year which established a suitable
long-term ramp access and portal location in the north wall.
Penny North
Underground
With completion of these open pit activities, operations transitioned underground with the
portal blast to establish access occurring on 26 April 2022. Work has now commenced on the
decline with good progress being made on capital development. Towards the end of the year
the decline was approaching the first Penny North ore level with the first underground ore
scheduled for extraction late in the September 2022 Quarter.
During the year a total of 18kt at 3.41g/t for 1,953 ounces of contained gold was mined from
Magenta with 8kt of ore, at 3.27g/t, being hauled to, and processed at, Mt Magnet for 810
ounces of recovered gold.
MILLING – MT MAGNET PRODUCTION CENTRE
Mt Magnet mill
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
kt
g/t
oz
%
oz
oz
oz
2022
1,732
2.37
131,830
96.2
126,860
126,511
2021
1,886
2.76
167,467
96.4
161,455
161,159
Change
(154)
(0.39)
(35,637)
(0.2)
(34,595)
(34,648)
Change (%)
- 8 %
- 14 %
- 21 %
- 0 %
- 21 %
- 21 %
123,112
165,011
(41,899)
- 25 %
Table 3: Mt Magnet milling for the 2022 financial year
A total of 1,732k tonnes of ore was processed at the Mt Magnet mill during the year compared to 1,886k tonnes in the prior year. The
decrease in mill throughput was due to ore feed hardness, particularly from Eridanus, and a reduction in available oxide feed. Milled grades
were also down due to the need to use softer, lower grade feed to balance the ore hardness as well as lower mined grades from Shannon
and Vivien. Overall, this resulted in a reduction of 34,595 ounces in recovered gold for the year. In the 2023 financial year the introduction
of oxide material from Orion is expected to see Mt Magnet throughput return to levels similar to the 2021 financial year.
Gold production from Mt Magnet is forecast to be 150,000 ounces in the 2023 financial year, a 19% increase on the 2022 financial year,
which is mainly due to the introduction of ore from the high grade Penny underground mine.
15
EDNA MAY PRODUCTION CENTRE
The Edna May production centre includes the Edna May underground mine and open pit ore trucked in from the Tampia and Marda Gold
Mines. Gold production from Edna May totalled 132,114 ounces for the year at an AISC of A$1,578 (2021: 110,950 ounces at an AISC of
A$1,496/oz). Gold production increased 19% on the prior year with the introduction of the higher grade ore from the Tampia Gold Mine.
MINING – EDNA MAY GOLD MINE
With the completion of the Greenfinch open pit early in the 2022 financial year mining operations at Edna May are now solely focussed on
the underground mine.
Area
Type
Operational commentary
Edna May
Underground
Underground
An underground diamond drilling programme was carried out in the September 2021 Quarter
which confirmed the extension of the Jonathan and Fuji lodes. Additional drilling at depth is
planned for the 2023 financial year.
Greenfinch
Open pit
Total mill production from Edna May underground was 245kt at a grade of 3.30g/t for 24,640
ounces of recovered gold.
The Greenfinch pit was completed in August 2021 with production for the financial year
of 195kt at a grade of 1.14g/t for 6,654 ounces of recovered gold. The final mill reconciled
production, over the life of the project, was 1.7Mt at 1.02g/t for 50,424 ounces of
contained gold.
MINING – TAMPIA GOLD MINE
Area
Tampia
Type
Open pit
Operational commentary
The mining of ore reached commercial levels in July 2021 (small quantities of ore were mined
late in the 2021 financial year). At year end, over 50% of the total life of mine ore for Tampia
had been mined. The remaining mine life, plus the large stockpiles, will continue to feed Edna
May for the next two years.
Mining for the year totalled 1,346kt at 2.16g/t for 93,508 ounces of contained gold. As
expected, mining outpaced haulage and milling with processed tonnes totalling 750kt at 2.68g/t
for 60,224 ounces of recovered gold.
After modelling of grade control drilling and ore body performance to date, particularly at the
Southern end of the pit, the mine plan for Tampia was revised. This has resulted in an ~14% (or
25koz) reduction in the total expected recovered ounces from Tampia over the life of the mine
compared to the feasibility study. This is one of the reasons that an impairment review of the
Edna May CGU was undertaken which is discussed later in this report and at Note 11 of the
financial statements.
As at 30 June 2022 a total of 590kt of ore, at a grade of 1.56g/t, for 29,697 ounces of
contained gold, was stockpiled at the mine site ready for haulage to Edna May.
1414
14
RAMELIUS RESOURCES ANNUAL REPORT 2022
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 MINING – MARDA GOLD MINE
Area
Marda
Type
Open pit
Operational commentary
Mining operations continued at Marda across the financial year with mining commencing at the
Golden Orb pit and finishing up at the Python, King Brown, and Dolly Pot pits.
Golden Orb and Dolly Pot were the main sources of production for the year, totalling 522kt at
2.16g/t for 36,161 ounces of contained gold.
Haulage from Marda to Edna May was lower than initially expected due to wet weather
followed by labour shortages exacerbated by the WA border closure and, to a lesser extent,
by the COVID-19 related absenteeism. Additional haulage capacity was secured by the Group
however this was generally allocated to the higher grade material at Tampia. As a result, the
ore stockpile on site continued to increase.
A total of 390kt at 2.63g/t was hauled to, and milled at, Edna May for 31,314 ounces of
recovered gold.
As at 30 June 2022 a total of 490kt of ore, at a grade of 1.40g/t, for 22,019 ounces of
contained gold, was stockpiled at the mine site ready for haulage to Edna May.
MILLING – EDNA MAY PRODUCTION CENTRE
Edna May mill
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
kt
g/t
oz
%
oz
oz
oz
2022
2,507
1.76
142,166
93.6
133,089
132,114
2021
2,749
1.33
117,312
93.5
109,689
110,950
Change
(242)
0.43
24,854
0.1
23,400
21,164
Change (%)
- 9 %
+ 32 %
+ 21 %
+ 0 %
+ 21 %
+ 19 %
128,243
112,439
15,804
+ 14 %
Table 4: Edna May milling for the 2022 financial year
A total of 2,507k tonnes were processed at the Edna May mill during the year compared to 2,749k tonnes in the prior year representing
a 9% decrease in throughput. This decrease was due to a change in the composition of the ore feed with Tampia ore replacing the
Greenfinch ore of 2021. A lower throughput was planned with the introduction of the Tampia ore, however pleasingly this throughput rate
for Tampia was exceeded. This higher grade Tampia ore resulted in a 32% improvement to the milled grade which increased recovered
gold by 21% on the prior year.
Gold production from Edna May is forecast to be 110,000 ounces in the 2023 financial year, a 17% decrease on the 2022 financial year, which is
attributable to an expected lower throughput (due to ore feed composition) and lower grades from both the Tampia and Marda Gold Mines.
17
DEVELOPMENT
& EXPLORATION
PROJECTS
DEVELOPMENT PROJECTS
PENNY GOLD MINE
(MURCHISON REGION, WA)
The Penny Gold Mine is located approximately 25km south of
Youanmi, or 170km by road southeast of the Mt Magnet Gold Mine,
and approximately 500km northeast of Perth in Western Australia.
During the year open pit mining commenced at the small Magenta
pit, located 1.5km the north of Penny North underground mine.
This pit targeted a smaller quartz lode and will also serve as a
dewatering location for the Penny North underground mine. A
total of 18kt at 3.41g/t was mined during the year with 8kt at
3.27g/t hauled to, and processed at, Mt Magnet.
The Penny West pit cutback was completed during the year which
established a suitable long-term ramp access and portal location
in the north wall. With completion of these open pit activities in
the March 2022 Quarter operations transitioned to underground
with the first blast into the portal being carried out on 26 April
2022. Following this, work commenced on the decline, with good
progress being made on capital development. Towards the end of
this financial year the decline was approaching the first Penny North
ore level with the first ore scheduled for late in the September
2022 Quarter.
The commencement of the decline will allow for a take-off position
for an exploration decline to be developed across to the Penny
West area to potentially exploit resources in that area, none of
which were factored into the Mine Plan released in August 2021
(see ASX release “Ramelius Mine Plan increases 27% to 1.84M oz”
dated 2 August 2021).
An important discovery was made in the 1406mRL vent /
escapeway access drive. This drive crossed the Penny North
stratigraphic position exposing a 1m to 1.5m wide quartz vein. This
is interpreted to be the Penny North lode vein. One occurrence
of coarse visible gold was observed in the laminated, sulphide-
rich footwall portion of the vein. Further mapping, sampling and
development is required to assess if the vein is economic at this
position. This location is well south (~90m) of the current Penny
North resource limit.
All project infrastructure is now in place, except for the Penny mine
airstrip, which is progressing well and is expected to be completed
in the September 2022 Quarter. The Penny Gold Mine will become
an operating mine in the 2023 financial year.
REBECCA GOLD PROJECT
(EASTERN GOLDFIELDS REGION, WA)
Following the completion of the off-market takeover of Apollo
Consolidated Limited (Apollo) in December 2021, Reverse
Circulation (RC) drilling recommenced with a 75,000m programme
of resource infill and extension drilling designed and now in
progress. Metallurgical test work has been proceeding to plan with
current test work indicating the deposit has good recoveries with
a traditional front end gravity circuit and Carbon in Pulp (CIP) /
Carbon in Leach (CIL) processing.
During the year Ramelius generated a new Mineral Resource
which confirmed the previous Apollo resource estimate. Despite
the Mineral Resource being generated on only a partially complete
drill programme, it increased the proportion of Indicated category
material (+22%) and generated a 9% increase in total ounces. The
total Mineral Resource is 31Mt at 1.2g/t for 1.2M ounces.
GALAXY UNDERGROUND
(MT MAGNET, WA)
During the year a pre-feasibility study (PFS) for the Galaxy
underground mine was completed which was followed by Board
approval to commence the project. The Galaxy underground has
a maiden Ore Reserve of 2.4Mt at 2.6g/t for 200koz with a mine
life of 5.5 years. The Galaxy underground mine will leverage off
existing processing plant and mine infrastructure and has potential
extensions given excellent depth continuity typically seen in the
area.
Mine establishment and infrastructure works have been completed
with the decline rehabilitation and ultimately mine development to
commence in the 2023 financial year. Access to the Galaxy area
will be from the rehabilitation of the upper levels of the old Hill 50
decline, which should prove a cheaper and quicker approach than
developing a new access route.
16
16
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 19
EXPLORATION PROJECTS
Ramelius’ exploration activities focussed on the Mt Magnet and
Rebecca Gold Project areas during the year, supplemented by
smaller work programmes at Edna May and Tampia.
MT MAGNET REGION
Exploration activities at Mt Magnet focussed on Bartus East and the
Galaxy underground mining area during the year.
hydrothermal breccia containing BIF clasts – a distinct mineralisation
style that has been recorded in previous drill holes near surface in
the Galaxy area but not previously at depth. The breccia is believed
to represent a discrete pipe-like body lying in the footwall of the
Saturn BIF unit and offers potential for a bulk underground target.
Interpretation suggests that the breccia pipe transects the Saturn
BIF, and in the process captures and accumulates mineralised BIF
clasts. Lateral dimensions of the breccia are undefined due to a
sparsity of drilling at depth.
Bartus East
Encouraging assay results were returned from early stage, deeper
RC drilling at the Bartus East prospect beneath shallow historic
open pit mining and previous supergene drilling. The Bartus East
granodiorite intrusion has minimal near surface exposure, obscured
by near surface ultramafic lithologies to the south of the shallow
Bartus East pit. Deeper drilling below this ultramafic veneer
identified the mineralised granodiorite.
A programme of deeper diamond drilling has been conducted
to provide a systematic deep drill coverage of the prospect area,
define the extents of high grade mineralisation within the Bartus
East intrusion, define geometry and extent of the host granodiorite,
and evaluate interaction of the Bartus East granodiorite intrusion
with adjacent, previously known mineralised intrusions within the
main Bartus trend.
Broad composite intervals are supported by discrete higher grade
internal segments. Mineralisation is hosted by sericite-silica-albite
altered intrusive granodiorite porphyry, with higher grade zones
typically associated with increased vein quartz density and pyrite.
Modelled granodiorite porphyry geometry based on drilling to date
suggests a lithological strike extent of up to 270m, a width of up to
50m, and depth extensions remaining open in the southern area.
Future work will include resource definition at Bartus East, and a
review of the broader Bartus / Bartus South area adjacent to Bartus
East to evaluate potential for other blind mineralised granodiorite
intrusions not evident in the near surface environment.
Galaxy underground mining area (Saturn / Mars)
Deep exploration diamond drilling beneath the Saturn-Mars
pits is targeting high grade Banded-Iron Formation (BIF) hosted
mineralisation situated outside of the current underground mine
design. Steeply plunging discrete high grade shoots with limited
strike extent are characteristic of the nearby Hill 50 deposit.
Structural complexity from cross-cutting northeast trending
structures including the Hill 50 and Saturn Faults, introduces the
potential for previously unrecognised fault bounded BIF blocks to
create blind high grade shoots with no near surface expression.
Diamond drilling has extended BIF mineralisation down-dip at
variable but local higher grades. One of the diamond drill holes has
also recorded a broad down-hole mineralised zone logged as a
Lennonville Shear Zone
RC drilling along the Lennonville Shear Zone has intersected high
grade mineralisation directly south and along strike of the historic
Long Reef underground mine. Mineralisation suggests a continuation
of the mineralised reef. The Long Reef mine was exploited to a
depth of approximately 150m, focussed on high grade laminated
veining adjacent to a sheared mafic-ultramafic contact. Historic
production recorded from the mine was 57,380t at 20.2g/t Au
(37,197oz). Discrete high grade shoots are characteristic of the
broader Lennonville trend.
Rebecca Gold Project
Exploration activities focussed on the Rebecca Gold Project in
the second half of the 2022 financial year following the acquisition
of Apollo. Resource definition drilling was undertaken to
improve confidence in the resources as well as testing for further
extensions and / or new mineralised lodes in the footwall to these
deposits. The impact of this new drilling on the resource model is
documented in the Development Projects section of this report.
EDNA MAY REGION
Exploration activities in the Edna May region focussed on Golden
Point, Tampia, and the Mt Finnerty & Parker Dome JV Projects.
Edna May Mine – Golden Point
A combined exploration-resource development RC and
underground diamond drilling programme was completed at
Golden Point. The programme has the potential to extend
mineralisation within the Golden Point Gneiss to the southeast of
the existing pit and therefore support the Edna May Stage 3 cut-
back.
The bulk of mineralisation within the Edna May deposit occurs
within the Edna May Gneiss (EMG) host unit. A second mineralised
host, the Golden Point Gneiss (GPG) unit is situated in the footwall
of the north dipping EMG and becomes more significant in size
towards the east as the EMG narrows. Mineralisation within the
GPG is of a lower tenor in comparison to the EMG, however its
location at the eastern pit edge provides a potential incremental
benefit to deeper pit optimisation and cut-back.
Re-evaluation will follow a resource update utilising the latest
drilling results.
MINING / PROCESSING STUDIES AND
RESOURCE CONVERSION
During the financial year progress has been made on various
mining studies based around the Mt Magnet and Edna May
production centres.
Mining and processing studies in progress or planned for the 2023
financial year include:
Mt Magnet
Hill 50 underground Scoping Study
The Hill 50 underground contains a current Mineral Resource of
1.6Mt at 6.6g/t for 340koz.
A Scoping Study mine design and schedule has been completed in
draft. Preliminary outcomes and assumptions are as follows:
• Uphole benching under paste fill mining method has been
•
selected;
Paste fill being undertaken with a 50m3/hr paste plant fed by
dry tailings reclaimed from existing Tailings Storage Facility
(TSF);
• Ground support will include in cycle fibrecrete with dynamic
support;
• Mining sequence will be end-to-end with specific lead – lag
•
•
•
sequence between stopes;
Blast pre-conditioning of small pillars will likely be required:
Allowance will be made for refrigerated cooling; and
Schedule and costs benefit from Galaxy project rehabilitating
the upper portions of Hill 50 decline in FY23.
Vivien
Mine extension
An underground resource infill and extensional drilling programme
was completed during the year. Initial drilling targeted above the
upper 400mRL level south and mid-levels of the East lode. Results
above the 400mRL level were encouraging. Mining studies are in
progress for a potential cutback of the historic Vivien open pit to
access a mainly oxidised lode between the pit base and top of the
underground mine. The underground is expected to be completed
during the financial year.
Edna May
Edna May Stage 3 Pre-Feasibility
The Edna May Stage 3 PFS has focussed on the refinement of
contractor costs, haulage routes, and backfill options. Ramelius
notes that contractor mining rates became highly variable in
current COVID-19 environment with the effect of these pricing
inputs for the PFS being examined with the increase in fuel price a
notable additional cost burden. Budget mining rates were supplied
by a mining contractor which included allowance for lower
productivity of mining benches containing underground voids.
A new mine design has been generated on the basis that voids are
backfilled during underground mining. The intent is to now seek
pricing from a variety of parties to ensure the best possible rates
are obtained. This process is expected to be completed later in
the 2022 calendar year. Final decisions on the development status
of the project will be made thereafter, noting that development
of the project is required to commence in the 2023 calendar year
to meet the previous 2021 Mine Plan schedule with meaningful
production required from Stage 3 in the 2026 financial year.
18
18
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 Nulla South Farm-In JV
(Ramelius 75%)
A programme of Aircore (AC) and RC drilling was completed at
the Hitchings Prospect, Nullah South JV. Results showed sub-
economic geochemical anomalism, with spot high grade results
attributed to discrete veining with minimal continuity.
Mt Hampton Project
(including Symes Find)
A campaign of resource definition RC drilling has been completed
at Symes Find and the adjacent Mt Hampton deposits, and a
second campaign began early in the new financial year. Drilling is
targeting infill and marginal extension of resources, particularly
in the shallow laterite mineralised zone. All analytical results are
pending.
Mt Finnerty and Parker Dome JV Projects
The Mt Finnerty and Parker Dome JV Projects are subject to a
farm-in joint venture agreement with Rouge Resources Ltd
(a wholly owned subsidiary of Westar Resources Ltd). Ramelius
can earn 75% of the projects by expenditure of $2M over a
three-year period. Mt Finnerty is located approximately 200km
northeast of Edna May, Parker Dome is situated approximately
150km southeast of Edna May.
The Mt Finnerty Project area comprises a northerly located
prospect referred to as Flinders, and a southerly prospect
called Tasman. The Project area covers a 9km strike extent of a
deformed and sporadically mineralised granite-greenstone contact
situated in close proximity to the east of the regional Mount
Dimer Shear Zone.
High grade RC drill intercepts have been recorded at both Flinders
and Tasman. At this early stage, mineralisation continuity between
the sparse drill intercepts is not clear. In the absence of sufficient
data to interpret mineralisation controls, the host-intrusive
mafic geometry is regarded as the best proxy for mineralisation
geometry, suggesting the potential for a series of stacked, discrete
dip-constrained, north-plunging plunging mineralised shoots.
Tampia
Results had been reported across several prospects, including
the T3 and T5 Prospects at Tampia South. Assay results received
downgrade the immediate potential of the prospects due to
economic intervals being semi-continuous along the structure,
narrow down-hole widths, with few significant results in the near
surface (~50m) domain.
The Alpaca Anomaly is located immediately north of the Tampia
Gold Mine. RC drilling targeted gold-arsenic soil geochemical
anomalism coincident with magnetic and gravity features.
No significant (economic) results were reported with drilling
downgrading the immediate potential and unable to repeat the
original historic high grade results. This target is considered to have
been tested.
20
20
21
RESOURCES AND RESERVES
COMPANY SUMMARY AS AT 30 JUNE 2022
Mineral Resources up 15%
Total Mineral Resources are estimated to be:
•
130 Mt at 1.5 g/t Au for 6.2 Moz of gold
Total Ore Reserves are estimated to be:
•
18 Mt at 1.8 g/t Au for 1.1 Moz of gold
Acquisition of the Rebecca project delivered a significant increase to Mineral Resources and work is in progress to generate Ore Reserves
for this project. Overall, Ore Reserves were maintained despite a year’s worth of mining depletion. Future conversion of Resource to
Reserve will focus on, in order of declining resource size, the following projects:
Rebecca (1.2Moz Au)
Edna May (940koz Au)
•
•
• Hill 50 (360koz Au)
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
)
u
A
z
o
k
(
s
e
c
r
u
o
s
e
R
l
a
r
e
n
M
i
1,200
1,400
1,200
1,100
2,700
2,119
3,800
3,000
765
762
953
1,277
1,262
1,448
185
2015
172
2016
118
2017
256
2018
240
2019
380
2020
370
2021
1,300
4,300
610
2022
Measured
Indicated
Inferred
Figure 3: Ramelius Historical Mineral Resources
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
23
MINERAL RESOURCE COMMENTARY
Mt Magnet is comprised of numerous gold deposits contained
within a contiguous tenement holding and located within an 8km
radius of the Checkers processing facility. Current mining operations
include the major Eridanus open pit and the Shannon and Hill 60
underground mines. Remnant mining at the St George underground
has commenced along with commencement of development
activities at the Galaxy underground mine. A large low-grade
stockpile has been generated from mining at Eridanus.
Vivien is a high-grade quartz lode deposit, located near Leinster.
Mining commenced in 2015 and Vivien has been a steady
contributor with ore trucked to the Mt Magnet mill. Underground
development has ceased and production is from stoping primarily.
The Resource between the historic pit and underground is being
evaluated for a potential pit cutback.
The Edna May mine was acquired in October 2017. It comprises of
the large-scale Edna May granitoid hosted, stockwork deposit. Two
high-grade, cross-cutting quartz lodes are being mined underground
within the broader Edna May deposit. The Marda and Tampia open
pits form major ore sources for current mill feed.
Marda mining operations commenced in late 2019. It consists of BIF
hosted deposits being mined as open pits. The Golden Orb pit is
being completed and the Die Hardy pit is commencing. It is located
130km north of Southern Cross and ore is hauled and milled at
Edna May.
Tampia mining operations commenced in April 2021. The deposit
is hosted within amphibolite facies mafic rocks, 12km south-east of
Narembeen in the WA wheatbelt. Gold is hosted within shallow
dipping lode/shear zones and associated with arsenopyrite. Ore is
hauled 140km to Edna May for milling and large site stockpiles have
been generated.
All deposits have been depleted for mining during the 2022
financial year.
Mining and changes to modelling and/or categorisation generally
resulted in decreases for most active projects. The large increase in
resource was mainly due to the addition of the Rebecca project.
See RMS ASX releases below for additional Mineral Resource
reporting details:
•
•
‘Mining Study Updates – Mt Magnet & Edna May’, 28 February
2022; and
‘June 2022 Quarterly Activities Report’, 28 July 2022.
Symes Find is located 120km SSE of Edna May, also in the WA
wheatbelt and consists of lateritic, oxide and primary mineralisation
hosted in mafic gneiss units comparable to Tampia.
The Penny project was acquired via the acquisition of Spectrum
Metals in early 2020. Penny West is a high-grade quartz-sulphide
lode discovered and mined by open pit in the early 1990’s. Project
development is well progressed with a pit access cutback, camp,
workshop and offices completed. Underground development has
recently intersected the lode position. Ore will be hauled 170km to
Mt Magnet.
The Rebecca project was acquired via acquisition of Apollo
Consolidated in 2021. The project contains the substantial Rebecca
deposit, plus the smaller Duchess and Duke deposits and is located
153km east of Kalgoorlie. Mineralisation occurs in large shear lodes
with associated disseminated pyrrhotite, pyrite and silicification,
hosted within a gneissic granodiorite.
All resources are based on combinations of RC and
diamond drillholes. Underground deposits may also
utilise grade control and face sampling data. Drill
sampling has been via riffle or cone splitters
(RC) or by sawn half core. Assay is carried
out by commercial laboratories and
accompanied by appropriate QAQC
samples. Generally, a substantial
proportion of drill data
is historic in nature
or gathered by
previous owners,
however
MINERAL RESOURCES
MINERAL RESOURCES AS AT 30 JUNE 2022 - INCLUSIVE OF RESERVES
Project
Deposit
Measured
Indicated
Inferred
Total Resource
t
g/t
oz
t
g/t
oz
t
g/t
oz
t
g/t
oz
Morning Star
Bartus Group
Boomer
Britannia Well
Brown Hill
Bullocks
Eastern Jaspilite
Eclipse
Eridanus
Franks Tower
Golden Stream
Golden Treasure
Milky Way
Orion
Spearmont-
Galtee
Welcome -
Baxter
OP deposits
Galaxy UG
Hill 50 Deeps
Hill 60
St George
Shannon
UG deposits
ROM & LG
stocks
Total Mt Magnet
Rebecca
Duchess
Duke
Total Rebecca
Edna May
Edna May UG
ROM & LG
stocks
Total Edna May
Vivien OP
Vivien UG
Symes Find
Golden Orb
Die Hardy
ROM & LG
stocks
Total Marda
Tampia OP
ROM & LG stock
Total Tampia
North, West &
Columbia
Mt
Magnet
Rebecca
Edna
May
Vivien
Symes
Marda
Tampia
Penny
49,000
2.2
4,000
150,000
2.2
10,000
500,000
1.3
21,000
4,900,000
110,000
1,200,000
180,000
1,100,000
200,000
120,000
170,000
14,000,000
2,000,000
150,000
780,000
820,000
1,900,000
11,000
280,000
220,000
920,000
560,000
120,000
460,000
65,000
1,200,000
6,300,000
8,400,000
700,000
140,000
44,000
880,000
1.6
1.5
7.6
4.5
4.1
8.5
6.0
0.6
1.5
1.6
5.2
0.5
2.1
46,000
140,000
17,000
60,000
18,000
230,000
120,000
400,000
36,000
23,000
760
60,000
57,000
6.3
12,000
490,000
620,000
1,100,000
900,000
2,000,000
1.4
1.7
1.8
1.3
1.5
22,000
33,000
63,000
37,000
100,000
28,000,000
6,700,000
580,000
38,000
98,000
140,000
7,500,000
36,000,000
18,000,000
6,100,000
1,600,000
26,000,000
23,000,000
110,000
23,000,000
330,000
66,000
570,000
86,000
1,500,000
1,600,000
3,400,000
1.9
2.1
1.8
2.0
1.6
3.3
2.8
2.2
1.3
1.5
2.9
1.1
1.1
1.7
1.6
1.5
2.1
5.0
4.1
4.5
4.4
2.4
1.7
1.4
0.9
1.1
1.2
1.0
4.9
1.0
3.5
4.4
1.9
2.5
1.5
1.6
1.7
300,000
8,000
68,000
12,000
59,000
21,000
11,000
12,000
580,000
97,000
14,000
28,000
29,000
100,000
4,300,000
240,000
790,000
490,000
40,000
130,000
41,000
4,500,000
480,000
67,000
880,000
1,600,000
240,000
580,000
15,000
200,000
15,000,000
970,000
720,000
110,000
14,000
1,800,000
16,000,000
3,100,000
2,100,000
450,000
5,700,000
7,000,000
39,000
1,400,000
440,000
92,000
5,000
14,000
20,000
580,000
1,900,000
790,000
180,000
57,000
1,000,000
690,000
17,000
710,000
38,000
9,500
35,000
6,900
72,000
79,000
180,000
1.5
1.6
1.0
1.2
2.5
2.5
2.1
1.1
1.5
1.2
1.0
1.1
2.8
2.6
1.8
1.3
2.2
5.5
3.3
4.9
3.6
1.6
1.1
0.9
1.3
1.0
0.9
5.3
210,000
12,000
26,000
19,000
3,000
11,000
3,000
160,000
23,000
2,700
28,000
57,000
21,000
9,200,000
400,000
2,000,000
180,000
1,600,000
240,000
400,000
210,000
19,000,000
2,400,000
220,000
1,700,000
2,400,000
2,200,000
48,000
580,000
11,000
700,000
630,000
68,000
130,000
12,000
2,200
210,000
840,000
110,000
63,000
19,000
190,000
210,000
6,600
44,000,000
7,700,000
1,900,000
160,000
670,000
220,000
11,000,000
6,300,000
60,000,000
21,000,000
8,300,000
2,100,000
31,000,000
30,000,000
280,000
44,000
31,000,000
330,000
130,000
610,000
360,000
7,000,000
1.0
220,000
11,000
39,000
140,000
550,000
4.3
1.2
2.0
1.3
1,500
1,500
8,800
23,000
2,000,000
690,000
1.4
32,000
490,000
2,900,000
4,500,000
900,000
5,400,000
1.7
1.9
1.5
2.1
1.5
3.1
2.5
2.2
1.2
1.5
2.4
1.0
1.1
1.8
2.6
1.7
1.4
2.1
6.0
4.4
4.0
5.7
3.0
0.6
1.6
1.3
0.9
1.1
1.2
1.0
5.1
0.5
1.0
3.5
5.2
1.9
2.4
1.5
1.4
1.6
1.7
1.3
1.6
510,000
24,000
94,000
12,000
78,000
24,000
32,000
15,000
760,000
120,000
17,000
56,000
86,000
120,000
48,000
37,000
2,000,000
510,000
360,000
22,000
86,000
40,000
1,000,000
120,000
3,200,000
890,000
250,000
76,000
1,200,000
940,000
47,000
760
990,000
38,000
22,000
37,000
27,000
95,000
22,000
140,000
250,000
37,000
280,000
3,400,000
1.7
180,000
420,000
19.0
260,000
110,000
10.0
35,000
530,000
17.2
290,000
Total Resource
12,000,000
1.6
610,000
90,000,000
1.5
4,300,000
30,000,000
1.4
1,300,000 130,000,000
1.5
6,200,000
Table 5: Mineral Resources
Figures rounded to 2 significant figures. Rounding errors may occur.
22
Nightshift at Tampia Gold Mine
Photo Competition Finalist: Alex Palma
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
ORE RESERVE STATEMENT AS AT 30 JUNE 2022
Proven
g/t
t
oz
t
Probable
g/t
25
oz
11,000
31,000
110,000
8,500
68,000
230,000
41,000
10,000
200,000
250,000
120,000
600,000
23,000
460
23,000
15,000
5,000
38,000
22,000
65,000
88,000
30,000
120,000
230,000
Total Reserve
g/t
t
130,000
620,000
2,700,000
91,000
1,100,000
4,600,000
400,000
47,000
2,400,000
2,800,000
6,300,000
14,000,000
220,000
15,000
230,000
110,000
66,000
790,000
490,000
1,300,000
1,300,000
590,000
1,900,000
490,000
2.7
1.6
1.3
2.9
1.9
1.5
3.2
6.6
2.6
2.7
0.6
1.4
3.2
0.9
3.1
4.0
2.4
1.5
1.4
1.5
2.1
1.6
1.9
15.0
130,000
620,000
2,700,000
91,000
1,100,000
4,600,000
400,000
47,000
2,400,000
2,800,000
7,400,000
220,000
220,000
110,000
66,000
790,000
860,000
1,300,000
2.7
1.6
1.3
2.9
1.9
1.5
3.2
6.6
2.6
2.7
2.0
3.2
3.2
4.0
2.4
1.5
1.6
2.1
oz
11,000
31,000
110,000
8,500
68,000
230,000
41,000
10,000
200,000
250,000
480,000
23,000
23,000
15,000
5,000
38,000
43,000
88,000
1,300,000
490,000
2.1
15.0
88,000
230,000
6,300,000
6,300,000
15,000
15,000
490,000
490,000
590,000
590,000
0.6
0.6
0.9
0.9
1.4
1.4
1.6
1.6
120,000
120,000
460
460
22,000
22,000
30,000
30,000
ORE RESERVES
Project
Mine
Boomer
Brown Hill
Eridanus
Golden Stream
Morning Star
Total Open Pit
Hill 60
Shannon
Galaxy
Total Underground
ROM & LG stocks
Mt Magnet Total
Edna May UG
ROM & LG stocks
Edna May Total
Vivien UG
Golden Orb
Die Hardy
ROM & LG stocks
Total Marda
Tampia
ROM & LG stocks
Total Tampia
Penny North
Mt
Magnet
Edna
May
Vivien
Marda
Tampia
Penny
Total Reserve
7,400,000
0.7
180,000
10,000,000
2.6
880,000
18,000,000
1.8
1,100,000
Table 6: Ore Reserves
Figures rounded to 2 significant figures. Rounding errors may occur.
ORE RESERVE COMMENTARY
All Ore Reserves have been reported from Measured and Indicated Resources only. Current operations are the Eridanus, Golden Orb and
Tampia open pits and the Vivien, Edna May, Galaxy, Shannon and Hill 60 underground mines. All current pit and underground operations
were depleted to 30 June 2022.
All Ore Reserves have been generated from design studies using appropriate cost, geotechnical, slope angle, stope span, dilution, cut-off
grade and recovery parameters. Ore Reserves are utilised in the current Mine Plan. Mining approvals are in place for all Ore Reserve-related
projects.
A maximum A$2,250/oz gold price has been used to estimate Ore Reserves and determine appropriate cut-offs.
Mining, milling and additional overhead costs are based on currently contracted and budgeted operating costs. Mill recoveries for all ore
types are based upon operating experience or metallurgical testwork. Stockpiles consist of ROM stocks and low-grade stocks mined under
Ramelius’ ownership.
Ramelius has added significant further drilling for all deposits, especially those forming Ore Reserves. Mineralisation has been modelled
via cross-sectional interpretations, using deposit appropriate lower cut-off grade shapes and geological interpretations. Geological
understanding has formed the basis of all ore interpretations. Ore domain interpretations have then been wireframed using geological
software, including Micromine, Leapfrog and Surpac. Mineralisation has been grouped by domain where required and statistical analysis,
top-cutting and estimation carried out using anisotropic search ellipses. Estimation uses Ordinary Kriging and/or Inverse Distance
methods. Modelling has been undertaken with recognition of the probable mining method and minimum mining widths and the resource
classifications reflect drillhole age, spacing, data quality, geological and grade continuity.
Density information for fresh rock is generally well established and new measurements have frequently been obtained. All deposits listed,
except Rebecca, have had some degree of recent production or historic mining.
RESOURCE INVENTORY CHANGE
1,218
6,197
5,403
313
72
233
50
June 2021
Resource
Mining
Depletion
Ore Stock
Change
Modelling &
Categorisation
Exploration,
Resource &
GC Drilling
Project
Acquisition
June 2022
Resource
Figure 4: Resource Inventory Change
6,500
6,000
5,500
5,000
4,500
4,000
3,500
)
u
A
z
o
k
(
s
e
c
r
u
o
s
e
R
l
a
r
e
n
M
i
24
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
27
1,142
309
203
1,107
72
1,200
1,000
800
600
400
200
0
)
u
A
z
o
k
(
s
e
v
r
e
s
e
R
e
r
O
June 2021
Reserve
Mining
Depletion
Ore Stock
Change
Figure 5: Reserve Inventory Change
Exploration,
Resource &
GC Addition
June 2022
Reserve
FORWARD LOOKING STATEMENTS
This report contains forward looking statements. The forward looking statements are based on current expectations,
estimates, assumptions, forecasts and projections and the industry in which it operates as well as other factors that
management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which
may prove to be incorrect. The forward looking statements relate to future matters and are subject to various inherent
risks and uncertainties. Many known and unknown factors could cause actual events or results to differ materially from the
estimated or anticipated events or results expressed or implied by any forward looking statements. Such factors include,
among others, changes in market conditions, future prices of gold and exchange rate movements, the actual results of
production, development and/or exploration activities, variations in grade or recovery rates, plant and/or equipment failure
and the possibility of cost overruns. Neither Ramelius, its related bodies corporate nor any of their directors, officers,
employees, agents or contractors makes any representation or warranty (either express or implied) as to the accuracy,
correctness, completeness, adequacy, reliability or likelihood of fulfilment of any forward looking statement, or any events or
results expressed or implied in any forward looking statement, except to the extent required by law.
COMPETENT PERSONS
The information in this report that relates to Mineral Resources and Ore Reserves is based on information compiled by Rob Hutchison
(Mineral Resources) and Paul Hucker (Ore Reserves), who are Competent Persons and Members of The Australasian Institute of Mining
and Metallurgy. Rob Hutchison and Paul Hucker are full-time employees of the company. Rob Hutchison and Paul Hucker have sufficient
experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves”. Rob Hutchison and Paul Hucker consent to the inclusion in this report of the matters based on their
information in the form and context in which it appears.
26
RAMELIUS RESOURCES ANNUAL REPORT 2022
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022
29
29
SUSTAINABILITY
REPORT 2022
28
28
2022 Achievements
About Ramelius
Our Business
Our People
Our Communities
Our Environment
Performance Data
30
33
45
50
58
64
75
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTOVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 31
31
2022 ACHIEVEMENTS
OUR BUSINESS
OUR PEOPLE
OUR COMMUNITIES
OUR ENVIRONMENT
REGULATORY AND COMPLIANCE:
EMPLOYEES AND CONTRACTORS:
COMMUNITY RELATIONS AND INVESTMENT:
EMISSIONS AND ENERGY:
ZERO REGULATORY BREACHES
AND NON-COMPLIANCE
INCIDENTS ACROSS ALL
OPERATIONS IN FY22
ECONOMIC PERFORMANCE:
PRODUCED 258,625 OZ AT
$1,523/OZ. MAINTAINED A SALES/AISC
MARGIN OF 37%
ORGANISATIONAL GOVERNANCE:
UPDATED ALL GOVERNANCE
AND SUSTAINABILITY POLICIES
40% OF OUR BOARD OF
DIRECTORS ARE FEMALE
HEALTH, SAFETY, AND WELLBEING:
20% LESS LOST TIME
INJURIES
TALENT ATTRACTION, DEVELOPMENT,
AND RETENTION:
22% OF FY22 GRADUATE
STUDENTS WERE FEMALE
A$550,000 IN DONATIONS
TO SUPPORT COMMUNITY
9% BELOW AUSTRALIAN AVERAGE
OF EMISSIONS INTENSITY PER OUNCES
INITIATIVES AND GROUPS
PRODUCED*
FIRST NATIONS PEOPLES:
A$420,000 IN GRANTS TO
SUPPORT FIRST NATIONS COMMUNITY
GROUPS OVER THE LAST SEVEN YEARS
TAXES, ROYALTIES, AND SUPPLIER PAYMENTS:
A$622M CONTRIBUTED TO
AUSTRALIAN ECONOMY
COMPLETED
CLIMATE RISK ASSESSMENT AS PART OF
CONTINUED TCFD ALIGNMENT
WATER AND WASTEWATER MANAGEMENT:
934ML OF OUR WASTEWATER
WAS RECOVERED FROM OUR
TSFs AND REUSED IN OUR
PROCESSING PLANTS
30
30
*S&P Global Market Intelligence, 20 Sep, 2021,
"Greenhouse gas and gold mines - Emissions
intensities unaffected by lockdowns"
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTOVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 THE CEO ON
SUSTAINABILITY AT RAMELIUS
RAMELIUS RESOURCES ANNUAL REPORT 2022
33
Dear Stakeholders,
This marks the third standalone annual Sustainability
Report produced by Ramelius, and I am pleased to share
that this is the first to be aligned with the Sustainability
Accounting Standards Board’s (SASB) Metals and Mining
Industry Standard framework. In addition, we are pleased
to confirm our official participation in the United Nations
Global Compact. Since our maiden report, we have
continued to make significant strides towards our goal
of becoming a sustainable gold miner that focuses on
delivering superior returns for our stakeholders.
Over the past three reporting periods, we have continually built
upon our sustainability progress by gathering further information
on best practice in the mining industry, expanding our governance
policies and procedures, and embedding sustainable values into
our business strategy. With a strong foundation firmly in place, we
will continue to improve our performance in all Environmental,
Social, and Governance (ESG) areas. We monitor our sustainability
performance by participating in ESG benchmarking assessments
such as S&P’s Corporate Sustainability Assessment and global rating
agencies MSCI and Sustainalytics.
Led by Non-Executive Director Natalia Streltsova, the Company’s
Risk & Sustainability Committee continues to work alongside the
Board in overseeing risk, governance, and sustainability issues such
as climate change. In FY22 the Committee developed a formalised
Environmental Policy that was approved by the Board. The
Policy sets out our commitments to minimising harm wherever
possible, while at all times acting as a responsible custodian of
the environment. The financial year also saw Ramelius begin
development of its decarbonisation roadmap and complete a
climate risk assessment as part of our continued alignment with
the Taskforce on Climate-Related Financial Disclosures (TCFD)
recommendations.
Our pursuit of sustainability continues to be aided by the ongoing
financial health of the Company. In financial year 2022, we
contributed over $622 million to the Australian economy including
approximately $11.3 million spent with local businesses, employees
and community organisations. Our ongoing sponsorships and
engagements ensure that we give back to communities in
which we operate, strengthening our relationship with
local stakeholders. We strive to provide benefits to our
communities well beyond the life of our mines.
In finishing, I would like to thank all our employees and
contractors for their ongoing efforts in ensuring our
sustainability mission is achieved. I continue to urge them
to embrace our Company values as we strive for continued
improvement and excellence.
Yours sincerely,
WE ARE
AUTHENTIC
Mark Zeptner
Managing Director
32
ABOUT RAMELIUS
MISSION STATEMENT
To be a sustainable gold producer
that focuses on delivering superior
returns for stakeholders.
Our values
At Ramelius, we are defined by the following
core values:
WE
EMPOWER
OUR PEOPLE
CORE
VALUES
WE DELIVER
AND DO IT
SAFELY
ACHIEVE
FIT-FOR-PURPOSE
OUTCOMES
SUSTAINABILITY STATEMENT
We believe a sustainable gold producer
should deliver more than just financial
benefit. It’s about the way we do business,
the relationships we build with our people
and communities and the efforts we make
to conserve the environment.
Our corporate
strategy
Our Strategic Priorities
1 Feed Existing Hubs
2 Acquire Third Hub
3 Ramp Up Greenfields
4 Grow Capability
5 Do the Essentials
OUR CULTURE IS DEFINED BY A
‘FIT-FOR PURPOSE’ AND
‘CAN-DO’ ATTITUDE.
