20
23ANNUAL REPORT
www.rameliusresources.com.au
CONTINUED
GROWTH REFLECTS
OUR STRATEGY
IN ACTION
CORPORATE
DIRECTORY
Directors
Bob Vassie – B.MinTech (Hons) Mining, FAusIMM, GAICD
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
Colin Moorhead – BSc (Hons), FAusIMM, GAICD
Non-Executive Independent Director
Company Secretary
Richard Jones – BA (Hons), LLB
Chief Operating Officer
Duncan Coutts – BEng (Hons) Mining, MAusIMM
Chief Financial Officer
Tim Manners – BBus (Accounting), FCA, AGIA, MAICD
Executive General Manager
– Exploration
Peter Ruzicka – MSc (Ore Deposit Geology), BAppSc (Geology),
BSc, MAusIMM
Principal Registered Office
Level 1, 130 Royal Street
East Perth WA 6004
+ 61 8 9202 1127
Share Registry
Auditor
Computershare Investor Services Pty Limited
Level 5, 115 Grenfell Street
Adelaide SA 5000
1300 556 161 (within Australia)
+ 61 3 9415 4000 (outside Australia)
Deloitte Touche Tohmatsu
Tower 2, Brookfield Place
123 St Georges Terrace
Perth WA 6000
Stock Exchange Listing
Ramelius Resources Limited (RMS) shares are listed
on the Australian Securities Exchange (ASX)
Website
www.rameliusresources.com.au
Cover Image: Lightning near Penny Gold Mine
Photo Competition Winner: Matt Wilkins
TABLE OF
CONTENTS
Overview
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
Sustainability at Ramelius
Annual Financial Report
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Financial Report
Income Statement
Statement of Comprehensive Income
Balance Sheet
Statement of Changes In Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
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RAMELIUS RESOURCES ANNUAL REPORT 2023
KEY OPERATIONAL
HIGHLIGHTS FOR THE YEAR
GOLD PRODUCTION
AND GUIDANCE
PRODUCTION
240,996oz
AISC A$1,895/oz
FY24 GUIDANCE
250,000-
275,000oz
@ A$1,550 - 1,750/oz
MINERAL RESOURCES
7.6Moz
at 30 June 2023
ORE RESERVES
930koz
at 30 June 2023
23%
Increase
in Mineral
Resources
ACQUISITION OF THE
ROE GOLD PROJECT
(BREAKER RESOURCES NL)
The Roe Gold Project (Roe) is the primary
exploration asset of Breaker Resources NL (Breaker)
which was acquired during the financial year. The
Roe Gold Project is located 100km east of Kalgoorlie
in one of Australia’s premier gold provinces, at the
southern end of the Keith-Kilkenny Tectonic Zone.
The Roe Gold Project has a Mineral Resource
of 32Mt @ 1.6g/t for 1.7 million ounces of
contained gold.1
On 20 March 2023, Ramelius announced a
recommended off-market takeover offer for Breaker.
Under the offer, Breaker shareholders were to receive
1 Ramelius Share for every 2.82 Breaker Shares held.
Control was obtained on 1 May 2023 with Ramelius
holding a relevant interest in Breaker of 50.99%,
or 168,482,992 Breaker Shares. The compulsory
acquisition process commenced on 22 May 2023 with
Ramelius obtaining 100% control on 29 June 2023.
A total of 118,049,507 Ramelius Shares were issued
to Breaker shareholders as consideration for the
takeover. Acquisition costs totalled $5.2 million of
which $4.3 million relates to stamp duty on the
transaction which remains payable at 30 June 2023.
Breaker had a significant cash balance of $75.4 million
at the time Ramelius took control (1 May 2023).
This cash was acquired as part of the transaction and
is included in the reported cash and gold of Ramelius
at 30 June 2023.
The work streams will now focus on integrating the
Roe Mineral Resource into an overall project plan
for the Rebecca and Roe Gold Projects, to enable
the completion of a Pre-Feasibility Study (PFS) for
a combined project. The targeted delivery of this
study is early 2024. Refer to Note 20 to the financial
statements for further information on this acquisition.
1 Refer to ASX announcement on 20 March 2023, 'Ramelius makes
Recommended Takeover Offer for Breaker Resources'.
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RAMELIUS RESOURCES ANNUAL REPORT 2023 3
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COMMENCEMENT OF
HAULAGE AND PROCESSING
OF ORE FROM THE PENNY
GOLD MINE
Underground operations commenced at the high-grade
Penny Gold Mine (Penny) late in the 2022 financial year,
with development and ore mining continuing throughout the
year. Decline development commenced via a portal following
completion of the Penny West open pit cut back in the
2022 financial year. Development is now well advanced and
stoping activities are underway with steady state production
being attained in the June Quarter.