Sustainability pillars
OUR
BUSINESS
• Economic performance
• Regulatory and
compliance
• Organisational
governance
OUR
PEOPLE
• Health, safety,
and wellbeing
• Employment and contractors
• Ethics and human rights
• Talent attraction,
development, and
retention
OUR
COMMUNITIES
• First Nations peoples
• Taxes, royalties, and
supplier payments
• Community relations
and investment
OUR
ENVIRONMENT
• Greenhouse gas
emissions and energy
• Water and wastewater
management
• Biodiversity
• Mine closure and
rehabilitation
• Waste and tailings
management
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 SUSTAINABILITY AT RAMELIUS
Through the Risk & Sustainability Committee, our Board of Directors maintains oversight of all sustainability impacts and activities across
Ramelius. We strive to conduct business in a sustainable manner, guided by the following hierarchy:
RISK & SUSTAINABILITY COMMITTEE CHARTER
SUSTAINABILITY POLICIES
SUSTAINABILITY STATEMENT & PILLARS
Community
Consultation
Policy
First Nations
Peoples
Policy
Risk
Management
Policy
Health and
Safety Policy
Environmental
Policy
Diversity
& Inclusion
Policy
Code of
Conduct
Whistleblower
Policy
The Ramelius Board sets strategic direction and defines strategic objectives coupled with defined levels of risk tolerance. The Board also
enacts policies that are relevant to the Company’s management of climate-related risks. The Board has delegated responsibility to oversee
the Company’s risk management systems, sustainability programs and mitigating controls to the Risk & Sustainability Committee.
This Committee is comprised of Independent Non-Executive Directors, including the Chair, and is appointed by the Board on whose
behalf it acts. The Committee reports to the Board a minimum of four times per year on risk management, health and safety, environment
and sustainability activities. The Committee periodically reviews company-wide policies relating to these topics. The Committee also
oversees the management of specific climate-related risks and opportunities through regular review of global and industry best practice,
internal compliance programs and relevant sustainability frameworks.
At a management level, the Ramelius Executive Team, led by the CEO, is tasked with fulfilling Board-approved strategies and policies and
associated risk management plans. Management, via the CEO, reports progress and activities to the Risk & Sustainability Committee at
each meeting. Senior function managers provide central coordination through to the Executive Team and CEO. At a site level, risk registers
include risks and mitigation plans at all operations. Senior Managers prepare an annual Sustainability Report for endorsement by the Risk &
Sustainability Committee and approval by the Board.
35
ABOUT THIS REPORT
This Sustainability Report, approved for release by our Board of Directors, covers the period from 1 July 2021 to 30 June 2022 (FY22).
The information and data includes all of Ramelius’ current active operations, including producing mines, development sites and exploration
assets. The Report forms part of our annual corporate reporting suite. It offers an account of our interaction with our stakeholders
and complements Ramelius’ FY22 Annual Report. The currency used throughout this report is Australian Dollars (A$). The Company’s
geographical definition of ‘local’ refers to those within Western Australia, surrounding our operations. We are proud to announce that this
FY22 Sustainability Report is our first against the Sustainability Accounting Standards Board (SASB) requirements.
Ramelius has continued its participation in ESG benchmarking assessments undertaken by organisations such as S&P Corporate
Sustainability Assessment and MSCI and through membership of leading industry bodies. Together with our commitments, partnerships and
stakeholder feedback, these assessments and memberships allow us to track our ESG performance against relevant standards and peers to
deliver continual improvement.
GROUP INFORMATION
Ramelius Resources Limited (Ramelius) is a Western
Australian gold producer headquartered in East Perth with
approximately 350 employees. We were incorporated in
1979, listed on the Australian Securities Exchange in 2003
(ASX: RMS) and have been in production since 2006.
Ramelius and our subsidiaries are engaged in the
exploration, mine development, and production and sale of
gold in Australia. In FY22 the Company produced a total
of 258,625oz of gold.
WESTERN AUSTRALIA
MT MAGNET
Mt Magnet
Geraldton
PENNY
Leinster
VIVIEN
Laverton
Leonora
MARDA
REBECCA
Coolgardie
Kalgoorlie
200km
EDNA MAY
Bullfinch
Westonia
Southern Cross
PERTH
Narembeen
Norseman
TAMPIA
Bunbury
Esperance
Albany
Ramelius Production Centres
Mine / Development Projects
Haulage Direction
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RAMELIUS RESOURCES ANNUAL REPORT 2022
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37
EDNA MAY GOLD MINE
MT MAGNET GOLD MINE
TAMPIA GOLD MINE (NAREMBEEN)
Location: Westonia Greenstone Belt, within
the Southern Cross Province of Western
Australia’s Archaean Yilgarn Craton.
Acquired: October 2017 from Evolution
Mining Ltd, as an operating open pit gold
operation.
Operations: Annual production since 2011
has ranged from 66koz to 99koz.
Processing: 2.9 million tonne per annum
(Mtpa) conventional carbon-in-leach (CIL)
gold plant comprising of two stage crushing,
semi-autogenous grinding (SAG) and Ball
mill, gravity circuit and leach.
Location: 500km north-east of Perth in
the Murchison Goldfield of the Western
Australian Yilgarn Craton.
Location: 12km south-east of the town
of Narembeen in the Western Australia
wheatbelt and 250km east of Perth.
Acquired: 2010 from Harmony Gold,
restarted operations in 2011.
Acquired: Via takeover of Explaurum Limited
in late 2018 to early 2019.
Operations: Numerous open pit and
underground mines plus exploration targets
with a total area covering 225km². During
2021, gold produced since operations were
restarted passed 1,000,000 oz.
Processing: Milling occurs at the Checkers
Gold Mill, a 1.9Mtpa conventional gold mill.
Operations: Mining commenced in May 2021
and ore processing commenced in July 2021.
Processing: Ore processing is carried out at
the Edna May mill utilising standard gravity
and CIL processes.
MARDA GOLD MINE (NORTH YILGARN)
VIVIEN GOLD MINE
PENNY GOLD MINE
Location: 130km north of the town of
Southern Cross and 400km north-east of
Perth, WA.
Acquired: February 2019.
Operations: Consists of several shallow
unmined gold deposits. Mining commenced
in November 2019 at the Dugite Pit. Road
train ore haulage commenced in March
2020.
Location: Near the Agnew Gold Mine, 15km
west of the town of Leinster in
Western Australia.
Location: 150km south-east of our Mt Magnet
operations and approximately 550km north-
east of Perth in Western Australia.
Acquired: Exploration drilling, feasibility
studies, and statutory approval was
completed in 2013.
Acquired: In 2020 via off-market takeover offer
of Spectrum Metals Limited.
Operations: The underground gold mine
commenced operations in May 2015.
Mined ore is taken to the Mt Magnet
processing facility.
Operations: After completion of site
infrastructure and camp construction,
operations will commence.
ACTIVE
OPERATIONS
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DEVELOPMENT
PROJECTS
EXPLORATION
PROJECTS
Ramelius also has ongoing gold
exploration projects as part of existing
Mt Magnet and Edna May Gold Mines.
SUPPLY CHAIN
Contractors and suppliers are a critical part of our business and are relied upon to ensure that we deliver on our strategy. In FY22 we
acquired $495M of goods and services directly from Australian suppliers, though some components of goods may be sourced from
overseas by these suppliers.
The supply chain at Ramelius includes:
39
SYMES’ FIND
Location: 60km south of the township
of Moorine Rock, within the Holleton
Greenstone belt in the Southern Cross
Province of the Eastern Goldfields.
Operations: Drilling to date has defined two
moderately south-east plunging shoots of
supergene and hypogene gold mineralisation
associated with quartz veinlets within the
host rock.
REBECCA GOLD PROJECT
Location: 153km east of Kalgoorlie, covering
a greenstone belt on the eastern margin of
the Norseman-Wiluna Greenstone Belt.
Acquired: In January 2022 via off-market
takeover of Apollo Consolidated Limited.
Operations: Contains three advanced and
growing gold discoveries – Rebecca, Duke,
and Duchess, in which gold mineralisation
is hosted by broad zones of disseminated
sulphides in gneiss. Drilling will test a
pipeline of new exploration targets as
well as working through ongoing resource
delineation and step-out drilling.
38
EXPLORATION
& PROJECT
DEVELOPMENT
Drilling contractors
Geology and geophysical
contractors
Analytical laboratories
Surveying
Earthmoving contractors
Environmental and water
consultants
MINING
Surface and underground mining
contractors
Cement supply
Fleet, maintenance, parts and
equipment
Fuel, oil and tyre supply
Mining communications
PROCESSING
Chemical supply
Lab services
Civil contractors
Fuel and gas supply
SUPPORT SERVICES
TRANSPORTATION
Camp management services
Freight services
Ore Haulage contractor
Security services
Aviation charter companies
Power, communication and
IT services
Insurance
Employee benefits
Personal protective equipment
and clothing
Medical, health and safety services
Labour supply
Water and waste management
REFINING AND
SALES
Refinery
Customers
Bullion freight and security
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MEGATRENDS AND ESG RISKS
As society continues to evolve, certain megatrends emerge that can have a significant
impact on how the business operates. Our aim is to embed sustainable actions into
our Company strategy so we can mitigate future risks and take advantage of
arising opportunities.
CLIMATE CHANGE
We believe a sustainable gold producer should deliver more than just financial benefit. It’s about the way we do business, the
relationships we build with our people and communities and the efforts we make to conserve the environment.
ASSOCIATED
OPPORTUNITIES
• Decarbonisation
•
Improved Reputation
ASSOCIATED RISKS
•
•
Extreme weather events
Increasing global
temperatures
• Water stress
• Changing regulations
•
Increasing price of
natural resources
NEGATIVE IMPACTS
TO BUSINESS
POSITIVE IMPACTS
TO BUSINESS
•
Increased operational
and capital costs
• Damaged infrastructure
Increased health and
•
safety incidents
Longer approval times
•
•
•
•
Reduced costs in the
long-term
Strong social licence
Resilient share price
RESPONSES FROM RAMELIUS
Reporting in line with National Greenhouse and Energy Reporting (NGER) initiative
• Continued alignment with TCFD – ensuring climate-risks are included into the overall risk register
•
• Continued use of saline water over freshwater
•
Exploring renewable and low-emission energy alternatives
More information on our responses can be found within the Climate Change section of this report.
40
40
ESCALATING HEALTH IMPERATIVE
The post-pandemic world has exacerbated existing health challenges posed by ageing populations and growing chronic disease. 1 in 5
Australians report high or very high levels of psychological distress and there is heightened risk of infectious diseases resistant to modern
antibiotics. There is now an urgent need to respond to health risks and improve health outcomes.
41
ASSOCIATED RISKS
•
•
•
Labour shortages
Ageing population
Increasing illnesses among
populations
ASSOCIATED
OPPORTUNITIES
• Greater focus on
employee wellbeing
Flexible working hours
•
• More employee
benefits/leave
Become an employer
of choice
•
NEGATIVE IMPACTS
TO BUSINESS
POSITIVE IMPACTS
TO BUSINESS
• Unable to fill positions
Lowered employee
•
wellbeing
• More days missed by
•
employees
Reduced operational
efficiency
Talent retention
•
• More engaged and
satisfied workforce
• Higher operational
efficiency
RESPONSES FROM RAMELIUS
• Comprehensive health services through OccuMed
Following State and Federal COVID-19 measures
•
•
Remuneration and benefits initiatives
• Created a further eight Job Role Profiles
For more information please see the Health, Safety, and Wellbeing section of this Report
CYBER SECURITY
Governments, societies, and companies increasingly rely on technology to manage everything from public services to business processes.
Converging technological platforms, tools and interfaces connected via an increasing decentralised internet is creating a more complex
cyber threat landscape and a growing number of critical failure points.
ASSOCIATED RISKS
• Cyber security
vulnerabilities
Privacy breaches
•
ASSOCIATED
OPPORTUNITIES
NEGATIVE IMPACTS
TO BUSINESS
POSITIVE IMPACTS
TO BUSINESS
•
•
•
Building further cyber
security capabilities
Employing expert staff
Exploring cutting-edge
technology and innovation
e.g. blockchain and AI
•
•
•
•
Interruption to operations
Loss of critical data
Private information
exposed
Enormous costs to cover
damages
• Data and private
•
•
information are protected
Enhancing reputation
Less technical outages and
greater cyber resilience
RESPONSES FROM RAMELIUS
• Cybersecurity Policy internally available to all employees
• Conduct third-party vulnerability testing
•
•
Extensive training
Board member responsible for overseeing cyber security has relevant experience in the area
FY23 Focus:
•
•
•
Further develop an approach on identifying and mitigating information security risks
Implementation of formal procedure to ensure all employees are aware of threat issues
IT infrastructure and security management system certification
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Ramelius is focused on aligning environmental, social and governance policies and activities across our operations in accordance with the
UN Sustainable Development Goals (SDGs). These are considered the blueprint to achieving a better and more sustainable future for all
and as such represent a major inspiration for the future prosperity of our stakeholders.
We have chosen the 9 most relevant SDGs that align to our business strategy and stakeholder priorities. Throughout this report, we utilise
the relevant SDG icons to highlight where our activities contribute progress towards achieving the SDG goals and targets.
MATERIAL TOPICS AND MATRIX
This report focuses on the economic, social and environmental topics identified as being of material value to our stakeholders and the
Ramelius business. Following Global Reporting Initiative (GRI) sustainability reporting best practice, in FY22 we prioritised our material
topics by combining feedback from internal and external stakeholders, the Board, Executive, internal Sustainability Project Team and an
analysis of peers and the external environment. Topics have been reviewed and prioritised to ensure the corporate mission and strategic
imperatives are considered. Our material issues are presented in the following matrix:
43
Extremely important
Extremely
important
Economic performance
Health, safety & wellbeing
Talent a(cid:7)rac(cid:6)on, development & reten(cid:6)on
Water
Employment & contractors
Community investment & engagement
Regulatory & compliance
S
t
a
k
e
h
o
d
e
r
s
l
Taxes, supplier payments & royal(cid:6)es
Biodiversity
Mine closure & rehabilita(cid:6)on
Ethics & Human Rights
Waste & tailings
Greenhouse gas emissions & energy
Indigenous Peoples & Na(cid:6)ve Title
Diversity
Innova(cid:6)on
Informa(cid:6)on technology
Economic performance
Health, safety & wellbeing
Water
Talent a(cid:7)rac(cid:6)on, development & reten(cid:6)on
Employment & contractors
Community investment & engagement
Taxes, supplier payments & royal(cid:6)es
Regulatory & compliance
Greenhouse gas emissions & energy
Biodiversity
Ethics & Human Rights
Mine closure & rehabilita(cid:6)on
Waste & tailings
Indigenous Peoples & Na(cid:6)ve Title
Diversity
Innova(cid:6)on
Informa(cid:6)on technology
Extremely important
Less
important
Ramelius Resources
Extremely
important
Health, safety & wellbeing
Economic performance
Talent a(cid:7)rac(cid:6)on, development & reten(cid:6)on
Community investment & engagement
Employment & contractors
Water
Regulatory & compliance
Ethics & Human Rights
Waste & tailings
Taxes, supplier payments & royal(cid:6)es
Mine closure & rehabilita(cid:6)on
Informa(cid:6)on technology
Biodiversity
Indigenous Peoples & Na(cid:6)ve Title
Diversity
Innova(cid:6)on
Greenhouse gas emissions & energy
Extremely important
S
t
a
k
e
h
o
l
d
e
r
s
Less important
Ramelius Resources
Extremely important
In addition to the SDGs, Ramelius is pleased to confirm its participation in the United Nations Global Compact and its Ten Principles in the
areas of human rights, labour, environment, and anti-corruption. We will continually improve the integration of the Global Compact and its
principles into our business strategy, culture and daily operations, and report progress annually to the UN.
Shareholders, lenders, investment community and insurers;
Suppliers, contractors, partners, and customers;
Employees, unions, and the Board;
Regulators and government;
Local communities, shires, and landowners;
First Nations Peoples and title holders;
•
•
•
•
•
•
• Media and non-governmental organisations (NGO)s; and
•
Education, research, and training organisations.
STAKEHOLDER ENGAGEMENT
One of our key sustainability pillars is the engagement of
stakeholders through regular consultation processes, which are
guided by our Community Consultation Policy. Proactive dialogue
allows us to keep the stakeholders informed about our activities
and to provide a forum through which they can provide feedback
to our business. In FY22 we have had regular meetings and
correspondence with government departments, local government
shires, pastoralists and native title groups.
During FY22, Ramelius continued to align its ESG activities
against the material topics identified in our materiality assessment
conducted in FY21. Our material topics are prioritised according to
the importance levels shared by the business and our stakeholders.
Our stakeholder groups include:
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OUR BUSINESS
Information technology
All employees to complete online cybersecurity training
Economic performance
Meet all production targets
OUR PEOPLE
Health, safety and wellbeing
Implement Principal Mining Hazard Standards
Complete development of enhanced Safety Leadership
training package
Talent attraction, development & retention
Reduce employee turnover from FY22
Employment & contractors
Launch paid parental leave and general benefits program
Diversity
Increase female representation in workforce
Ethics & human rights
OUR COMMUNITIES
All employees to receive further whistleblower and
workplace behaviour awareness training
Community Engagement & investment
Maintain contributions of up to $2/oz towards community
investment & engagement
Taxes, supplier payments & royalties
Improve year on year procurement spend within our
regional areas
OUR ENVIRONMENT
GHG emissions & energy
Completion of an Energy & Emissions Reduction Roadmap
Water
Reduce freshwater usage for operational processes
Waste and tailings
Generate zero acid mine drainage
Mine closure and rehabilitation
Successfully and responsibly close operations with no
liabilities or legacy issues
Biodiversity
44
No impacts on any International Union for Conservation of
Nature (IUCN) listed flora or fauna
RAMELIUS RESOURCES ANNUAL REPORT 2022
45
OUR BUSINESS
REGULATORY AND COMPLIANCE:
ZERO REGULATORY BREACHES
AND NON-COMPLIANCE INCIDENTS
ACROSS ALL OPERATIONS IN FY22
ECONOMIC PERFORMANCE:
PRODUCED 258,625 OZ AT
AISC OF $1,523/OZ. MAINTAINED A
SALES/AISC MARGIN OF 37%
ORGANISATIONAL GOVERNANCE:
UPDATED ALL GOVERNANCE
AND SUSTAINABILITY POLICIES
Goal 9:
Industry, Innovation
and Infrastructure
9.5 Enhance scientific research,
upgrade the technological
capabilities of industrial sectors
in all countries, in particular
developing countries, including,
by 2030, encouraging innovation
and substantially increasing
the number of research and
development workers per
1 million people and public
and private research and
development spending.
• As a gold producer, we recognise the important contribution that we make to
the industrial use of gold as a conductor in electronics, including components
for clean energy products such as renewable energy and battery storage. Gold is
also used in other innovative industrial products and infrastructure in the energy,
medical, aerospace, dentistry and health sectors.
• Through our membership with the Gold Industry Group, we are involved in
cutting-edge research to improve efficiencies in gold exploration and to support
innovation in the Australian mining industry. We also partner with CSIRO on a
range of research and innovation projects.
PRODUCED
258,625 OZ AT
AISC OF $1,523/
OZ. MAINTAINED A
SALES/AISC MARGIN
OF 37%.
ECONOMIC PERFORMANCE
Maintaining high and stable levels of economic growth is one of the key objectives of sustainable
development (SDG 8). Economic performance, and therefore sustainability, aims to improve standards
of living through efficient use of assets to maintain long-term company profitability. Economic
performance creates economic value and therefore requires Ramelius to make decisions in the most
fiscally responsible way possible. Ramelius’ projects and production decisions are made to create
long-term value, rather than just the short-term benefits. To be a sustainable business and execute its
sustainability strategies, Ramelius must have financial stability. On a larger scale, Ramelius contributes to
a sustainable economy that is strong and resilient, environmentally conscientious and creates value for
communities. Without strong economic performance, Ramelius would limit our capacity to provide
jobs for local workforces, generate tax revenue to fund public services or support supplier businesses.
Ramelius’ strategy aims to promote a sustainable economy that fosters economic development, local
prosperity through goods and services, and through partnerships within regions to generate jobs.
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REGULATORY AND COMPLIANCE
Ramelius acknowledges the range of governance, social and environmental responsibilities to which we
must adhere to ensure our business meets community and government expectations. We are pleased
to report that there were no material compliance or regulatory breaches in FY22.
Below are some of the key regulators we report under:
ZERO
REGULATORY
BREACHES AND
NON-COMPLIANCE
INCIDENTS ACROSS
ALL OPERATIONS
The National Pollutant Inventory
(NPI): provides the community,
industry and government with
information about substance
emissions in Australia
National Greenhouse and Energy
Reporting (NGER): the national
framework for reporting and
disseminating company information
about greenhouse gas emissions,
energy production and energy
consumption.
Workplace Gender Equality Agency
(WGEA): an Australian Government
statutory agency charged with
promoting and improving gender
equality in Australian workplaces
Modern Slavery Act 2018: requires
certain large businesses and other
entities in Australia to make annual
public reports on their actions to
address modern slavery risks in their
operations and supply chains.
ORGANISATIONAL GOVERNANCE
Good corporate governance is the basis on which business
objectives and stakeholder value depend. Ramelius regularly reviews
governance practices and policies in order to incorporate changes in
law and best practice into our governance processes.
Through our Risk & Sustainability Committee, the Board oversees
sustainability strategy, measures performance, and considers
sustainability risks and opportunities. Day-to-day oversight of
sustainability operations and administration is the responsibility
of our CEO, who in turn delegates specific responsibilities to the
senior management team.
Since FY21, we have adopted the ASX Corporate Governance
Council’s Corporate Governance Principles and Recommendations:
4th Edition which requires the Board to carefully consider the
appropriate corporate governance policies and practices needed to
meet stakeholder expectations.
We also take guidance where possible from the Mining Principles
published by the International Council on Mining & Metals. These
define good practice environmental, social and governance
requirements for the mining and metals industry through a
comprehensive set of performance expectations related to tailings
management, pollution, waste, resettlement and mine closure.
Our Corporate Governance Statement is released in October each
year. The statement discloses the extent to which
Ramelius has followed the recommendations set by the ASX
Corporate Governance Council’s recommendations during the
reporting period.
Our sustainability governance structure is as follows:
BOARD OF DIRECTORS
RISK & SUSTAINABILITY
COMMITTEE
AUDIT
COMMITTEE
NOMINATION & REMUNERATION
COMMITTEE
CEO
Operations
Finance
& Business
Development
Exploration
Corporate
We updated all our governance and sustainability policies in FY22, including our Risk Appetite Statement and our Values Statement, and
issued our second Modern Slavery Statement, which outlines our approach and management of the risk of modern slavery across our
operations.
Further details of our corporate governance framework, policies and practices are available on our website.
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Assurance
Internal
Control
CASE STUDY 1
Business
Continuity
Risk
Management
Ramelius
Essentials
Sustainability
Compliance
Health &
Safety
First Nations peoples and remote communities in which we
operate, procurement of certain goods and services (part of which
may be sourced overseas), and labour conditions. All personnel,
whether Ramelius or contractor-engaged, are subject to Australian
employment law and undertake various induction, other training,
and qualification programs. We are also guided by the UN Guiding
Principles on Business and Human Rights.
Ramelius plans to conduct further mapping of our supply chain risks
and consider the implementation of a formal supplier code
of conduct.
INNOVATION AND RESEARCH
Innovation is a key element of the Ramelius business and is
recognised as a driver for efficiency, productivity improvement and
waste reduction. Ramelius recognises the power of partnerships
to develop innovative ways to unlock economic, environmental
and social value and is committed to collaborative research and
development.
CSIRO RESEARCH
Ramelius is continuing to support innovative research into mineral exploration being undertaken by
Australia’s national science agency the Commonwealth Scientific and Industrial Research Organisation
(CSIRO). The research project, Distal Footprints in the South West Yilgarn is a collaboration between
CSIRO, Ramelius, Geological Survey of WA (GSWA), and other industry companies. It is supported by
the Western Australian Government through the Minerals Research Institute of WA (MRIWA).
Almost a year into the project and substantial progress has been made with several fieldtrips
by CSIRO and GSWA research personnel into the Southwest Yilgarn area including two
field trips to the Tampia mine site in March and May this year. Detailed mapping of
the Tampia pits was carried out and included high resolution, double-grid, inclined
photogrammetry drone surveys.
Samples were collected and are undergoing petrophysics assessment
including mineral chemistry fingerprinting of both alluvial (Mace) and
bedrock (Tampia) gold. Mineral mapping, geochemical analyses and
passive seismic surveys are all underway. This first phase of the project
forms part of the overall objective of providing fundamental knowledge
and datasets that reduce exploration risk.
Field trip to Tampia – March
2022. Dr Ignacio Gonzalez-Alvarez (CSIRO) and Alex Palma (Ramelius)
RISK MANAGEMENT
Risk management at Ramelius is overseen by our Board of
Directors. The Board, Executive Team, Audit and Risk &
Sustainability Committees regularly review the risk portfolio of the
business and the effective management of risks. Following on from
its launch in FY21, we continued our work on the development
and implementation of a best practice risk management framework,
called Ramelius Essentials. It is a multi-year endeavour, and we are
pleased that significant development and implementation have
progressed according to plan. The Essentials Program focuses
on integrating our approach to managing the fundamental
requirements for our business which are to:
• Maintain and apply good standard practices for controlling our
activities;
• Understand and effectively manage key risks across our
business;
Learn, share, and take action from these learnings;
•
• Comply with the requirements of laws impacting our business;
• Maintain a safe system of work;
• Operate in accordance with industry sustainability principles;
•
Remain resilient in the face of adverse and extreme events; and
• Constantly monitor and review our activities and performance.
In FY22 a Sustainability Procedure was developed to embed our
approach to managing ESG across the business. The Procedure sets
objectives, organisation for sustainability, roles and responsibilities,
key activities, and expectations for assurance on our practices.
Risk registers are held for each of our sites as well as the corporate
office and are managed by the respective work group with oversight
provided by our HSE Managers. A risk manager’s responsibility is
to coordinate the development and maintenance of registers of
material risks and opportunities. They must monitor control and
improvement activities, as well as report to key stakeholders on
material risks. Each risk register is formally reviewed and updated
at least annually and is used in the budget planning process to
prioritise expenditure in an effort to mitigate risk. In FY22 a climate
risk review was conducted with outcomes incorporated into the
sustainability risk register. Further information on risk management
can be found in the Risk & Sustainability Committee Charter and
Risk Management Policy.
SUPPLY CHAIN RISKS
At Ramelius we consider the potential for modern slavery risks
within our supply chain by engaging with suppliers during the
screening process. This formal and informal contact, which includes
the completion of a specific modern slavery risk questionnaire
by our suppliers, allows us to consider all aspects of a supplier’s
business and to identify matters that may need further attention
or remediation. Our standard supplier contracts contain anti-
corruption and modern slavery clauses, which require suppliers not
to engage in conduct inconsistent with Australian and international
laws and standards. We have the right to terminate a supplier
contract for breaches of these provisions.
The potential for modern slavery in our business is considered
low as our offices, operations, and suppliers during FY22 were
Australian-based and therefore subject to a strong regulatory
environment. The most relevant risk areas within our supply
chains with potential for modern slavery practices to exist are
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• Using personal protective equipment when required;
Immediately stopping any activity that appears unsafe;
•
Fully complying with the requirements of our safety
•
management system;
Proactively participating in relevant training, education and
acting on instruction;
•
• Understanding and acting to reduce risks to health and safety
before undertaking activities; and
Immediately reporting any hazard, or incident or near miss
relating to the health safety or wellbeing of staff, contractors
or visitors for investigation and remedial action.
In FY22, Ramelius achieved safety frequency rates of 11.86 for Total
Recordable Injury Frequency Rate (TRIFR) and 3.06 for Lost Time
Injury Frequency Rate (LTIFR). Whilst both are significantly
reduced from FY21, we know we still have a lot of work to
do, and remain committed to achieving a high standard
RECORDED A
LOWER TRIFR OF
11.86 AND LTIFR
OF 3.06 IN FY22
of health and safety performance.
In FY23, we will focus further on education and
taking action across our operations in order to
further improve our TRIFR and LTIFR rates. We
will also continue developing and standardising HSE
systems across all our sites to identify areas in which
we can better understand and improve health and
safety.
The Ramelius Safety Management System is the primary means
of providing processes and methods to everyone involved at our
operations. Health and safety are a line management responsibility
with system and process support handled by our health and safety
team. At all times, we strive to increase the number of proactive
safety systems and strategies being implemented across all our
sites. This includes undertaking regular systems development and
standardisation for existing sites and rolling out the existing systems
and process for new sites.
Ramelius uses the INX system for management of health and
safety data including all onboarding compliances, incident reporting,
investigation actions and outcomes and training records. The
Learning Management System (LMS) module, added to Ramelius’
INX system in 2020 has improved the onboarding processes
and site access compliances. The overall use of the INX system
continues to be a work in progress with more online learning for
compliances, competencies and procedures being introduced
where appropriate.
HEALTH, SAFETY AND
WELLBEING
SAFETY
At Ramelius, the health, safety and wellbeing of our employees,
contractors and visitors to our workplace is an essential
consideration in everything we do.
We are committed to minimising the risk of harm and supporting
physical and mental health and wellbeing by:
•
Reducing workplace hazards as low as reasonably practical;
•
• Maintaining a safety management system that enables a safe
•
•
and healthy workplace;
Providing training on health and safety standards and
procedures;
Fully complying with relevant legislation,
regulations and standards relating to
occupational health and safety in our
workplace;
• Openly communicating, receiving, and acting
on feedback to continually improve safety, health
and wellbeing;
• Understanding and adopting good
industry practice;
•
Being prepared to respond to an incident or emergency;
• Maintaining measurable safety and health targets aimed at
minimising work related injury or illness; and
• Ongoing audit, review and improvement of our safety
management system and high impact activities within our
organisation.
We recognise that we work in a higher risk industry and that we
must prioritise best practices in health and safety as fundamental to
our licence to operate. We have a very low risk appetite for failing
to comply with our safety management system and causing any
harm to any person.
It is expected that all directors, executives, employees, and
contractors (Ramelius Personnel) contribute to a culture which
prioritises an injury free and healthy workplace by:
•
•
•
Valuing safe work practices through leadership, supervision and
by demonstrating the priority of a safe and healthy workplace
through action;
Taking personal responsibility for your own safety, health and
wellbeing including;
Being fit for work and able to carry out required activities;
OUR PEOPLE
EMPLOYEES AND CONTRACTORS:
40% OF OUR BOARD OF
DIRECTORS ARE FEMALE
HEALTH, SAFETY, AND WELLBEING:
20% LESS LOST TIME
INJURIES IN FY22
TALENT ATTRACTION, DEVELOPMENT,
AND RETENTION:
22% OF FY22 GRADUATE
STUDENTS WERE FEMALE
Goal 3:
Good Health
and Well-being
Goal 5:
Gender Equality
3.5 Strengthen the prevention and
treatment
of substance abuse, including
narcotic drug abuse and harmful
use of alcohol.
3.D Strengthen the capacity of all
countries, developing countries,
for early warning, risk reduction
and management of national
and global health risks.
• Established high on-site safety standards to minimise the risk of employee and
contractor harm from occupational hazards, air pollution, transport accidents
and other risks.
• Provide employee medical checks and a health assistance program across all
operations. Also developing employee health and wellness programs to help
reduce illness and disease.
• In response to the COVID-19 pandemic, we have put in place cleanliness and
social distancing measures in accordance with advice from State and Federal
health authorities.
5.5 Ensure women’s full and
• We are committed to recruiting the best candidates regardless of
effective participation and equal
opportunities for leadership at
all levels of decision-making in
political, economic and
public life.
gender, age, religion or cultural background. Our Diversity Policy states our
commitment to a workforce comprised of individuals with a wide range of
backgrounds, skills and experiences.
• Ramelius has developed a Diversity & Inclusion Strategy which
articulates the targets of year-on-year improvement in gender diversity across
the Group and within leadership roles. Regular overall gender pay gap and like
for like remuneration analysis allows outcomes to be reviewed and measured.
Goal 8:
Decent Work and
Economic Growth
8.7 Take immediate and effective
measures to eradicate forced
labour, end modern slavery and
human trafficking and secure the
prohibition and elimination of
the worst forms of child labour,
including recruitment and use of
child soldiers, and by 2025 end
child labour in all its forms.
• We publicly report to shareholders and investors to ensure they are informed
on corporate governance issues and sustainability matters, including business-
related risks and maintenance of risk registers across all sites. In FY21 we
released the first Modern Slavery Statement which outlined an assessment to
identify key modern slavery risks in our operations and supply chain and updated
our supplier contracts with modern slavery provisions.
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EMERGENCY RESPONSE TEAM (ERT)
Each site has a core group of ERT volunteers who support the
fulltime safety emergency personnel in regard to emergency
preparedness. Site ERT target numbers are developed and agreed
upon with site management teams and are based on a thorough
analysis of the type of activities being undertaken and the size of the
workforce. The ERT is made up of both employee and contractor
team members. There were 77 active ERT members spread across 6
sites at the end of the FY22 with numbers growing at a steady rate.
During FY22 we conducted three Certificate III in Mine Emergency
Response and Rescue courses with a total of 61 people from five
of our operational sites attending the course. The overall growth in
trained ERT members at all the Ramelius sites provides an increased
level of confidence in response capability and capacity at all times.
Ramelius had an emergency response team attend the Mining
Emergency Response Competition (MERC) held in Perth for
the first time in November 2021 and the team gained a lot of
knowledge and experience out of the event and are looking
forward to attending again at the close of 2022.
61 EMPLOYEES
COMPLETED
CERTIFICATE III
IN MINE EMERGENCY
RESPONSE AND
RESCUE IN FY22
77 ACTIVE ERT
MEMBERS SPREAD
ACROSS 6 SITES
HEALTH AND WELLBEING
Ramelius takes a proactive approach to the health and wellbeing of our workforce. Our vision is to create a physically and mentally healthy
working environment with improved workforce participation and increased social inclusion. We aim to do this by fostering more supportive and
engaging team environments in order to increase resilience, enhance positive early intervention and reduce negative mental health outcomes.
The Ramelius medical services provider OccuMed, has continued to deliver a comprehensive service for the business. All of the Ramelius
operations have been able to set up the site facilities and systems rapidly due to the relationship that is now well established with
OccuMed. Partnering with OccuMed, Ramelius provides the following services:
Pre-Employment Medicals (PEM);
Periodical medicals;
Fitness-for-work testing;
•
• Occupational physician reviews of contractors;
•
•
• Workers compensation and injury management services;
•
•
•
Tele-health service;
Remote medical support; and
Poisons Permit Licence Holder.
To ensure our personnel are fit for the role that they are employed to do, in FY22 we also created a further 8 Job Role Profiles (JRP). This
approach ensures that all new recruits and contractors are now medically assessed against the correct JRP before being employed. This
process ensures they are physically and mentally fit for the required activities to fulfil the role.
COVID-19 RESPONSE
To ensure the health and safety of every person working at Ramelius, their families and communities during the COVID-19 pandemic,
we operate all our sites in strict adherence to advice from State and Federal health authorities. This minimises risk from the COVID-19
pandemic to our employees and the communities in which we operate.
In FY22 we had 338 people test positive to COVID-19 and a further 127 personnel were identified as close contacts. Ramelius continues
to employ a variety of approaches to mitigate the impacts of the pandemic in accordance with requirements outlined by the Australian
Government Health Department, the Government of Western Australia Health Department and Department of Mines, Industry
Regulation and Safety.
Our medical service provider OccuMed has provided us with a high level of support during the COVID-19 pandemic.
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ETHICAL BEHAVIOUR
All employees, including contractors working for or on behalf of
Ramelius, are required to adhere to overarching principles set out
in our Code of Conduct Policy. This requires all employees and
contractors to observe appropriate standards of behaviour, ethics,
and integrity as a condition of their employment.
The Anti-Bribery and Corruption Policy ensures that all employees act
in good faith and engage in lawful and ethical business practices in
all our dealings. Unethical, dishonest, and corrupt conduct will not
be tolerated. We are committed to managing risks and maintaining
controls to prevent, detect and respond to activities which involve
or might involve unethical practice, bribery and/or corruption.
Ramelius personnel found to have engaged in an act of bribery or
corruption will be subject to disciplinary action including potential
prosecution. The Policy also ensures that we only conduct business
with partners who also engage in ethical and lawful practices. In
FY22 there were no cases of bribery or corruption recorded.
At Ramelius, we consider sexual harassment as a critical issue that
demands robust and immediate intervention. The impacts of sexual
harassment are profound and long-lasting, harming individuals
both physically and psychologically. The Australian Human Rights
Commission inquiry into sexual harassment in 2020 revealed that
74% of women in the Australian mining industry had experienced
some form of sexual harassment in the past five years.
A Western Australian parliamentary inquiry into sexual harassment
against women in the FIFO mining industry was also conducted
between August 2021 and June 2022. A final report titled Enough
is Enough was published in June 2022 which also uncovered
unacceptable findings.
As an Australian mining industry member, we were extremely
disappointed by these intolerable statistics. It is our responsibility
as an employer and as an organisation that upholds the values of
human decency, to ensure this behaviour does not in any way exist
within our workplace. The Company has in place a formal policy
and strategy to prevent sexual harassment and impose grievance
processes when necessary. All employees are provided training
on sexual harassment prevention upon induction. We are also
currently rolling out a workplace behaviour campaign with online,
and face-to-face training packages. This will also be incorporated
into our Safety Leadership training package which we are designing
with modules for leaders.
CODE OF CONDUCT POLICY EXPECTATIONS:
• Honesty and fairness in all dealings with stakeholders, co-workers, management, and the public
•
•
•
•
Respect for our equipment, supplies and property
Zero tolerance for discrimination, harassment, or offensive language and/or behaviour in the workplace
Adherence to appropriate Professional Codes of Practice and/or ethics
Zero tolerance for postings on any social media platform material that could reasonably be deemed inappropriate or unlawful
WHISTLEBLOWING
In FY21, Ramelius introduced an external whistleblower
platform with YourCall to enable all directors,
employees, prospective employees, contractors,
consultants, and external stakeholders to
raise disclosable matters with the option
to remain anonymous. During FY22,
companywide training was rolled
out on our Whistleblower
Policy & Procedure.
The training aims to ensure all personnel are aware of the
Whistleblower Policy & Procedure, engage in lawful, moral, and ethical
behaviour at all times as well as understand the process to report
any improper, unethical or illegal conduct.
This is in accordance with the whistleblower protections outlined
in the Corporations Act 2001 (Corporations Act) which
were expanded to provide greater legal rights and protections
for whistleblowers as regulated by the Australian Securities &
Investments Commission (ASIC). Further information is available in
our Whistleblower Policy & Procedure.
EMPLOYMENT AND
CONTRACTORS
Ramelius recognises that employees are the heart of our
current and future prosperity. At all times our priority is to
keep our people safe, healthy, and fulfilling their potential.
DIVERSITY AND EQUAL OPPORTUNITY
Ramelius supports and promotes a working environment which
values equity, diversity, and inclusivity. Our Diversity and Inclusion Policy
together with our Code of Conduct Policy and the recently developed
Workplace Behaviour Procedure, enshrine our commitment to
operate a workplace free from discrimination and harassment, in
which individuals are treated with respect, equity, dignity and fairness.
The Policies, Procedure and Code set out the expectations of our
leaders to address grievances and complaints including those relating to
discrimination, harassment, and bullying.
To support our commitment, Ramelius have developed a Gender
Diversity & Inclusion Strategy which articulates the targets of year-on-
year improvement in gender diversity across the Group and within
leadership roles. An enhanced monthly People Report was rolled out
in FY22 to the Executive and Board to ensure key diversity metrics for
gender, First Nation Peoples engagement and community engagement
were regularly measured. An overall gender pay gap and like for like
remuneration analysis is also regularly conducted as part of all new
appointments, change of conditions, salary review and reporting.
KEY DIVERSITY METRICS IN FY22
40%
OF OUR BOARD OF
DIRECTORS ARE FEMALE
IN FY22 22%
OF NEW PERMANENT
HIRES WERE FEMALE
17%
OF LEADERSHIP ROLES
ARE FILLED BY FEMALES
Further information is provided in our Diversity and Inclusion Policy and 2022 Workplace Gender Equality Public Report.
ETHICS AND HUMAN RIGHTS
HUMAN RIGHTS
Ramelius is guided by the UN Guiding Principles on Business and Human Rights and the Voluntary Principles
on Security and Human Rights (VPSHR) to respect the human rights of all stakeholders, ensuring the
fundamental freedoms and basic human rights of all individuals. This commitment is reinforced by our
Modern Slavery and Human Rights Policy. Human rights due diligence is conducted to ensure the
Company monitors the effectiveness of our Human Rights Policy.
Our Modern Slavery Statement was published in 2021 and covers our expectations
regarding risks of modern slavery in our operations and supply chains and the action
being taken to address those risks. This is in accordance with the Commonwealth
Modern Slavery Act 2018: Guidance for Reporting Entities.
The potential human rights risks covered in our due diligence
process include forced labour, human trafficking, child labour, and
discrimination. The groups at risk of these issues include our
own employees, women, First Nations peoples, and local
communities. We continue to review existing and
new operations to identify, avoid and manage
issues and potential human rights and
modern slavery risks. All our investment
agreements and contracts include
human rights clauses.
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RAMELIUS RESOURCES ANNUAL REPORT 2022
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DEVELOPMENT AND
RETENTION
DEVELOPING AND REWARDING
OUR PEOPLE
We provide opportunities and support to employees to improve
their skills, knowledge and qualifications as required for the
performance of their role and for improving their prospects of
promotion to other internal roles. In FY22, an Employee Referral
Program was established to support attraction and existing
employee benefits.
Annual performance reviews were conducted for all employees in
FY22. Additional training, including mines rescue training, was also
offered to enhance employee performance and effectiveness.
Employee remuneration is set on the basis of the level of
responsibility of the position, technical skills and qualifications
required to perform the role, and are benchmarked against internal
relativities and industry data. At Ramelius, we are determined to
ensure no discrimination occurs at any point in the remuneration
review process. Within the last twelve months we have undertaken
a gender remuneration gap analysis and corrected like-for-like gaps.
Periodic reviews of remuneration with gender analysis will continue
to occur within the Company.
All Ramelius employees are integral in ensuring the Company’s
sustainability performance continues to be successful. For FY23, the
Company will introduce an ESG Key Performance Indicator (KPI)
to its short-term incentive (STI) program. This KPI accounts for
10% of an eligible employee’s total potential STI and is determined
by the Company’s performance against its ESG Targets (see page
14). The KPI will aim to drive accountability and ensure the whole
Company is involved in achieving our sustainability objectives
collectively.
DEVELOPING THE NEXT GENERATION
Ramelius aims to create a bright future for students and graduates
entering the mining industry by offering work placements, graduate
programs, and apprenticeships. Our graduate program offers
university graduates a flexible program that aims to support them
in their transition from study to career with options of open pit,
underground and exploration environments. In FY22, we had four
apprentices and nine graduate students, two of whom are female.
These programs are designed to support, challenge and reward
participants in a work environment that will foster and develop
them into future leaders and technical experts.
Ramelius are proud sponsors of SHINE who are a complementary
education program that support and empower young girls and
women who are at risk of disengaging from the mainstream
education system. In 2019 three community focused women, Liz
Jones General Manager of Mt Magnet Gold, Carole Whitby of WA
Centre for Rural Health and Cecilia Kelly from Geraldton Aboriginal
Sporting Corporation, contacted SHINE as they wanted to see
local girls in the Mt Magnet region have bright futures. As a result,
SHIMMER was created as an extension of SHINE to offer support
in primary schools.
Through Ramelius’ support, the young women in SHIMMER &
SHINE experience different social activities such as an annual
sleepover, a day at the town pool, and dinner from the Black Cat
Mess. The young women also gain insight into mining industry,
including the working environment and options for pathways to
employment. During the 2022 site visit, fourteen students visited
the village and toured the Mt Magnet site. The participants visited
the open pit, received first-hand experience on a dump truck, and
took a tour of the processing mill. The tour was supported by
the Site Administrator, Maude Ryder, who was herself a SHINE
graduate in 2021. Maude joined Ramelius as a result of her hard
work through SHINE and the ongoing collaboration with Ramelius.
Ramelius also regularly supply local primary school children a
healthy morning tea and vegetables for their Sip & Crunch. A
Department of Education initiative, Sip & Crunch offers students
healthy food alternatives, such as fresh fruit and vegetables, to help
them refuel and rehydrate for the day’s learning.
Ramelius also sponsor the WA School of Mines Wallabies,
a non-profit, student run organisation that participates
in events and programs like the Australian Institute
of Mining and Metallurgy (AusIMM) National
Mining Competition and New Leaders
Conferences, international collegiate
mining competitions and
orientation weeks.
13 GRADUATES
AND APPRENTICES
IN FY22, TWO
OF WHOM ARE
FEMALE
56
For the past three years, Ramelius have offered an annual scholarship to support students in realising their full potential. More information
can be found in the case study below.
57
CASE STUDY 2
SHINE: MAUDE RYDER
“My name is Maude Ryder and I’m a proud Ballardong and Yued woman from Noongar Boodjar. I started my
journey to Ramelius through the SHINE program within the school system. Throughout this program I received
mentoring from the staff with special support from Jodie and Kama.
In February 2022, I graduated high school and completed the Shine program when I got a message from my old
mentor Jodie about a possible job with Ramelius Resources. Following an online interview and site visit, I met Liz
Jones and the team. Throughout the process Jodie kept in contact and offered me support.
I was extremely nervous to step into the mining industry especially as this was my first job and only
being 18. Once here, I have developed strong relationships with my co-workers. Since starting at
Mt Magnet, I have learnt so much about myself, my ability to be independent, and I have found
strength within myself which has also helped me build my confidence outside of work
within my community. I am learning new things everyday and have been given so many
opportunities to expand my knowledge of the mine site and the industry itself.”
In memory of former Chairman, Robert (Bob) Kennedy, Ramelius offer
a scholarship to support students from all backgrounds realise their full
“Maude has shown a mature work ethic and has worked quickly to earn the respect of
potential. The scholarship is open to any Ramelius employee or those with
her team. Maude has stepped up to fill in for Flights and Accommodation. She is currently
a family connection to Ramelius. The Scholarship provides up to $10,000
working towards being a member of the Mines Rescue team and I can’t wait to see what
to the cost of course fees, books, computing and other related study fees.
Maude achieves in the coming year. Our involvement with the Shine Program continues to be
mutually beneficial. We look forward to future Shine tours and seeing the mine anew through
the eyes of young people.”
Statement from Liz Jones (GM Mt Magnet Gold Mine)
CASE STUDY 3
BOB KENNEDY SCHOLARSHIP
In memory of former Chairman, Robert (Bob) Kennedy, Ramelius
offer a $10,000 scholarship that contributes to direct costs of study.
The scholarship aims to help those in need of financial support to
enable students to realise their full potential. In FY22, we expanded
the eligibility criteria, extending the scholarship to high schools in the
communities in which we operate, including Narembeen, Merredin and
Mount Magnet high schools.
In January 2022 we were pleased to announce the successful candidate
for the Scholarship was Kye Stirrat (Bachelor of Engineering [Civil &
Construction Engineering] at Curtin University).
“I applied for this scholarship as I went to school in Narembeen and had to
move to Perth to attend University. Ramelius’ financial support has helped
In memory of former Chairman, Robert (Bob) Kennedy, Ramelius offer
massively as I had to move away from the family farm and live independently.
a scholarship to support students from all backgrounds realise their full
potential. The scholarship is open to any Ramelius employee or those with
a family connection to Ramelius. The Scholarship provides up to $10,000
to the cost of course fees, books, computing and other related study fees.
My future direction is to fulfil my aspirations of building a career in the civil
engineering industry and ultimately succeeding in a job that I enjoy working
in. This scholarship will allow me to give back to my parents who have
sacrificed so much, especially financially, and who continue to prioritise my
education. I am very grateful.”
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COMMUNITY RELATIONS AND INVESTMENT:
$550,000 IN DONATIONS TO
SUPPORT COMMUNITY INITIATIVES
AND GROUPS IN FY22
TAXES, ROYALTIES, AND SUPPLIER PAYMENTS:
$622M CONTRIBUTED TO
AUSTRALIAN ECONOMY IN FY22
FIRST NATIONS PEOPLES:
$420,000 IN GRANTS TO SUPPORT
FIRST NATIONS COMMUNITY
GROUPS OVER THE LAST SEVEN YEARS
59
FIRST NATIONS PEOPLES
FIRST NATIONS COMMUNITIES
First Nations Peoples communities are a major stakeholder group
for Ramelius. We are committed to engage from a position
of respect for the culture, traditions and cultural sites that are
cherished. We endeavour to foster a spirit of cooperation, with the
aim of creating support, mutual awareness and understanding.
As defined in our First Nations Peoples Policy, we engage
with representatives of First Nations Peoples to build stronger
communication channels so we can better understand the views
and beliefs of the First Nations communities local to our operations.
We ensure that employees and contractors approach culturally
significant sites with respect and a clear understanding of the
importance of the land to First Nations Peoples. We are committed
to taking appropriate steps to identify and reduce the effects of any
unforeseen impacts from our activities on First Nations Peoples
communities, land, culture, traditions, and cultural sites.
In order to increase our understanding of First Nations Peoples
culture and enhance our connections with communities, we have
been involved in a number of educational, cultural and sporting
initiatives, examples of which are provided in the case studies below.
Ramelius believes that meaningful stakeholder engagement and
partnerships empower the community, build trust, and decrease
operational risk. Our approach to social responsibility ensures that
we deliver sustainable and long-lasting social and economic benefits
to native titleholders, local communities, and interest holders in the
regions in which our projects are located. We are guided by our
Community Consultation Policy which ensures that we:
•
•
•
•
Establish appropriate levels of consultation and involvement at
all stages of operations;
Provide information that is easily understood and accessible;
Establish a clear process for engagement appropriate for each
community stakeholder;
Proactively engage with and respond to community views in a
balanced way; and
• Document actions, address complaints, and provide feedback
that is transparent.
CASE STUDY 4
Goal 10:
Reduced Inequalities
10.2 By 2030, empower and
promote the social, economic
and political inclusion of
all, irrespective of age, sex,
disability, race, ethnicity, origin,
religion or economic or
other status.
• We consider native title holders/indigenous communities one of our core
stakeholder groups across all of our operations. We strive to work from a
position of respect for local indigenous culture with the aim of creating goodwill,
mutual awareness, understanding and respect.
FIRST NATIONS PEOPLES CULTURAL CONTRIBUTION
THROUGH THE MOUNT MAGNET COMMUNITY
BENEFIT FUND
Goal 11:
Sustainable Cities and
Communities
11.4 Strengthen efforts to protect
and safeguard the world’s
cultural and natural heritage.
• As outlined in our First Nations Peoples Policy, we work with Aboriginal
representatives to improve communication and to better understand the views
and beliefs of local First Nations communities. We aim to ensure that employees
and contractors approach local sites with respect and a clear understanding of
importance of the land to First Nations communities.
17.17 Encourage and promote
• Ramelius partners with an extended number of public, private and civil society
effective public, public-private
and civil society partnerships,
building on the experience
and resourcing strategies of
partnerships Data, monitoring
and accountability.
organisations to benefit stakeholders and drive positive impacts in communities.
A selection of these can be found in the community section of this report.
Goal 17:
Partnership for
the goals
58
Since 2015, the Ramelius Resources Community Benefit
Fund (RRCBF) has helped support First Nations
Australians community groups to undertake social,
community and recreational projects in the Mount
Magnet area through approximately $60,000 in total
grants per year and over $420,000 over the last 7 years.
In FY22, the Fund supported the following organisations:
•
•
Badimia Land Aboriginal Corporation (BLAC):
manages heritage and land projects for the Badimia
People in conjunction with Heritage Link, including
promoting Badimia art and culture, fostering
training, employment and business opportunities
and operating the Wirnda Barna Art Centre:
badimia.org.au
Shine Inspire Achieve Belong Inc (SHINE):
collaborates with WA secondary schools to actively
connect with adolescent female students from
Aboriginal and Torres Strait Islander backgrounds
who are at risk of disengaging from the
conventional education system: shinetoday.com.au
In memory of former Chairman, Robert (Bob) Kennedy, Ramelius offer
a scholarship to support students from all backgrounds realise their full
potential. The scholarship is open to any Ramelius employee or those with
a family connection to Ramelius. The Scholarship provides up to $10,000
to the cost of course fees, books, computing and other related study fees.
School children from the Mt Magnet Shine Program.
Photo sourced: Shine Facebook page
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CASE STUDY 5
GOLD INDUSTRY GROUP
COMMUNITY INITIATIVES
Ramelius provides ongoing support to a wide range of
initiatives covering communities, education, youth sport,
diversity, tourism, First Nations Australians advancement,
health & safety, environment, and economic growth, through
our membership of the Gold Industry Group (GIG).
These include:
•
•
Pathways in Australia’s gold industry for jobseekers,
employees, students and teachers through Gold Jobs,
a central online hub of employment opportunities;
Education in science, technology, engineering and
mathematics (STEM) in Australian primary and
secondary schools across four states through GIG's
National Gold Education Program;
In memory of former Chairman, Robert (Bob) Kennedy, Ramelius offer
a scholarship to support students from all backgrounds realise their full
potential. The scholarship is open to any Ramelius employee or those with
a family connection to Ramelius. The Scholarship provides up to $10,000
to the cost of course fees, books, computing and other related study fees.
• GIG’s annual Great Diversity Debate which promotes
gender diversity in the Australian gold mining industry.;
• Gold tourism initiatives and businesses to drive
economic growth across WA’s gold mining region
through GIG’s Heart of Gold Australia app
which promotes Perth and Kalgoorlie Heart of
Gold Discovery Trails and the other gold tourism
experiences;
•
•
Educational and sporting pathways for women and
First Nations communities through Netball WA of
which GIG is a Premier Partner. This includes annual
scholarships to assist student netballers pursue a
career in gold mining and Leadership Camps held with
Netball WA’s Aboriginal All Stars to help young
First Nations players develop their leadership qualities,
prioritise health and well-being and improve their
netball skills; and
Sporting opportunities, facilities and equipment for
young female Aboriginal and Torres Strait Islanders
through the Shooting Stars netball team of which
GIG is a Premier Partner.
TAXES, ROYALTIES AND
SUPPLIER PAYMENTS
Through the payment of taxes, government royalties, workforce
wages and supplier payments, Ramelius makes a significant financial
contribution to local, regional and national economies. In FY22, we
contributed over $622.1 million to the Australian economy through
the following mechanisms:
• Goods & services: $495 million;
• Wages: $55.8 million;
Taxes: $26.4 million;
•
•
Royalties: $19.9 million;
• Dividends: $20.4 million;
Interest: $0.3 million;
•
•
State and shire rent: $4.2 million; and
• Community contributions and donations: $550,000.
COMMUNITY RELATIONS
AND INVESTMENT
We are committed to involving local and First Nations Peoples
communities in the areas in which we operate in planning and
decision-making and ensuring accountability through effective
communication and consultation strategies.
Ramelius recognises that financial and in-kind contributions are
a critical aspect of community investment and support. Our
community investments are carefully considered to ensure they
create a positive impact within the communities, as well as aligning
with our business priorities. In FY22, we donated approximately
$550,000 to support initiatives and groups seeking to build lasting,
positive community impact. We also made $12,000 worth of in-
kind donations towards additional events and programs.
Some of our major donations went to the Shire of Mount Magnet’s
Community Benefit Fund, Shire of Narembeen Community Benefit
Fund, CoRE Foundation Merredin Program, MACA Cancer 200
Challenge, Netball WA, Royal Flying Doctor Service, Fortuna
Foundation Positive Spin Project, and the Gold Industry Group
(GIG). An overview of the community-related projects in which
Ramelius has been involved through our membership of GIG is
provided in the Case Study which includes a snapshot of grants
provided to local community groups.
$550,000 IN
SUPPORT OF
COMMUNITY
INITIATIVES AND
GROUPS
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OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 NAREMBEEN COMMUNITY BENEFIT FUND
Ramelius strive to engages local community stakeholders throughout the local Shire’s in which we operate. This financial year saw the
launch of the Ramelius Resources & Shire of Narembeen Community Benefit Fund (CBF). The purpose of the fund is to provide grants to
Narembeen community groups for programs and/or community infrastructure. This fund represents a future-focused partnership between
the Shire of Narembeen, Ramelius Resources, and the Go Narembeen Progress Association.
ROLL ON 2022 RUCKUS
(MT WALKER SPORTS CLUB)
Roll on 2022 Ruckus, hosted by Mt Walker Sports Club, took
place in February 2022. The primary goal of the event was
to provide the opportunity to members to communicate
with one another and provide relief for locals impacts by
environmental conditions, fostering a social and community
benefit.
AUSTRALIA DAY MEN’S FOUR’S
(NAREMBEEN BOWLING CLUB)
Australia Day Men’s Four’s, hosted by Narembeen Bowling
Club, took pace in January 2022. The two-day event has been
a great success in previous years, drawing in hundreds of
players from throughout the wheatbelt. The event showcases
what the town has to offer and brings significant community
and economic benefit.
WYLAS TIMING SYSTEM
(NAREMBEEN SWIMMING CLUB)
The Wylas Timing System is a system utilised by Narembeen
Swimming Club, which records swimming times to measure
improvements throughout the swimming season, provide the
club base times to pass onto other club meet events, and
award points to club members which go towards their annual
club trophy.
DRINKING STATIONS FOR ANIMALS
(WADDERIN WILDLIFE SANCTUARY)
Wadderin Wildlife Sanctuary consists of fenced bushland,
home to re-introduced native species, without the threat
of feral cats and foxes. Some of these species include owls,
kangaroos, and bandicoots. Ramelius provided environmental
benefit by contributing funds to the building of wildlife
drinking stations.
CASE STUDY 6
CoRE FOUNDATION WHEATBELT HUB
Ramelius is proud to sponsor the CoRE program at
Merredin College, a program which is based in the
greater Wheatbelt region of WA, extending from
Ravensthorpe in the south, Northampton in the
north and to the northern Goldfields in the east.
The CoRE program’s vision is to ‘imagine a
better future where life-long learning is unleashed
in the classroom.’ This classroom is known as
#therealclassroom, where industry practices are
embraced by the students, and students are taken
out into the real world to network with industry
professionals.
FY22 saw significant participation amongst schools.
Merredin College had 64 year 5 & 6 students, with
72 students from years 7 & 10. Bencubbin Primary
School had 12 students from years 3 to 6 participate.
In memory of former Chairman, Robert (Bob) Kennedy, Ramelius offer
a scholarship to support students from all backgrounds realise their full
potential. The scholarship is open to any Ramelius employee or those with
a family connection to Ramelius. The Scholarship provides up to $10,000
to the cost of course fees, books, computing and other related study fees.
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63
CASE STUDY 7
MACA CANCER RIDE 200
In October 2021, Ramelius team members
participated in the MACA Cancer 200 Bike Ride, a
200km journey, raising vital funds for cancer research.
The Harry Perkins Institute of Medical Research is
WA’s largest medical research institute which has
made major discoveries around diseases including
heart disease, diabetes, and cancer. The team
comprises of over 200 researchers, who work
between three locations in Perth.
The Ramelius team raised approximately $12,000 for
the Institute’s cancer research, of which
Ramelius matched.
In memory of former Chairman, Robert (Bob) Kennedy, Ramelius offer
a scholarship to support students from all backgrounds realise their full
potential. The scholarship is open to any Ramelius employee or those with
a family connection to Ramelius. The Scholarship provides up to $10,000
to the cost of course fees, books, computing and other related study fees.
CASE STUDY 8
ROYAL FLYING DOCTOR SERVICE
Ramelius is proud to sponsor the Royal Flying Doctor
Service WA. Western Australia is a vast and remote
state and making sure people across the regions
have access to health care and emergency, life-saving
treatment is what they do at the Royal Flying Doctor
Service Western Operations.
FY22 was the third year in which Ramelius sponsored
the Royal Flying Doctor Service WA. Our three-
year commitment has seen funding go towards the
purchase of a new Hamilton T1 Ventilator for their
aircrafts, to ensure patients receive the very best
care, particularly with the pressures of COVID 19.
In memory of former Chairman, Robert (Bob) Kennedy, Ramelius offer
a scholarship to support students from all backgrounds realise their full
potential. The scholarship is open to any Ramelius employee or those with
a family connection to Ramelius. The Scholarship provides up to $10,000
to the cost of course fees, books, computing and other related study fees.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 OUR ENVIRONMENT
IMPLEMENTED A STANDALONE:
ENVIRONMENTAL POLICY
EMISSIONS AND ENERGY:
9% BELOW AUSTRALIAN AVERAGE OF
EMISSIONS INTENSITY PER OUNCES PRODUCED
COMPLETED CLIMATE-RELATED RISK
ASSESSMENT AS PART OF CONTINUED TCFD ALIGNMENT
REHABILITATION:
680HA HAVE BEEN FULLY REHABILITATED
AND RELINQUISHED
WATER AND WASTEWATER MANAGEMENT:
934ML OF OUR WASTEWATER WAS
RECOVERED FROM OUR TSF'S AND REUSED IN
OUR PROCESSING PLANTS
Goal 12:
Responsible
Consumption and
Production
12.6 Encourage companies,
especially large and
transnational companies, to
adopt sustainable practices
and to integrate sustainability
information into their
reporting cycle.
• In addition to this Sustainability Report, we acknowledge our social
responsibilities and the need to meet community expectations around ESG
reporting. We report in accordance with the National Pollutant Inventory
(NPI), National Greenhouse and Energy Reporting (NGER), Workplace Gender
Equality Agency (WGEA) and the Modern Slavery Act 2018.
Goal 13:
Climate Action
13.1 Strengthen resilience and
adaptive capacity to climate
related hazards and natural
disasters in all countries.
13.3 Improve education, awareness-
raising and human and
institutional capacity on climate
change mitigation, adaptation,
impact reduction and early
warning.
• We are committed to understanding and proactively managing the impact
of climate-related risks to our business and have started the first phase of
reporting against the TCFD framework. This includes integrating climate-related
risks, as well as energy considerations, into our strategic planning and decision-
making and working towards disclosure on the impact of climate risk on our
business and the ways in which we mitigate such risks.
• We understand and acknowledge that physical and transitional risks associated
with climate change have the potential to negatively impact our business. Top
priority climate-related risks include reduced water availability, extreme weather
events, changes to legislation and regulation, reputational risk, and technological
and market changes.
64
65
This year, we sourced a total 2,278,998 GJ of electricity from the
grid and diesel generation (a 14% increase on last year). During
the same period, our total Scope 1 and 2 emissions was 173,603
tCO2-e (a 13% increase on last year). These increases are in line
with the growth of the company expansion activities at existing
sites. Our FY22 emissions intensity for ounces of gold produced
was 0.67 tCO2-e/oz. This falls below S&P’s Global estimated 2020
emissions intensity average for Australian gold miners of 0.73
tCO2-e/oz. In FY23, we will focus on improving efficiencies in
consumption rate across all of our operations. Annual energy and
GHG emissions can be found in the performance data section at
the end of this Report.
In FY22 Ramelius engaged Partners in Performance to assist with
the construction of an Energy & Emissions Reduction Roadmap,
with initial work focusing on validating a baseline from currently
forecasted mine plans. Work is currently ongoing, assessing the
natural trend of the mine plan in terms or energy usage and
emissions and then to critically assess opportunities to reduce
these utilising both current and future technologies. Ultimately
an emissions target for 2030 will be set and this is targeted to
be communicated with appropriate supporting data in the 2023
Sustainability Report.
W
E
N
E
R
E
C
U
D
E
R
E
T
A
G
T
M
I
I
Increase use of
low-emission
renewable energy
Shift usage outside
peaks
Replace fossil fuels
with electricity
Improve energy
productivity and
efficiency
Capture and reuse
Shift consumption
behaviours
Offset emissions
Mitigate key risks
and pitfalls
Create new
opportunities and
adopt innovation
Ramelius continues to review the feasibility, effectiveness, and
availability of alternate technologies such as the use renewable
energy sources or low emission vehicles and trucks as a way of
reducing emissions in the future. During the reporting year, a
decarbonisation strategy study was commenced into the options
of installing renewable power generation at our Mt Magnet
operations. The study examined optimal configurations of a solar
photovoltaic system combined with a Battery Energy Storage
Systems (BESS) and its feasibility over a multi-year timeframe.
In addition to a renewables assessment, Mt Magnet operations is
examining the option of installing variable drive fan starters
in their underground mines which can save significant
volumes of diesel per fan. Using liquid natural gas
(LNG) as an alternative to lower emission fuel
supply is also being considered to reduce
overall carbon emissions from the operations.
More work will be completed on these studies
over the next financial year.
Ramelius is dedicated to achieving an outstanding level of
environmental performance across all our operations. We have
a social responsibility to not only achieve all legislative compliance
expectations but also to strive for best practice in meeting the
environmental expectations of the communities in which we
operate.
During 2022, Ramelius reviewed Company Policies and created a
standalone Environmental Policy which instructs our environmental
activities across the business. The Policy outlines guiding
environmental principles and a commitment to environmental
sustainability and conducting our business activities in an
environmentally responsible manner.
Ramelius operates all mine sites in accordance with the policies,
regulations and environmental requirements outlined in Western
Australia’s Mining Act 1978. All our operations have been assessed
under a rigorous risk and outcomes-based environmental
assessment process with clear objectives. This ensures the
environmental risk assessment and setting of site-specific
environmental outcomes is consistent with the expectations of
our stakeholders. Approved projects are then commenced and
monitored to protect the environmental values of the areas in
which we operate.
Environmental data on water, GHG emissions and energy,
wastewater management, waste management, mine closure and
rehabilitation, and biodiversity are collated annually across our
operations. Much of the data are independently collected and
reported on by third party consultants. Ramelius began formal
reporting on sustainability in FY20 when baseline environmental
monitoring processes were established. This assisted the company
in measuring our environmental performance and enabled us to
strive for year-on-year improvements.
CLIMATE CHANGE
GREENHOUSE GAS EMISSIONS
AND ENERGY
The mining sector recognises the contributions the industry makes
to global greenhouse gas emissions (GHG) and climate change.
Ramelius recognises that climate-related risk may impact our
business and we have a responsibility and commitment to reduce
our emissions. We continue to collate and report annual GHG
emissions, energy production and energy consumption data and
improvement initiatives in line with National Greenhouse and
Energy Reporting (NGER). We believe the implementation of
chosen decarbonisation initiatives will achieve an overall reduction
of our emissions.
Ramelius has processes and systems in place to manage air
quality and reduce GHG emissions. Our short-medium-term
strategy to manage Scope 1 and Scope 2 emissions is to
preferentially utilise grid electricity to power our sites
instead of burning diesel. We have achieved this at
our sites that are located in close proximity
to WA’s electricity grid. This is especially
applicable to the energy-intensive processing
hubs at Mt Magnet and Edna May located near
the grids of the Westonia and Mount Magnet
townships. Our remote regional sites currently
need to use diesel for electricity provision which is
closely monitored and rationalised where possible.
133,398 T(CO2-e) TOTAL
SCOPE 1 EMISSIONS
IN FY22
40,206 T(CO2-e) TOTAL
SCOPE 2 EMISSIONS
IN FY22
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 67
CLIMATE RISK AND THE TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES
One of the key topics for both Ramelius and relevant stakeholders is climate-related risk and the transition to a low-carbon economy. In
addressing this topic, Ramelius has continued its journey to report against the Task Force on Climate-Related Financial Disclosures (TCFD)
framework. With the help of specialist ESG and climate consultants, Futureproof, the Company has built upon FY21 progress by addressing
the strategy and risk management components of the TCFD framework in FY22.
Governance
Board oversight
Management’s role
Strategy
Risk Management
Metrics and Targets
Climate-related risks
Processes for identifying
Metrics
and opportunities over
short, medium, long-
term
Impact on business,
strategy and financial
planning
Resilient strategy and
scenario analysis
and assessing risks
Processes for
managing risks
Scope 1, 2 and 3
emissions and
related risks
Integration into overall
risk management
Targets
TCFD ROADMAP
FY21
Gap analysis and
benchmarked
current TCFD
governance
disclosures
FY22
Identified and
validated physical
and transitional
risks and
opportunities
FY23
Scenario analysis
and mitigation
strategies
FY23 and
beyond
Incorporating
metrics and
targets disclosures
STRATEGY
In January 2022 the Company’s Sustainability Working Group carried out a climate risk assessment to compile the draft list of short,
medium, and long-term climate risks and opportunities. Climate risks were categorised as either transitional or physical with potential
causes and impacts determined. Each risk and opportunity was then given a rating according to three different areas: likelihood,
consequence, and control. Likelihood refers to the probability of the risk occurring within a particular timeframe. Consequence deals with
the potential outcome of a risk event that affects a firm’s operations. The control aspect refers to any actions or processes a company
has in place that can reduce the likelihood of risk events occurring or minimise risk impacts. These factors were combined to produce an
overall risk rating of either extreme, high, moderate, or low. A list of the risks and opportunities considered can be found on page 67
Climate related risks and opportunities are considered in annual strategic planning with the Board and executives. The strategic planning
process includes a comprehensive scan of changes and emerging issues associated with Ramelius’ internal and external business
environment. The issues and their implications are analysed, with actions to mitigate risks and capture opportunities incorporated into an
annual strategic initiatives plan. The 2022 scan revealed several issues specifically relating to climate related risks and opportunities.
These relate to stakeholder requirements, investor and community attitudes, emerging technologies, competitor activity and changes to the
natural environment. In addition, specific TCFD initiatives are incorporated in the annual Essentials workplan.
DECARBONISATION ACTIVITIES ASSESSED
CONSUMPTION
MONITORING
• Mine-specific emissions reporting
• Equipment-specific emissions reporting
•
Installing timers on industrial fans
ALTERNATIVE
POWER
• Maximising proportion of power generation from
gas rather than diesel at Mt Magnet
• Exploring feasibility of solar generation at Mt Magnet
FLEET
EFFICIENCY
• Modifying pits to allow larger load-bearing trucks for
greater fuel efficiency
• Upgrade existing triple road trains to quad
road trains
• Examining alternatives to diesel powered trucks
• Vehicle-specific emissions reporting
Recommendations on these activities and other initiatives will be
detailed in the Energy & Emissions Reduction Roadmap currently
being developed.
Each year, Ramelius aims to improve the air quality across all its
sites by collection, analysing and reporting estimates of materials
moved (usages), emissions to air (fugitive) as well as transfers of
National Pollutant Inventory (NPI) substances in our waste
streams including atmospheric pollutants. This information
can be found in the Performance Data section of
this report. Emissions are managed through
cleaner production activities and pollution
control equipment such as dust suppression
(water sprays/chemical suppression), breaks/covered/enclosed
stockpiles, continued inspection and monitoring programmes for
potential spills or leak sources, improved maintenance scheduling,
record keeping, and procedures, and installed overflow alarms and
automatic shutoff valves on reagent and waste discharge lines.
We recognise that dust pollution from mining and trucking
activities can also reduce air quality. Procedures are in place
across all our mine sites to reduce dust generation by
watering surfaces with saline water and monitoring
dust deposition levels at sensitive environmental
receptor locations. There have been no air
quality non-compliances in the report period.
ZERO INCIDENTS OF
NON-COMPLIANCE
REPORTED FOR AIR
QUALITY IN FY22
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OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 Risks
Cause
Lines of Business Impacted
Short
Medium
Long
TCFD Recommendation
Ramelius Approach
Our Progress
69
GOVERNANCE Disclose the organisation’s governance around climate-related risks and opportunities
Describe the Board’s oversight
of climate-related risks and
opportunities
Increasing fuel & electricity costs
Capital expenditure on alternative
power generation
Attracting & retaining talent
Water stress
• Reduced fuel supply
• Carbon taxes
•
•
Investor & stakeholder
pressure
Emerging technologies
•
Employee preferences
• Competition with peers
• Diminishing labour pool
Extreme climate events
•
• Hotter temperatures
•
Erratic rainfall
Severe weather events
• Changing climate & weather
Finance – increased costs
Supply chain – access to capital
Finance – increased operational
expenditure
Operations – integration
challenges & complexity
Workforce – can't fill required
roles, increased turnover,
errors,
Finance – increased
recruitment costs
Finance – increased costs to
access water
Operations – processing
capacity limits
Finance – replacing damaged
infrastructure, higher
construction costs
Operations – site access
difficulties
Opportunity
Cause
Lines of Business Impacted
Short
Medium
Long
Electrification & decarbonisation
• Global trends
• Cheaper technology
Social expectations
•
Finance – Reduced operational
costs
Operations – lower emissions
Describe management’s role in
assessing and managing climate-
related risks and opportunities
SHORT-TERM RISKS
Risks that may impact near-term financial results, including
those that may materialise within the current annual
reporting cycle.
MEDIUM-TERM RISKS
Risks that may materially impact financial results due to
longer-term manifestation of climate-related impacts that
may require significant adjustment of strategy, including
those that may materialise over a 2-5 year timeframe.
LONG-TERM RISKS
Risks that may fundamentally impact the viability of our
long-term strategy and business model, including those that
may materialize over a 5-10 year timeframe.
68
The Ramelius Board ensures that climate-related risks and opportunities
are incorporated into the strategic direction and objectives they set out.
Climate risk topics are included on board agendas where examination and
discussion take place. The Board is committed to disclose climate-related
strategies consistently and transparently to stakeholders. To help carry out
this work, the Board has delegated responsibility to oversee the Company’s
risk management systems, sustainability programs and mitigating controls
to the Risk & Sustainability Committee. This Committee is comprised of
Independent Non-Executive Directors, including the Chair, and the CEO,
and is appointed by the Board on whose behalf it acts.
In accordance with the Risk & Sustainability Committee Charter, the
Committee is responsible for making recommendations to the Board
regarding the Company’s sustainability objectives, including its climate change
strategy. The climate change strategy ensures both physical and transitional
climate related risks and opportunities which affect the Company’s ability to
achieve its objectives are identified, assessed and where relevant, mitigated.
This includes oversight of Ramelius’ pathway towards decarbonisation and
emissions reductions. The Committee also oversees the management of
specific climate-related risks and opportunities through regular review of
global best practice, internal compliance programs and relevant sustainability
frameworks. The Committee reports to the Board a minimum four times
per year.
Risk tolerance is determined by the Leadership Team, considered by the
Committee and approved by the Board.
At management level, the Ramelius Executive Team, led by the CEO, is
responsible for fulfilling Board-approved strategies, policies, and associated
risk management plans which include climate-related issues. Management,
via the CEO, reports progress and activities to the Risk & Sustainability
Committee at each meeting. The Group Environment Manager provides
central coordination through to the Leadership Team and CEO.
At site level, Risk Registers include risks and mitigation plans at all operations.
Senior Managers prepare an annual Sustainability Report for endorsement
by the Risk & Sustainability Committee and approval by the Board. The
Company’s risk management program, Ramelius Essentials, supports the
objective of being a sustainable gold producer. Senior Managers across
all functions are responsible for embedding strategic risk management in
decision making at every level of the company.
The Sustainability Working Group supports management’s role in
overseeing sustainability risks and opportunities, including those related
to climate change. This Group consists of cross-functional members and
contains representation from each of our business units. Climate-related
risks and opportunities are discussed and escalated, when required, to the
Committee.
Ramelius management are responsible for reviewing and monitoring, and
reporting to the Board where appropriate, on matters including:
• The effectiveness of the Company’s policies, systems and governance
structure in identifying and managing material climate–related risks.
• The coordination and review of climate-related risks, strategy, and
reporting.
• The development and implementation of initiatives regarding emissions
reduction.
• The policies and systems for ensuring compliance with applicable legal and
regulatory requirements associated with climate–related matters.
Four Risk and Sustainability
Committee meetings held
during FY22.
On recommendation from
the Committee, the Board
endorsed the development of an
Energy & Emissions Reduction
Roadmap.
Committed to continuing
TCFD alignment by conducting
scenario analyses and resilience
testing in FY23.
Completed a peer
benchmarking review to set
a baseline reference point for
actions and disclosures in relation
to climate-related risks and
opportunities.
Enhanced Board climate
risk knowledge levels through
specialist training carried out by
ESG and climate consultancy
Futureproof.
Inclusion of climate change
risks within Environmental Policy
Mandated that climate-
related risks and opportunities
are a responsibility of all Senior
Managers across all functions.
These managers form the
Sustainability Working Group
that meets quarterly to discuss
climate and other ESG risks and
opportunities.
Working towards enhancing
management’s role in climate-
related matters will continue
during FY23.
Enhanced management
climate risk knowledge levels
through specialist training
carried out by ESG and climate
consultancy Futureproof.
Management prepare an
Annual Sustainability Report for
endorsement by the Risk and
Sustainability Committee and
approval by the Board.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 71
an important component of the overall enterprise risk register.
The risks and opportunities with an ‘extreme’ or ‘high’ rating were
approved by the Board in FY22. Currently, climate-related risks are
addressed on a longer-term basis, while other sustainability risks are
shorter to medium-term.
FY23 FOCUS
In FY23 we will be focusing on continuing our alignment with TCFD
by conducting scenario analyses, addressing mitigation strategies, and
resilience testing. The Company also plans to complete an Energy
and Emissions Reduction Roadmap while identifying opportunities
for innovation in the context of decarbonisation.
Climate related risks and opportunities are considered in annual
strategic planning with the Board and executives. The strategic
planning process includes a comprehensive scan of changes and
emerging issues associated with Ramelius internal and external
business environment. The issues and their implications are
analysed, with actions to mitigate risks and capture opportunities,
incorporated into an annual strategic initiatives plan. The 2022
scan revealed several issues specifically relating to climate related
risks and opportunities. These relate to stakeholder requirements,
investor and community attitudes, emerging technologies,
competitor activity and changes to the natural environment. In
addition, specific TCFD initiatives are incorporated in the annual
Essentials workplan.
CLIMATE RISK MANAGEMENT
In FY21 a Sustainability Risk Register was established relating to
many ESG aspects such as safety, environment, community, and
compliance. The register is subject to an annual risk and change
review with ongoing monitoring of control activities. In FY22 a
climate change risk review was conducted with the outcomes
incorporated into the Sustainability Risk Register. Climate-related
risks and opportunities are identified by the Risk and Sustainability
Committee who then make recommendations to the Board for
approval. Once the Board approves the climate risks as material,
they are then placed into the Sustainability Risk Register which is
TCFD Recommendation
Ramelius Approach
Our Progress
STRATEGY Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy and
financial planning
Identified and validated
physical and transitional climate
risks and opportunities over the
short, medium, and long-term.
Reviewed which business lines
could be impacted by climate
related risks and opportunities.
Working to towards
addressing the financial impacts
of climate related risks and
conducting resilience testing and
scenario analysis.
Describe the climate-related
risks and opportunities the
organisation has identified over
the short, medium and long-term
Short-term = Impacts near-term
financial results, or may materialise
within the current reporting cycle
Medium-term = Extended
manifestation of impacts that may
require significant strategy adjustment
strategy, including those that may
materialise over a 2-5 year timeframe
Long-term = Fundamentally impacts
the viability of our long-term strategy
and business model, including those
that may materialize over a 5-10 year
timeframe.
Describe the impact of climate-
related risks and opportunities
on the organisation’s businesses,
strategy and financial planning
Describe the resilience of the
organisation’s strategy, taking
into consideration different
climate-related scenarios,
including a 2°C or lower scenario
Emissions and climate is a material topic for Ramelius. Our comprehensive
approach to sustainability is embedded in our corporate strategy and our
sustainability statement to “deliver more than just financial benefit. It’s about
the way we do business, the relationships we build with our people and
communities and the efforts we make to conserve the environment.”
In January 2022 the Company’s Sustainability Working Group caried out
a climate risk assessment to compile the draft list of short, medium, and
long-term climate risks and opportunities. Climate risks were categorised as
either transitional or physical with potential causes and impacts determined.
Each risk and opportunity were then given a rating according to three
different areas: likelihood, consequence, and control. Likelihood refers to the
probability of the risk occurring within a particular timeframe. Consequence
deals with the potential outcome of a risk event that affects a firm’s
operations. The control aspect refers to any actions or processes a company
has in place that can reduce the likelihood of risk events occurring or
minimise risk impacts. These factors were combined to produce an overall
risk rating of either extreme, high, moderate, or low. A list of the risks and
opportunities considered can be found below in the table titled ‘Climate
Risks and Opportunities’.
Climate related risks and opportunities are considered in annual strategic
planning with the Board and executives. The strategic planning process
includes a comprehensive scan of changes and emerging issues associated
with Ramelius’ internal and external business environment. The issues and
their implications are analysed, with actions to mitigate risks and capture
opportunities, incorporated into an annual strategic initiatives plan. The
2022 scan revealed several issues specifically relating to climate related
risks and opportunities. These relate to stakeholder requirements, investor
and community attitudes, emerging technologies, competitor activity and
changes to the natural environment. In addition, specific TCFD initiatives are
incorporated in the annual Essentials workplan.
Ramelius is committed to furthering our risk disclosure in the future. In
FY23 we plan to conduct resilience testing and scenario analysis of the
climate risks identified.
RISK MANAGEMENT Disclose how the organisation identifies, assesses and manages climate-related risks
Describe the organisation’s
processes for identifying and
assessing climate-related risks
FY21 Sustainability Risk
Register was established. The
register is regularly reviewed
by the Risk & Sustainability
Committee.
Conducted a climate change
risk review in FY22 with material
risks incorporated into the
Company’s overall Risk Register,
on behalf of the Board’s approval.
In FY21 a Sustainability Risk Register was established relating to many
ESG aspects such as safety, environment, community, and compliance.
The register is subject to an annual risk and change review with ongoing
monitoring of control activities. In FY22 a climate change risk review was
conducted with the outcomes incorporated into the Sustainability Risk
Register. Climate-related risks and opportunities are identified by the Risk
and Sustainability Committee who then make recommendations to the
Board for approval. Once the Board approves the climate risks as material,
they are then placed into the Sustainability Risk Register which is an
important component of the overall enterprise Risk Register. The risks and
opportunities with an ‘extreme’ or ‘high’ rating were approved by the Board
in FY22. Currently, climate-related risks are addressed on a longer-term
basis, while other sustainability risks are shorter to medium-term.
Emerging regulatory requirements is one risk example Ramelius is
addressing as part of its long-term climate risk management. The Company
participates in the WA Chamber of Minerals and Energy (CME) Climate
and Energy Reference Group (CERG). The CERG is tasked with leading
policy development on climate, greenhouse gases, and energy-related
issues impacting the resource sector. As members, Ramelius contributes
to developing legislation and reform by providing advice to the CME
Environmental Committee. By being at the forefront of policy change,
Ramelius will be prepared for emerging regulatory requirements for climate
change action and contribute to industry initiatives to reduce impact.
METRICS AND TARGETS Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities
where such information is material
Disclose the metrics used by the
organization to assess climate-
related risks and opportunities
in line with its strategy and risk
management process.
Disclose Scope 1, Scope 2 and, if
appropriate, Scope 3 greenhouse
gas (GHG) emissions and the
related risks.
Describe the targets used by the
organization to manage climate-
related risks and opportunities
and performance against targets.