There were initial delays in the upgrading and permitting
of the haul road from Penny to Mt Magnet. Final approvals
were received on 11 May 2023 with the transition from
double to quad road trains occurring during the remainder
of May and June 2023. This enabled the majority of the
stockpiles at Penny to be trucked to Mt Magnet by
30 June 2023; only a small amount of the lower grade
(mainly Magenta) ore remained at year end (4,279t at 4.55g/t
for 626 ounces of contained gold).
A total of 96kt of Penny ore was hauled to, and processed
at, Mt Magnet during the year at a grade of 10.52g/t for
31,461 ounces of recovered gold.
COMPLETION OF MINING AT
THE TAMPIA GOLD MINE
Mining operations were completed late in the financial
year at the Tampia Gold Mine (Tampia). At 30 June 2023
significant stockpiles remained (1.2Mt at 1.47g/t for 56,000
ounces of contained gold), which will see haulage to Edna
May continue into early in the 2025 financial year. At the
date of this report, much of the rehabilitation work had
been undertaken. The picture above shows the progressive
rehabilitation to date.
COVID-19
The COVID-19 situation in Western Australia, including
Ramelius’ operations, was largely under control across the
financial year with a steady reduction in reported cases.
In terms of managing the impacts of COVID-19, Ramelius
continues to follow all government direction as they are
updated. The COVID-19 cases, including both on and
off-site, recorded by Ramelius is shown in the graph below.
Given the COVID-19 situation is currently under control,
and has been for much of the financial year, Ramelius will
not report on the management of COVID-19 nor new
cases going forward, unless there is a material change in
circumstances.
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COMPLETION OF THE MINING
AT THE VIVIEN GOLD MINE
Mining has now concluded at the Vivien Gold Mine (Vivien)
with the last ore load coming to surface on 11 January
2023. By the end of January 2023, all stockpiled ore had
been hauled to, and milled at, Mt Magnet. In early February
2023 all items of plant, equipment and infrastructure
were demobilised, and the site was placed on care and
maintenance.
The final reconciled gold production from Vivien over the
period of Ramelius ownership (2015 – 2023) was 1.5 million
tonnes at grade of 5.68g/t for 260,000 recovered ounces.
Vivien was acquired by Ramelius in 2015 at a cost of
$10 million and, over its life, generated net cash flows of
$130 million for Ramelius.
COVID-19 Cases and Close Contacts
WA Border
Re-opening 3rd
March 22
M ar-22
A pr-22
M ar-22
Jun-22
Jul-22
Aug-22
Sep-22
O ct-22
N ov-22
D ec-22
Jan-23
Feb-23
M ar-23
COVID -19 Cases
Close Contacts
RAMELIUS RESOURCES ANNUAL REPORT 2023
KEY FINANCIAL
HIGHLIGHTS FOR THE YEAR
FY23 FINANCIAL
HIGHLIGHTS
FY23 PRODUCTION
HIGHLIGHTS
REVENUE
OZ SOLD
$631.3M
↑
5% on 2022
UNDERLYING EBITDA1
243,263
↓
3% on 2022
REALISED GOLD PRICE
$276.3M
↓
6% on 2022
UNDERLYING NPAT1
A$2,591
↑
8% on 2022
AISC OZ
$75.3M
↑
3% on 2022
UNDERLYING CASH FLOW2
A$1,895
↑
24% on 2022
ORE TONNES MINED
$33.0M
↓
9% on 2022
CASH AND GOLD ON HAND CONTAINED GOLD MINED
4,023kt
↓
11% on 2022
$272.1M
↑
FINAL DIVIDEND
57% on 2022
2.0 cps
↓
1.0cps on 2022
281koz
↓
10% on 2022
MINED GRADE
2.17g/t
↑
2% on 2022
1 Underlying EBITDA & NPAT have been adjusted for impairment charges, asset sales, and other one-off items.
A reconciliation is provided in Table 12 of the Directors' Report on page 33.