70
At Ramelius, we recognise the importance of utilising data metrics to
assess and manage our climate-related risks and opportunities. We ensure
our data metrics are useful for decision making, clear and understandable,
and consistent over time. For the past three years we have disclosed
our annual Scope 1 and 2 greenhouse gas emissions in accordance with
NGER methodologies (found within Performance Data section). Reporting
consistent and historical data allows us to track our emissions performance
and progress. In FY22, we disclosed our emissions data at a site level to
provide a clearer picture of our carbon footprint.
The TCFD recommendations encourage companies to set and disclose
targets for their climate-related metrics. Ramelius is committed to further
our alignment with TCFD recommendations in FY23. We plan to continue
refining our data metrics and begin recording Scope 3 emissions. We also
plan to begin adopting science-based targets with appropriate timeframes.
Setting targets will help to galvanise climate-action efforts and identify any
gaps in our current operations.
Measured and disclosed Scope
1 and 2 emissions for the past
3 years.
This year we disclosed
emissions at a site level.
Measurements are made
using GHG Protocol and
Australian government NGER
methodologies by specialist
carbon accounts Greenbase
Disclosed emissions intensity
for tonnes of emissions per oz of
gold produced.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022 WATER AND WASTEWATER
MANAGEMENT
Ramelius recognises that the semi-arid geographical locations of our
operations are in some of the most water-deprived regions of the
WA’s Wheatbelt and the Goldfields. The climate in these areas is
mostly hot and dry with variable annual rainfall of around 340mm
and 250mm per year respectively. We are cognisant of water being
a valuable resource, not just to our operations but also to
the towns and pastoralists of the districts in which we
operate.
Our standard is to demonstrate optimal water
management by using this resource responsibly
and efficiently and by maximising our re-use
of water from Tailings Storage Facilities (TSF),
minimising our reliance on natural surface and
groundwater sources and preferentially utilising
sources of saline water instead of freshwater.
934ML OF OUR
WASTEWATER
WAS RECOVERED
FROM OUR TSF'S
AND REUSED IN
OUR PROCESSING
PLANTS
Each of our sites complies with stringent water
licensing conditions which have been placed on the
mines to ensure our operational impacts are ecologically sustainable,
environmentally acceptable, not prejudicial to other current and
future needs for water and unlikely to have a detrimental effect on
another person or another source.
No freshwater (<1000 mg/L Total Dissolved Solids) is abstracted at
any of the Ramelius operations. During FY22, we abstracted a total
6,009ML of raw saline water for all our sites which increased from
last years’ abstraction volume of 3,551ML due to the growth of our
operations. Volumes of groundwater abstracted as well as recycled
process water are continually monitored at the sites, with water
quality testing undertaken in accordance with groundwater licence
conditions.
An additional 934ML of wastewater was reused at Ramelius’ two
processing plants; sourced from the Tailings Storage Facilities (TSF).
Recycling and re-using water from TSFs not only reduces demand
on natural sources of surface and groundwater, but also saves on
process plant chemical costs and maintains the safe, dewatered
operation of TSFs. In the disposal and recycling management of
wastewater at the operations, Ramelius is constantly monitoring
and measuring any impacts this wastewater may have on natural
background surface and groundwater resources. There has been
no contamination of these resources and Ramelius remains in
compliance with water quality permits, standards, and regulations
of the granted Environmental licenses and groundwater licenses.
Furthermore, there are no legacy issues with regard to water
resources that need to be remediated.
In FY23, we will continue accessing sources of saline water for our
operations in preference to freshwater in order to free up more
potable water for the communities in which we operate.
Mt Magnet – Milky Way Pit
Photo Competition Finalist: Joshua Dudgeon-Wacker
BIODIVERSITY
Ramelius recognises that our activities have the potential to cause
harm to the natural environment and that we must act upon the
opportunities to make a positive environmental impact. We seek,
wherever possible, to minimise harm, while always acting as a
responsible custodian of the environment. During the reporting
year, Ramelius developed a stand-alone Environment Policy to
guide our operations and commit the company to conserving, and
not wasting, all natural resources, managing risks and minimising
environmental impacts in the design, operation, closure, and
rehabilitation of our operations, and understanding, planning, and
acting on long-term threats to the sustainability of our operations,
including climate change.
We abide by the permits and approvals provided to us by regulators
and follow our systems to comply with all environmental laws,
regulations, and commitments we have made. By understanding
the natural environment in which we operate, we are minimising
harm and managing risks by conserving biodiversity values and the
viability of species, maintaining the quality and quantity of water and
land resources, and ensuring that we leave a positive environmental
legacy at the conclusion of our operations.
Ramelius adheres to environmental objectives and regulations
that seek to protect fauna, flora and vegetation so that biological
diversity and ecological integrity are maintained. Each new greenfield
project and proposed operational expansion is subjected to
rigorous environmental baseline and impact assessment studies,
undertaken to a standard consistent with best practice guidance
to ensure our projects avoid and minimise impacts to biodiversity
and other environmental values. Occasionally, significant fauna,
flora and vegetation are encountered during surveys and
additional levels of planning are required to manage and
mitigate unacceptable potential impacts. None of
Ramelius’ operations are near protected areas or
areas of high conservation value.
MAINTAINED ZERO
ARD ISSUES AT
ALL SITES
72
All of Ramelius’ baseline environmental and biodiversity study
reports are submitted to environmental regulators during the
mining project permit application process. The information
contributes to Western Australia’s environmental and biodiversity
datasets which then provides a broader decision-making base for
regulators, an expanded knowledge base of the State’s flora and
fauna, and improved availability of environmental information for the
community to create better environmental outcomes for the State.
Of particular importance to the mining industry is the management
of potential Acid Rock Drainage (ARD). Ramelius sites have
no ARD issues or the potential to create ARD in the future.
Detailed geochemical investigation undertaken prior to a deposit
being mined ensures that such potential is identified early, and
management of problematic waste is considered. Regulators
assessing the geochemical data and reports on ARD approve
projects on the basis that this work is thoroughly completed and
the risks are either eliminated or minimised.
MINE CLOSURE AND
REHABILITATION
Ramelius understands the importance of mine closure, rehabilitation
and eventual tenement relinquishment needing to incorporate
successful delivery of a defined post-mining land use at all its sites,
not just closure and “walk away” when the operating mine ceases.
Ramelius practices mine closure as a disciplined and integrated
approach with a process of early planning, progressive rehabilitation
during operations, and final decommissioning, rehabilitation and
relinquishment at the end to achieve this. Consideration is given to
environmental, social and economic factors from an early stage of
mine development and throughout the life of our projects, and we
use a risk and opportunity-based process to guide decision-making
in planning and implementing closure-related activities.
The closure outcomes we strive to achieve are a balanced result of
health, safety, social, environmental, legal, governance and human
resources considerations. As all of our sites are in remote regions of
WA, revegetation targets are primarily on restoring the disturbance
land in a manner that promotes biological diversity and ecological
integrity and we work on consistent and transparent engagement
with all relevant stakeholders to achieve this.
All our operations work to keep land clearing and disturbed ground
to an absolute minimum. In order to develop the knowledge and
capabilities to meet stakeholder expectations on mine rehabilitation
and closure, we work to progressively rehabilitate mining
disturbances as effectively as possible during the lifetime of our
operations.
In FY22, Ramelius reviewed the approved Mine Closure Plans
for all of our project sites and also completed an independent
external review of our closure cost provisioning in order to refine
and improve our methodology, address closure knowledge gaps
and replace cost assumptions with up-to-date rates. As a result,
the closure cost provision that the company accounts
allow for continue to remain accurate and
transparent.
During FY22, Ramelius had a total
tenement land holding package of
341,321 hectares, of which land
disturbed by mining totalled just
2,145 hectares (0.57%). The amount
of land currently under rehabilitation,
which includes land that has been
fully rehabilitated and relinquished, is
680 hectares which equates to 32% of
disturbed land restored.
0.57% OF LAND
DISTURBED BY
MINING IN FY22
680HA HAVE BEEN FULLY
REHABILITATED AND
RELINQUISHED
73
WASTE AND TAILINGS
MANAGEMENT
GENERAL WASTES
Mining operations have the potential to generate significant
streams of hazardous and non-hazardous waste. Our priority in
managing wastes at all sites is to ensure our purchasing processes
contractually oblige suppliers to provide products with minimal
packaging where possible to reduce the burden of these waste
streams in the first instance. With regard to managing non-
hazardous and putrescible waste all of the Ramelius sites look to
segregate these waste streams as efficiently and cost-effectively
as possible. Where sites have licensed landfills in operation, scrap
food and other putrescible wastes are buried. Recyclable wastes
are separated, temporarily stored, and then trucked off site when
economic quantities are reached. Such wastes include tyres,
batteries, scraps, metals, cardboard, glass, plastic, and aluminium.
The remote, isolated locations of our regional mine sites often
mean recycling these wastes can sometimes be costly and
impractical for the business. To counter this, Ramelius continually
aims to find new and efficient waste disposal activities.
Waste oils, grease and other hydrocarbon-contaminated wastes are
taken to a dedicated licensed management facility for disposal or
recycling and use licensed waste transport companies to transport
these hydrocarbons. Several of our sites have licensed hydrocarbon
bioremediation farms where these wastes can be rendered inert
using biological processes. Other waste products include effluent
from wastewater treatment plants which is also treated biologically,
and the treated wastewater disposed or recycled on parks and
gardens in accordance with licensed standards.
Due to the relatively small-scale of our operations and the minimal
quantities of waste produced, Ramelius does not currently weigh
the waste generated or compiles data on the breakdown of the
total by composition of the waste.
HAZARDOUS MATERIALS
A formal Hazardous Materials procedure is in place detailing
requirements for the purchase, transport, storage, use and disposal
of hazardous substances and dangerous goods at Ramelius’
exploration sites. The Health, Safety, and Environment Advisor is
responsible to assist each site to achieve compliance with state
regulations and the Company policy.
A hazardous substance register is developed and maintained
consisting of an index of chemicals used for each site with all
personnel having access to this register. Prior to commencing use of
any new chemical a Job Hazard Analysis (JHA) will be conducted.
Based on the outcome of this JHA, and the nature and hazards
associated with the chemical, a site procedure may be required
which should be developed using the JHA control measures. All
personnel who use or handle chemicals will be provided with
the Material Safety Data Sheet (MSDS) for each chemical and be
trained in the use of the MSDS.
When disposing of hazardous chemicals, each chemical undergoes
a risk assessment. This addresses required storage facilities,
necessary segregation measures, transport methods,
disposal equipment, and emergency response
procedures. This process is documented, and relevant
personnel are trained in the waste chemical disposal
procedure.
Ramelius undertakes internal audits of its waste
management operations to ensure compliance and
conformance with waste and hazardous material
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 management policies, procedures, and environmental licenses. During
the reporting year, there has been no significant incidents associated
with handling, storage, transportation, or disposal of hazardous
materials used in mineral processing activities and hazardous waste
generated.
TAILINGS
Ramelius builds, owns, and operates Tailings Storage Facilities (TSF)
at our two processing hubs: the Mt Magnet and Edna May mining
operations. The design, construction, operation, and closure of
these facilities is strictly controlled by government regulation, codes
of practice and relevant guidelines, as well as our own internal
standards, procurement policies and contractor management
processes.
The chosen location, design, construction method, operational
strategy, monitoring and surveillance, emergency response planning
and rehabilitation of each TSF undergoes a rigorous risk and
environmental impact assessments prior to approval.
Specialist engineers are engaged by Ramelius to ensure all factors
that can potentially impact on the long-term performance of each
TSF are considered and all risks are addressed. The design process is
complex, but repeatable and rigorous, and ensures the integrity and
safety of each TSF’s during:
• Normal and irregular operation;
•
• Decommissioning.
Extreme weather and events; and
The priority is to ensure that our TSFs are safe, stable, erosion-
resistant, and non-polluting after tenement relinquishment.
Ramelius also completes detailed and regular inspections and auditing
of our operating TSFs, including the preparation and implementation
of a site-specific TSF Operating Manual which sets out the safe and
environmentally acceptable operating procedures, monitoring and
reporting requirements, trigger levels and actions to be taken to
rectify any potential deficiencies.
Audit reports are lodged with relevant regulators demonstrating our
compliance with all conditions. Regulations also require Ramelius to
use independent TSF consultant engineers for the design and annual
inspection of our TSFs as well as requirements for the provision
of information, instruction, training, and supervision that assures
the integrity of facilities and the occupational safety and health of
personnel working at them. More information can be found in the
Tailings Report on our website.
During the reporting period, there were no incidents of seepage
from the tailings facilities that contain any meaningful concentration
of hazardous raw materials, or significant spills or releases that
occurred during handling, storage, transportation, use, and/
or disposal of raw hazardous materials that had impacts on the
environment, employees, and/or surrounding communities. All
limits within the TSF’s operating licenses were complied with. It is
Ramelius’ focus and continued target in FY23 to remain compliant
with operational permits and licenses.
PERFORMANCE DATA
Economic contribution
Contributed into Australian Economy (A$) million
Direct spend with community organisations (A$) million
Reconciliation to income tax payable (A$) million
Profit before income tax expense
Permanent differences
Temporary differences:
– Accounting and tax depreciation differences
– Mine development
– Exploration and evaluation expenditure
– Provisions
– Other
Taxable income before utilisation of carried forward tax losses
Australian income tax payable
Corporate income tax paid during the year ended
Utilisation of carried forward losses
Net income tax (receivable) / payable
FY22
622.1
11.3
22.5
15.1
3.8
39.9
(18.4)
(1.1)
(1.5)
60.3
18.1
(20.7)
(2.6)
(5.2)
FY21
529.9
10.2
174.7
1.1
4.5
13.9
8
0.8
11
139.1
41.7
3.9
7.5
30.3
75
FY20
476.1
8.2
149.5
4.4
0.43
(23.2)
(35.1)
(3.2)
2.3
95.2
28.6
(1.2)
(6.1)
21.3
Supplier
payments
(Goods &
services)
3.1
492.1
495.2
FY22
Local suppliers, shire rates &
local employees (A$) million)
National economy (exluding
local suppliers & employees)
(A$) million
Total (A$) million
Metric
Production of metal ores
Production of finished metal products
Wages
Dividends
Interest
Taxes
Royalties
State and
Shire Rent
Total
contribution
4.0
51.8
55.8
0.0
20.4
20.4
0.0
0.3
0.3
0.0
26.4
26.4
0.0
26.4
26.4
4.2
0.0
4.2
11.3
610.8
622.1
Unit
FY22
FY21
Metric tons (t)
saleable
Metric tons (t)
saleable
7.33
0
7.71
0
Production Data
Units
FY22
FY21
FY20
FY19
FY18
Edna May
Gold Produced
Mt Magnet
Gold Produced
Total
Gold Produced
oz
oz
oz
132,114
110,950
63,297
81,839
126,511
161,159
167,129
114,840
72,521
83,191
258,625
272,109
230,426
196,679
208,118
74
RAMELIUS RESOURCES ANNUAL REPORT 2022
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 77
COMMUNITY AND CULTURAL HERITAGE
Edna May
Mt
Magnet
Marda
Penny
Tampia
Vivien
Rebecca
Total
Metric
Unit
FY22
FY22
FY22
FY22
FY22
FY22
FY22
FY22
Percentage of (1) proved and (2) probable
reserves in or near areas of conflict
Percentage of (1) proved reserves in or
near indigenous land
Percentage of (2) probable reserves in or
near indigenous land
%
%
%
0
0
0
0
0
0
0
0
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Number and duration of non-technical
delays
Number,
Days
0
0
0
0
0
0
0
0
*All of our operations fall on land recognised under Indigenous Native Title. The Native Title Act 1993, ensures the co-existence of land management with the recognition and protection
of Native Title.
76
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78
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
BIODIVERSITY
Metric
Unit
FY22
FY22
FY22
FY22
FY22
FY22
FY22
FY22
Edna May
Mt
Magnet
Marda
Penny
Tampia
Vivien
Rebecca
Ramelius
Total
Acid rock drainage
"Percentage of mine sites where acid rock
drainage is: (1) predicted to occur, "
"Percentage of mine sites where acid rock
drainage is:
(2) actively mitigated, "
"Percentage of mine sites where acid rock
drainage is:
(3) under treatment or remediation"
%
%
%
Conservation status or endangered species habitat
Percentage of (1) proved reserves* in or
near sites with protected conservation
status or endangered species habitat
Percentage of (2) probable reserves in or
near sites with protected conservation
status or endangered species habitat
%
%
0
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*The percentage of proved reserves shall be calculated as the amount of proved reserves located in areas either with protected conservation status or in areas of endangered species
habitat divided by the total amount of proved and probable reserves.
The entity shall provide a breakdown of the calculations by grade (in percentage metal content) of proved and probable reserves.
If totals are only available, that will be sufficient
Rehabilitation and closure
Land Management (ha)
FY22
FY21
FY20
Land disturbed
2145
1960
1788
Land rehabilitated
680
687
583
Sites with protected conservation status
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N
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
WASTE & TAILINGS MANAGEMENT
Tailings
Metric
Edna May
Mt Magnet
Ramelius Total
Unit
FY22
FY22
FY22
Total weight of tailings produced
Metric tons (t),
2,699,354
1,736,071
4,435,425
Tailings storage facility inventory table – see table below
Summary of tailings management systems and
governance structure used to monitor and maintain the
stability of tailings storage facilities
Number and nature of significant incidents/ non
compliance/infringements/fines
The audits and reviews were carried out in general accordance with
the requirements of the Department of Mines, Industry Regulation
and Safety (DMIRS) (formerly DMP) (2013) ‘Code of practice:
tailings storage facilities in Western Australia’ and DMIRS (2015)
‘Guide to Departmental requirements for the management and
closure of tailings storage facilities (TSFs)’
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Total number of contractors
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Total number and percentage of indigenous employees***
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ETHICAL BEHAVIOUR
Metric
Unit
FY22
Total percentage of governance body members, employees, contractors and business partners who have received
training on ethics, conduct and anti-corruption policies and procedures
Percentage (%)
Production metrics are required if your sites are in countries that have the 20 lowest rankings in Transparency
International’s Corruption Perception Index -
Metric tons (t)
saleable
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89
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OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
91
HEALTH, SAFETY & WELLBEING
Emergency Rescue Teams (ERT)
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REGULATORY AND COMPLIANCE
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Monetary value of significant fines ($A)
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Total volume of significant spills (ML)
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a
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90
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
SASB METALS & MINING INDEX
SASB METALS & MINING INDEX
SASB Standard
SASB code
Report Section
Page Number
SASB Standard
SASB code
Report Section
Page Number
93
Discussion of engagement processes and due diligence practices with
respect to human rights, indigenous rights, and operation in areas of
conflict
EM-MM-210a.3
Discussion of process to manage risks and opportunities associated with
community rights and interests
EM-MM-210b.1
Our Communities
First Nations Peoples
Ethics and human rights
Risk Management
Our Communities
First Nations Peoples
Number and duration of non-technical delays
EM-MM-210b.2
Performance data
Percentage of active workforce covered under collective bargaining
agreements, broken down by U.S. and foreign employees*
EM-MM-310a.1
Performance Data
*N/A - does not apply to Australian
operations
Number and duration of strikes and lockouts
EM-MM-310a.2
Performance data
MSHA all-incidence rate
Fatality rate
Near miss frequency rate (NMFR)
EM-MM-320a.1
N/A - does not apply to
Australian operations
EM-MM-320a.1
Performance data
EM-MM-320a.1
Performance data
Average hours of health, safety, and emergency response training for (a)
full-time employees and (b) contract employees
EM-MM-320a.1
Health, safety, and wellbeing
Performance data
Description of the management system for prevention of corruption and
bribery throughout the value chain
EM-MM-510a.1
Ethical behaviour
Production in countries that have the 20 lowest rankings in Transparency
International’s Corruption Perception Index
EM-MM-510a.2
N/A - all of our operations are
located in Australia
Tailings storage facility inventory table: (1) facility name, (2) location,
(3) ownership status, (4) operational status, (5) construction method,
(6) maximum permitted storage capacity, (7) current amount of
tailings stored, (8) consequence classification, (9) date of most recent
independent technical review, (10) material findings, (11) mitigation
measures, (12) site-specific EPRP
EM-MM-540a.1
Waste and tailings management
Performance data
Summary of tailings management systems and governance structure used
to monitor and maintain the stability of tailings storage facilities
EM-MM-540a.2
Waste and tailings management
Approach to development of Emergency Preparedness and Response
Plans (EPRPs) for tailings storage facilities
EM-MM-540a.3
Waste and tailings management
Health, safety, and wellbeing
Production of (1) metal ores and (2) finished metal products
EM-MM-000.A
Performance data
Total number of employees, percentage contractors
EM-MM-000.B
Performance data
54,59
54,59,60
76
85
76
86-87
86-87
86-87
86-87
55
NA
82-83
74
74
76
85
77
65
79
78
78
78
84
84
72
81
81
81
81
81
81
73
65
80
80
76
76
Gross global Scope 1 emissions, percentage covered under emissions-
limiting regulations
EM-MM-110a.1
Discussion of long-term and short-term strategy or plan to manage
Scope 1 emissions, emissions reduction targets, and an analysis of
performance against those targets.
EM-MM-110a.2
Air emissions of the following pollutants: (1) CO, (2) NOx (excluding
N2O), (3) SOx, (4) particulate matter (PM10), (5) mercury (Hg), (6) lead
(Pb), and (7) volatile organic compounds (VOCs)
EM-MM-120a.1
Total energy consumed
EM-MM-130a.1
Greenhouse gas emissions and
energy
Performance data
Greenhouse gas emissions and
energy
Greenhouse gas emissions and
energy
Performance data
Greenhouse gas emissions and
energy
Performance data
% Of grid electricity
% Of renewable electricity
Total fresh water withdrawn
EM-MM-130a.1
Performance data
EM-MM-130a.1
Performance data
EM-MM-140a.1
Water and wastewater
management
Performance Data
Water and wastewater
management
Performance data
Water and wastewater
management
Total fresh water consumed, percentage of each in regions with High or
Extremely High Baseline Water Stress
EM-MM-140a.1
Number of incidents of non-compliance associated with water quality
permits, standards, and regulations
EM-MM-140a.2
Total weight of non-mineral waste generated
Total weight of tailings produced
Total weight of waste rock generated
Total weight of hazardous waste generated
Total weight of hazardous waste recycled
EM-MM-150a.4
Performance Data
EM-MM-150a.5
Performance Data
EM-MM-150a.6
Performance Data
EM-MM-150a.7
Performance Data
EM-MM-150a.8
Performance Data
Number of significant incidents associated with hazardous materials and
waste management
Description of waste and hazardous materials management policies and
procedures for active and inactive operations
EM-MM-150a.9
Waste and tailings management
EM-MM150a.10 Waste and tailings management
Description of environmental management policies and practices for
active sites
EM-MM-160a.1
Biodiversity
Percentage of mine sites where acid rock drainage is: (1) predicted to
occur, (2) actively mitigated, and (3) under treatment or remediation
EM-MM-160a.2
Biodiversity
Percentage of (1) proved and (2) probable reserves in or near sites with
protected conservation status or endangered species habitat
EM-MM-160a.3
Biodiversity
Percentage of (1) proved and (2) probable reserves in or near areas of
conflict
EM-MM-210a.1
Percentage of (1) proved and (2) probable reserves in or near indigenous
land
EM-MM-210a.2
N/A - all of our operations are
located in Australia where there
is no conflict
All of our operations fall on land
recognised under Indigenous
Native Title. The Native Title Act
1993, ensures the co-existence
of land management with the
recognition and protection of
Native Title
92
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 RAMELIUS RESOURCES ANNUAL REPORT 2022
95
CONTENTS
Directors’ report
Directors
Company Secretary
Principal activities
Key highlights for the year
Dividends
Events since the end of the financial year
Operations review
Financial review
Investor relations
Material business risks
Environmental regulation
Information on Directors
Meetings of Directors
Remuneration report
Shares under option
Insurance of officers and indemnities
Proceedings on behalf of the company
Non-audit services
Auditor independence
Rounding of amounts
Auditor’s independence declaration
Financial Statements
Financial statements
Notes to the financial statements
Signed Reports
Directors’ declaration
Independent auditor’s report to the members
96
96
96
96
96
96
97
97
97
102
102
104
106
108
108
120
120
120
120
120
120
121
122
124
129
179
179
180
ANNUAL
FINANCIAL
REPORT
2022
FOR THE YEAR ENDED 30 JUNE 2022
94
94
94
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022 DIRECTORS’ REPORT
DIRECTORS’ REPORT (continued)
97
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 2022.
DIRECTORS
The following persons were Directors of Ramelius Resources Limited at the date of this report:
Bob Vassie
Mark Zeptner
David Southam
Natalia Streltsova
Fiona Murdoch
All Directors served on the Board for the period 1 July 2021 to 30 June 2022, except for Fiona Murdoch, who was appointed as a
Director of the Company on 1 December 2021.
Mike Bohm retired as a Director of the Company on 31 May 2022. Mr Bohm had served on the Board from 29 November 2012.
The qualifications, experience, special responsibilities, and other details of the Directors in officer as at the date of the report appear on
pages 106 to 107 of this report.
COMPANY SECRETARY
The Company Secretary is Richard Jones. Mr Jones has nearly 20 years’ experience as a corporate commercial lawyer in both private and
in house capacities and across various industries. He has also served as Company Secretary for ASX listed and unlisted companies in the
mining sector.
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year were mine operations (including the production and sale of gold), mine development,
and exploration and evaluation. There were no significant changes to those activities during the year.
KEY HIGHLIGHTS FOR THE YEAR
A Review of the Group’s Key Highlights for the Year is discussed in the ‘Key Operational Highlight for the Year’ section of this annual
report.
DIVIDENDS
Dividends recommended but not yet paid
Since the end of the 2022 financial year the Directors have recommended the payment of a fully franked final dividend of 1.0 cent per fully
paid share. The fully franked final dividend will have a record date of 16 September 2022 and a payment date of 11 October 2022.
This dividend will be eligible for participation in the Dividend Reinvestment Plan that has been implemented by Ramelius. The reinvestment
price is based on a 2.5% discount to the 10-day volume weighted average price after the date of election.
The financial effect of this final dividend has not been brought to account in the financial statements for the year ended 30 June 2022 but
will be recognised in subsequent financial reports.
Final ordinary dividend for the 2021 financial year of 2.5 cents (2021: 2.0 cents)
per fully paid share paid on 4 October 2021
Table 7: Dividends paid during the 2022 financial year
Note
2022
$M
20.4
2021
$M
16.2
96
EVENTS SINCE THE END OF THE FINANCIAL YEAR
There were no matters or circumstances that have arisen since 30 June 2022 that have, or may, significantly affect the Group’s operations,
results, or state of affairs, or may do so in the future.
OPERATIONS REVIEW
A review of the Group’s Development and exploration projects for the year is discussed in the ‘Review of Operations’ section of this
Annual Report, which commences on page 10.
FINANCIAL REVIEW
Overview
The financial performance for the 2022 financial year was generated from revenue of $603.9 million on the sale of 251,355 ounces from
the combined processing centres at Mt Magnet and Edna May. The 2022 financial performance also included the impact of events not in
the ordinary course of business, which included the sale of the Kathleen Valley Lithium Royalty for $30.3 million and the pre-tax non-cash
impairment of the Edna May CGU of $94.5 million (post-tax of $68.7 million). Table 6 in this report reconciles the statutory earnings to the
underlying earnings, which has been adjusted for these items.
The table below shows the financial performance of the Group for the 2022 financial year.
Financial performance
Revenue
Cash costs of sales
Gross margin excl ‘non-cash’ items
Amortisation and depreciation
Inventory movements
Gross profit
Impairment of mine development and PP&E
Impairment of exploration & evaluation assets
Gain on sale of non-core assets
Corporate expenses and other amounts
Earnings before interest and tax (EBIT)
Net finance costs
Profit / (loss) before income tax
Income tax expense
Net profit/(loss) after tax (NPAT)
Mt Magnet
$M
295.6
(195.9)
99.7
(80.1)
51.1
70.7
-
-
-
-
70.7
-
70.7
-
70.7
Edna May
$M
308.3
(191.8)
116.5
(102.3)
45.4
59.6
(94.5)
-
-
-
(34.9)
-
(34.9)
-
(34.9)
Corp
& other
$M
-
-
-
-
-
-
-
(16.7)
30.3
(24.3)
(10.7)
(2.6)
(13.3)
(10.1)
(23.4)
2022
$M
603.9
(387.7)
216.2
(182.4)
96.5
130.3
(94.5)
(16.7)
30.3
(24.3)
25.1
(2.6)
22.5
(10.1)
12.4
2021
$M
634.3
(281.5)
352.8
(163.0)
0.7
190.5
-
(5.0)
5.9
(13.9)
177.5
(2.7)
174.8
(48.0)
126.8
Change
$M
(30.4)
(106.2)
(136.6)
(19.4)
95.8
(60.2)
(94.5)
(11.7)
24.4
(10.4)
(152.4)
0.1
(152.3)
37.9
(114.4)
Change
%
- 5 %
+ 38 %
- 39 %
+ 12 %
n/a
- 32 %
n/a
+234%
+414%
+ 75%
- 86 %
- 4 %
- 86 %
- 79 %
- 90 %
Table 8: Group financial performance for the 2022 financial year
Profit
The Group reported an EBIT of $25.1 million and NPAT of $12.4 million for the financial year ended 30 June 2022. This is an 86% and
90% decrease respectively from the prior year (2021: EBIT $177.5 million and NPAT of $126.8 million). As outlined at Table 6 and Figure 6
below, when normalising for the effects of the Edna May impairment charges and other one-off sales, including the Kathleen Valley Lithium
Royalty, the underlying NPAT was $73.0 million (2021: $120.9 million) and the underlying earnings before interest, tax, depreciation, and
amortisation (EBITDA) was $292.8 million (2021: $338.1 million).
Gold sales were down on the 2021 financial year with lower production from Mt Magnet (throughput and grade driven) being offset
in part by higher production from Edna May (introduction of the higher grade Tampia ore). Higher costs across the industry were only
partially offset by a higher realised gold price for the year.
The Mt Magnet operations reported an EBIT of $70.7 million, a 53% decrease from the prior year (2021: $151.2 million), primarily due to
a higher cost per tonne (industry cost pressures and more ore being sourced from higher cost underground mines) and a lower overall
milled grade. The higher realised gold price for the year offset, in part, the impact of the higher costs.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 DIRECTORS’ REPORT (continued)
DIRECTORS’ REPORT (continued)
99
At Edna May, an EBIT of $59.6 million (before impairment charges) was reported representing a 52% increase on the prior year
(2021: $39.3 million). This increase was driven by the higher gold production and higher realised gold price for the year. The impact of
higher costs at Edna May (industry wide cost pressures and increased haulage from Tampia) was offset by the higher milled grade for the
year with the operating margin per ounce also increasing on the prior year in line with the higher realised gold price.
Underlying result reconciliation ($M)
Statutory NPAT
Tax
Interest income
Finance costs
EBIT
EBIT margin (%)
Depreciation & amortisation
EBITDA
EBITDA margin (%)
Add:
Impairment charges – Edna May
Impairment charges – Exploration
Fair value adjustments1
Less:
Asset & royalty sales
Tax adjustments:
Tax effect of adjustments
Spectrum tax losses
Underlying result
Underlying margin (%)
NPAT
2022
EBIT
EBITDA
12.4
-
-
-
-
-
-
-
-
94.5
16.7
3.8
(30.3)
(22.8)
(1.3)
73.0
12%
12.4
10.1
(0.5)
3.1
25.1
4%
-
-
-
94.5
16.7
3.8
(30.3)
n/a
n/a
109.8
18%
12.4
10.1
(0.5)
3.1
-
-
183.0
208.1
34%
94.5
16.7
3.8
(30.3)
n/a
n/a
292.8
49%
Table 9: Reconciliation of statutory NPAT to underlying NPAT, EBIT, and EBITDA.
1. Fair value adjustments relate to non-cash changes in the fair value of deferred consideration and investments measured at fair value through profit and loss.
STATUTORY EBITDA TO UNDERLYING NPAT
16.7
3.8
94.5
183.0
30.3
292.8
m
$
A
350
300
250
200
150
100
50
0
208.1
109.8
2.6
10.1
Statutory
EBITDA
Add back:
Edna May
impairment
charges
Add back:
Exploration
impairment
charges
Add back:
Fair value
adjustments
Less:
Kathleen
Valley
Royalty sale
Underlying
EBITDA
Depreciation
&
amortisation
Underlying
EBIT
Net finance
costs
Statutory
tax expense
Tax effect of
underlying
adjustments
Underlying
NPAT
Figure 5: Statutory EBITDA to Underlying NPAT
98
98
RAMELIUS RESOURCES ANNUAL REPORT 2022
Revenue
Revenue for the year decreased by 5% to $603.9 million compared to $634.3 million for the prior year. This was due to a 9% decrease in
gold ounces sold (2022: 251,355oz / 2021: 277,450oz), offset in part by a 5% increase in the realised gold price (2022: A$2,399/oz / 2021:
A$2,282/oz). Gold sales are down due to the 5% lower gold production and the timing of gold sales with just over 7,000 ounces being in
transit at reporting date.
The total gold sold of 251,355 ounces included deliveries into the opening hedge book of 140,500 ounces at a realised gold price of
A$2,302/oz and the remaining spot / short-term contract sales of 110,855 ounces at a realised gold price of A$2,521/oz.
At 30 June 2022 the Group’s hedge book totalled 196,000 ounces at a price of A$2,512/oz, representing a 5% decrease in ounces
committed and 8% increase in the average price (2021: 206,000 ounces at A$2,335/oz).
EBIT – Mt Magnet
In the 2021 financial year Mt Magnet benefited from exceptionally high grade ore from Shannon (7.12g/t), Stellar open pit (3.81g/t), and
Vivien (5.21g/t). These mines were either completed in 2021 (Stellar) or were approaching the end of their life with the high grade ore of
the prior year not being replicated in the 2022 financial year (Shannon & Vivien). This impacted the 2022 financial performance of
Mt Magnet. EBIT for Mt Magnet was $70.7 million (2021: $151.2 million).
The Mt Magnet operating cost per tonne increased 8% on the prior year with more tonnes being sourced from the higher cost, but higher
grade underground mines. Mt Magnet also incurred increased costs in line with the cost pressures being experienced across the industry
(particularly in relation wages, diesel, steel, and reagents).
The milled grade at Mt Magnet decreased 14% on the prior year due to lower grades from the underground mines when compared to the
2021 financial year. In addition to this a greater proportion of low grade material was milled to compensate for the lack of oxide ore feed
and the need to balance the hardness of the Eridanus ore. The introduction of oxide material from the Orion pit is expected to alleviate
this in the 2023 financial year.
The resulting cost per ounce at Mt Magnet increased $457 per ounce to $1,827 per ounce for the 2022 financial year. EBIT margin per
ounce was somewhat mitigated by the higher realised gold price, however, it still decreased to $571/oz (2021: $912/oz).
The outlook for Mt Magnet remains very positive with the imminent introduction of commercial quantities of ore from the Penny Gold
Mine, which is of exceptionally high grade (Ore Reserve 500kt at 14.0g/t for 230koz).
EBIT – Edna May
The 2022 financial year was again another year of change for Edna May with the ore feed from the Greenfinch pit at Edna May being
replaced by higher grade ore being hauled from Tampia. This, coupled with higher grades from Marda, resulted in a 32% increase in the
milled grade at Edna May. As a result, the EBIT for Edna May, before any impairment charges, increased from the prior year to $59.6 million
(2021: $39.3 million).
However, with the introduction of ore hauled from Tampia and an increased cost environment (particularly in relation wages, diesel, steel,
and reagents) the operating cost per tonne at Edna May increased 25%. The impact of this on the cost per ounce was though negated,
almost in full, by the higher grades (2022: $1,939/oz / 2021: $1,937/oz).
The higher realised gold price for the year saw the EBIT margin per ounce at Edna May increase to $460/oz (2021: $345/oz).
Impairment – Edna May
A review of potential impairment indicators for the Edna May CGU was undertaken as at 30 June 2022, and concluded that there were
potential indicators of impairment. As a result, an impairment test was performed to determine the recoverable amount of the Edna May
CGU.
The review conducted on the Edna May carrying value determined that a pre-tax, non-cash impairment of $94.5 million ($68.7 million
post-tax) be recognised in the year.
Corporate & other costs
The main driver of the increase in other costs was the non-cash $3.8 million fair value adjustments on deferred consideration and
investments compared to an income of $1.9 million in the prior year. Excluding these non-cash fair value amounts corporate & other
expenses equated to $83 per ounce sold which is higher than the prior year (2021: $59 per ounce sold) due mainly to higher salary
and wages costs and lower ounces sold.
24.1
73.0
For further details on the impairment loss recorded for Edna May refer to Note 11 of the financial statements.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
DIRECTORS’ REPORT (continued)
DIRECTORS’ REPORT (continued)
101
Sale of non-core projects
During the year Ramelius entered into an agreement to terminate the Lithium Royalty over Liontown Resources Limited’s (LTR) Kathleen
Valley Lithium Project for consideration of $30.3 million. The sale of the Royalty was completed through a competitive process, with
multiple bids being received. The divestment of this non-core asset, which carried no value in the balance sheet of Ramelius, provided
additional liquidity for Ramelius with the sale of a non-core asset in an extremely favourable lithium price environment.
The Royalty was originally granted to Ramelius when it disposed of the Kathleen Valley Lithium-Tantalum project to LTR in 2016.
The Royalty comprised both a production component of A$0.50/t or ore mined and a sales component of 1% of the gross sales of the
ore. This sale is reported within other income in the income statement and considered to be outside of the ordinary course of business.
Income tax
The effective tax rate for the Group for the year ended 30 June 2022 was 45%, compared to 27% for the prior year. The increased
effective tax rate is due to the disproportionate impact of certain non-deductible expenses, including impairments, share based payments
and various business development expenses on the lower accounting profit before tax. The effective tax rate has also been impacted by
the tax benefit arising upon the transfer of the $4.1 million of Apollo tax losses ($1.3 million tax benefit) to Ramelius.
The net effect of the above items is to increase the income tax expense recorded in the income statement by $3.3 million. As a percentage
of profit before tax, these adjustments represent a 15% increase to the statutory tax rate of 30%.
The income tax expense, along with any deferred tax liabilities is discussed further in Note 3 to the financial statements.
Balance sheet
The net assets of the Group increased 13% to $720.9 million over the year (2021: $635.8 million), mainly as a result of the NPAT for the
year and the acquisition of the Rebecca Gold Project (Apollo Consolidated Limited).
Current assets
Current assets decreased from the prior year by $40.7 million to $292.1 million. The decrease was mainly due to the reduction in the cash
balance (due largely to the Apollo acquisition) and a significant investment in the build-up of ore stockpiles across the operations. However
due to the size of the stockpiles, particularly at Mt Magnet, and the timeframe over which they will be processed, approximately $66.1
million of this value has been classified as non-current (see Note 5 to the financial statements). Notwithstanding, the current inventory
balance remains high at $133.6 million (2021: $100.8 million) and contains approximately 79,000 ounces for future, short-term cashflow
realisation.
The trade and other receivables have increased to $7.2M (2021: $1.9M) as it includes the tax refund of $5.2M due to Ramelius. Other
current assets are largely the same as last year.
Current liabilities
Current liabilities increased by $6.6 million to $126.5 million over the prior year. Trade creditors and accruals were higher due to the
inclusion of an accrual of $8.0 million for the stamp duty on the Apollo acquisition (Rebecca Project) and the generally higher level of
operating activities compared to those of last year (e.g. Tampia and Penny underground now fully operational). Provisions are also higher
due to increases in salary and wages (leave provisions increase correspondingly) and mine rehabilitation, due to slightly higher expected
future costs to remediate.
Mitigating these items was the removal of $30.3 million in tax payable which was cleared in the 2022 financial year. The liability has now
become a receivable as noted above.
The net current asset position reduced to $165.6 million from $212.8 million in the prior year. Despite the reduction (due mainly to a
stockpile reclassification to non-current), balance sheet liquidity at Ramelius remains very healthy with cash and gold of $172.9 million (cash
of $147.8 million and gold with a value of $25.1 million based on year end spot prices). In addition to this, Ramelius has access to a $100
million revolving corporate facility (discussed further below).
Non-current assets
The balance at 30 June 2022 totals $659.8 million, which is $146.2 million higher than 30 June 2021. The increase came largely from the
acquisition of the Rebecca Gold Project and the classification of $66.1 million in inventories to non-current. The $94.5 million impairment
to the Edna May CGU reduced that impact somewhat, however the non-current assets still increased by 28%.
Non-current liabilities
The increase in the value of the non-current lease liability from $9.4 million to $25.1 million was the main reason for the 15% increase in
non-current liabilities. This increase came about from the new mining contract at Penny and the renewal of the Mt Magnet underground
contract. Other categories remained stable.
100
Cash flows
Cash provided by operating activities of $159.4 million were down 48%, or $146.2 million, on the prior year. However, the decrease on
the prior year is mainly due to an increase in cash invested in ore stockpiles and gold bullion on hand at 30 June 2022 (combined increase
of $68.3 million – the benefit of which will come in future reporting periods), $26.0 million additional income tax payments (payments for
both the 2021 and 2022 financial years were made in the year), and lower gold sales (down $30.2 million).
Cash used in investing activities was $9.5 million higher than the prior year primarily due to the net impact of the acquisition of the Rebecca
Gold Project and the sale of the Kathleen Valley Royalty, and lower project development costs (mine development and capital expenditure).
A total of $145.8 million was reinvested into the business, including:
•
•
•
Payments for the development of open pit and underground mines of $94.3 million;
Payments for property, plant, and equipment, at both existing and new sites, of $23.7 million; and
Payments for tenements and exploration of $28.0 million.
A total of $47.3 million was used by financing activities in the year, predominantly relating to lease payments and dividends paid to
shareholders.
The underlying cashflow of the business (as shown below) was $36.2 million (2021: $148.2 million).
MOVEMENT IN CASH
184.4
Underlying cashflow of $36.2M
228.5
145.8
2.4
30.3
264.7
20.4
70.8
5.5
147.8
50.5
500
450
400
350
300
250
200
150
100
50
0
m
$
A
Opening
cash
Operating
cash flows
(inc lease
payments)
Capital,
exploration,
mine
development
Other
Opening
cash
underlying
cashflow
Sale of
Kathleen
Valley
royalty
Dividends
Payments
for
Rebecca
Contingent
consideration
Tax
Closing cash
Figure 6: Movement in cash for the 2022 financial year
Cash and gold at 30 June 2022 totalled $172.9 million (2021: $234.0 million) comprising cash and cash equivalents of $147.8 million (2021:
$228.5 million) and gold on hand of 9,611 ounces (2021: 2,341 ounces). Using a spot price of A$2,617/oz the gold on hand had a value of
$25.1 million (2021: $5.5 million at a spot price of A$2,360).
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DIRECTORS’ REPORT (continued)
103
Financial Risk Management
Ramelius held forward gold sales contracts at 30 June 2022 totalling 196,000 ounces of gold at an average price of A$2,512 per ounce
over a period to November 2024. This compared to forward gold sales contracts at 30 June 2021 totalling 206,000 ounces of gold at an
average price of A$2,335 per ounce over a period to March 2023.
Hedge replacement continued with Ramelius taking advantage of the settlement of lower price positions and replacing them with those in
an improving gold price environment, particularly in the second half of the financial year. This approach resulted in the average price of the
forward gold sales contracts increasing by 8% over the year and the level of committed ounces reducing by 5%.
During the year, Ramelius executed a Syndicated Facility Agreement (SFA) with Commonwealth Bank of Australia, BNP Paribas (Australia
branch) and National Australia Bank Limited. The SFA and associated documents provide Ramelius with a revolving corporate facility of
$100 million plus a $2.5 million bank guarantee facility.
The primary use of the facilities is for general corporate purposes. The facilities have a term of two years with the option to extend by a
further year on the basis that certain market standard conditions are met. The facilities are currently undrawn, and the Company remains
debt free.
INVESTOR RELATIONS
During the year the company presented at several conferences (both in person and virtually) and conducted road shows to existing and
prospective investors, analysts and stockbrokers. These included:
• Noosa Mining Conference (virtual) – July 2021;
• Diggers & Dealers – August 2021;
• Denver Gold Forum (virtual) – September 2021;
•
•
•
RIU Conference – February 2022;
Euroz Hartleys Rottnest – March 2022; and
Various virtual investor presentations.
Each presentation that contained new content was released to the ASX and was made available on both the ASX (www.asx.com.au) and
the Ramelius Resources website (www.rameliusresources.com.au).
MATERIAL BUSINESS RISKS
The material business risks for the group include:
•
COVID-19: Ramelius continues to actively respond to the ongoing COVID-19 virus currently impacting people and businesses
globally. The health and safety of every person working at Ramelius, their families and our communities remains paramount during
this time.
Ramelius continues to operate under protocols developed internally and as prescribed by State and Federal health authorities to
minimise risks to our people and communities and ensure we continue to safely produce gold during this challenging period.
These protocols and procedures include contract tracing, physical distancing, and pre-commute testing and screening. During
the year a contract tracing system was implemented at the Mt Magnet and Edna May sites allowing for faster and more accurate
assessment of close contacts to any positive cases on site. This system remains in use at the date of the report.
All Ramelius mine operations are located within Western Australia which has enabled the group to have a dynamic, rapid, and
consistent approach to the management of the COVID-19 virus.
Fluctuations in the United States Dollar (USD) spot gold price and AUD/USD exchange rate: The financial results and
position of the Group are reported in Australian dollars. Gold is sold throughout the world based principally on the USD price.
Accordingly, the Group’s revenues are linked to both the USD spot gold price and AUD/USD exchange rate. Volatility in the
gold price creates revenue uncertainty and requires careful management to ensure that operating cash margins are maintained
should there be a sustained fall in the AUD spot gold price. The Group uses AUD gold forward contracts, within certain Board
approved limits, to manage exposure to fluctuations in the AUD gold price.
Government regulation: The Group’s mining, processing, development and exploration activities are subject to various
laws and statutory regulations governing prospecting, development, production, taxes, royalty payments, labour standards and
occupational health, mine safety, toxic substances, land use, water use, communications, land claims of local people and other
matters.
•
•
102
No assurance can be given that new laws, rules and regulations will not be enacted or that existing laws, rules and regulations
will not be applied in a manner which could have an adverse effect on the group’s financial position and results of operations.
Any such amendments to current laws, regulations and permits governing operations and activities of mining and exploration, or
more stringent implementation thereof, could have a material adverse impact on the Group.
•
Operating risks and hazards: The Group’s mining operations, consisting of open pit and underground mines, involve a degree
of risk. The Group’s operations are subject to all the hazards and risks normally encountered in the exploration, development and
production of gold. Processing operations are subject to hazards such as equipment failure, toxic chemical leakage, loss of power,
fast moving heavy equipment, failure of tailings disposal pipelines and retaining dams around tailings containment areas, rain
and seismic events which may result in environmental pollution and consequent liability. The impact of these events could lead
to disruptions in production and scheduling, increased costs and loss of facilities, which may have a material adverse impact on
the group’s results of operations, financial condition, license to operate and prospects. These risks are managed by a structured
operations risk management framework, experienced employees and contractors and formalised procedures. Ramelius also has in
place a comprehensive insurance program with a panel of experienced industry supportive underwriters.
•
Production, cost and capital estimates: The Group prepares estimates of future production, operating costs and capital
expenditure relating to production at its operations. The ability of the Group to achieve production targets or meet operating
and capital expenditure estimates on a timely basis cannot be assured.
•
•
The future production and costs of the Group are subject to uncertainty for a variety of reasons, including: variances in actual ore
mined due to varying estimates of grade, tonnage, dilution, metallurgical and other characteristic; revisions of mine plans; changing
ground conditions; labour availability and costs; diesel costs; and general inflationary pressures being felt across the industry. Failure
to achieve production, cost or capital estimates, or material increases to costs, could have an adverse impact on the Group’s
future cash flows, profitability and financial condition.
The development of estimates is managed by the Group using a rigorous budgeting and forecasting process. Actual results are
compared with forecasts and budgets to identify drivers behind discrepancies which may result in updates to future estimates.
Exploration and development risk: An ability to sustain or increase the current level of production in the longer term is in
part dependent on the success of the Group’s exploration activities and development projects, and the expansion of existing
mining operations. The exploration for, and development of, mineral deposits involves significant risks that even a combination
of careful evaluation, experience and knowledge may not eliminate. While the discovery of an ore body may result in substantial
rewards, few properties that are explored subsequently have economic deposits of gold identified, and even fewer are ultimately
developed into producing mines. Major expenses may be required to locate and establish mineral reserves, to establish rights
to mine the ground, to receive all necessary operating permits, to develop metallurgical processes and to construct mining and
processing facilities at a particular site.
Ore Reserves and Mineral Resources: The Group’s estimates of Mineral Resources and Ore Reserves are based on different
levels of geological confidence and different degrees of technical and economic evaluation, and no assurance can be given that
anticipated tonnages and grades will be achieved, that the indicated level of recovery will be realised or that Ore Reserves could
be mined or processed profitably. The quality of any Mineral Resources and Ore Reserves estimate is a function of the quantity
of available technical data and of the assumptions used in engineering and geological interpretation and modifying factors affecting
economic extraction. Such estimates are compiled by experienced and appropriately qualified personnel and subsequently
reported by Competent Persons under the JORC Code. Fluctuation in gold prices, key input costs to production, as well as the
results of additional drilling, and the evaluation of reconciled production and processing data subsequent to any estimate may
require revision of such estimates.
Actual mineralisation of ore bodies may be different from those predicted, and any material variation in the estimated Ore
Reserves, including metallurgy, grade, dilution, ore loss, or stripping ratio at the group’s properties may affect the economic
viability of its properties, and this may have a material adverse impact on the group’s results of operations, financial condition
and prospects. There is also a risk that depletion of reserves will not be offset by discoveries or acquisitions, or that divestitures
of assets will lead to a lower reserve base. The reserve base of the group may decline if reserves are mined without adequate
replacement and the group may not be able to sustain production beyond current mine lives, based on current production rates.
•
Climate Change: Ramelius acknowledges that climate change effects have the potential to impact our business. The highest
priority climate related risks include reduced water availability, extreme weather events, changes to legislation and regulation,
reputational risk, and technological and market changes. The Group is committed to understanding and proactively managing the
impact of climate related risks to our business. This includes integrating climate related risks, as well as energy considerations, into
our strategic planning and decision making.
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105
DIRECTORS’ REPORT (continued)
ENVIRONMENTAL REGULATION
Regulations
The operations of the Group in Australia are subject to environmental regulations under both Commonwealth and State legislation. In the
mining industry, many activities are regulated by environmental laws as they may have the potential to cause harm and/or otherwise impact
upon the environment. Therefore, the Group conducts its operations under the necessary State Licences and Works Approvals to carry
out associated mining activities and operate a processing plant to process mined resources. The Group’s licences and works approvals are
such that they are subject to audits both internally and externally by the various regulatory authorities. These industry audits provide the
group with valuable information in regard to environmental performance and opportunities to further improve systems and processes,
which ultimately assist the business in minimising environmental risk.
Reporting
Due to the various licences and works approvals the Group holds, annual environmental reporting (for a twelve month period) is a licence
and works approval condition. The Group did not experience any reportable environmental incidents for the reporting year 2021-2022.
Regulatory agencies requiring annual environmental reports are outlined below but are not limited to the following:
• Department of Water and Environmental Regulation;
• Department of Mines, Industry Regulation and Safety;
•
Tenement Condition Report;
• Native Vegetation Clearing Report;
• Mining Rehabilitation Fund Levy;
• National Pollutant Inventory;
• National Greenhouse and Energy Reporting Scheme; and
•
Bureau of Land Management.
Sustainability
The Group is committed to sustainability and works closely with the regulatory authorities to minimise the environmental impact and
achieve sustainable operations. Continuous improvement processes are implemented to improve the operation and environmental
performance. The Group seeks to build relationships with all stakeholders to ensure that their views and concerns are taken into account
in regard to decisions made about the operations, to achieve mutually beneficial outcomes. This includes current operations, future planning
and post closure activities. Environmental, Social, and Corporate Governance (ESG) performance is critical to maintaining our licences
to operate, which in turn is fundamental to our financial performance. Details of the Group’s environmental and social performance are
set out in the annual Sustainability Report and details of the Group’s governance framework and compliance are set out in the annual
Corporate Governance Statement, both available at rameliusresources.com.au.
104
104
RAMELIUS RESOURCES ANNUAL REPORT 2022
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DIRECTORS’ REPORT (continued)
DIRECTORS’ REPORT (continued)
INFORMATION ON DIRECTORS
The following information is current as at the date of this report.
107
Bob Vassie
FAusIMM GAICD B.MinTech
(Hons) Mining
Independent Chair
Non-Executive
Mark Zeptner
BEng (Hons) Mining, MAusIMM,
MAICD
David Southam
B.Comm, CPA, MAICD
Managing Director
& Chief Executive Officer
Independent Director
Non-Executive
Natalia Streltsova
MSc, PhD (Chem Eng), GAICD
Fiona Murdoch
LLB (Hons) MBA GAICD
Independent Director
Non-Executive
Independent Director
Non-Executive
Experience
Mr Southam is a Certified Practicing
Accountant with more than 25 years’
experience in accounting, capital markets
and finance across the resources and
industrial sectors. Mr Southam has been
intimately involved in several large project
financings in multiple jurisdictions and has
completed significant capital market and
M & A transactions.
Interest in Shares and Options
20,217 Ordinary Shares
Special responsibilities
Chair of Audit Committee
Member of Nomination & Remuneration
Committee
Directorships held in other listed
entities in the last three years
Previously Managing Director of
Mincor Resources NL
Experience
Mr Zeptner has more than 30 years’
industry experience including senior
operational and management positions
with WMC and Gold Fields Limited
at their major gold and nickel assets in
Australia and offshore. He joined Ramelius
Resources Limited on 1 March 2012 as the
Chief Operating Officer, was appointed
Chief Executive Officer on 11 June 2014
and Managing Director effective 1 July
2015.
Interest in Shares and Options
2,762,500 Ordinary Shares
500,000 Performance Rights over
Ordinary Shares expiring on 11 June 2026
322,342 Performance Rights over
Ordinary Shares expiring on 1 July 2027
568,956 Performance Rights over
Ordinary Shares expiring on 1 July 2028
644,683 Performance Rights over
Ordinary Shares vesting on 1 July 2022
and expiring on 1 July 2029
355,392 Performance Rights over
Ordinary Shares vesting on 1 July 2023
and expiring on 1 July 2030
442,528 Performance Rights over
Ordinary Shares vesting on 1 July 2024
and expiring on 1 July 2026
Special responsibilities
Chief Executive Officer
Experience
Mr Vassie is a mining engineer with more
than 35 years multi commodity and
international experience. Mr Vassie spent
18 years with Rio Tinto in global mining
and resource development executive
roles followed by MD & CEO positions in
Ivanhoe Australia and St Barbara Ltd with
a focus on executive leadership, resource
development and business development
including M&A.
Mr Vassie served as a board member for
the Minerals Council of Australia from
2014 to 2020 where he chaired the MCA
Gold Forum and currently serves on
the AusIMM Council for Diversity and
Inclusion.
Interest in Shares and Options
80,000 Ordinary Shares
Special responsibilities
Chair of the Board
Member of Audit Committee
Member of Nomination & Remuneration
Committee
Member of Risk & Sustainability
Committee
Directorships held in other listed
entities in the last three years
Non-Executive Director Aurelia
Metals Limited
Previously Managing Director of
St Barbara Limited
Previously Non-Executive Director of
Alita Resources Limited
106
Experience
Dr Streltsova is a PhD qualified Chemical
Engineer with more than 25 years’
minerals industry experience, including
over 10 years in senior technical and
corporate roles with mining majors –
WMC, BHP and Vale. She has a strong
background in mineral processing and
metallurgy with specific expertise in gold
and base metals.
Dr Streltsova has considerable
international experience covering project
development and acquisitions in Africa,
South America and in the countries of the
Former Soviet Union.
Interest in Shares and Options
12,000 Ordinary Shares
Special responsibilities
Chair of Risk & Sustainability Committee
Directorships held in other listed
entities in the last three years
Previously Non-Executive Director of
Western Areas Limited
Non-Executive Director of Neometals
Limited
Non-Executive Chair Australian Potash
Limited
Non-Executive Director of Centaurus
Metals Limited
Experience
Ms Murdoch is a lawyer and senior
executive leader with over 30 years of
commercial and operational experience in
the resources and infrastructure sectors in
Australia and internationally, including with
MIM Holdings, Xstrata Queensland and
the AMCI Group.
Ms Murdoch was appointed Non-
executive Director in December 2021.
Interest in Shares and Options
34,500 Ordinary Shares
Special responsibilities
Chair of Nomination & Remuneration
Committee
Member of Risk & Sustainability
Committee
Member of Audit Committee
Directorships held in other listed
entities in the last three years
Previously Non-Executive Director of
KGL Limited
Non-Executive Director
NRW Holdings Ltd
Non-Executive Director
Metro Mining Limited
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DIRECTORS’ REPORT (continued)
109
MEETINGS OF DIRECTORS
The number of meetings of the Company’s Board of Directors and each Board Committee held during the year ended 30 June 2022, and
number of meetings attended by each Director were:
Meetings of Committees
Full meetings
of Directors
Audit
Committee
Nomination &
Remuneration
Committee
Risk & Sustainability
Committee
A
20
20
16
20
19
12
B
20
20
16
20
20
12
A
5
-
-
5
2
3
B
5
-
-
5
2
3
A
6
-
5
6
-
1
B
6
-
5
6
-
1
A
4
-
3
-
4
2
B
4
-
3
-
4
2
Director
Bob Vassie
Mark Zeptner
Michael Bohm
David Southam
Natalia Streltsova
Fiona Murdoch
Table 10: Director attendance at Board & Committee meeting for the 2022 financial year
A = Number of meetings attended; B = Number of meetings held during the time the Director held office or was a member of the Committee during the year
REMUNERATION REPORT (AUDITED)
The Directors present the Ramelius Resources Limited 2022 Remuneration Report, outlining key aspects of our remuneration policy and
framework, and the remuneration awarded this year. This Remuneration Report is prepared in accordance with the requirements of the
Corporations Act 2001 (the Act) and its regulations. This information has been audited as required by section 308(3C) of the Act.
The Remuneration Report details the remuneration arrangements for Key Management Personnel who are defined as those persons
having authority and responsibility for planning, directing, and controlling the major activities of the Group, directly or indirectly, and is a
direct report to the Managing Director / Chief Executive Officer. This includes any Directors (Executive and Non-Executive) of Ramelius
Resources Limited, the Chief Financial Officer, Chief Operating Officer, Executive General Manager – Exploration, and the Company
Secretary & Executive General Manager Legal / HR / Risk / Sustainability.
This Remuneration Report includes the following disclosures:
Section
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
Description
Key Management Personnel covered in this report
Remuneration governance
Remuneration policy and framework
Elements of remuneration
Link between remuneration and performance
Contractual arrangements for Executive Key Management Personnel
Non-Executive Director arrangements
Details of KMP remuneration
Other statutory information
(a) Key management personnel covered in this report
The following Executives and Non-Executive Directors (NEDs) were the Key Management Personnel (KMP) for the 2022 financial year.
Former Executives and NEDs who were KMP for part of the 2022 or 2021 financial years are also covered by the Report, where required.
KMP during the 2022 financial year were as follows:
108
Position
Appointment date
Ceased date
Name
Executives
Mark Zeptner
Tim Manners
Duncan Coutts
Richard Jones
Managing Director / Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Company Secretary & Executive General Manager Legal / HR /
Risk / Sustainability
Executive General Manager – Exploration
Peter Ruzicka
Non-Executive Directors
Non-Executive Chair
Bob Vassie
Non-Executive Director
Michael Bohm
David Southam
Non-Executive Director
Natalia Streltsova Non-Executive Director
Non-Executive Director
Fiona Murdoch
10 March 2012
31 July 2017
12 February 2016
1 October 2018
20 April 2021
1 January 2021
29 November 2012
2 July 2018
1 October 2019
1 December 2021
-
-
-
-
-
-
31 May 2022
-
-
-
Table 11: KMPs during the 2022 financial year
Details on the Executive and Non-Executive Directors can be found on pages 106 to 107 of the Directors Report.
(b) Remuneration governance
The Nomination & Remuneration Committee (NRC) is a Committee of the Board. It is primarily responsible for making recommendations
to the Board on:
• Non-Executive Director fees;
• Non-Executive and Executive Management/KMP appointments;
•
•
Executive remuneration (Directors and Executives); and
The Executive remuneration framework and incentive plan policies.
The objective of the NRC is to ensure that remuneration policies and structures are fair and competitive and aligned with the long-term
interests of the company. In performing its functions, the NRC may seek advice from independent remuneration consultants.
(c) Remuneration policy and framework
Ramelius has adopted a policy that aims to attract, motivate and retain a skilled Executive team focused on contributing to its objective
of creating wealth and adding value for its shareholders. The remuneration framework has been formed on this basis. The remuneration
framework is based on several factors including the experience and performance of the individual in meeting key objectives of Ramelius.
The objective of the Executive remuneration framework includes incentives that seek to encourage alignment of management performance
and shareholder interests. The framework aligns executive rewards with strategic objectives and the creation of value for shareholders and
conforms to market practices for delivery of rewards.
In determining Executive remuneration, the NRC aims to endeavour that remuneration practices are:
• Competitive and reasonable, enabling the company to attract and retain and incentivise key talent;
• Aligned to the company’s strategic and business objectives and the creation of shareholder value;
• Distinctly demonstrate a link between performance and remuneration;
•
• Acceptable to shareholders; and
•
Structured to have a suitable mix of fixed and performance related variable components;
Transparent.
The Executive remuneration framework is designed to ensure market competitiveness and achievement of the remuneration objective. The
remuneration of Executives is:
•
Benchmarked from time to time against similar organisations both within the industry and of comparable market size to ensure
uniformity with market practices;
• A reflection of individual roles, levels of seniority and responsibility that key personnel hold;
•
• A mix of fixed remuneration and at-risk performance-based elements using short and long-term incentives.
Structured to take account of prevailing economic conditions; and
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111
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 Shareholder approved Performance Rights Plan with the granting and vesting of
performance rights approved by the Board.
The combination of these comprises an Executive’s total remuneration package. Incentive plans are regularly reviewed to ensure continued
alignment with financial and strategic objectives.
(d) Elements of remuneration
Ramelius remunerates its Executives with a total remuneration package (TRP) that consists of two components:
•
•
Total fixed remuneration; and
Total variable remuneration.
The total variable remuneration ensures an Executive’s remuneration is aligned to the Group’s performance. This portion of an
Executive’s remuneration is considered ‘at risk’. Variable remuneration can be in the form of a short-term incentive (STI) and / or a
long-term incentive (LTI).
Total fixed remuneration
Total fixed remuneration (TFR) comprises of base salary, superannuation, and any fringe benefits tax charges related to employee benefits.
The group allows a KMP to salary sacrifice certain items such as superannuation and motor vehicles (on a total cost basis).
Remuneration levels are reviewed annually in June by the NRC through a process that considers market conditions, individual performance,
and the overall performance of the Group. Industry remuneration surveys and data are utilised to assist in this process. There are no
guaranteed base pay increases included in any executive contracts.
Short-term incentives
Short-term incentives allow Executives to earn an annual incentive which is linked the Group’s annual performance.
How is it paid?
How much can an
executive earn?
How is performance
measured?
What were the
FY2021 STI measures
and outcomes?
Any STI awards are typically paid in cash after the assessment of the annual performance is made.
In the 2022 financial year the Managing Director / Chief Executive Officer was able to earn a maximum STI of
60% of the TFR. Other Executives were able to earn a maximum STI of 45% of their TFR.
In conjunction with the Group’s key performance measures detailed below, a comprehensive review of each Executive’s
individual performance is made to determine the achievable percentage (between 0% - 100%) of the maximum potential
STI available to be awarded. This may result in the proportion of remuneration related to performance varying between
individual Executives.
A structured set of key performance measures have been selected which are core drivers of short-term performance as
well as considered important for the Group’s growth and profitability.
For any STI to be paid two “gates” must be passed, these are:
• No loss of life at any project site; and
• No serious environmental, heritage, or community related breach.
For the 2022 financial year the KPIs used to measure performance for the Managing Director / Chief Executive Officer are:
• Net profit after tax relative to budget 30%
• Gold production relative to budget 20%
• All in sustaining cost (AISC) relative to budget 20%
• Discovery/Reserve addition to Mine Plan 0%
The KPIs used to measure performance for the other KMPs are as follows. Ranges are shown as the weighting varies
depending on the role of the KMP:
• Net profit after tax relative to budget 20 - 30%
• Gold production relative to budget 20 - 25%
• All in sustaining cost (AISC) relative to budget 20 - 30%
• Discovery/Reserve addition to Mine Plan 20 - 40%
The performance is measured relative to the budget with threshold, target, and stretch cases considered.
The STIs are payable at the absolute discretion of the Board. There are several modifiers considered by the
Board which may result in a downward reduction in the STI’s paid.
For any potential STI to be paid in the 2023 financial year (assessed on 2022 financial year performance) a fifth KPI has
been introduced for the Managing Director / Chief Executive Officer and other KMP relating to the reduction of the
Groups safety performance (TRIFR).
The STI outcomes and cash payments for the 2021 financial year which were paid in the 2022 financial year are detailed in
the following table:
Annual KPI1
Net profit after tax
Gold production
Reserve addition
AISC
Weighting
Threshold
Target
Stretch
Outcome
20-30%
20-25%
20-30%
115%
102.5%
-
97.5%
130%
105%
1 year
95%
150%
110%
2 years
90%
Threshold
Threshold
Target
Target
1. The KPI percentages for threshold, target and stretch categories in the table above are relative to the Board approved budgets or Mine Plan.
When is it paid?
The STI award is determined following a review of the financial results, operations & safety, changes to the Mine Plan, and
the annual Resources & Reserves Statement by the NRC. This typically occurs in the second quarter of the financial year.
No amount is provided for or included in the financial report and remuneration report until such review has taken place.
Based on this assessment, the STI cash payments for the 2021 financial year which were paid in the 2022 financial year are detailed in the
following table:
Position
Managing Director / Chief Executive Officer
Chief Financial Officer
Name
Mark Zeptner
Tim Manners
Duncan Coutts Chief Operating Officer
Richard Jones
Peter Ruzicka
Company Secretary & Executive General Manager Legal/HR/Risk/Sustainability
Executive General Manger – Exploration
Maximum STI1
Achieved STI1
%
60%
45%
45%
45%
45%
$
435,000
198,000
235,125
148,500
27,399
%
33%
26%
25%
25%
23%
$
239,250
115,500
132,000
82,500
13,750
110
Table 12: Maximum and achieved STI cash payments for the 2022 financial year
1. Amounts disclosed above include superannuation attributable to the STI.
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DIRECTORS’ REPORT (continued)
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113
During the year the performance rights that were issued in the 2019 financial year were measured for vesting. For these performance
rights there was only one performance hurdle which was the relative TSR measured against a benchmark peer group. Ramelius ranked
above the 75th percentile and accordingly 100% of these performance rights vested.
The performance rights that were issued or vested during the 2022 financial year (for the 2021 financial year performance) are detailed in
the following table:
Name
Position
Mark Zeptner Managing Director / Chief Executive Officer
Tim Manners
Chief Financial Officer
Duncan Coutts Chief Operating Officer
Richard Jones
Company Secretary & Executive General
Manager Legal / HR / Risk / Sustainability
Peter Ruzicka
Executive General Manger – Exploration
All performance rights1
Issued
442,528
131,178
158,046
101,940
86,925
2,152,869
Performance
rights measured
for vesting
Percentage
vested %
891,298
260,966
284,483
189,655
-
3,057,050
100%
100%
100%
100%
n/a
100%
Number
vested
891,298
260,966
284,483
189,655
-
3,057,050
Table 13: Performance rights issued, vested, and lapsed in the 2022 financial year
1. Performance rights issued during the financial year will be measured for vesting as at 30 June 2024.
Employee Share Acquisition Plan
The Employee Share Acquisition Plan enables the Board to offer eligible employees ordinary fully paid shares in Ramelius as a long-term
incentive, in accordance with the terms of the plan. Shares may be offered at no consideration unless the Board determines that market
value or some other value is appropriate. No such shares were offered during the 2022 financial year.
Other long-term incentives
The Board may at its discretion provide share rights/options as a long-term retention incentive to employees. No such options were offered
during the 2022 financial year.
(e) Link between remuneration and performance
The following table shows key performance indicators for the group over the last five years:
Name
Net profit after tax
Dividend
Share price 30 June
Basic earnings per share
Diluted earnings per share
Unit
$’000
cps
$
cents
cents
2022
12,402
1.0
0.87
1.47
1.45
2021
126,778
2.5
1.70
15.64
15.45
2020
113,415
2.0
1.99
16.43
16.13
2019
21,832
1.0
0.73
3.74
3.67
2018
30,760
-
0.58
5.84
5.75
Long-term incentives
Under the Ramelius Performance Rights Plan, annual grants of performance rights are made to Executives to align remuneration with the
creation of shareholder value over the long-term. The LTIs are designed to focus Executives on delivering long-term shareholder returns.
How is it paid?
LTIs are provided to selected Executives under the Ramelius Performance Rights Plan. Selected Executives are eligible
to receive performance rights (being entitlements to shares in Ramelius subject to satisfaction of vesting conditions) as
long-term incentives as determined by the Board in accordance with the terms and conditions of the plan.
The plan provides selected executives the opportunity to participate in the equity of Ramelius through the issue of rights
as a long-term incentive that is aligned to the long-term interests of shareholders.
How much can an
Executive earn?
In the 2022 financial year, under the Performance Rights Plan, the number of rights granted to Executives ranges up to
40% (100% for the Managing Director / Chief Executive Officer) of the Executive’s TFR and is dependent upon the
individual’s skills, responsibilities and ability to influence financial or other key objectives of Ramelius. The number of rights
granted is calculated by dividing the LTI remuneration dollar amount by the volume weighted average price of Ramelius
shares traded on the Australian Securities Exchange during the 5-trading day period prior to the date of the grant.
How is performance
measured?
For performance rights issued prior to 1 July 2020 there was one performance hurdle, relative total shareholder return
(TSR). Performance rights granted from 1 July 2021 have two equally weighted performance hurdles, relative TSR and
absolute TSR.
Relative TSR
Half of the performance rights issued under the LTI plan will vest depending on total shareholder returns (TSR) measured
against a benchmark peer group. The following companies have been identified by Ramelius to comprise the peer group:
Company
ASX Code
Regis Resources Limited
Silver Lake Resources Limited
Westgold Resources Limited
Northern Star Resources Limited#
Resolute Mining Limited
Gold Road Resources Limited
Dacian Gold Limited#
St Barbara Limited
Pantoro Limited
Evolution Mining Limited
Perseus Mining Limited
De Grey Mining Limited
Bellevue Gold Limited
Red 5 Limited
Capricorn Metals Limited
Aurelia Metals Limited
Alkane Resources Ltd
OceanaGold Corporation
RRL
SLR
WGX
NST
RSG
GOR
DCN
SBM
PNR
EVN
PRU
DEG
BGL
RED
CMM
AMI
ALK
OGC
# Companies removed from the peer group on
30 June 2022 but not applied retrospectively
The NRC may recommend to the Board to either include
or exclude gold mining organisations available on this list to
reflect changes in the industry.
The proportion of executive rights that vest is dependent on
how the Ramelius TSR compares to the peer group as follows:
Relative TSR Over
the Vesting and
Measurement Period
Below the 50th percentile
At the 50th percentile
Between the 50th and
75th percentile
At and above the 75th
percentile
Proportion of Performance
Rights Vested
0%
50%
Pro-rata between
50% and 100%
100%
Absolute total shareholder returns
The remaining half of performance rights granted will vest if the
Ramelius TSR over the measurement period is greater than 15%
compounded annual growth.
Once vested, rights may be exercised within seven years of
the vesting date, except for Performance Rights issued to the
Managing Director in the 2022 financial year. Those rights may be
exercised within two years of the vesting date.
When is performance
measured?
Performance rights have a three-year vesting and measurement period.
Any performance rights that do not vest will lapse after testing. There is no re-testing of performance rights.
What happens if an
Executive leaves?
Where an Executive ceases to be an employee of the Group, any unvested performance rights will lapse on the date of
cessation of employment, except in limited circumstances that are approved by the Board on a case by case basis.
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OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
DIRECTORS’ REPORT (continued)
DIRECTORS’ REPORT (continued)
The total remuneration mix for the Managing Director / Chief Executive Officer and other Executives is illustrated in the following graph.
The link between performance and remuneration is discussed within this remuneration report.
(g) Non-Executive Director arrangements
Non-Executive Director fees are determined using the following guidelines. Fees are:
115
• Determined by the nature of the role, responsibility and time commitment necessary to perform required duties;
• Not performance or incentive based but are fixed amounts; and
• Determined by the desire to attract a group of individuals with pertinent knowledge and experience.
In accordance with the Company’s Constitution, the total amount of remuneration of Non-Executive Directors is within the aggregate limit
of $1,000,000 per annum as approved by shareholders at the 2021 Annual General Meeting.
Non-Executive Directors may apportion any amount up to this maximum level amongst the Non-Executive Directors as determined by
the Board. Remuneration consists of Non-Executive Director fees, committee fees and superannuation contributions.
Non-Executive Directors are also entitled to be paid reasonable travelling, accommodation and other expenses incurred in performing
their duties as Directors. Non-Executive Directors do not participate in any performance-based pay including schemes designed for the
remuneration of an Executives, share rights or bonus payments and are not provided with retirement benefits other than salary sacrifice
and superannuation.
All Non-Executive Directors enter into a service agreement with the Company in the form of a letter of appointment. The letter
summarises the Board policies and terms, including remuneration, relevant to the office of Director. Details of remuneration fees paid to
Non-Executive Directors are set out in the following table.
Non-executive directors
Bob Vassie1
Kevin Lines2
Michael Bohm3
David Southam
Natalia Streltsova
Fiona Murdoch4
Total
Year
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Director fees $
Superannuation $
Total remuneration $
217,273
96,250
-
48,125
139,545
122,500
139,545
122,500
135,000
122,500
77,459
-
708,822
511,875
21,727
9,625
-
4,813
13,955
12,250
13,955
12,250
13,500
12,250
7,746
-
70,883
51,188
239,000
105,875
-
52,938
153,500
134,750
153,500
134,750
148,500
134,750
85,205
-
779,705
563,063
Table 15: Non-Executive Director fees for the 2022 financial year
1. Bob Vassie was appointed as Non-Executive Chair on 1 January 2021.
2. Kevin Lines retired as Non-Executive Chairman on 30 September 2020.
3. Michael Bohm retired as a Non-Executive Director on 31 May 2022.
4. Fiona Murdoch was appointed as a Non-Executive Director on 1 December 2021.
2022 TOTAL REMUNERATION MIX
Managing Director / CEO
46%
14%
28%
12%
Other Executives
58%
12%
17%
13%
0%
20%
40%
60%
80%
100%
Figure 7: Remuneration mix for the 2022 financial year
(f) Contractual arrangements for executive KMP
Remuneration and other terms of employment for Executives are formalised in service agreements. The service agreements specify the
components of remuneration, benefits and notice periods. Participation in short-term and long-term incentives are at the discretion of the
Board. Other major provisions of the agreements relating to remuneration are set out below. Contracts with Executives may be terminated
early by either party as detailed below:
Term of
Agreement
Base Salary incl.
Super1
Company /
Employee Notice
Period
Termination
Benefit2
Name and Position
Mark Zeptner3
Managing Director / Chief Executive Officer
Tim Manners
Chief Financial Officer
Duncan Coutts
Chief Operating Officer
On-going commencing
1 July 2015
On-going commencing
31 July 2017
On-going commencing
12 February 2016
Richard Jones
Company Secretary & Executive General Manager
Legal / HR / Risk / Sustainability
On-going commencing
26 October 2018
Peter Ruzicka
Executive General Manager – Exploration
On-going commencing
19 April 2021
$770,000
6 / 3 months
$456,500
6 / 3 months
$550,000
6 / 3 months
$354,750
6 / 3 months
$302,500
3 / 3 months
6 months
base salary
6 months
base salary
6 months
base salary
6 months
base salary
3 months
base salary
Table 14: Contractual arrangements at 30 June 2022
1. Base salaries quoted are as at 30 June 2022, they are reviewed annually by the NRC.
2. Termination benefits are payable on early termination by the company, other than for gross misconduct, unless otherwise indicated.
3. In certain circumstances, but always subject to the Corporations Act 2001 and ASX Listing Rules, the termination benefit may be 12 months base salary.
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DIRECTORS’ REPORT (continued)
DIRECTORS’ REPORT (continued)
117
(i) Other statutory information
(i) Terms and conditions of the share-based payment arrangements
Performance rights
The terms and conditions of each grant of performance rights affecting remuneration in the current or future reporting period are as
follows:
Grant Date
Vesting and Exercise Date
Expiry Date
Exercise Price
Value Per
Performance Right
at Grant Date
9 October 2019
29 November 2019
29 November 2019
1 October 2020
1 October 2020
26 November 2020
26 November 2020
15 September 2021
15 September 2021
26 November 2021
26 November 2021
1 July 2022
1 July 2022
1 July 2022
1 July 2023
1 July 2023
1 July 2023
1 July 2023
1 July 2024
1 July 2024
1 July 2024
1 July 2024
1 July 2029
1 July 2029
1 July 2029
1 July 2030
1 July 2030
1 July 2030
1 July 2030
1 July 2031
1 July 2031
1 July 2026
1 July 2026
$nil
$nil
$nil
$nil
$nil
$nil
$nil
$nil
$nil
$nil
$nil
$1.22
$0.86
$0.65
$1.31
$1.81
$0.94
$1.42
$0.67
$0.95
$0.83
$0.96
Vested
0%
43%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Table 17: Performance rights affecting remuneration
Rights to deferred shares under the Performance Rights Plan are assessed against vesting criteria (and vested accordingly) in July each year.
Generally, performance rights granted vest three years from the grant date. On vesting, each right must be exercised within seven years of
the vesting date. The performance rights carry no dividend or voting rights. If an employee ceases employment before the performance
rights vest, the rights will be forfeited, except in limited circumstances that are approved by the Board on a case-by-case basis.
(h) Details of KMP remuneration
The following table shows details of the remuneration expense recognised for the group’s executive KMP for the current and previous
financial year measured in accordance with the requirements of the accounting standards.
FIXED REMUNERATION
VARIABLE REMUNERATION
Cash salary1
Executive Director
Non-
monetary
benefits1
Annual and
long service
leave2
Super-
annuation
STI1, 4
Share based
payments3
Total
Perform.
related
Mark Zeptner – Managing Director / Chief Executive Officer
2022
2021
Executives
742,500
700,000
6,789
6,402
(982)
39,275
27,500
25,000
239,250
223,438
458,151
351,539
1,473,208
1,345,654
Tim Manners – Chief Financial Officer
2022
2021
429,000
418,306
6,789
6,402
Duncan Coutts – Chief Operating Officer
2022
2021
522,500
497,500
6,789
6,402
8,346
22,449
19,398
19,262
27,500
21,694
27,500
25,000
115,500
172,700
132,000
192,500
146,959
167,181
172,335
192,815
Richard Jones – Company Secretary & Executive General Manager Legal / HR / Risk / Sustainability
2022
2021
327,250
305,000
6,789
6,402
20,981
23,343
Peter Ruzicka – Executive General Manager – Exploration5
2022
2021
275,000
55,352
6,763
1,309
6,908
4,872
Kevin Seymour – General Manager – Exploration6
27,500
25,000
27,500
5,535
82,500
124,300
134,887
118,460
13,750
20,760
-
-
-
-
2022
2021
Total
2022
2021
-
162,461
2,296,250
2,138,619
-
4,356
33,919
31,273
-
-
(20,905)
14,583
117,700
(103,661)
174,534
54,651
88,296
137,500
116,812
583,000
830,638
933,092
726,334
4,038,412
3,931,972
734,094
808,732
880,522
933,479
599,907
602,505
350,681
67,068
-
47.3%
42.7%
35.8%
42.0%
34.6%
41.3%
36.2%
40.3%
9.8%
0.0%
0.0%
8.0%
37.5%
39.6%
Table 16: KMP remuneration for the 2022 financial year
1. Short-term benefits as per Corporations Regulation 2M.3.03(1) Item 6. Non-monetary benefits comprise car parking benefits provided to KMPs.
2. Other long-term benefits as per Corporations Regulation 2M.3.03 (1) Item 8. The amounts disclosed in this column represent the movements in the associated provisions. They may be
negative where a KMP has taken more leave than accrued during the year or has been paid out for entitlements on termination.
3. Share rights relate to rights over ordinary shares issued to key management personnel. The fair value of rights granted shown above is non-cash and was determined in accordance with
applicable accounting standards and represents the fair value calculated at the time rights were granted and not when shares
were issued.
4. Refer to section (d) of this remuneration report for further information on the short-term incentives paid.
5. Peter Ruzicka was appointed on 19 April 2021.
6. Kevin Seymour resigned on 28 February 2021. In addition to the amounts above Kevin Seymour was paid $112,000 in 2021 for annual and long service leave which had been accrued but
not paid during his employment.
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DIRECTORS’ REPORT (continued)
DIRECTORS’ REPORT (continued)
The table below shows a reconciliation of performance rights held by each KMP from the beginning to the end of the 2022 financial year.
All vested performance rights were exercisable.
Shareholdings
The table below shows a reconciliation of shareholdings held by each KMP from the beginning to the end of the 2022 financial year.
All shareholdings noted are held either directly or by the KMP or their associate.
119
Balance at
start of year
Granted
during the
year
Vested
Exercised
Balance at the end of the year Value to vest1
Number
Number
%
Number
Vested
Unvested
$
-
442,528
355,392
967,025
568,956
500,000
-
-
-
-
-
131,178
86,275
212,382
260,966
-
-
-
-
158,046
102,451
247,294
284,483
-
-
64,706
160,014
189,655
-
-
-
158,046
101,940
-
-
-
-
-
322,342
568,956
-
-
-
-
-
-
33%
100%
-
-
-
-
-
-
-
-
-
-
-
260,966
100%
(260,966)
-
-
-
-
-
-
-
-
-
284,483
100%
(284,483)
-
-
-
-
-
-
-
-
189,655
100%
-
-
-
-
-
-
-
322,342
568,956
500,000
-
-
-
-
-
-
-
-
-
-
-
-
189,655
442,528
355,392
644,683
-
-
131,178
86,275
212,382
-
158,046
102,451
247,294
-
296,549
162,403
-
-
-
77,467
48,894
-
-
93,333
58,062
-
-
158,046
93,333
101,940
64,706
160,014
-
60,200
36,671
-
-
Name
Grant year
Mark Zeptner
2022
2021
2020
2019
2017
Tim Manners
2022
2021
2020
2019
Duncan Coutts
2022
2021
2020
2019
Peter Ruzicka
2022
Richard Jones
2022
2021
2020
2019
1. The maximum value of the performance rights yet to vest has been determined as the amount of the grant date fair value of the rights that is yet to be expensed.
Name
Mark Zeptner
Bob Vassie
Michael Bohm
David Southam
Natalia Streltsova
Fiona Murdoch
Duncan Coutts2
Tim Manners3
Balance at start of
year
2,762,500
80,000
500,000
20,217
12,000
-
97,222
-
Received during
year on exercising of
performance rights
-
-
-
-
-
-
284,483
260,966
Sold during year
-
-
(200,000)
-
-
-
-
(260,966)
Net change other1
-
-
(300,000)
-
-
34,500
-
-
Balance at end of
year
2,762,500
80,000
-
20,217
12,000
34,500
381,705
-
All shareholdings noted above are held either directly by the KMP or their associate.
1. Net change other relates to on market purchases and sale of share or holdings as at the date of resignation / retirement.
2. The share price on the date of exercise was $1.55
3. The share price on the date of exercise was $1.62
Loans to key management personnel
There were no loans made to key management personnel or their personally related parties during the current or prior financial year.
Other transactions with key management personnel
There were no other transactions with key management personnel.
Voting and comments made at the company’s 2021 Annual General Meeting
Of the total valid available votes lodged, Ramelius received 98% of “FOR” votes on its remuneration report for the 2021 financial year. The
Company did not receive any specific feedback at the meeting on its remuneration practices.
Share trading policy
The trading of shares is subject to, and conditional upon, compliance with the Company’s Securities Trading Policy. The Policy is enforced
through a system that includes a requirement that Executives confirm compliance with the policy and provide confirmation of dealings
in Ramelius securities. The ability for an Executive to deal with an option or a right is restricted by the terms of issue and the plan rules
which do not allow dealings in any unvested security. The Securities 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
Securities Trading Policy can be viewed on the Company’s website.
Remuneration report ends.
118
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 121
DIRECTORS’ REPORT (continued)
AUDITOR’S INDEPENDENCE DECLARATION
DIRECTORS’ REPORT (continued)
SHARES UNDER OPTION
Unissued ordinary shares
No unissued ordinary shares of Ramelius Resources Limited are under option at the date of this report.
INSURANCE OF OFFICERS AND INDEMNITIES
Indemnification
Ramelius is required to indemnify its Directors and Officers against any liabilities incurred by the Directors and Officers that may arise from
their position as Directors and Officers of Ramelius and its controlled entities. No costs were incurred during the year pursuant to this
indemnity.
Ramelius has entered into deeds of indemnity with each Director whereby, to the extent permitted by the Corporations Act 2001,
Ramelius agreed to indemnify each Director against all loss and liability incurred as an officer of the company, including all liability in
defending any relevant proceedings.
Insurance premiums
Since the end of the previous year Ramelius has paid insurance premiums in respect of Directors’ and Officers’ liability and legal expenses
insurance contracts. The terms of the policies prohibit disclosure of details of the amount of the insurance cover, the nature thereof and
the premium paid.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of Ramelius
or to intervene in any proceedings to which Ramelius is a party, for the purpose of taking responsibility on behalf of Ramelius for all or part
of those proceedings. There were no such proceedings brought or interventions on behalf of Ramelius with leave from the Court under
section 237 of the Corporations Act 2001.
NON-AUDIT SERVICES
The Company may decide to engage the auditor (Deloitte Touche Tohmatsu) on assignments additional to their statutory audit duties
where the auditor’s expertise and experience with the company and/or the group are important.
Prior to the provision of any non-audit services the Board of Directors considers the position and, in accordance with advice received from
the Audit Committee, ensures that it is satisfied that the provision of the non-audit services is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001.
During the year $68,000 was paid for non-audit related services provided by the auditor of the parent entity, its related practices and non-
related audit firms (2021: $nil). Further details of the amounts paid or payable to the auditor for audit and non-audit services during the
year are disclosed in Note 30 of the financial statements.
AUDITOR INDEPENDENCE
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 121.
ROUNDING OF AMOUNTS
The Company is of the kind referred to in ASIC Legislative Instrument 2016/191 relating to the ‘rounding off’ of amounts in the financial
statements. Amounts in the financial statements have been rounded off in accordance with the instrument to the nearest thousand dollars,
or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of Directors.
Bob Vassie
Chair
Perth
29 August 2022
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CONTENTS
Income statement
124
Statement of comprehensive income
124
Balance sheet
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors’ declaration
Independent auditor’s report
to the members
125
126
127
129
179
180
FINANCIAL
REPORT
2022
122
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2022
BALANCE SHEET
AS AT 30 JUNE 2022
Revenue
Cost of sales
Gross profit
Other expenses
Impairment of mine development and PP&E
Impairment of exploration and evaluation assets
Other income
Interest income
Finance costs
Profit before income tax
Income tax expense
Profit for the year
Earnings per share
Basic earnings per share
Diluted earnings per share
Note
1
2
2
11
10
1
2
3
18
18
2022
$’000
603,891
(473,625)
130,266
(24,618)
(94,500)
(16,673)
30,678
501
(3,129)
22,525
(10,123)
12,402
Cents
1.47
1.45
2021
$’000
634,283
(443,825)
190,458
(16,266)
-
(5,014)
8,261
715
(3,414)
174,740
(47,962)
126,778
Cents
15.64
15.45
STATEMENT OF
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Profit for the year
Other comprehensive income, net of tax:
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations
Items that may not be reclassified to profit or loss:
Change in fair value of investments
Other comprehensive income for the year
Note
17
17
2022
$’000
12,402
2021
$’000
126,778
(159)
434
275
156
377
533
Total comprehensive income for the year
12,677
127,311
124
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total current assets
Non-current assets
Other assets
Inventories
Investments
Property, plant, and equipment
Mine development
Exploration and evaluation assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Lease liabilities
Deferred consideration
Current tax liabilities
Provisions
Current liabilities
Non-current liabilities
Lease liabilities
Deferred consideration
Deferred tax liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Retained earnings
Total equity
125
2021
$’000
228,502
1,920
100,813
1,484
332,719
503
-
6,308
100,177
375,338
31,253
513,579
846,298
58,479
16,673
5,186
30,342
9,205
119,885
9,364
3,353
35,417
42,498
90,632
210,517
635,781
379,391
(33,277)
289,667
635,781
Note
4
5
6
6
5
7
8
9
10
12
13
14
15
13
14
3
15
16
17
2022
$’000
147,781
7,165
133,587
3,519
292,052
552
66,052
5,576
101,962
268,999
216,615
659,756
951,808
82,315
25,687
3,793
-
14,673
126,468
25,128
3,840
30,864
44,641
104,473
230,941
720,867
465,184
(26,034)
281,717
720,867
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 STATEMENT OF
CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
Cash flows from operating activities
Receipts from operations
Payments to suppliers and employees
Interest received
Income tax paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for property, plant, and equipment
Payments for mine development
Proceeds from sale of property, plant, and equipment
Proceeds from the sale of subsidiary
Proceeds from the sale of non-core projects and royalties
Payments for asset acquisitions, net of cash acquired
Payments for investments
Proceeds from the sale of investments
Payments for mining tenements and exploration
Payments for deferred consideration
Payments for site rehabilitation
Net cash used in investing activities
Cash flows from financing activities
Repayment of borrowings
Borrowing costs and interest paid
Principal elements of lease payments
Return of secured deposits
Dividends paid
Net cash used in financing activities
Net (decrease) / increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Note
4
1
21
14
15
13
20
2022
$’000
604,152
(394,719)
523
(50,523)
159,433
(23,670)
(94,266)
114
-
30,250
(70,846)
(318)
-
(27,944)
(5,486)
(674)
(192,840)
-
(1,425)
(25,537)
-
(20,352)
(47,314)
(80,721)
228,502
Cash and cash equivalents at the end of the financial year
4
147,781
127
2021
$’000
634,129
(304,622)
713
(24,571)
305,649
(40,335)
(111,485)
55
1,000
2,000
(14,352)
(308)
314
(13,725)
(5,813)
(699)
(183,348)
(24,375)
(408)
(21,886)
3,370
(16,170)
(59,469)
62,832
165,670
228,502
Share
capital
$’000
370,781
Share based
payment
reserve
$’000
Other reserves
$’000
3,422
(38,129)
STATEMENT OF
CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Balance at 1 July 2020
Profit for the year
Other comprehensive gain
Total comprehensive income
Transfer of loss on disposal of equity
investments at FVOCI
Transactions with owners in their
capacity as owners:
Payment of dividends
Contributions of equity (Note 16)
Share based payments
Balance at 30 June 2021
Balance at 1 July 2021
Profit for the year
Other comprehensive gain
Total comprehensive income
Transactions with owners in their
capacity as owners:
Payment of dividends
Share based payments
Shares issued for the acquisition of
Apollo (note 16 and 21)
Balance at 30 June 2022
-
-
-
-
-
7,650
960
379,391
379,391
-
-
-
-
570
85,223
465,184
-
-
-
-
-
810
4,232
4,232
-
-
-
-
1,788
-
6,020
-
533
533
87
-
-
-
Retained
profits
$’000
179,146
126,778
-
126,778
Total
equity
$’000
515,220
126,778
533
127,311
(87)
-
(16,170)
-
-
(16,170)
7,650
1,770
635,781
(37,509)
289,667
(37,509)
289,667
635,781
-
275
275
-
-
5,180
12,402
-
12,402
(20,352)
-
-
(32,054)
281,717
12,402
275
12,677
(20,352)
2,358
90,403
720,867
Share based payment reserve
Share based payments reserve records items recognised as expenses on valuation of employees share options and rights.
Other reserves - investments at FVOCI
The Group has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income
(OCI). These changes are accumulated within the FVOCI reserve within equity. The Group transfers amounts from this reserve to retained
earnings when the relevant equity securities are disposed.
Other reserves – Non-controlling interest (NCI) acquisition reserve
The NCI acquisition reserve represents the incremental increase (or decrease) in the Ramelius share price on the acquisition of non-
controlling interests post the date control was obtained. This reserve relates to the acquisition of Spectrum Metals Limited, Explaurum
Limited, and Apollo Consolidated Limited.
Foreign currency translation reserve
Foreign currency translation reserve comprises all foreign exchange difference arising from the translation of the financial statements of
foreign operations where their functional currency is different to the presentation currency of the reporting entity.
126
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 CONTENTS OF THE NOTES
TO THE FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
129
About this report
129
Note 18: Earnings per share
Segment information
131
Risk
Group performance
Note 1: Revenue
Note 2: Expenses
Note 3: Income tax expense
Group balance sheet
Note 4: Cash and cash equivalents
Note 5: Inventories
Note 6: Other assets
Note 7: Investments
133
133
134
135
139
139
140
141
142
Note 8: Property, plant, and equipment 143
Note 9: Mine development
145
Note 10: Exploration and evaluation assets 147
Note 11: Impairment of mine development 149
Note 19: Financial instruments and
financial risk management
Note 20: Capital risk management
Group information
Note 21: Asset acquisition
Note 22: Interests in other entities
Note 23: Parent entity information
Note 24: Deed of cross guarantee
Unrecognised items
Note 25: Related party transactions
Note 26: Contingent liabilities
Note 27: Commitments
Other information
160
161
161
165
166
167
168
170
172
174
174
174
175
176
and property, plant and equipment
Note 28: Events occurring after
176
the reporting period
Note 29: Share based payments
Note 30: Remuneration of auditors
Note 31: Accounting policies
176
178
178
Note 12: Trade and other payables
Note 13: Lease liabilities
Note 14: Deferred consideration
Note 15: Provisions
Capital
Note 16: Share capital
Note 17: Reserves
151
152
155
156
158
158
159
128
128
RAMELIUS RESOURCES ANNUAL REPORT 2022
ABOUT THIS REPORT
Ramelius is a for profit company limited by shares incorporated and domiciled in Australia whose shares are publicly listed on the
Australian Securities Exchange Limited (ASX). The nature of the operations and principal activities of Ramelius and its controlled entities
are described in the segment information.
The consolidated general purpose financial report of the Group for the year ended 30 June 2022 was authorised for issue in accordance
with a resolution of the Directors on 29 August 2022. The Directors have the power to amend and reissue the financial report.
The financial report is a general purpose financial report which:
•
•
•
•
•
has been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting
Standard Board (AASB) and the Corporations Act 2001. The consolidated financial statements of the Group also comply with
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB);
has been prepared under the historical cost convention except for equity investments, which have been measured at fair value
through profit and loss (FVPL) or fair value through other comprehensive income (FVOCI);
has been presented in Australian dollars and rounded to the nearest $1,000 unless otherwise stated, in accordance with ASIC
Legislative Instrument (Rounding in Financial/Directors Reports) Instrument 2016/191;
adopts all new and amended Accounting Standards and Interpretations issued by the AASB that are relevant to the group and
effective for reporting periods beginning on or before 1 July 2021. Refer to Note 31 for further details;
does not early adopt Accounting Standards and Interpretations that have been issued or amended but are not yet effective. Refer
to Note 31 for further details.
Key judgements, estimates and assumptions
In the process of applying the Group’s accounting policies, management has made a number of judgements and applied estimates of future
events. Judgements and estimates which are material to the financial report are found in the following notes:
Page
137
145, 146,
148 &149
144 & 146
146
146
146
148
154
155
157
157
Note
Note 3
Recovery of deferred tax assets
Note 8, 9, 10, & 11
Impairment of assets
Note 8 & 9
Depreciation and amortisation
Note 9
Note 9
Note 9
Note 10
Note 13
Note 14
Note 15
Note 15
Production stripping
Deferred mining expenditure
Ore Reserves
Exploration and evaluation expenditure
Leases
Deferred consideration
Provision for restoration and rehabilitation
Provision for long service leave
Principles of consolidation
The consolidated financial statements comprise the financial statements of the parent entity, Ramelius Resources Limited, and its controlled
entities. A list of controlled entities is contained in Note 22 to the consolidated financial statements. All controlled entities have a 30 June
financial year end.
In preparing the consolidated financial statements, all inter-company balances and transactions, income and expenses and profits and losses
resulting from intra group transactions have been eliminated.
Subsidiaries are consolidated from the date on which control is obtained to the date on which control is disposed. The acquisition of
subsidiaries is accounted for using the acquisition method of accounting.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
131
Foreign currency
The functional currencies of overseas subsidiaries are listed in Note 22. As at the reporting date, the assets and liabilities of overseas
subsidiaries are translated into Australian dollars at the rate of exchange ruling at the balance sheet date and the income statements are
translated at the average exchange rates for the year. The exchange differences arising on the translation are taken directly to a separate
component of equity.
Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the balance sheet date.
Exchange differences arising from the application of these procedures are taken to the income statement, with the exception of differences
on foreign currency borrowings that provide a hedge against a net investment in a foreign entity, which are taken directly to equity until
the disposal of the net investment and are then recognised in the income statement. Tax charges and credits attributable to exchange
differences on those borrowings are also recognised in equity.
Other accounting policies
Significant and other accounting policies that summarise the measurement basis used and are relevant to an understanding of the financial
statements are provided throughout the notes to the financial statements.
The notes to the financial statements
The notes include information which is required to understand the financial statements and is material and relevant to the operations,
financial position and performance of the Group. Information is considered material and relevant if, for example:
•
•
•
•
The amount in question is significant because of its size or nature;
It is important for understanding the results of the Group;
It helps to explain the impact of significant changes in the Group’s business – for example acquisition and impairment write
downs; or
It relates to an aspect of the Group’s operations that is important to its future performance.
The notes are organised into the following sections:
•
•
•
•
•
•
•
Group performance: provides a breakdown of the individual line items in the income statement that the Directors consider
most relevant and summarises the accounting policies, judgements and estimates relevant to understanding these line items;
Group balance sheet: provides a breakdown of the individual line items in the balance sheet that the Directors consider most
relevant and summarises the accounting policies, judgements and estimates relevant to understanding these line items;
Capital: provides information about the capital management practices of the Group and shareholder returns for the year;
Risk: discusses the Group’s exposure to various financial risks, explains how these affect the Group’s financial position and
performance and what the group does to manage these risks;
Group information: explains aspects of the Group structure and how changes have affected the financial position and
performance of the Group, as well as disclosing related party transactions and balances;
Unrecognised items: provides information about items that are not recognised in the financial statements but could potentially
have a significant impact on the Group’s financial position and performance;
Other information: provides information on items which require disclosure to comply with Australian Accounting Standards
and other regulatory pronouncements. However, these are not considered critical in understanding the financial performance or
position of the Group.
Significant items in the current reporting period
The financial position and performance of the Group was particularly affected by the following events and transactions during the
reporting period:
•
The acquisition of Apollo Consolidated Limited (Rebecca Gold Project) which was completed in December 2021
(see Note 21). This resulted in an increase in exploration & evaluation assets (Note 10)
For a detailed discussion about the Group’s performance and financial position please refer to our operating and financial review on
pages 97 to 102.
130
SEGMENT INFORMATION
Description of segments and principal activities
Management has determined the operating segments based on internal reports about components of the Group that are regularly
reviewed by the Chief Operating Decision Maker (CODM), being the Managing Director / Chief Executive Officer, to make strategic
decisions.
The Group has identified three reportable segments of its business:
• Mt Magnet: mining and processing of gold from the Mt Magnet region including the Vivien and Penny Gold Mines.
Edna May: mining and processing of gold from the Edna May region including the Marda and Tampia Gold Mines.
•
Exploration: exploration and evaluation of gold mineralisation.
•
The CODM monitors performance in these areas separately. Unless stated otherwise, all amounts reported to the CODM are determined
in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Group. Operating
segment performance details for financial years 2022 and 2021 are set out below:
Segment results
2022 Segment results
Segment revenue
Cost of production
Depreciation and amortisation
Movement in inventory
Deferred mining costs
Gross margin
Exploration and evaluation costs and impairments
Impairment of mine development and PP&E
Segment margin
Interest income
Other income
Finance costs
Other expenses
Profit before income tax
Total segment assets
Total segment liabilities
2021 Segment results
Segment revenue
Cost of production
Depreciation and amortisation
Movement in inventory
Deferred mining costs
Gross margin
Exploration and evaluation costs and impairments
Segment margin
Interest income
Other income
Finance costs
Other expenses
Profit before income tax
Total segment assets
Total segment liabilities
Mt Magnet
$’000
295,609
(241,908)
(80,101)
51,080
45,971
70,651
-
-
70,651
447,401
101,271
Mt Magnet
$’000
377,205
(200,388)
(85,105)
(4,218)
63,637
151,131
-
151,131
Edna May
$’000
308,282
(227,727)
(102,294)
45,405
35,949
59,615
-
(94,500)
(34,885)
125,190
82,244
Edna May
$’000
257,078
(173,735)
(77,901)
4,882
29,003
39,327
-
39,327
Exploration
$’000
-
-
-
-
-
-
(16,971)
-
(16,971)
217,149
13,413
Exploration
$’000
-
-
-
-
-
-
(5,274)
(5,274)
365,380
66,300
212,913
72,608
31,777
723
Total
$’000
603,891
(469,635)
(182,395)
96,485
81,920
130,266
(16,971)
(94,500)
18,795
501
30,678
(3,129)
(24,320)
22,525
789,740
196,928
Total
$’000
634,283
(374,123)
(163,006)
664
92,640
190,458
(5,274)
185,184
715
8,261
(3,414)
(16,006)
174,740
610,070
139,631
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
133
SEGMENT INFORMATION (continued)
Segment gross margin reconciliation
Segment margin reconciles to profit before income tax for the year ended 30 June 2022 and 30 June 2021 as follows:
Segment margin
Other income
Interest income
Depreciation and amortisation
Employee benefit expense
Equity settled share based payments
Fair value gains loss on deferred consideration at FVPL
Foreign exchange gain / (loss)
Fair value movements in Investments at FVPL
Gain on sale of non-core projects and royalties
Finance costs
Other expenses
Profit before income tax
Segment assets
Operating segment assets are reconciled to total assets as follows:
Segment assets
Unallocated assets:
Cash and cash equivalents
Other current assets
Other non-current assets
Investments at FVOCI
Property, plant, and equipment
Total assets as per the balance sheet
Segment liabilities
Operating segment liabilities are reconciled to total liabilities as follows:
Segment liabilities
Unallocated liabilities:
Trade and other payables
Current tax liabilities
Current provisions
Current lease liabilities
Non-current lease liabilities
Non-current provisions
Deferred tax liabilities
Total liabilities as per the balance sheet
2022
$’000
18,795
63
501
(639)
(10,779)
(2,358)
(2,166)
365
(1,670)
30,250
(3,129)
(6,708)
22,525
789,740
147,781
7,340
13
5,576
1,358
951,808
196,928
1,456
-
974
309
357
53
30,864
230,941
2021
$’000
185,184
982
715
(530)
(8,827)
(1,770)
(364)
(164)
2,279
5,000
(3,414)
(4,351)
174,740
610,070
228,502
828
13
6,308
577
846,298
139,631
4,333
30,342
581
130
-
83
35,417
210,517
Major customers
Ramelius sells its gold production to either The Perth Mint or delivers it into forward gold contracts.
Segments assets by geographical location
There are no non-current assets situated outside the geographic region of Australia.
132
NOTE 1: REVENUE
The Group derives the following types of revenue:
Revenue
Gold sales
Silver sales
Other revenue
Total revenue
Other income
Fair value gains on investments at FVPL
Gain on sale of non-core projects and royalties
Gain on disposal of property, plant, and equipment
Gain on sale of subsidiary
Foreign exchange gains
Total other income
Note
7
2022
$’000
602,915
644
332
603,891
-
30,250
63
-
365
30,678
2021
$’000
633,132
824
327
634,283
2,279
5,000
-
982
-
8,261
Recognising revenue from major business activities
Revenue (general)
Revenue is measured at the fair value of the consideration received or receivable. Revenue from sale of goods or rendering of a service
is recognised upon delivery of the goods or service to customers as this corresponds to the transfer of control of the goods and the
cessation of all involvement with those goods. All revenue is stated net of goods and services tax (GST).
Gold bullion and silver sales
The Group generates revenue from the sale of gold and silver bullion. The Group delivers dore bars to refiners, who convert the product
into investment grade bullion for a fee, which is subsequently sold either to the refinery or third parties (financial institutions). Revenue from
the sale of these goods is recognised when control over the inventory has transferred to the customer.
Control is generally considered to have passed when:
•
•
•
•
Physical possession and inventory risk is transferred (including via a third-party transport provider arranged by the refinery):
Payment terms for the sale of goods can be clearly identified through the sale of metal credits received or receivable for the
transfer of control of the asset;
The Group can determine with sufficient accuracy the metal content of the goods delivered; and
The refiner has no practical ability to reject the product where it is within contractually specified limits.
Gain on sale of royalties
During the year Ramelius entered into an agreement to terminate the Lithium Royalty on Liontown Resources Limited’s (LTR) Kathleen
Valley Lithium Project for consideration of $30,250,000. The sale of the Royalty was completed through a competitive process, with
multiple bids being received. The divestment of this non-core asset, which carried no value in the balance sheet of Ramelius, provided
additional liquidity for Ramelius with the sale of a non-core asset in an extremely favourable lithium price environment. The Royalty was
originally granted to Ramelius when it disposed of the Kathleen Valley Lithium-Tantalum project to LTR in 2016. The Royalty comprised
both a production component of A$0.50/t or ore mined and a sales component of 1% of the gross sales of the ore. This sale is reported
with other income in the income statement and considered to be outside of the ordinary course of business.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
135
NOTE 3: INCOME TAX EXPENSE
This note provides an analysis of the Group’s income tax expense, shows what amounts are recognised directly in equity and how the
tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the Group's
tax position.
The components of tax expense comprise:
Current tax
Deferred tax
Income tax expense
Recognition of income tax expense to prima facia tax payable:
Accounting profit before tax
Income tax expense calculated at 30%
Tax effects of amounts which are not deductible / (taxable) in calculating taxable income:
Share based payments
Prior year adjustment
Impairments and other
Tax losses utilised in current year previously not brought to account
Tax losses brought to account
Income tax expense
Applicable effective tax rate
2022
$’000
14,862
(4,739)
10,123
22,525
6,758
708
71
3,841
(1,173)
(82)
10,123
45%
2021
$’000
33,640
14,322
47,962
174,740
52,422
531
-
(1,105)
(3,886)
-
47,962
27%
NOTE 2: EXPENSES
Profit before tax includes the following expenses whose disclosure is relevant in explaining the performance of the Group:
Cost of sales
Mining and milling production costs
Employee benefits expense
Royalties
Depreciation and amortisation
Inventory movements
Total cost of sales
Other expenses
Employee benefit expense
Equity settled share based payments
Other expenses
Fair value losses on investments at FVPL
Change in fair value of Edna May deferred consideration
Depreciation and amortisation
Exploration and evaluation costs
Foreign exchange losses
Total other expenses
Finance costs
Provisions: unwinding of discount
Deferred consideration: unwinding of discount
Interest on leases
Interest and finance charges
Total finance costs
Note
5
29
7
14
15
14
13
2022
$’000
319,566
45,236
22,913
182,395
(96,485)
473,625
10,779
2,358
6,708
1,670
2,166
639
298
-
24,618
739
482
1,434
474
3,129
2021
$’000
214,198
41,236
26,049
163,006
(664)
443,825
8,827
1,770
4,351
-
364
530
260
164
16,266
368
804
933
1,309
3,414
Recognising expenses from major business activities
Depreciation and amortisation
Refer to Notes 8 and 9 for details on depreciation and amortisation.
Impairment
Impairment expenses are recognised to the extent that the carrying amounts of assets exceed their recoverable amounts.
Refer to Notes 8, 9, 10 and 11 for further details on impairment.
Employee benefits expense
The Group’s accounting policy for liabilities associated with employee benefits is set out in Note 15.
The policy relating to share based payments is set out in Note 29.
Reclassifications
Prior year exploration impairment losses have been removed from other expenses and have now been recorded on the income statement.
134
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 NOTES TO THE
FINANCIAL STATEMENTS
NOTE 3: INCOME TAX EXPENSE (continued)
Deferred tax movement:
30 June 2022
Deferred tax liability (DTL)
Exploration and evaluation
Mine development
Inventory – consumables
Investments at FVPL
Total DTL
Deferred tax asset (DTA)
Inventory – deferred mining costs
Inventory – stock
Property, plant, and equipment
Provisions
Leases (see Note 13)
Investments at FVOCI
Tax losses
Other
Total DTA
Net deferred tax liability #
1 July 2021
$’000
Other
comprehensive
income
$’000
Income
statement
$’000
30 June 2022
$’000
9,376
46,864
1,236
683
58,159
1,044
265
338
15,923
81
(62)
3,492
1,661
22,742
(35,417)
-
-
-
-
-
-
-
-
-
-
(186)
-
-
(186)
5,525
(11,585)
212
(683)
(6,531)
(848)
(534)
900
343
178
-
(1,235)
(596)
(1,792)
4,739
14,901
35,279
1,448
-
51,628
196
(269)
1,238
16,266
259
(248)
2,257
1,065
20,764
(30,864)
# Deferred tax assets and liabilities have been offset for presentation on the balance sheet pursuant to set off provisions
30 June 2021
Deferred tax liability (DTL)
Exploration and evaluation
Mine development
Inventory – consumables
Investments at FVPL
Total DTL
Deferred tax asset (DTA)
Inventory – deferred mining costs
Inventory – stock
Property, plant, and equipment
Provisions
Leases (see Note 13)
Investments at FVOCI
Tax losses
Other
Total DTA
Net deferred tax liability #
1 July 2020
$’000
Transfers
$’000
Other
comprehensive
income
$’000
Income
statement
$’000
30 June 2021
$’000
22,266
26,158
314
-
48,738
1,044
1,469
1,816
14,583
237
(28)
7,090
1,466
27,677
(21,061)
(16,241)
16,241
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(34)
-
-
(34)
3,351
4,465
922
683
9,421
-
(1,204)
(1,478)
1,340
(156)
-
(3,598)
195
(4,901)
(14,322)
9,376
46,864
1,236
683
58,159
1,044
265
338
15,923
81
(62)
3,492
1,661
22,742
(35,417)
# Deferred tax assets and liabilities have been offset for presentation on the balance sheet pursuant to set off provisions.
136
137
NOTES TO THE
FINANCIAL STATEMENTS
NOTE 3: INCOME TAX EXPENSE (continued)
30 June 2022
Tax losses
Unused tax losses:
- for which a deferred asset has been recognised
- for which no deferred asset has been recognised
Total potential unused tax losses
2022
2021
Gross
Net (30%)
Gross
Net (30%)
7,522
21,862
29,384
2,257
6,558
8,815
11,639
13,987
25,626
3,492
4,196
7,688
Tax losses arising from the acquisition of Apollo Consolidated Limited during the 2022 financial year of $4,183,000 (with a tax benefit of
$1,255,000) were recognised within the current financial year. Of these acquired tax losses, an amount of $3,910,000 (with a tax benefit of
$1,173,000) was utilised, leaving an unrecouped balance of $273,000 (with a tax benefit of $82,000) at 30 June 2022. A deferred tax asset
has been recognised for these unused tax losses.
Unrecouped tax losses arising from the acquisition of Explaurum Operations Pty Limited during the 2019 year of $4,390,000 (with a tax
benefit of $1,317,000) were utilised during the current financial year. The balance of unused Explaurum Operations Pty Limited tax losses is
$7,248,000 (with a tax benefit of $2,175,000) at 30 June 2022. A deferred tax asset has been recognised for these unused tax losses.
The utilisation of losses depends upon the generation of future taxable profits which Ramelius believes to be recoverable based on current
taxable income projections. Utilisation will also be subject to relevant tax legislation associated with recoupment.
The unused tax losses for which no deferred tax asset has been recognised relates to capital losses.
Key judgement, estimates and assumptions: Recovery of deferred tax assets
Judgement is required to determine whether deferred tax assets are recognised in the balance sheet. Deferred tax assets, including
those arising from unused tax losses, require management to assess the likelihood that the Group will generate sufficient taxable
earnings in the future periods in order to recognise and utilise those deferred tax assets. Judgement is also required in respect of
the expected manner of recovery of the value of an asset or liability (which will then impact the quantum of the deferred tax assets
or deferred tax liabilities recognised) and the application of existing laws in each jurisdiction.
Estimates of future taxable income are based on forecast cash flows from operations and existing tax laws in each jurisdiction.
These assessments require the use of estimates and assumptions such as exchange rates, commodity prices, the timing of
production profiles, and operating performance over the life of the assets. To the extent that cash flows and taxable income differ
significantly from estimates, the ability of the group to realise the net deferred tax assets reported at the reporting date could be
impacted.
Additionally, future changes in tax laws in the jurisdictions in which the group operates could limit the ability of the group to obtain
tax deductions and recover/utilise deferred tax assets in future periods.
Recognition and measurement of income tax
Current income tax
Current income tax expense charged to the income statement is the tax payable on taxable income calculated using applicable income
tax rates that have been enacted, or substantially enacted by the reporting date. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to interpretations. Current tax liabilities (assets) are therefore
measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred taxes
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused
tax losses.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed for accounting
purposes, but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or
liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
NOTE 3: INCOME TAX EXPENSE (continued)
Recognition and measurement of income tax (continued)
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised, or
the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the way
management expects to recover or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future
taxable profits will be available against which the benefits of the deferred tax asset can be utilised. The amount of benefits brought to
account or which may be realised in the future is based on the assumption that no adverse change will occur in income tax legislation and
the anticipation that that the Group will derive sufficient future assessable income to enable the benefit to be realised and comply with the
conditions of deductibility imposed by the law.
Tax Consolidated Group
Ramelius Resources Limited and its wholly owned Australian subsidiaries have formed an income tax consolidated group under tax
consolidation legislation. Each entity in the Group recognises its own current and deferred tax assets and liabilities. Such taxes are measured
using the ‘stand-alone taxpayer’ approach to allocation.
Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are immediately
transferred to the head entity.
The Tax Consolidated Group has entered into a tax funding arrangement whereby each Company in the Group contributes to the income
tax payable by the Group in proportion to their contribution to the Group’s taxable income. Differences between the amounts of net
tax assets and liabilities derecognised and the net amounts recognised pursuant to the funding arrangement are recognised as either a
contribution by, or distribution to the head entity.
138
139
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET
NOTE 4: CASH AND CASH EQUIVALENTS
Cash and cash equivalents
Cash at bank and in hand
Deposits at call
Total cash and cash equivalents
Reconciliation of net profit after tax to net cash flows from operations
Net profit
Non-cash items
Equity settled share based payments
Depreciation and amortisation
Write off and impairment of exploration assets
Impairment of mine development and property, plant and equipment
Discount unwind on provisions
Discount unwind on deferred consideration
Change in fair value of deferred consideration
Net exchange differences
Fair value loss / (gain) on investments at FVPL
Items presented as investing or financing activities
Gain on sale of non-core projects and royalties
Gain on sale of subsidiaries
Other
(Increase) / decrease in assets
Prepayments
Trade and other receivables
Inventories
Increase / (decrease) in liabilities
Trade and other payables
Current tax payable / (receivable)
Provisions
Deferred tax liabilities
Net cash provided by operating activities
Note
11
15
14
14
7
1
2022
$’000
147,751
30
147,781
12,402
2,358
183,034
16,971
94,500
739
482
2,166
(365)
1,670
(30,250)
-
1,845
(1,087)
(71)
(98,826)
12,572
(35,587)
1,247
(4,367)
159,433
2021
$’000
108,502
120,000
228,502
126,778
1,770
163,536
5,274
-
368
804
364
164
(2,279)
(5,000)
(982)
2,316
(379)
1,314
(3,260)
(9,759)
9,070
1,160
14,390
305,649
Recognition and measurement
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank, demand deposits held with banks, other short-term highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in values.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.
Risk exposure
The Group’s exposure to interest rate risk is discussed in Note 19. 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.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 141
NOTES TO THE
FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 4: CASH AND CASH EQUIVALENTS (continued)
Net cash reconciliation
This section sets out an analysis of net cash and the movements in the net cash for each of the financial years presented.
Net cash
Cash and cash equivalents
Borrowings – leases repayable within one year
Borrowings – leases repayable after one year
Net cash
Balance at 1 July 2020
Cash flows
Lease additions (including interest)
Balance at 30 June 2021
Cash flows
Lease additions (including interest)
Balance at 30 June 2022
NOTE 5: INVENTORIES
Current
Ore stockpiles
Gold in circuit
Gold bullion, nuggets & doré
Consumables and supplies
Total current inventories
Non-current
Ore stockpiles
Total non-current inventories
2022
$’000
147,781
(25,687)
(25,128)
96,966
Borrowings
$’000
(24,375)
24,375
-
-
-
-
-
Leases
$’000
(30,489)
21,886
(17,434)
(26,037)
25,537
(50,315)
(50,815)
Sub total
$’000
(54,864)
46,261
(17,434)
(26,037)
25,537
(50,315)
(50,815)
Cash
$’000
165,750
62,832
-
228,502
(80,721)
-
147,781
2022
$’000
93,302
7,582
16,361
16,342
133,587
66,052
66,052
2021
$’000
228,502
(16,673)
(9,364)
202,465
Net Cash
$’000
110,806
109,093
(17,434)
202,465
(55,184)
(50,315)
96,966
2021
$’000
76,792
5,889
4,128
14,004
100,813
-
-
GROUP BALANCE SHEET (continued)
NOTE 5: INVENTORIES (continued)
Non-current inventory
Ore stockpiles not expected to be processed in the twelve months after the reporting date are classified as non-current inventory. There is
a reasonable expectation that the processing of these stockpiles will have a future economic benefit to the Group and accordingly the value
of these stockpiles is the lower of cost and net realisable value. The non-current ore stockpiles represent the stockpiles held at Eridanus
that are not expected to be processed in the twelve months following reporting date. The determination of the current and non-current
portion of the ore stockpiles includes the use of estimates and judgements about when ore stockpile drawdowns for processing will occur.
These estimates and judgements are based on current forecasts and mine plans.
Recognition and measurement
Inventories
Ore stockpiles, gold in circuit and poured gold bars (bullion and doré) are physically measured, or estimated, and valued at the lower of
cost and net realisable value. Cost represents the weighted average cost and includes direct costs and an appropriate allocation of fixed and
variable production overhead costs, including depreciation and amortisation.
Consumables and stores are valued on a weighted average cost basis and at the lower of cost and net realisable value. Costs of purchased
inventory are determined after deducting any applicable rebates and discounts. A periodic review is undertaken to establish the extent of
any surplus or obsolete items and where necessary a provision is made.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion of sale.
Ore stockpiles represents stockpiled ore that has been mined or otherwise acquired and is available for further processing. If there is
significant uncertainty as to whether the stockpiled ore will be processed, it is expensed. Where future processing of ore can be predicted
with confidence (e.g., it exceeds the mine cut-off grade), it is valued at the lower of cost and net realisable value. Ramelius believes
processing ore stockpiles may have a future economic benefit to the Group and accordingly ore is valued at lower of cost and net realisable
value.
NOTE 6: OTHER ASSETS
Current
Prepayments
Total other current assets
Non-current
Other security bonds & deposits
Total other non-current assets
2022
$’000
3,519
3,519
552
552
2021
$’000
1,484
1,484
503
503
Inventory expense
The net realisable value write downs through cost of sales amounted to $28,360,000 (2021: $3,920,000 write down). These were
recognised as an expense during the year ended 30 June 2022 and are included in the cost of sales in the Income Statement. The write
down to the net realisable value relates to stockpiles at Eridanus, Tampia, and Marda which have a grade lower than that processed due to
the priority treatment of higher grade ore.
Other non-current assets
Other non-current assets comprise bonds and deposits with government bodies with regards to the mining and exploration activities of
the Group.
140
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 7: INVESTMENTS
Listed investment financial assets are measured at fair value and depending on their nature classified as either fair value through profit and
loss or fair value through other comprehensive income.
Investments at fair value through profit and loss
Investments at fair value through other comprehensive income
Total investments
Gain/(Loss) recognised through profit and loss
Gains recognised in other comprehensive income
2022
$’000
3,967
1,609
5,576
(1,670)
434
2021
$’000
3,279
3,029
6,308
2,279
377
Investments at fair value through profit and loss
An investment is classified at fair value through profit and loss if it is classified as held for trading or is designated as such on initial
recognition. Investments are designated at fair value through the profit and loss if Ramelius manages such investments and makes purchase
and sale decisions based on their fair value in accordance with the risk management or investment strategy. Attributable transaction costs
are recognised in the profit and loss as incurred.
Investments at fair value through other comprehensive income
An investment at fair value through other comprehensive income comprise equity securities which are not held for trading, and which the
group has irrevocably elected at initial recognition to recognise in this category. These are strategic investments and Ramelius considered
this classification to be more relevant.
142
143
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 8: PROPERTY, PLANT, AND EQUIPMENT
2022
As at 1 July 2021
Cost
Accumulated depreciation
Net book amount
Year ended 30 June 2022
Opening net book amount
Transfers to mine development
Additions
Disposals
Transfers
Depreciation charge
Impairment
Closing net book amount
As at 30 June 2022
Cost
Accumulated depreciation
Net book amount
2021
As at 1 July 2020
Cost
Accumulated depreciation
Net book amount
Year ended 30 June 2021
Opening net book amount
Acquisition of subsidiary
Additions
Disposals
Transfers
Depreciation charge
Closing net book amount
As at 30 June 2021
Cost
Accumulated depreciation
Net book amount
Land and
buildings
$’000
Plant and
equipment
$’000
Assets under
construction
$’000
Right of use
assets
$’000
17,943
(2,936)
15,007
15,007
-
-
-
-
(3,501)
(1,066)
10,440
16,874
(6,434)
10,440
137,292
(97,962)
39,330
39,330
-
13,061
(50)
19,823
(18,587)
(19,263)
34,314
150,280
(115,966)
34,314
20,073
-
20,073
20,073
(217)
10,608
-
(19,823)
-
(3,382)
7,259
7,259
-
7,259
60,724
(34,957)
25,767
25,767
-
48,880
-
-
(24,698)
-
49,949
109,605
(59,656)
49,949
Land and
buildings
$’000
Plant and
equipment
$’000
Assets under
construction
$’000
Right of use
assets
$’000
9,411
(2,185)
7,226
7,226
-
8,522
-
10
(751)
15,007
17,943
(2,936)
15,007
118,781
(84,678)
34,103
34,103
-
12,650
(127)
6,239
(13,535)
39,330
137,292
(97,962)
39,330
7,340
-
7,340
7,340
(181)
19,163
-
(6,249)
-
20,073
20,073
-
20,073
44,223
(14,524)
29,699
29,699
-
16,501
-
-
(20,433)
25,767
60,724
(34,957)
25,767
Total
$’000
236,032
(135,855)
100,177
100,177
(217)
72,549
(50)
-
(46,786)
(23,711)
101,962
284,017
(182,056)
101,962
Total
$’000
179,755
(101,387)
78,368
78,368
(181)
56,836
(127)
-
(34,719)
100,177
236,032
(135,855)
100,177
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 8: PROPERTY, PLANT, AND EQUIPMENT (continued)
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
Land and buildings
Motor vehicles
Computers and communication equipment
Furniture and equipment
Plant and equipment
Useful life
1 - 40 years
2 - 12 years
2 - 10 years
1 - 20 years
1 – 30 years
Key judgement, estimates and assumptions: Depreciation
The estimations of useful lives, residual value and depreciation methods require management judgement and are reviewed
biannually for all major items of plant and equipment. If they need to be modified, the change is accounted for prospectively from
the date of reassessment until the end of the revised useful life (for both the current and future years).
Derecognition
An item of property, plant, and equipment is derecognised when it is sold or otherwise disposed of, or when its use is expected to bring
no future economic benefits. Gains and losses on derecognising assets are determined by comparing proceeds with the carrying amount.
These gains and losses are included in the income statement.
Recognition and measurement of property, plant, and equipment
Cost
Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and
impairment losses.
Property, plant, and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable
to the acquisition of the items.
Major spares purchased specifically for particular plant are capitalised and depreciated on the same basis as the plant to which they
relate when in use. Assets are depreciated or amortised from the date they are installed and are ready for use, or in respect of internally
constructed assets, from the time the asset is completed and deemed ready for use.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to the Income Statement during the financial period in which they are incurred.
144
145
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 8: PROPERTY, PLANT, AND EQUIPMENT (continued)
Impairment
Refer to Note 11 for further information on impairment losses recorded during the year.
Key judgement, estimates and assumptions: Impairment of assets
The Group assesses each Cash Generating Unit (CGU) at least annually, to determine whether there is any indication of
impairment or reversal of a prior impairment. Where an indicator of impairment or reversal exists, a formal estimate of the
recoverable amount is made, which is deemed as being the higher of the fair value less costs to sell and value in use. These
assessments require the use of estimates and assumptions such as ore reserves, future production, commodity prices, discount
rates, exchange rates, operating costs, sustaining capital costs, any future development cost necessary to produce the reserves
(including the magnitude and timing of cash flows) and operating performance.
Some of the factors considered in management’s assessment as to whether there existed any indicators of impairment at the
CGUs included strong operational and financial performance of the CGUs, the extension of mine life across all CGUs, positive gold
price environment against budget, and acquisitions complementing the existing CGUs of the Group.
NOTE 9: MINE DEVELOPMENT
Mine development
Less: accumulated amortisation
Net book amount
Mine development
Opening net book amount
Additions
Impairment loss
Restoration and rehabilitation adjustment
Transfer from property, plant, and equipment
Transfer from exploration and evaluation asset
Amortisation
Closing net book amount
Note
11
15
8
10
2022
$’000
841,930
(572,931)
268,999
375,338
94,181
(70,789)
6,300
217
-
(136,248)
268,999
2021
$’000
812,021
(436,683)
375,338
208,268
119,163
-
2,935
181
173,608
(128,817)
375,338
Impairment
During the year an impairment loss on the Edna May CGU was recognised, refer to Note 11 for further information.
Recognition and measurement
Mine development
Development assets represent expenditure in respect of exploration, evaluation, feasibility and development incurred by or on behalf of the
Group, including overburden removal and construction costs, previously accumulated and carried forward in relation to areas of interest in
which mining has now commenced. Such expenditure comprises net direct costs and an appropriate allocation of directly related overhead
expenditure.
All expenditure incurred prior to commencement of production from each development property is carried forward to the extent to
which recoupment out of future revenue from the sale of production, or from the sale of the property, is reasonably assured.
When further development expenditure is incurred in respect of a mine property after commencement of production, such expenditure
is carried forward as part of the cost of the mine property only when future economic benefits are reasonably assured, otherwise the
expenditure is classified as part of the cost of production and expensed as incurred. Such capitalised development expenditure is added to
the total carrying value of development assets being amortised.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 9: MINE DEVELOPMENT (continued)
Recognition and measurement (continued)
Deferred mining expenditure – Pre-production mine development
Pre-production mining costs incurred by the Group in relation to accessing recoverable reserves are carried forward as part of
‘development assets’ when future economic benefits are established, otherwise such expenditure is expensed as part of the cost of
production.
Deferred mining expenditure - Surface mining costs
Mining costs incurred during the production stage of operations are deferred, this is generally the case where there are fluctuations in
deferred mining costs over the life of the mine, and the effect is material. The amount of mining costs deferred is based on the ratio
obtained by dividing the volume of waste material moved by the volume of ore mined. Mining costs incurred in the period are deferred
to the extent that the current period waste to ore ratio exceeds the life of mine waste to ore (life of mine) ratio. The life of mine ratio is
based on economically recoverable reserves of the operation.
In the production stage of some operations, further developments of the mine require a phase of unusually high overburden removal
activity that is similar in nature to pre-production mine development. The costs of such unusually high overburden removal activity are
deferred and charged against reported profits in subsequent periods on a unit of production basis. The accounting treatment is consistent
with that of overburden removal costs incurred during the development phase of a mine before production commences. Deferred
mining costs that relate to the production phase of the operation are carried forward as part of ‘development assets’. The amortisation of
deferred mining costs is included in site operating costs.
Key judgement, estimates and assumptions: Production stripping
The life of mine ratio is a function of an individual mine’s design and therefore changes to that design will generally result in changes
to the ratio. Changes in other technical or economic parameters that impact reserves will also have an impact on the life of mine
ratio even if they do not affect the mine’s design. Changes to the life of mine ratio are accounted for prospectively.
Key judgement, estimates and assumptions: Deferred mining expenditure
The Group defers mining costs incurred during the production stage of its operations. Changes in an individual mine’s design will
generally result in changes to the life of mine waste to ore (life of mine) ratio. Changes in other technical and economic parameters
that impact reserves will also have an impact on the life of mine ratio even if they do not affect the mine’s design. Changes to the
life of mine ratio are accounted for prospectively.
Ore Reserves
The Group estimates Ore Reserves and mineral resources each year based on information compiled by Competent Persons as
defined in accordance with the Australian code for reporting Exploration Results, Mineral Resources and Ore Reserves 2012
(‘JORC code’). Estimated quantities of economically recoverable reserves are based upon interpretations of geological models and
require assumptions to be made including estimates of short and long-term commodity prices, exchange rates, future operating
performance, and capital requirements. Changes in reported reserve estimates can impact the carrying value of plant and
equipment and development, provision for restoration and rehabilitation obligations as well as the amount of depreciation and
amortisation.
Amortisation and impairment
The Group uses the unit of production basis when depreciating / amortising mine specific assets which results in a depreciation
/ amortisation charge proportional to the depletion of the anticipated remaining life of mine production. Economic life, which
is assessed annually, has due regard to both its physical life limitations and to present assessments of economically recoverable
reserves of the mine property. These calculations require the use of estimates and assumptions.
Development assets are amortised based on the unit of production method which results in an amortisation charge proportional
to the depletion of the estimated recoverable reserves. Where there is a change in the reserves the amortisation rate is adjusted
prospectively in the reporting period in which the change occurs. The net carrying values of development expenditure carried
forward are reviewed half yearly by Directors to determine whether there is any indication of impairment, refer to Note 8 (d) for
further information.
146
147
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 10: EXPLORATION AND EVALUATION ASSETS
Exploration and evaluation
Exploration and evaluation asset reconciliation
Opening net book amount
Additions on the acquisition of subsidiary
Additions
Disposal
Impairment loss
Exchange differences
Transfer to development asset
Closing net book amount
Note
21
9
2022
$’000
216,615
31,253
174,303
27,732
-
(16,673)
-
-
216,615
2021
$’000
31,253
196,247
-
13,652
(18)
(5,014)
(6)
(173,608)
31,253
Transfer to development assets
There were no transfers from exploration and evaluation assets during the 2022 year (2021: $173,608,000).
Recognition and measurement
Exploration and evaluation
Exploration and evaluation costs related to areas of interest are capitalised and carried forward to the extent that:
(a) Rights to tenure of the area of interest are current; and
(b)
(i) Costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively
by sale; or
(ii) Where activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence
or otherwise of economically recoverable reserves, active and significant operations in, or in relation to, the areas are
continuing.
Such expenditure consists of an accumulation of acquisition costs and direct net exploration and evaluation costs incurred by or on behalf
of the Group, together with an appropriate portion of directly related overhead expenditure.
Deferred feasibility
Feasibility expenditure represents costs related to the preparation and completion of feasibility studies to enable a development decision to
be made in relation to an area of interest and is capitalised as incurred.
When production commences, relevant past exploration, evaluation and feasibility expenditure in respect of an area of interest that has
been capitalised is transferred to mine development where it is amortised over the life of the area of interest to which it relates on a unit of
production basis.
When an area of interest is abandoned, or the Directors decide it is not commercial, any accumulated costs in respect of that area are
written off in the year the decision is made. Each area of interest is reviewed at the end of each reporting period and accumulated costs
written off to the extent they are not expected to be recoverable in the future.
Mineral rights
Mineral rights comprise identifiable exploration and evaluation assets, mineral resources and ore reserves, which are acquired as part of a
business combination or a joint venture and are recognised at fair value at date of acquisition. Mineral rights are attributable to specific areas
of interest and are classified within exploration and evaluation assets.
Mineral rights attributable to each area of interest are amortised when commercial production commences on a unit of production basis
over the estimated economic reserve of the mine to which the rights related.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
149
GROUP BALANCE SHEET (continued)
NOTE 10: EXPLORATION AND EVALUATION ASSETS (continued)
Recognition and measurement (continued)
Key judgement, estimates and assumptions: Exploration, evaluation and deferred
feasibility expenditure
Judgement is required to determine whether future economic benefits are likely, from either exploitation or sale, or whether
activities have not reached a stage that permits a reasonable assessment of existence of reserves. In addition to these judgements,
the Group has to make certain estimates and assumptions. The determination of JORC resources is itself an estimation process
that involves varying degrees of uncertainty depending on how the resources are classified (i.e. measured, indicated or inferred).
The estimates directly impact when the group capitalises exploration and evaluation expenditure. The capitalisation policy requires
management to make certain estimates and assumptions as to future events and circumstances, in particular, the assessment of
whether economic quantities of reserves will be found. Any such estimates and assumptions may change as new information
becomes available. The recoverable amount of capitalised expenditure relating to undeveloped mining projects can be particularly
sensitive to variations in key estimates and assumptions. If variation in key estimates or assumptions has a negative impact on
recoverable amount it could result in a requirement for impairment.
Impairment
Indicators of impairment
The carrying amounts of the Group’s exploration and evaluation assets are reviewed at each reporting date, to determine whether
any of the following indicators of impairment exists:
•
•
•
•
Tenure over the tenement area has expired during the period or will expire in the near future, and is not expected to be
renewed; or
Substantive expenditure on further exploration for, and evaluation of, mineral resources in the specific area is not budgeted or
planned; or
Exploration for, and evaluation of, resources in the specific area have not led to the discovery of commercially viable quantities
of resources, and the Group has decided to discontinue activities in the specific area; or
Sufficient data exists to indicate that, although a development is likely to proceed, the carrying amount of the exploration and
evaluation asset is unlikely to be recovered in full from successful development or from sale.
As a result an exploration loss of $16,673,000 was recognised during the year.
Key judgement, estimates and assumptions: Impairment
Impairment of specific exploration and evaluation assets during the year have occurred where Directors have concluded that
capitalised expenditure is unlikely to be recovered by sale or future exploitation. At each reporting date the Group undertakes
an assessment of the carrying amount of its exploration and evaluation assets. During the year indicators of impairment were
identified on certain exploration and evaluation assets in accordance with AASB 6 Exploration for and Evaluation of Mineral
Resources. As a result of this review, an impairment loss of $16,673,000 (2021: $5,014,000) has been recognised in relation to
areas of interest where the Directors have concluded that capitalised expenditure is unlikely to be recovered by sale or future
exploitation.
148
GROUP BALANCE SHEET (continued)
NOTE 11: IMPAIRMENT OF MINE DEVELOPMENT AND PROPERTY,
PLANT AND EQUIPMENT
Impairment of Mine development and Property, plant, and equipment assets
The carrying amounts of the Group’s non-current assets, including mine development, property, plant and equipment and exploration and
evaluation assets are reviewed at each reporting date to determine whether there is any indication of impairment. Where an indicator of
impairment exists, a formal estimate of the recoverable amount is made.
Indicators of impairment – Mine development and Property, plant, and equipment
Mine development assets, land, buildings, plant and equipment are assessed for impairment on a cash-generating unit (CGU) basis. A CGU
is the smallest grouping of assets that generates largely independent cash inflows, and generally represents gold mines that are processed
through a common facility. The Group has identified two reportable segments of its business (excluding exploration which is tested for
impairment separately):
• Mt Magnet: mining and processing of gold from the Mt Magnet region including the Vivien and Penny Gold Mines.
•
Edna May: mining and processing of gold from the Edna May region including the Marda and Tampia Gold Mines.
Individual assets within a CGU may become impaired if their ongoing use changes or if the benefits to be obtained from ongoing use are
likely to be less than the carrying value of the individual asset.
Impairment losses or reversal of impairment losses
An impairment loss is recognised in the income statement whenever the carrying amount of an asset or its CGU exceeds its recoverable
amount. Impairment losses recognised in respect of CGUs are allocated to reduce the carrying amount of the assets in the CGU on a
pro-rata basis.
Any reversal of impairment losses is recognised in the income statement when the recoverable amount of an asset or CGU exceeds its
carrying amount. An impairment loss is reversed only to the extent that the asset carrying amount does not exceed the carrying amount
that would have been determined if no impairment loss had been recognised.
Recoverable amount
The recoverable amount of an asset or CGU is the greater of its fair value less costs of disposal (FVLCD) (based on level 3 fair value
hierarchy) and its value-in-use (VIU), using an asset’s estimated future cash flows (as described below) discounted to their present value
using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Recoverable amount has been determined based on FVLCD. Given the nature of the Group’s activities, information on the fair value of an
asset is usually difficult to obtain unless negotiations with potential purchasers or similar transactions are taking place. Consequently, the
FVLCD for each CGU is estimated based on discounted future estimated cash flows (expressed in real terms) expected to be generated
from the continued use of the CGUs using market-based gold price assumptions, the level of proved and probable Ore Reserves and
measured, indicated and inferred Mineral Resources, estimated quantities of recoverable gold, production levels, operating costs and
capital requirements, including any expansion projects, and its eventual disposal, based on the CGU latest Mine Plans. These cash flows are
discounted using a real post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to
the CGU.
Key judgement, estimate, or assumption: Impairment of gold mine assets
Estimates of future USD gold prices are based on the Group’s best estimate of future market prices with reference to consensus
views of external market analyst forecasts. Future gold prices are reviewed at least annually. Forecasts of the AUD/USD exchange
rate are based on the Group’s best estimate with reference to external market data and forward values, including analysis of broker
and consensus estimates.
The future gold price also considers the hedge book volume and contracted price as at the reporting date.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
151
GROUP BALANCE SHEET (continued)
NOTE 11: IMPAIRMENT OF MINE DEVELOPMENT AND PROPERTY,
PLANT AND EQUIPMENT (continued)
Key judgement, estimate, or assumption: Impairment of gold mine assets (continued)
The real future USD gold price and AUD/USD exchange rate used to calculate the future real AUD gold price were as follows
(calendar years):
30 June 2022
US$/oz
AUD/USD exchange rate
A$/oz
2022
1,870
0.69
2,710
2023
1,656
0.69
2,400
2024
1,622
0.69
2,350
LT
1,591
0.74
2,150
The discount rates applied to the future forecast cash flows are based on the weighted average cost of capital. The post-tax real discount
rate that has been applied to non-current assets is 6%.
In the event that future circumstances vary from these assumptions, the recoverable amount of the Group’s gold mine assets could change
materially and result in impairment losses or the reversal of previous impairment losses.
Edna May indicator assessment
A review of any potential impairment indicators for the Edna May CGU was undertaken as at 30 June 2022. The following factors were
considered as potential indicators of impairment:
•
•
•
Evidence that the economic performance of the Edna May CGU was worse than expected, including, but not limited to a 14%
reduction in expected gold production from the Tampia Gold Mine over its Mine Plan (when compared to the feasibility study)
and material net realisable value (NRV) charges against the Tampia ore stockpiles.
Significant increases to the risk free rate underpinning the applicable discount rate, abnormally high inflation rates, and other cost
pressures (including significant increases in the diesel price).
The quoted market capitalisation of Ramelius was lower that its net asset carrying value (before the recognition of any
impairment losses).
As a result, an impairment test was performed to determine the recoverable amount for the Edna May CGU.
The review conducted on the Edna May carrying value determined that a pre-tax non-cash impairment loss of $94.5 million ($68.7 million
post-tax) be recognised during the year ended 30 June 2022. The composition of the impairment loss across the Group’s non-financial
assets is detailed below.
Asset
Impairment losses on assets – Edna May
Mine development (producing mines)
Plant and equipment
Total impairment loss (pre-tax)
$’000
70,789
23,711
94,500
150
GROUP BALANCE SHEET (continued)
NOTE 11: IMPAIRMENT OF MINE DEVELOPMENT AND PROPERTY,
PLANT AND EQUIPMENT (continued)
Edna May sensitivity analysis
It is estimated that the following reasonably possible changes in the key assumptions would have the following approximate impact (increase
or decrease) on the fair value of the Edna May CGU.
Assumption
A$100 per ounce change in the gold price
5% increase / decrease in forecasted gold production
1% increase / decrease in the discount rate
5% increase / decrease in assumed operating costs
$’000
13,350
19,067
117
18,846
It must be noted that each of the sensitivities above assume that the specific assumptions moves in isolation whilst all other assumptions
are held constant. In reality, due to the interrelated nature of the assumptions, movements in any one variable can have an indirect impact
on others and individual variables rarely change in isolation. Additionally, management can be expected to respond to some movements,
to mitigate downsides and take advantage of upsides, as circumstances allow. Action is also usually taken by management to respond to
adverse changes in economic assumptions that may mitigate the impact of any such change.
Mt Magnet indicator assessment
A review of any potential impairment indicators for the Mt Magnet CGU was undertaken as at 30 June 2022. The following factors were
considered as potential indicators of impairment:
•
•
Significant increases to the risk free rate underpinning the applicable discount rate, abnormally high inflation rates, and other cost
pressures (including significant increases in the diesel price).
The quoted market capitalisation of Ramelius was lower that its net asset carrying value (before the recognition of any
impairment losses).
As a result, an impairment test was performed to determine the recoverable amount for the Mt Magnet CGU.
The review conducted on the Mt Magnet carrying value determined that no impairment loss was evident, and no amounts were recognised
in the financial statements.
NOTE 12: TRADE AND OTHER PAYABLES
Trade payables
Other payables and accruals
Total trade and other payables
2022
$’000
23,346
58,969
82,315
2021
$’000
19,941
38,538
58,479
Recognition and measurement
Trade and other payables
Liabilities for trade and other payables are initially recorded at the fair value of the consideration to be paid in the future for goods and
services received, whether or not billed to the Group, and then subsequently at amortised cost. Trade payables are unsecured and are
usually paid within 30 days of recognition. The carrying amounts of trade and other payables are assumed to be the same as their fair
values, due to their short-term nature.
Risk exposure
The Group’s exposure to cash flow risk is discussed in Note 19.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 13: LEASE LIABILITIES
Current
Current
Non-current
Total lease liability
Set out below are the carrying amounts of lease liabilities and the movements during the year:
Opening lease liability
Additions
Interest expense (Note 2)
Payments
Closing lease liability
Maturity analysis:
Year 1
Year 2
Year 3
Gross lease liability
Less future interest charges
Total lease liability
2022
$’000
25,687
25,128
50,815
26,037
48,881
1,434
(25,537)
50,815
27,802
17,703
8,631
54,136
(3,321)
50,815
2021
$’000
16,673
9,364
26,037
30,489
16,501
933
(21,886)
26,037
17,240
7,246
2,356
26,842
(805)
26,037
Right of use assets
The Group has lease contracts for various items of mining equipment, power infrastructure, motor vehicles and buildings used in its
operations. These leases generally have lease terms between two and three years. The Group’s obligations under its leases are secured
by the lessor’s title to the leased assets. Generally, the Group is restricted from assigning and subleasing the leased assets.
The Group also has certain leases of assets with lease terms of twelve months or less and leases of storage containers and equipment
for which the assets are of low value. The Group applies the short-term lease and lease of low value assets recognition exemptions for
these leases.
152
153
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 13: LEASE LIABILITIES (continued)
Set out below are the carrying amounts of right of use assets recognised and the movements during the period (as shown in property,
plant, and equipment):
2022
As at 1 July 2021
Additions
Depreciation charge
As at 30 June 2022
As at 1 July 2020
Additions
Depreciation charge
As at 30 June 2021
Land and
buildings
$’000
183
709
(227)
665
277
115
(209)
183
Plant and
equipment
$’000
23,326
47,734
(23,188)
47,872
29,133
13,397
(19,204)
23,326
Vehicles
$’000
2,258
437
(1,283)
1,412
289
2,989
(1,020)
2,258
Impact on the income statement
The following amounts are recognised in the income statement:
Impact on income statement:
The application of AASB 16 has resulted in the following amounts being
recorded in the income statement:
Depreciation of right of use asset
Interest expense
Income tax expense
Total amount recorded in the income statement resulting from AASB 16
Note
2
3
2022
$’000
24,698
1,434
178
26,310
Total
$’000
25,767
48,880
(24,698)
49,949
29,699
16,501
(20,433)
25,767
2021
$’000
20,433
933
(156)
21,210
Payments of $1,187,000 (2021: $2,874,000) for short-term leases (lease terms of 12 months or less) were expensed in the income
statement for the year ended 30 June 2022.
Leases
When a contract is entered into the Group assesses whether the contract contains a lease. A lease arises when the Group has the right to
direct the use of an identified asset which is not substitutable and to obtain substantially all economic benefits from the use of the assets
throughout the period of use. The Group separates the lease and non-lease components of the contract and accounts for these separately.
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low value
assets. The Group recognises lease liabilities to make lease payments and right of use assets representing the right to use the underlying
assets.
Right of use assets
The Group recognises right of use assets at the commencement date of the lease (i.e., the date when the underlying asset is available
for use). Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before the commencement date plus any make good obligations.
Right of use assets are depreciated using the straight line method over the shorter of their useful life and the lease term as follows:
• Mining equipment 2 to 3 years
2 to 3 years
• Motor vehicles
2 to 3 years
Buildings
•
Periodic adjustments are made for any remeasurement of the lease liabilities and for impairment losses, assessed in accordance with the
Group’s impairment policies.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
155
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 14: DEFERRED CONSIDERATION
Current
Edna May deferred consideration
Tenement acquisition deferred consideration
Total current deferred consideration
Non-current
Edna May deferred consideration
Tenement acquisition deferred consideration
Total non-current deferred consideration
Movements
Opening book amount
Additions on the acquisition of subsidiary
Payments
Unwinding of discount rate
Change in fair value of deferred consideration
Total deferred consideration
Note
21
2
2
2022
$’000
2,814
979
3,793
2,922
918
3,840
8,539
1,932
(5,486)
482
2,166
7,633
2021
$’000
5,186
-
5,186
3,353
-
3,353
13,184
-
(5,813)
804
364
8,539
Significant estimate
Deferred consideration – Edna May
The purchase consideration for Edna May included deferred consideration of:
•
•
$20,000,000 in cash or Ramelius shares, or a combination of both, at Ramelius’ sole election, upon a Board approved
decision to mine the Edna May Stage 3 open pit; and
Royalty payments of up to a maximum of $30,000,000 payable at A$60/oz from gold production over 200,000 ounces (or
up to $50,000,000 payable at A$100/oz if the Edna May Stage 3 open pit decision to mine is not Board approved).
The potential undiscounted amount payable under the agreement is between $0 and $38,702,000.
The fair value of the deferred consideration has been revalued at 30 June 2022 which resulted in an increase of the deferred
consideration of $2,166,000 which has been recorded in the income statement.
Deferred consideration – tenement acquisitions
On the acquisition of Apollo Consolidated Limited Ramelius recognised the deferred consideration liabilities for a tenement
purchase agreement Apollo had entered into before being acquired by Ramelius. The deferred consideration was made up of
$1,000,000 in cash or Ramelius shares, at the earliest grant of a mining lease, or 24 months from signing and $1,000,000 in cash or
Ramelius shares, at the earliest decision to mine the Rebecca deposit, or 45 months from signing.
The potential undiscounted amount payable under the agreement is between $2,000,000.
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 13: LEASE LIABILITIES (continued)
Lease liabilities
Lease liabilities are initially measured as the present value of future minimum lease payments, discounted using the Group’s incremental
borrowing rate if the rate explicit in the lease cannot be readily measured at amortised cost using the effective interest rate over the lease
term. Minimum lease payments are fixed payments or index based variable payments incorporating the Group’s expectations of extension
options and do not include non-lease component of a contract. Variable lease payments that do not depend on an index or a rate are
recognised as expenses in the period in which the event or condition that triggers the payment occurs.
The lease liability is remeasured when there are changes in the future lease payments arising from a change in rates, index, or lease terms
from exercising an extension or termination options. A corresponding adjustment is made to the carrying amount of the lease assets, with
any excess recognised in the income statement.
Short-term leases and leases of low value assets
The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of
twelve months or less from the commencement date and do not contain a purchase option). It also applies the lease of low value assets
recognition exemption to leases of plant and equipment that are of low value. Lease payments on short-term leases and leases of low value
assets are recognised as an expense as they are incurred.
Key judgements, estimates and assumptions: Leases
Identification of non-lease components
In addition to containing a lease, the Group’s mining services contracts involves the provision of additional services, including
personnel cost, low value materials, drilling, hauling related activities and other items. These are non-lease components, and the
Group has elected to separate these from the lease components.
Judgement is required to identify each of the lease and non-lease components. The consideration in the contract is then allocated
between the lease and non-lease components on a relative stand-alone price basis. This requires the Group to estimate stand-
alone prices for each lease and non-lease component based on quoted prices within the contract.
Identifying in substance fixed rates versus variable lease payments
The lease payments used to calculate the lease related balances under AASB 16 include fixed payments, in substance fixed
payments and variable payments based on an index or rate. Variable payments not based on an index or rate are excluded from
the measurement of lease liabilities and related assets.
For the Group’s mining services contracts, in addition to the fixed payments, there are payments that are variable payments
because the contract terms require payment based on a rate per hour. In terms of AASB 16, the Group uses judgement to
determine that no minimum hours or volumes within the contract are a fixed minimum that results in an amount payable that is
unavoidable.
Therefore, the Group has had to apply judgement to determine that there are no in substance fixed payments included in the lease
payments used to calculate the lease related balances. Payments identified as variable not based on an index or rate, are excluded
from recognition and measurement of the lease related balances.
Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in its leases. Therefore, it uses the relevant incremental borrowing
rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar
term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right of use asset in a similar
economic environment. The IBR, therefore, reflects what the group would have to pay, which requires estimation when no
observable rates are available and to make adjustments to reflect the terms and conditions of the lease. The Group estimates
the IBR using observable inputs (such as market interest rates) when available and considered certain contract and entity specific
judgements estimates (such as the lease term and credit rating). The IBR range used by the group was between 2.71% and 6.14%.
154
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NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 15: PROVISIONS (continued)
Recognition and measurement (continued)
Provision for restoration and rehabilitation
Estimated costs of decommissioning and removing an asset and restoring the site are included in the cost of the asset as at the date the
obligation first arises and to the extent that it is first recognised as a provision. The Group records the present value of the estimated
cost of constructive and legal obligations to restore operating locations in the period in which the obligation is incurred. The nature of
decommissioning activities includes dismantling and removing structures, rehabilitating mine sites, dismantling operating facilities, closure of
plant and waste sites and restoration, reclamation and revegetation of affected areas.
Typically, the obligation arises when the asset is installed, or the environment is disturbed at the development location. When the liability
is initially recorded, the present value of the estimated cost is capitalised by increasing the carrying amount of the related mining assets.
Over time, the discounted liability is increased for the change in the present value based on the discount rates that reflect the current
market assessments and the risks specific to the liability. Additional disturbances or changes in decommissioning costs will be recognised as
additions or changes to the corresponding asset and rehabilitation liability when incurred.
The unwind effect of discounting the provision is recorded as a finance cost in the Income Statement and the carrying amount capitalised
as a part of mining assets is amortised on a unit of production basis. Costs incurred that relate to an existing condition caused by past
operations, but do not have future economic benefits, are expensed as incurred.
Key judgement, estimates and assumptions
Provision for restoration and rehabilitation
The Group assesses its mine restoration and rehabilitation provision biannually in accordance with the accounting policy. Significant
judgement is required in determining the provision for restoration and rehabilitation as there are many transactions and other
factors that will affect the ultimate liability payable to rehabilitate and restore the mine sites. The estimate of future costs therefore
requires management to make assessment of the future restoration and rehabilitation date, future environmental legislation,
changes in regulations, price increases, changes in discount rates, the extent of restoration activities and future removal and
rehabilitation technologies. When these factors change or become known in the future, such differences will impact the restoration
and rehabilitation provision in the period in which they change or become known. At each reporting date the rehabilitation and
restoration provision is remeasured to reflect any of these changes.
Provision for long service leave
Management judgement is required in determining the following key assumptions used in the calculation of long service leave at
balance sheet date:
- Future increase in salaries and wages;
- Future on cost rates; and
- Future probability of employee departures and period of service
NOTES TO THE
FINANCIAL STATEMENTS
GROUP BALANCE SHEET (continued)
NOTE 15: PROVISIONS
Current
Employee benefits
Rehabilitation and restoration costs
Total current provisions
Non-current
Employee benefits
Rehabilitation and restoration costs
Total non-current provisions
Rehabilitation and restoration costs
Opening book amount
Revision of provision during the year
Expenditure on rehabilitation and restoration
Discount unwind
Total provision for rehabilitation and restoration
Note
9
2
2022
$’000
9,084
5,589
14,673
544
44,097
44,641
43,321
6,300
(674)
739
49,686
2021
$’000
7,875
1,330
9,205
507
41,991
42,498
40,717
2,935
(699)
368
43,321
Revision of rehabilitation and restoration provision
Represents amendments to future restoration and rehabilitation liabilities resulting from changes to the approved mine plan in the financial
year, initial recognition of new rehabilitation provisions as well as a change in provision assumptions. Key provision assumption changes
include reassessment of costs and timing of expenditure.
Recognition and measurement
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation.
Employee benefits – Wages, salaries, salary at risk, annual leave and sick leave
Liabilities arising in respect of wages and salaries, bonuses, annual leave and any other employee benefits expected to be wholly settled
within twelve months of the reporting date are measured at their nominal amounts based on remuneration rates which are expected to be
paid when the liabilities are settled. These amounts are recognised in ‘trade and other payables’ (for amounts other than annual leave and
bonuses) and ‘current provisions’ (for annual leave and bonuses) in respect of employee services up to the reporting date. Costs incurred in
relation to non-accumulating sick leave are recognised when the leave is taken and are measured at the rate paid or payable.
Long service leave
The liability for long service leave is measured at the present value of the estimated future cash outflows to be made by the Group resulting
from employees’ services provided up to the reporting date. Liability for long service leave benefits not expected to be settled within
twelve months are discounted using the rates attaching to high quality corporate bonds at the reporting date, which most closely match
the terms of maturity of the related liability. In determining the liability for these long-term employee benefits, consideration has been given
to expected future increases in wage and salary rates, the Group’s experience with staff departures and periods of service. Related on costs
have also been included in the liability.
The obligations are presented in 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.
156
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 159
Total
$’000
(33,277)
2,358
(570)
5,180
620
(186)
(159)
275
NOTES TO THE
FINANCIAL STATEMENTS
CAPITAL (continued)
NOTE 17: RESERVES
Reserves
At 1 July 2021
Share based
payments
$’000
4,232
Investments
at FVOCI
$’000
147
NCI
acquisition
$’000
(38,395)
Foreign
currency
translation
$’000
105
Other
$’000
634
Share based payments expense (Note 29)
Performance rights exercised (Note 16)
2,358
(570)
Adjustments on the acquisition of Apollo
Consolidated Limited (Note 21)
Other comprehensive income:
Change in fair value of investments
Deferred tax
Translation of foreign operation
Other comprehensive income
-
-
-
-
-
At 30 June 2022
6,020
-
-
-
620
(186)
-
434
581
-
-
5,180
-
-
-
-
(33,215)
-
-
-
-
-
(159)
(159)
(54)
-
-
-
-
-
-
-
634
(26,034)
Share based payment reserve
Share based payments reserve records items recognised as expenses on valuation of employees share options and rights.
Investments at FVOCI
The Group has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income
(OCI). These changes are accumulated within the FVOCI reserve within equity. The Group transfers amounts from this reserve to retained
earnings when the relevant equity securities are disposed.
Non-Controlling Interest (NCI) acquisition reserve
The NCI acquisition reserve represents the incremental increase in the Ramelius share price on the acquisition of non-controlling interest
post the date control was obtained. This reserve relates to the acquisition Spectrum Metals Limited, Explaurum Limited, and Apollo
Consolidated Limited.
Foreign currency translation reserve
Foreign currency translation reserve comprises all foreign exchange difference arising from the translation of the financial statements of
foreign operations where their functional currency is different to the presentation currency of the reporting entity.
NOTES TO THE
FINANCIAL STATEMENTS
CAPITAL
NOTE 16: SHARE CAPITAL
Ordinary shares
Share capital at 30 June 2020
Shares issued from exercise of performance rights
Shares issued as consideration for asset acquisition1
At 30 June 2021
Shares issued from exercise of performance rights
Shares issued as part of the acquisition of Apollo Consolidated2
At 30 June 2022
Number
of shares
805,954,460
3,062,806
5,000,000
814,017,266
1,517,471
51,850,372
867,385,109
$’000
370,781
960
7,650
379,391
570
85,223
465,184
1. Represents the shares issued for the acquisition of the minority interest of the Tampia Gold Mine.
2. Represents the value of shares at the date of issue. Details of the acquisition are disclosed in Note 21 below.
Recognition and measurement
Share capital
Ordinary share capital is classified as equity and is recognised at fair value of the consideration received by the Group. Any transaction
costs arising on the issue of ordinary shares and the associated tax are recognised directly in equity as a reduction of the share proceeds
received.
Ordinary shares
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at
shareholders’ meetings other than voting exclusions as required by the Corporations Act 2001. In the event of winding up of the company,
ordinary shareholders rank after all creditors and are fully entitled to any proceeds of liquidation. These shares have no par value.
Rights over shares
Refer Note 29 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.
158
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 NOTES TO THE
FINANCIAL STATEMENTS
CAPITAL (continued)
NOTE 18: EARNINGS PER SHARE
Basic earnings per share
Basic earnings per share attributable to the ordinary equity holders of the Company
Diluted earnings per share
Diluted earnings per share attributable to the ordinary equity holders of the Company
Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in calculating
basic earnings per share
Adjustments for calculation of diluted earnings per share:
Share rights and options
Weighted average number of ordinary shares used as the denominator in
calculating diluted earnings per share
Calculation of earnings per share
Basic earnings per share is calculated by dividing:
2022
Cents
1.47
1.45
2021
Cents
15.64
15.45
2022
Number
2021
Number
846,499,406
810,528,504
9,798,361
856,297,767
9,952,989
820,481,493
-
-
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.
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.
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.
160
161
NOTES TO THE
FINANCIAL STATEMENTS
RISK
NOTE 19: FINANCIAL INSTRUMENTS AND
FINANCIAL RISK MANAGEMENT
The Directors are responsible for monitoring and managing financial risk exposures of the Group. The Group holds the following
financial assets and liabilities all of which are classified as fair value through profit or loss with the exception of a portion of the Investments
(see Note 7):
Financial assets
Cash at bank
Term deposits
Trade and other receivables
Other security bonds and deposits
Investments
Total financial assets
Financial liabilities
Trade and other payables
Lease liabilities
Deferred consideration
Total financial liabilities
2022
$’000
147,751
30
7,165
552
5,576
161,074
82,315
50,815
7,633
140,763
2021
$’000
108,502
120,000
1,920
503
6,308
237,233
58,479
26,037
8,539
93,055
Recognition and measurement
Initial recognition and measurement
Financial instruments, other than trade debtors, are initially measured at fair value plus, in the case of a financial instrument not at fair
value through profit or loss, transaction costs. For financial instruments classified as at fair value through profit or loss, transaction costs
are expensed in the income statement immediately. Trade debtors are initially measured at transaction price.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value recognised
in the income statement.
Classification and subsequent measurement
Financial instruments are subsequently measured at fair value through profit or loss, fair value through other comprehensive income or,
amortised cost using the effective interest rate method. 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.
Amortised Cost
Financial assets are categorised at amortised cost if they are held within a business model whose objective is to hold the assets in order
to collect contractual cashflows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding. These financial assets are subsequently measured at amortised
cost using the effective interest rate method.
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective
interest rate method.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
RISK (continued)
NOTE 19: FINANCIAL INSTRUMENTS AND
NOTES TO THE
FINANCIAL STATEMENTS
RISK (continued)
NOTE 19: FINANCIAL INSTRUMENTS AND
FINANCIAL RISK MANAGEMENT (continued)
FINANCIAL RISK MANAGEMENT (continued)
163
Fair value through other comprehensive income (FVOCI)
On initial recognition, the Group can elect to irrevocably classify its equity investments as equity instruments designated at fair value
through OCI if they meet the definition of equity in AASB 132. For these financial assets, gains and losses are never recycled to the income
statement. Dividends from these assets are recognised as other income in the income statement when the right of payment has been
established, except to the extent that the proceeds are a recovery of part of the cost of the financial asset, in which case, such gains are
recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.
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.
Expected credit losses
The Group recognises allowances for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss
based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group
expects to receive, discounted at an approximation of the original effective interest rate where applicable. For trade receivables the Group
applies a simplified approach in calculating ECLs in which it recognises a loss allowance based on lifetime ECLs at each reporting date using
a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment.
Management of financial risk
The Group’s management of financial risk is aimed at ensuring cash flows are sufficient to:
•
•
Withstand significant changes in cash flow at risk scenarios and meet all financial commitments as and when they fall due; and
Maintain the capacity to fund future project development, exploration and acquisition strategies.
The Group continually monitors and tests its forecast financial position against these criteria.
The Group is exposed to the following financial risks: liquidity risk, credit risk and market risk (including foreign exchange risk, commodity
price risk and interest rate risk).
Liquidity risk
The Group manages liquidity risk by monitoring immediate and forecasted cash requirements and ensures adequate cash reserves are
maintained to pay debts as and when due.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due. At the end of the financial year the Group held short-term
on demand cash balances of $147,751,000 (2021: $108,502,000) that is available for managing liquidity risk. In addition to this, short-term
deposits at call totalled $30,000 (2021: $120,000,000).
Management monitors rolling forecasts of the Group’s available cash reserve on the basis of expected cash flows to manage any potential
future liquidity risks.
Maturities of financial liabilities
The tables below analyse the Group’s financial liabilities into relevant groupings based on their contractual maturities. The amounts disclosed
in the table are the contractual undiscounted cash flows. Balances due within twelve months equal their carrying balances as the impact of
discounting is not significant.
162
Maturities of financial liabilities
As at 30 June 2022
Trade and other payables
Lease liabilities
Deferred consideration
Total non-derivatives
As at 30 June 2021
Trade and other payables
Lease liabilities
Deferred consideration
Total non-derivatives
Less than 6
months
$’000
6–12 months
$’000
Between 1
and 2 years
$’000
Between 2
and 5 years
$’000
Total
contractual
cash flows
$’000
Carrying
amount of
liabilities
$’000
82,315
15,825
1,829
99,969
58,479
9,429
3,861
71,769
-
11,978
2,317
14,295
-
7,812
1,738
9,550
-
17,703
2,204
19,907
-
7,246
3,180
10,426
-
8,631
1,787
10,418
-
2,356
405
2,761
82,315
54,136
8,137
144,588
58,479
26,843
9,184
94,506
82,315
50,815
7,633
140,763
58,479
26,037
8,539
93,055
Credit risk exposures
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The credit risk on financial assets
of the entity which have been recognised in the Balance Sheet is the carrying amount, net of any provision for doubtful debts. Credit risk
is managed through the consideration of credit worthiness of customers and counterparties. This ensures to the extent possible, that
customers and counterparties to transactions are able to pay their obligations when due and payable. Such monitoring is used in assessing
impairment.
i. Past due but not impaired
As at 30 June 2022 there were no receivables past due but not impaired (2021: Nil).
ii. Impaired trade receivables
Individual receivables which are known to be uncollectable are written off by reducing the carrying amount directly. The other receivables
are assessed to determine whether there is objective evidence that an impairment has been incurred but not yet identified. For these
receivables, the estimated impairment losses are recognised in a separate provision for impairment. The Group considers that there is
evidence of impairment if any of the following indicators are present:
•
•
Significant financial difficulties of the debtor,
Probability that the debtor will enter bankruptcy or financial reorganisation, and
• Default or delinquency in payments (past due).
Receivables for which an impairment provision was recognised are written off against the provision when there is no expectation of
recovering additional cash. Impairment losses are recognised in profit or loss within other expenses. Subsequent recoveries of amounts
previously written off are credited against other expenses.
Market risk
Foreign currency risk
The Group undertakes transactions impacted by foreign currencies; hence exposures to exchange rate fluctuations arise. The majority of
the Group’s revenue is affected by movements in USD:AUD exchange rate that impacts on the Australian gold price whereas the majority
of costs (including capital expenditure) are in Australian dollars. The Group considers the effects of foreign currency risk on its financial
position and financial performance and assesses its option to hedge based on current economic conditions and available market data.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
RISK (continued)
NOTE 19: FINANCIAL INSTRUMENTS AND
NOTES TO THE
FINANCIAL STATEMENTS
RISK (continued)
NOTE 19: FINANCIAL INSTRUMENTS AND
FINANCIAL RISK MANAGEMENT (continued)
FINANCIAL RISK MANAGEMENT (continued)
165
Commodity price risk
The Group’s revenue is exposed to commodity price fluctuations, in particular to gold prices. Price risk relates to the risk that the fair
value of future cash flows of gold sales will fluctuate because of changes in market prices largely due to demand and supply factors for
commodities and gold price commodity speculation. The Group is exposed to commodity price risk due to the sale of gold on physical
delivery at prices determined by markets at the time of sale. The Group manages commodity price risk as follows:
Forward sales contracts
Gold price risk is managed through the use of forward sales contracts which effectively fix the Australian Dollar gold price and thus provide
cash flow certainty. These contracts are accounted for as sale contracts with revenue recognised once gold has been physically delivered
into the contract. The physical gold delivery contracts are considered a contract to sell a non-financial item and therefore do not fall within
the scope of AASB 9 Financial Instruments. At 30 June 2022, the group had 196,000 ounces in forward sales contracts at an average price of
A$2,512. Refer to Note 27 for further details.
Put options
Gold price risk may be managed with the use of hedging strategies through the purchase of gold put options to establish gold ‘floor prices’
in Australian dollars over the Group’s gold production; however, this is generally at levels lower than current market prices. These put
options enable Ramelius to retain full exposure to current, and any future rises in the gold price while providing protection to a fall in the
gold price below the strike price. Gold put options are marked to market at fair value through the income statement.
Gold prices, cash flows and economic conditions are constantly monitored to determine whether to implement a hedging program.
Gold price sensitivity analysis
The Group has performed a sensitivity analysis relating to its exposure to gold price risk at reporting date. This sensitivity analysis
demonstrates the effect on the current year results and equity.
Based on gold sales of 110,855oz (251,355oz less deliveries into the opening hedge book of 140,500oz) in 2022 and 149,600oz (227,450oz
less forward sales of 127,850oz) in 2021, if gold price in Australian dollars had changed by + / - A$100, with all other variables remaining
constant, the estimated realised impact on pre-tax profit (loss) and equity would have been as follows:
2022
$’000
11,086
(11,086)
11,086
(11,086)
2021
$’000
14,960
(14,960)
14,960
(14,960)
Impact on pre-tax profit
Increase in gold price by A$100
Decrease in gold price by A$100
Impact on equity
Increase in gold price by A$100
Decrease in gold price by A$100
164
Fair value measurement
The financial assets and liabilities of the Group are recognised on the balance sheet at their fair value in accordance with
the Group’s accounting policies. Measurement of fair value is grouped into levels based on the degree to which fair value is
observable in accordance with AASB 7 Financial Instruments: Disclosures.
-
-
-
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 valuation techniques which maximise the use of observable market
data and rely as little as possible on entity specific estimates. The valuations would be recognised as a Level 2 in the fair
value hierarchy as they have been derived using inputs from a variety of market data. Available for sale financial assets are
measured at fair value using the closing price on the reporting date as listed on the Australian Securities Exchange Limited
(ASX). Available for sale financial assets are recognised as a Level 1 in the fair value hierarchy as defined under AASB 7 Financial
Instruments: Disclosures. The carrying amounts of trade receivables and payables are assumed to approximate their fair
values due to their short-term nature.
NOTE 20: CAPITAL RISK MANAGEMENT
Risk management
The Group’s objectives when managing capital are to:
•
Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits
for other stakeholders, and
•
Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to
shareholders, or issue new shares.
Loan covenants
Under the terms of the Syndicated Facility Agreement (SFA) the Group is required to comply with financial and non-financial covenants.
The Group has complied with these covenants throughout the financial year.
Final ordinary dividend for the 2021 financial year of 2.5 cents (2020: 2 cents) per fully
paid share paid on 4 October 2021
Total dividends paid
Franked dividends
Franking credits available for subsequent reporting periods based on a tax rate of 30%
2022
$’000
20,352
20,352
74,288
2021
$’000
16,170
16,170
68,203
The above represents the balance of the franking account as at the end of the reporting period, adjusted for:
-
-
Franking credits / debits that will arise from payment of any current tax liability / current tax asset, and
Franking debits that will arise from the payment of dividends recognised as a liability at the reporting date.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
167
NOTES TO THE
FINANCIAL STATEMENTS
GROUP INFORMATION (continued)
NOTE 21: ASSET ACQUISITION (continued)
Net assets acquired
Cash and cash equivalents
Trade and other receivables
Exploration and evaluation assets
Trade and other payables
Deferred consideration
Net identifiable assets acquired
Outflow of cash to acquire subsidiary, net of cash acquired
Cash consideration
Acquisition costs
Less: stamp duty payable
Less: cash balance acquired
Net outflow of cash – investing activities
$’000
33,243
250
174,303
(3,334)
(1,932)
202,530
$’000
101,055
11,072
(8,038)
(33,243)
70,846
NOTES TO THE
FINANCIAL STATEMENTS
GROUP INFORMATION
NOTE 21: ASSET ACQUISITION
Rebecca Gold Project (Apollo Consolidated Limited)
The Rebecca Gold Project (Rebecca) is the primary asset of Apollo Consolidated Limited (Apollo) which was acquired by Ramelius
during the period. Rebecca comprises 160km2 of tenure located approximately 150km east of Kalgoorlie in the Eastern Goldfields of
Western Australia. The Rebecca Gold Project currently consists of three deposits being Rebecca, Duke, and Duchess along with the
Cleo discovery (located 1.5km west of the Rebecca deposit). The Mineral Resource estimate is currently 29.1Mt at 1.2g/t for 1.1 million
ounces of contained gold.
On 17 December 2021, the company completed the acquisition of Apollo Consolidated Limited. The total purchase consideration was
$202,530,000 comprising cash paid of $101,055,000, shares issued (net of NCI reserve and revaluation of on market acquisitions) of
$90,403,000, and acquisitions related costs of $11,072,000. The Group determined that the transaction did not constitute a business
combination in accordance with AASB 3 Business Combinations. The acquisition of net assets meets the definition of, and has been
accounted for, as an asset acquisition.
The Group has determined that acquisition of Apollo does not constitute a business combination in accordance with AASB 3 Business
Combinations. The acquisition of the net assets meets the definition of, and has been accounted for, as an asset acquisition. When an asset
acquisition does not constitute a business combination, the assets and liabilities are assigned a carrying amount based on their relative fair
values in an asset purchase transaction and no deferred tax will arise in relation to the acquired assets and assumed liabilities as the initial
recognition exemption for deferred tax under AASB 112 Income Taxes is applied. No goodwill arises on the acquisition and transactions
costs of the acquisition are included in the capitalised cost of the asset.
Details of the purchase consideration and the net assets acquired are as follows:
Purchase consideration
Cash paid or payable
Ordinary shares issued (51,850,372)
NCI reserve
Acquisition costs
Total purchase consideration
Cash and cash equivalents acquired
Net purchase consideration
$’000
101,055
85,223
5,180
11,072
202,530
(33,243)
169,287
The fair value of the shares issued to Apollo shareholders is the Ramelius share price on 12 November 2021 (the date on which control
was obtained) of $1.77 per share. The value of the shares recorded in the share capital of Ramelius is the $1.77 up to the date of control
and then the Ramelius share price of the date of issue for shares issued after the control date. The difference between this share price and
that at the date of control has been recorded in the NCI acquisition reserve.
166
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 NOTES TO THE
FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
169
GROUP INFORMATION (continued)
NOTE 22: INTERESTS IN OTHER ENTITIES (continued)
Joint operations
The Group has the following direct interests in unincorporated joint operations at 30 June 2022 and 30 June 2021:
Joint operation project
Nulla South
Gibb Rock
Parker Dome
Mt Finnerty
Jupiter
Joint operation partner
Chalice Gold Mines Limited
Chalice Gold Mines Limited
Unlisted entity
Rouge Resources^
Kinetic Gold#
Principal activity
Gold
Gold
Gold
Gold
Gold
* Ramelius earning in
# Kinetic Gold is a subsidiary of Renaissance Gold Inc.
^ Rouge Resources is a subsidiary of Westar Resources Limited
The share of assets in unincorporated joint operations is as follows:
Non-current assets
Exploration and evaluation assets
Interest (%)
2021
75%
0%*
0%*
0%*
0%
2021
$’000
248
2022
75%
0%*
0%*
0%*
0%
2022
$’000
1,150
Recognition and measurement
Under AASB 11 Joint Arrangements investments in joint arrangements are classified as either joint operations or joint ventures.
The classification depends on the contractual rights and obligations of each investor as well as the legal form of the joint arrangement.
In making this assessment Ramelius considers its rights and obligations arising under the 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.
GROUP INFORMATION (continued)
NOTE 22: INTERESTS IN OTHER ENTITIES
Controlled entities
The Group’s principal subsidiaries at 30 June 2022 are set out below. Unless otherwise stated, they have share capital consisting solely of
ordinary shares that are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the
Group. The country of incorporation or registration is also their principal place of business.
Name of Entity
Parent entity
Ramelius Resources Limited
Subsidiaries of Ramelius Resources Limited
Mt Magnet Gold Pty Limited
RMSXG Pty Limited
Ramelius USA Corporation
Ramelius Operations Pty Limited
Explaurum Limited
Apollo Consolidated Limited
Ramelius Kalgoorlie Pty Ltd
Country of
incorporation
Functional
currency
Australia
Australian dollars
Australia
Australia
USA
Australia
Australia
Australia
Australia
Australian dollars
Australian dollars
US dollars
Australian dollars
Australian dollars
Australian dollars
Australian dollars
Subsidiaries of Mt Magnet Gold Pty Limited
Spectrum Metals Limited
Australia
Australian dollars
Subsidiaries of Spectrum Metals Limited
Penny Operations Pty Limited
Red Dirt Mining Pty Limited
Subsidiaries of Ramelius Operations Pty Limited
Edna May Operations Pty Limited
Marda Operations Pty Limited
Subsidiaries of Explaurum Limited
Tampia Operations Pty Limited
Ninghan Exploration Pty Limited
Subsidiaries of Apollo Consolidated Limited
AC Minerals Pty Ltd
Aspire Minerals Pty Ltd
AC28 Pty Ltd
Mount Fouimba Resources Côte d’lvoire S.A.
Apollo Guinea SARLU
Australia
Australia
Australia
Australia
Australia
Australia
Australian dollars
Australian dollars
Australian dollars
Australian dollars
Australian dollars
Australian dollars
Australia
Australia
Australia
Côte d’lvoire
Guinea
Australian dollars
Australian dollars
Australian dollars
West African frank
Guinean franc
Percentage
owned 2022
%
Percentage
owned 2021
%
n/a
100
100
100
100
100
100
100
100
100
-
100
100
100
100
100
100
100
100
100
n/a
100
100
100
100
100
-
-
100
100
100
100
100
100
100
-
-
-
-
-
The parent entity and all subsidiaries of Ramelius, except for Ramelius USA Corporation (including all of its subsidiaries) and African
incorporated subsidiaries of Apollo Consolidated Limited form part of the closed group.
168
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 NOTES TO THE
FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
171
GROUP INFORMATION (continued)
NOTE 23: PARENT ENTITY INFORMATION
The financial information of the parent entity, Ramelius Resources Limited, has been prepared on the same basis as the consolidated
financial statements, other than investments in controlled entities which were carried at cost less impairment.
Summary financial information
Financial statement for the parent entity shows the following aggregate amounts:
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Share based payment reserve
Other reserves
Retained losses
Total equity
Income statement
(Loss)/Profit after income tax
Total comprehensive loss/income
2022
$’000
137,089
549,555
(9,220)
(9,635)
539,920
465,184
5,887
579
68,270
539,920
(18,634)
(18,634)
2021
$’000
134,319
515,384
(31,034)
(25,892)
489,492
379,391
4,232
12
105,857
489,492
24,913
24,652
Minimum exploration and evaluation commitments
In order to maintain current rights of tenure to exploration tenements, Ramelius is required to perform minimum exploration work
to meet minimum expenditure requirements. These obligations are subject to renegotiation and may be farmed out or relinquished.
These obligations are not provided for in the parent entity financial statements.
Within one year
Later than one year but not later than five years
Later than five years
Total minimum exploration and evaluation commitments
412
1,641
1,155
3,208
393
1,020
1,113
2,526
GROUP INFORMATION (continued)
NOTE 23: PARENT ENTITY INFORMATION (continued)
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.
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 $104,102 (2021: $172,103). These bank guarantees are fully secured by cash on term
deposit.
Guarantees in relation to debts of subsidiaries
In December 2011, Ramelius Resources Limited, RMSXG Pty Ltd and Mt Magnet Gold Pty Ltd (the Closed group) entered into a Deed
of Cross Guarantee. In March 2018 Edna May Operations Pty Ltd and Ramelius Operations Pty Ltd joined the Closed group by entering
the Deed of Cross Guarantee by way of an Assumption Deed. In April 2019 Explaurum Ltd, Tampia Operations Pty Ltd and Ninghan
Exploration Pty Ltd joined the closed group by entering the Deed of Cross Guarantee by way of an Assumption Deed. In March 2021,
Spectrum Metals Ltd and Penny Operations Pty Ltd joined the closed group by entering the Deed of Cross Guarantee by way of
assumption Deed. In May 2022, Ramelius Kalgoorlie Pty Ltd, Apollo Consolidated Ltd, AC Minerals Pty Ltd, Aspire Minerals Pty, and
AC 28 Pty Ltd joined the closed group by entering the Deed of Cross Guarantee by way of assumption Deed.
The effect of the Deed is that Ramelius has guaranteed to pay any deficiency in the event of winding up of the abovementioned subsidiaries
under certain provisions of the Corporations Act 2001. The subsidiaries have also given a similar guarantee in the event that Ramelius is
wound up.
170
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
NOTES TO THE
FINANCIAL STATEMENTS
GROUP INFORMATION (continued)
NOTE 24: DEED OF CROSS GUARANTEE (continued)
Pursuant to ASIC Instrument 2016/785, wholly owned controlled entities Mt Magnet Gold Pty Ltd, RMSXG Pty Ltd, Ramelius Operations
Pty Ltd, Edna May Operations Pty Ltd, Marda Operations Pty Ltd, Tampia Operations Pty Ltd, Ninghan Exploration Pty Ltd, Penny
Operations Pty Ltd and Apollo Consolidated Limited are relieved from the Corporations Act 2001 requirements for preparation, audit and
lodgement of its financial reports and Director’s Report.
It is a condition of the Class Order that the company and each of its eligible controlled entities enter into a Deed of Cross Guarantee.
In December 2011, Ramelius Resources Limited, RMSXG Pty Ltd and Mt Magnet Gold Pty Ltd (the Closed group) entered into a Deed of
Cross Guarantee. In March 2018 Edna May Operations Pty Ltd and Ramelius Operations Pty Ltd joined the Closed group by entering the
Deed of Cross Guarantee by way of an Assumption Deed. In April 2019 Explaurum Ltd, Tampia Operations Pty Ltd, Ninghan Exploration
Pty Ltd Spectrum Metals Ltd and Penny Operations Pty Ltd joined the closed group by entering the Deed of Cross Guarantee by way of
an Assumption Deed. In May 2022, Ramelius Kalgoorlie Pty Ltd, Apollo Consolidated Ltd, AC Minerals Pty Ltd, Aspire Minerals Pty, and AC
28 Pty Ltd joined the closed group by entering the Deed of Cross Guarantee by way of assumption Deed.
The effect of the Deed is that Ramelius Resources Limited has guaranteed to pay any deficiency in the event of winding up of the
abovementioned controlled entities under certain provisions of the Corporations Act 2001. Mt Magnet Gold Pty Ltd, RMSXG Pty Ltd,
Ramelius Operations Pty Ltd, Edna May Operations Pty Ltd, Marda Operations Pty Ltd, Explaurum Ltd, Tampia Operations Pty Ltd,
Ninghan Exploration Pty Ltd, Penny Operations Pty Ltd, Ramelius Kalgoorlie Pty Ltd, Apollo Consolidated Ltd, AC Minerals Pty Ltd, Aspire
Minerals Pty, and AC 28 Pty Ltd have also given a similar guarantee in the event that Ramelius Resources Limited is wound up.
A Consolidated Statement of Comprehensive Income and Consolidated Balance sheet comprising the Closed group which are parties to
the Deed of Cross Guarantee, after eliminating all transactions between parties to the Deed is set out below.
Statement of comprehensive income
Sales revenue
Cost of sales
Gross profit
Other expenses
Impairment of exploration and evaluation assets
Impairment of mine development and property, plant and equipment
Other income
Interest income
Finance costs
Profit before income tax
Income tax expense
Profit for the year
Other comprehensive income
Net change in fair value of investments
Other comprehensive income for the year
Total comprehensive income for the year
2022
$’000
603,891
(473,625)
130,266
(24,565)
(16,673)
(94,500)
30,678
501
(3,129)
22,578
(10,123)
12,455
2021
$’000
634,283
(443,825)
190,458
(16,144)
(5,014)
-
8,261
715
(3,414)
174,862
(47,962)
126,900
435
435
376
376
12,890
127,276
172
173
NOTES TO THE
FINANCIAL STATEMENTS
GROUP INFORMATION (continued)
NOTE 24: DEED OF CROSS GUARANTEE (continued)
Balance Sheet
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total current assets
Non-current assets
Other receivables
Inventories
Other assets
Investments
Property, plant, and equipment
Mine development
Exploration and evaluation assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Lease liability
Deferred consideration
Tax payable
Provisions
Current liabilities
Non-current liabilities
Lease liability
Deferred consideration
Deferred tax liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Retained earnings
Total equity
2022
$’000
147,781
7,165
133,587
3,519
292,052
1,963
66,052
552
5,576
101,962
268,999
216,615
661,719
953,771
82,315
25,687
3,793
-
14,673
126,468
25,128
3,840
30,864
44,641
104,473
230,941
722,830
465,184
(25,982)
283,628
722,830
2021
$’000
228,502
1,920
100,813
1,484
332,719
1,754
-
503
6,308
100,177
375,338
31,253
515,333
848,052
58,479
16,673
5,186
30,342
9,205
119,885
9,364
3,353
35,417
42,498
90,632
210,517
637,535
379,391
(33,384)
291,528
637,535
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 NOTES TO THE
FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
175
UNRECOGNISED ITEMS (continued)
NOTE 27: COMMITMENTS
Gold delivery commitments
Forward sale contracts are accounted for as sale contracts with revenue recognised once gold has been physically delivered. The physical
gold delivery contracts are considered own use contracts and therefore do not fall within the scope of AASB 9 Financial Instruments:
Recognition and Measurement. As a result, no derivatives are required to be recognised. Forward gold sale contract delivery commitments
are shown below:
Gold delivery commitments
As at 30 June 2022
Within one year
Between one and five years
Total
As at 30 June 2021
Within one year
Between one and five years
Total
Gold for
physical delivery
Oz
Contracted
sales price
A$/oz
Committed
gold sales value
$’000
108,000
88,000
196,000
142,500
63,500
206,000
$2,446
$2,593
$2,512
$2,308
$2,393
$2,335
2022
$’000
3,287
264,207
228,214
492,420
328,927
151,994
480,921
2021
$’000
4,461
Capital expenditure commitments
Capital expenditure contracted but not provided for in the financial statements:
Within one year
Minimum exploration and evaluation commitments
In order to maintain current rights of tenure to exploration tenements, the Group is required to perform minimum exploration work
to meet minimum expenditure requirements. These obligations are subject to renegotiation and may be farmed out or relinquished.
These obligations are not provided for in the financial statements.
Within one year
Between one and five years
Due later than five years
Total minimum exploration and evaluation commitments
2022
$’000
5,852
17,257
17,059
40,168
2021
$’000
4,958
14,488
17,140
36,586
UNRECOGNISED ITEMS
NOTE 25: RELATED PARTY TRANSACTIONS
Transactions with related parties are on normal commercial terms and at conditions no more favourable than those available to other
parties unless otherwise stated.
Key management personnel compensation
Short-term employee benefits1
Post-employment benefits
Other long-term benefits
Share based payments
Total key management personnel compensation
1. Short-term benefits as per Corporations Regulation 2M.3.03(1) Item 6.
Detailed remuneration disclosures are provided in the Remuneration Report.
Subsidiaries
Interests in subsidiaries are set out in Note 22.
2022
$
3,621,991
208,383
54,651
933,092
4,818,117
2021
$
3,512,405
168,000
88,296
726,334
4,495,035
Transactions with other related parties
There were no other transactions with related parties during the year. There were no amounts receivable from or payable to Directors
and their related entities at reporting date.
NOTE 26: 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.
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 $104,102 (2021: $172,103). These bank guarantees are fully secured by cash
on term deposit.
174
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
177
NOTES TO THE
FINANCIAL STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
OTHER INFORMATION
NOTE 28: EVENTS OCCURRING AFTER THE REPORTING PERIOD
No matters or circumstances that have arisen since 30 June 2022 that have significantly affected, or may significantly affect:
OTHER INFORMATION (continued)
NOTE 29: SHARE BASED PAYMENTS (continued)
Performance rights outstanding at the end of the year have the following expiry date:
(a) The Group’s operations in future financial years,
(b) The results of operations in future financial years, or
(c) The Group’s state of affairs in future financial years.
NOTE 29: SHARE BASED PAYMENTS
Performance rights
Under the Performance Rights Plan, which was approved by shareholders at the 2019 Annual General Meeting, eligible employees are
granted performance rights (each being an entitlement to an ordinary fully paid share) subject to the satisfaction of vesting conditions and
on the terms and conditions as determined by the Board. Performance rights are issued for no consideration and have a nil exercise price.
From 1 July 2021, there are two equally weighted performance hurdles, relative total shareholder returns (TSR) measured against
a benchmark peer group and 15% absolute TSR. Prior to 1 July 2021, the only performance hurdle was relative TSR. Once vested,
performance rights remain exercisable for a period of seven years.
Performance rights issued under the plan carry no voting or dividend rights.
The table set out below summarises the performance rights granted:
As at 1 July
Performance rights forfeited
Performance rights granted
Performance rights exercised
As at 30 June
Vested and exercisable at 30 June
2022
Performance rights
9,410,411
(312,739)
2,152,869
(1,517,471)
9,733,070
3,606,628
2021
Performance rights
11,762,913
(1,120,354)
1,830,658
(3,062,806)
9,410,411
1,744,707
The fair value at grant date is independently determined using a Monte Carlo Simulations pricing model that takes into account the exercise
price, the term of the performance right, the share price at grant date, expected price volatility of the underlying share and the risk free
rate for the term of the performance right. The expected price volatility is based on historic volatility (based on the remaining life of the
performance right). Model inputs for performance rights granted during the year are as follows:
Performance rights granted:
15 Sep 2021
$nil
15 Sep 2021
2.8 years
$1.48
60%
1.17%
26 Nov 2021
$nil
25 Nov 2021
2.6 years
$1.65
60%
1.87%
Metric
Exercise price
Grant date
Life
Share price at grant date
Expected price volatility
Risk free rate
176
Grant date
23 November 2016
23 November 2016
23 November 2016
22 December 2016
1 July 2017
5 September 2018
29 November 2018
9 October 2019
22 November 2019
22 November 2019
1 October 2020
26 November 2020
15 September 2021
26 November 2021
Total
Expiry date
1 July 2024
1 July 2025
1 July 2026
11 June 2026
1 July 2027
1 July 2028
1 July 2028
1 July 2029
1 July 2027
1 July 2029
1 July 2030
1 July 2030
1 July 2031
1 July 2026
2022
Performance rights
2021
Performance rights
21,914
129,593
241,043
500,000
772,933
746,399
872,404
2,022,621
322,342
644,683
950,877
355,392
1,710,341
442,528
9,733,070
101,138
129,593
241,043
500,000
772,933
1,976,026
1,081,024
2,146,509
322,342
644,683
1,139,728
355,392
-
-
9,410,411
Weighted average remaining contractual life of
performance rights outstanding at the end of
the year
6.90 years
7.23 years
Expenses arising from share based payment transactions
Total expenses arising from share based payment transactions recognised during the period as part of employee benefits expense were
as follows:
Performance rights
Total share based payment expense
Recognition and measurement
2022
$’000
2,358
2,358
2021
$’000
1,770
1,770
The Group provides benefits to employees (including the Managing Director / Chief Executive Officer) in the form of share based
compensation, whereby employees render services in exchange for shares or options and/or rights over shares (equity settled transactions).
The cost of these equity settled transactions with employees is measured by reference to the fair value of the equity instruments at the
date at which they are granted. The Group issues share based remuneration in accordance with the employee share acquisition plan, the
performance rights plan or as approved by the Board as follows:
(i) Performance rights plan
The Group has a Performance Rights Plan where key management personnel may be provided with rights to shares in Ramelius. Fair values
of rights issued are recognised as an employee benefits expense over the relevant service period, with a corresponding increase in equity.
Fair value of rights are measured at effective grant date and recognised over the vesting period during which key management personnel
become entitled to the rights. There are a number of different methodologies that are appropriate to use in valuing rights. Fair value of
rights granted is measured using the most appropriate method in the circumstances, taking into consideration the terms and conditions
upon which the rights were issued.
(ii) Other long-term incentives
The Board may at its discretion provide share rights either to recruit or as a long-term retention incentive to key executives and employees.
The fair value of options and/or rights granted is recognised as an employee benefits expense with a corresponding increase in equity.
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
179
NOTES TO THE
FINANCIAL STATEMENTS
DIRECTORS’
DECLARATION
OTHER INFORMATION (continued)
NOTE 29: SHARE BASED PAYMENTS (continued)
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.
NOTE 30: REMUNERATION OF AUDITORS
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and
non-related audit firms:
Audit or review of financial reports of the Group
Other assurance services
Consulting services
Total remuneration of Deloitte Touche Tohmatsu
2022
$
196,700
43,000
25,000
264,700
2021
$
188,700
-
-
188,700
NOTE 31: ACCOUNTING POLICIES
New standards and interpretations not yet adopted
The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the
AASB) that are relevant to its operations and effective for an accounting period that begins on or after 1 July 2021.
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2022 reporting periods and
have not been early adopted by the Group. The Group has assessed that these new standards and interpretations will not have a material
impact on the entity in the current or future reporting periods and on foreseeable future transactions.
In the Directors’ opinion:
(a)
the financial statements and notes set out on pages 124 to 178 are in accordance with the Corporations Act 2001, including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements, and
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2022 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 24 will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the deed of cross
guarantee described in Note 24.
The ‘About this report’ section of the notes to the financial statements confirms that the financial statements also comply with International
Financial Reporting Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the
Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
Bob Vassie
Chair
Perth
29 August 2022
178
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT
to the members of Ramelius Resources Limited
to the members of Ramelius Resources Limited
181
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2, Brookfield Place
123 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
Independent Auditor’s Report to the members of
Ramelius Resources Limited
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
Opinion
We have audited the financial report of Ramelius Resources Limited (the “Company”) and its subsidiaries (the
“Group”) which comprises the balance sheet as at 30 June 2022, the income statement, the statement of
comprehensive income, the statement of changes in equity and the statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies and other
explanatory information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
• Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial performance
for the year then ended; and
• Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report for the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Liability limited by a scheme approved under Professional Standards Legislation
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
85
180
KKeeyy AAuuddiitt MMaatttteerr
HHooww tthhee ssccooppee ooff oouurr aauuddiitt rreessppoonnddeedd ttoo tthhee KKeeyy AAuuddiitt
MMaatttteerr
IImmppaaiirrmmeenntt ooff nnoonn--ccuurrrreenntt aasssseettss
At 30 June 2022, the Group’s non-current assets
consisted of $102.0 million of property, plant
and equipment and $269.0 million of mine devel-
opment assets.
The Group determined that there were indicators
of impairment as at 30 June 2022 relating to both
the Mt Magnet and Edna May cash generating
units (‘CGUs’) given the following:
•
•
•
increased inflation rates and general cost
pressures being experienced by the
Group;
the Group’s net asset carrying value
exceeding its market capitalisation as at
30 June 2022; and
evidence that the economic performance
of Edna May is expected to be worse than
forecast.
The Group has performed impairment testing in
relation to both Edna May and Mt Magnet as at 30
June 2022.
Based on the impairment assessments performed,
the Group has concluded that an impairment
charge of $94.5 million associated with Edna May
was required, whilst no impairment charge was
required for Mt Magnet.
The assessment of the recoverable amounts of
CGUs requires significant judgement in respect to
various assumptions and estimates. These include,
but are not limited to, the identification of CGUs,
the calculation of the carrying value of the related
CGUs, and judgements associated with the key
assumptions applied in the fair value less cost to
dispose discounted cash flow model. The key
assumptions include:
•
Ore Reserves included in the current
mine plans;
grades and recovery rates;
•
gold prices and foreign exchange rates;
•
• mining and processing costs per tonne;
•
capital expenditures over the mine plan;
and
discount rate.
•
Details of the Group’s impairment assessments are
set out in Note 11 to the financial statements.
Our procedures,
specialists, included but were not limited to:
in conjunction with our valuation
•
•
•
•
•
•
the assessment of
obtaining an understanding of the key controls
the
associated with
recoverable values of Mt Magnet and Edna May;
evaluating the reasonableness of the Group’s
indicators of
assessment that there were
impairment at 30 June 2022;
performing site visits and holding inquiries of site
management to obtain an understanding of the
mine plans;
assessing the appropriateness of the Group’s
determination of its CGUs and whether the CGUs
included all assets, liabilities and cash flows
attributable to the respective CGUs, including a
reasonable allocation of corporate overheads;
considering the appropriateness of the Group’s
use of the fair value less costs of disposal
methodology against the requirements of AASB
136 Impairment of Assets;
assessing the reasonableness of the cash flow
projections included in the impairment models
and challenging the reasonableness of key
assumptions by:
o evaluating
the
cash
flows with
reference to the accuracy of historical
forecasts in respect to grades, recovery
rates, production tonnes and related
costs and capital expenditures;
o comparing
forecast production
to
available Ore Reserve and Mineral
Resource statements, and assessing the
reasonableness
forecast
of
production;
the
o evaluating the reasonableness of the
gold price and
foreign exchange
forecasts used in management’s model
with reference to external forecasts;
o evaluating the reasonableness of the
discount rate used; and
o testing the mathematical accuracy of
the underlying impairment models.
We also assessed the appropriateness of the disclosures
included in Note 11 to the financial statements, including
where a reasonably possible change in a key assumption
could impact the impairment recognised, the sensitivity
analysis in respect of the assumptions noted above.
86
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT
to the members of Ramelius Resources Limited
to the members of Ramelius Resources Limited
183
AAccccoouunnttiinngg ffoorr mmiinnee ddeevveellooppmmeenntt
At 30 June 2022, the carrying value of mine
development assets amounts to $269.0 million as
disclosed in Note 9.
During the year the Group incurred $94.2 million
of capital expenditure related to mine
development assets, recognised related
amortisation expenses of $136.2 million and
impairment charges of $70.8 million.
The accounting for both underground and open
pit operations includes a number of estimates
and judgements, including:
•
•
•
the allocation of mining costs between
operating and capital expenditure;
the deferral and subsequent
amortisation of stripping costs; and
the determination of the units of
production used to amortise
development assets.
For underground operations, a key driver of the
allocation of costs between operating and capital
expenditure is the physical mining data associated
with the different underground mining activities
including the development of declines, lateral and
vertical development, as well as non-sustaining
capital costs.
The allocation of costs for open pit operations is
based on the ratio between actual ore and waste
mined, compared with the ratio of expected ore
and waste mined over the life of the respective
open pit.
In respect of the allocation of mining costs our procedures
included, but were not limited to:
•
•
•
obtaining an understanding of the key controls
management has in place in relation to the
capitalisation of both underground and open pit
mining costs and the production of physical
mining data;
on a sample basis, testing the mining costs
through agreeing to source data; and
assessing the completeness of mining costs.
In respect of the allocation of mining costs for
underground operations, our procedures included, but
were not limited to:
•
•
assessing the allocation of costs between
operating and capital expenditure based on the
nature of the underlying activity; and
recalculating the allocation based on the
underlying physical data.
In respect to the deferred stripping costs our procedures
included, but were not limited to:
•
•
•
assessing the accounting policy against the
appropriate accounting standards,
including
AASB 102 Inventories and AASB Interpretation 20
Stripping Costs in the Production Phase of a
Surface Mine;
assessing the accuracy of the actual stripping
ratios by agreeing key inputs to production
reports and stockpile surveys; and
assessing the completeness and accuracy of
costs associated with stripping activities.
In respect of the Group’s unit of production amortisation
calculations our procedures included, but were not
limited to:
•
•
•
obtaining an understanding of the key controls
management has in place in relation to the
calculation of
the unit of production
amortisation rate;
testing the mathematical accuracy of the rates
applied; and
agreeing the inputs to source documentation,
including:
▪
▪
▪
agreeing the allocation of contained
ounces
specific mine
the
development assets;
to
comparing the contained ounces to the
applicable reserves statement; and
on a sample basis, agreeing the
underlying physical data to external
documentation.
We also assessed the appropriateness of the disclosures
included in Note 9 to the financial statements.
87
182
IInnvveennttoorryy vvaalluuaattiioonn aanndd ccllaassssiiffiiccaattiioonn
At 30 June 2022, the Group held inventories of
$199.6 million, of which $159.4 million related to
ore stockpiles, which were recorded at the lower
of cost and net realisable value as disclosed in
Note 5.
The Group assesses whether net realisable value
adjustments are required to be recognised and as
a result recorded a net realisable value write
down of $28.4 million during the year compared
to $3.9 million recorded in the prior year.
The assessment of the valuation and classification
of ore stockpiles includes a number of estimates
and judgements. These include, but are not
limited to:
•
•
•
•
•
the determination of tonnes on hand at
year end;
the allocation of mining and processing
costs;
the estimation of actual grades and
forecast recovery rates;
the estimation of costs to sell; and
the expected consumption pattern of
the ore stock on hand.
AAccqquuiissiittiioonn ooff tthhee RReebbeeccccaa GGoolldd PPrroojjeecctt ((AAppoolllloo
CCoonnssoolliiddaatteedd LLiimmiitteedd))
On 12 November 2021, the Group gained control
of Apollo Consolidated Limited (Apollo) and the
compulsory acquisition process commenced on 7
December 2021 with 100% control obtained on
17 December 2021.
This acquisition was completed for a total
consideration of $202.5 million as disclosed in
Note 21.
Accounting for this acquisition requires
judgement to determine if this was a business
combination or an asset acquisition, the fair value
of consideration paid and the allocation of the
purchase price to assets acquired.
This is a key audit matter due to the significance
of the acquisition and impact on the Group’s
balance sheet.
Our procedures included, but were not limited to:
•
•
•
•
•
•
obtaining an understanding of the key controls
management has in place with respect to the
valuation and classification of ore stocks on
hand;
attending inventory stock-takes and observing
the drone surveys completed;
reconciling the results of the drone surveys to
management’s inventory models;
assessing the completeness and accuracy of
costs allocated to inventories based on the stage
of production;
assessing the inputs and estimates used in
estimating net realisable values; and
assessing classification of inventories recorded
as current and non-current by comparing
budgeted milled tonnes against the tonnes of
ore stockpiles
We also assessed the appropriateness of the disclosures
included in Note 5 to the financial statements.
Our procedures included, but were not limited to:
•
•
•
•
•
•
•
on
obtaining an understanding of the key controls
management has in place with respect to the
accounting for this transaction;
assessing the nature of the transaction with
regards to the requirements of AASB 3 Business
conclude
Combinations
the
to
appropriateness of
the acquisition being
accounted for as an asset acquisition, as
opposed to a business combination;
assessing the reasonableness of the acquisition
date, being the date that Ramelius obtained
control over Apollo Consolidated Limited;
reading the relevant purchase agreements to
identify all components of consideration;
assessing the determination of the fair value of
the total consideration paid and relative fair
value of assets acquired and liabilities assumed;
assessing the reasonableness of the deferred tax
impact of the acquisition; and
testing the mathematical accuracy of the
calculations prepared by management.
We also assessed the appropriateness of the disclosures
included in Note 21 to the financial statements.
88
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT
to the members of Ramelius Resources Limited
to the members of Ramelius Resources Limited
185
The directors are responsible for the other information. The other information comprises the Directors’ Report,
which we obtained prior to the date of this auditor’s report, and also includes the following information which will
be included in the Group’s annual report (but does not include the financial report and our auditor’s report
thereon): Key Operational Highlights for the Year, Key Financial Highlights for the Year, Corporate Strategy, Chair’s
Report, Managing Director’s Reports, Review of Operations, Resources and Reserves and Sustainability Report,
which is expected to be made available to us after that date.
Our opinion on the financial report does not cover the other information and we do not and will 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 identified
above 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 on the other information that we obtained prior to the date of this auditor’s report, 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.
When we read the Key Operational Highlights for the Year, Key Financial Highlights for the Year, Corporate
Strategy, Chair’s Report, Managing Director’s Reports, Review of Operations, Resources and Reserves and
Sustainability Report, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to the directors and use our professional judgement to determine the appropriate
action.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
89
184
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.
supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards
be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards
applied.
applied.
From the matters communicated with the directors, we determine those matters that were of most significance
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
benefits of such communication.
RReeppoorrtt oonn tthhee RReemmuunneerraattiioonn RReeppoorrtt
RReeppoorrtt oonn tthhee RReemmuunneerraattiioonn RReeppoorrtt
Opinion on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 25 to 35 of the Directors’ Report for the year ended
We have audited the Remuneration Report included in pages 25 to 35 of the Directors’ Report for the year ended
30 June 2022.
30 June 2022.
108 to 119
In our opinion, the Remuneration Report of Ramelius Resources Limited, for the year ended 30 June 2022,
In our opinion, the Remuneration Report of Ramelius Resources Limited, for the year ended 30 June 2022,
complies with section 300A of the Corporations Act 2001.
complies with section 300A of the Corporations Act 2001.
Responsibilities
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
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
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.
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
DDEELLOOIITTTTEE TTOOUUCCHHEE TTOOHHMMAATTSSUU
DDEELLOOIITTTTEE TTOOUUCCHHEE TTOOHHMMAATTSSUU
DDaavviidd NNeewwmmaann
DDaavviidd NNeewwmmaann
Partner
Partner
Chartered Accountants
Chartered Accountants
Perth, 29 August 2022
Perth, 29 August 2022
90
90
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022
SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
Additional Information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in this report is set
out below.
UNQUOTED AND RESTRICTED EQUITY SHARES
187
VOTING RIGHTS
Fully paid ordinary shares
Other than voting exclusions 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 presents (in person, by proxy, attorney or representative) has one vote and on
a poll, each member present (in person, by proxy, attorney or representative) has one vote for each fully paid share they hold
Options and performance rights
There are no options on issue by the Company.
Details of performance rights on issue by the Company as at 12 October 2022 are as follows:
Expiry date
Exercise price
Number of
Performance Rights
01/07/2024*
01/07/2025*
11/06/2026*
01/07/2026*
01/07/2027*
01/07/2028*
01/07/2029#
01/07/2030#
01/07/2031#
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
101,138
129,593
500,000
161,819
1,095,275
2,441,528
2,791,192
1,459,532
1,531,807
Performance rights holders will be entitled on payment of the exercise price shown above to be allotted one fully paid ordinary share in
the Company for each performance right exercised.
* These performance rights are exercisable in whole or in part at any time until the expiry date. Any performance right now exercised before expiry will lapse.
# These performance rights are subject to vesting conditions and once vested are exercisable in whole or in part at any time until the expiry date. Any vested performance rights not
exercised before expiry will lapse.
186
Fully paid ordinary shares
There are no unpaid restricted fully paid shares on issue.
Performance Rights
There are no options on issue. Details of performance rights on issue as at 12 October 2022 which are unquoted restricted securities held
by employees as long-term incentives are as follows:
Number of holders
Vesting date
Exercise price
Exercisable until
Date until securities are
vested
Number of
unquoted securities
on issue
01/07/2024*
01/07/2025*
01/07/2026*
01/07/2027*
01/07/2028*
01/07/2029*
01/07/2030**
01/07/2031**
01/07/2025**
101,138
129,593
161,819
722,933
1,049,847
1,506,126
1,388,427
2,046,446
3,312,282
1
2
2
4
7
13
26
32
32
-
-
-
-
-
-
01/07/2023
01/07/2024
01/07/2025
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
*These securities are vested performance rights which may not be transferred or used as collateral.
** These securities are unvested performance rights exercisable when vested which may not be transferred or used as collateral.
ORDINARY FULLY PAID SHARES (TOTAL)
Range of units as of 12 October 2022 Composition: ORD
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Rounding
Total
Unmarketable parcels
Range
Total Holders
3,062
4,315
2,090
3,278
453
13,198
Units
1,523,928
12,182,844
16,350,540
101,703,985
737,897,020
869,658,317
Minimum Parcel Size
Holders
Minimum $ 500.00 parcel at $ 0.6750 per unit
741
2,222
Selection Criteria: Hide Unmarketable Parcels: Shown Control Account: Included.
01/07/2024
01/07/2025
01/07/2026
01/07/2027
01/07/2028
01/07/2029
01/07/2030
01/07/2031
01/07/2027
% Units
0.18
1.40
1.88
11.69
84.85
0.00
100.00
Units
735,098
OVERVIEWREVIEW OF OPERATIONSRESOURCES AND RESERVESSUSTAINABILITY REPORTFINANCIAL REPORTRAMELIUS RESOURCES ANNUAL REPORT 2022RAMELIUS RESOURCES ANNUAL REPORT 2022 SHAREHOLDER INFORMATION
TOP HOLDERS (UNGROUPED) AS OF 12 OCTOBER 2022
Rank Name
Units
% Units
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
1 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
2 CITICORP NOMINEES PTY LIMITED
3
4 BNP PARIBAS NOMS PTY LTD
5 NATIONAL NOMINEES LIMITED
6 BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
7
8 WARBONT NOMINEES PTY LTD
9 WEST TRADE ENTERPRISES PTY LTD
STRAMIG HOLDINGS PTY LTD
10 BNP PARIBAS NOMINEES PTY LTD
11 MR RICHARD ARTHUR LOCKWOOD
12 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
13 BRAZIL FARMING PTY LTD
14 NEWECONOMY COM AU NOMINEES PTY LIMITED <900 ACCOUNT>
15
16 CITICORP NOMINEES PTY LIMITED
17 CS THIRD NOMINEES PTY LIMITED
18 MR MARK WILLIAM ZEPTNER
19 MR LEONID CHARUCKYJ
20 ROSS SUTHERLAND PROPERTIES PTY LTD
PATINA RESOURCES PTY LTD
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
Total Remaining Holders Balance
Selection Criteria: Address: Hidden Holder ID: Hidden Control Account: Included.
261,508,814
135,050,076
77,879,271
38,756,849
22,986,789
19,247,883
9,500,000
9,144,865
5,515,333
4,621,704
4,500,000
4,330,914
3,910,000
3,667,962
2,525,884
2,119,637
1,999,765
1,821,087
1,750,000
1,626,020
612,462,853
257,195,464
30.07
15.53
8.96
4.46
2.64
2.21
1.09
1.05
0.63
0.53
0.52
0.50
0.45
0.42
0.29
0.24
0.23
0.21
0.20
0.19
70.43
29.57
188
188
RAMELIUS RESOURCES ANNUAL REPORT 2022
RAMELIUS RESOURCES ANNUAL REPORT 2022 rameliusresources.com.au