2 Underlying cash flow is cash flows before acquisitions and asset sales, dividends paid, and income tax payments.
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RAMELIUS RESOURCES ANNUAL REPORT 2023 FINANCIAL PERFORMANCE
Table 1: Financial performance
Financials
Revenue
EBITDA
Underlying EBITDA1
EBIT
Underlying EBIT1
NPAT
Underlying NPAT1
Cash Flow from Operations
Underlying Cash Flow2
Group Cash Flow
Basic Earnings per share (EPS)
Basic underlying EPS1
Dividend per Share (fully franked)
Units
A$’M
A$’M
A$’M
A$’M
A$’M
A$’M
A$’M
A$’M
A$’M
A$’M
cps
cps
cps
2023
631.3
256.7
276.3
92.2
111.8
61.6
75.3
261.4
33.0
103.2
6.9
8.5
2.0
2022
603.9
208.1
292.8
25.1
109.8
12.4
73.0
159.4
36.2
(80.7)
1.5
8.6
1.0
Change
5%
23%
(6%)
266%
2%
397%
3%
64%
(9%)
228%
373%
(2%)
100%
REVENUE AND EARNINGS
REVENUE ($M)
UNDERLYING EBITDA1 ($M)
634.3
603.9
631.3
338.1
261.0
292.8
276.3
460.6
352.8
113.0
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
UNDERLYING NPAT1 ($M)
UNDERLYING EARNINGS PER SHARE1 (EPS)
120.9
106.8
73.0
75.3
15.5
14.9
8.6
8.5
22.4
3.8
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
CAPITAL MANAGEMENT
NET ASSETS ($M)
DIVIDEND HISTORY
940.3
635.8
720.9
515.2
278.9
5.0
4.0
3.0
2.0
1.0
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FY21
FY22
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FY20
FY21
FY22
FY23
1 Underlying EBITDA, NPAT, and EPS have been adjusted for impairment charges, asset sales, and other and one-off items. See Table 12 page 33 of the Directors' Report
for a reconciliation.
2 Underlying cash flow is cash flows before acquisitions and asset sales, dividends paid, and income tax payments.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
CHAIR’S REPORT
DEAR FELLOW
SHAREHOLDERS,
Over the past year, Ramelius
management, staff and
contractors have done a
commendable job of navigating
continuing challenges to again
deliver a solid operational
performance and continue to
lay the foundations for growth.
Persistent cost pressures and the lingering impact of
COVID-19 on labour availability were common issues faced
by Western Australian gold miners during the reporting
period. For Ramelius, these were compounded by delays in
the receipt of a key haulage permit for our new high-grade
Penny mine, yet the company was still able to meet full-
year guidance on production and costs, post a $75 million
underlying net profit after tax and declare a fifth consecutive
annual dividend. All after reinvesting almost $190 million into
capital projects, including $154 million on mine development.
This was a very pleasing result and a credit to the team at
Ramelius.
Once the required permit came through in early May to
allow us to run the larger road trains between Penny and
Mt Magnet, we got a glimpse into the cash-generating power
of the business. With Penny contributing at full capacity, the
June Quarter was the best for the year from a production
and operating cashflow perspective.
The Board took the opportunity to visit Penny and Mt
Magnet in early June. Needless to say, we came away
impressed. We look forward to the next few years in which
Penny and, to a lesser extent, the shallow, low strip ratio
Symes open pit, which will provide feed to the Edna May hub
in the December quarter, are expected to drive a significant
reduction in our AISC profile. Provided the gold price
holds up, it should be accompanied by meaningful margin
expansion as well.
The Mineral Resource update released for Penny on 15
September 2023, which saw 70,000 very high-grade ounces
added to the inventory, was another pleasing development
and another example of the success we have had in
extending the lives of our assets through smart, targeted
exploration. This commitment to organic growth will
continue, with a further $30 million budgeted for exploration
in financial year 2024.
As you will likely be aware, we have also remained active
in pursuing growth through acquisition. Following on from
the takeover of Apollo Consolidated last year, we moved to
acquire Breaker Resources NL in March. Together, Apollo’s
Rebecca Project and Breaker’s Lake Roe Project have given
us a resource of almost 3 million ounces east of Kalgoorlie
in the WA goldfields. In July, not long after closing out
the Breaker deal, we announced a recommended bid for
Musgrave Minerals Limited, owner of the Cue Project near
Mount Magnet.
These deals, primarily funded with scrip, met our strategic
priorities. In the case of Breaker, we now have the critical
mass in that region to investigate the potential for developing
another processing hub, while the high-grade deposits that
Musgrave has defined at Cue add to our resource base in
the area and present further options to optimise production
at the Mt Magnet mill.
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RAMELIUS RESOURCES ANNUAL REPORT 2023 7
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Edna May
Photo: Johannes Janse Van Rensburg
Musgrave marked Ramelius’ seventh company or project
acquisition in six years, but we retain the balance sheet
capacity to do more if it makes sense. Adding a third
production centre to complement Mt Magnet and Edna May
remains firmly in our plans.
This year we will be releasing the Sustainability Report
separately and after the Annual Report. In this fourth
Sustainability Report we will provide an update of our
performance in this increasingly important area, including our
progress on reporting against global frameworks such as the
Taskforce of Climate-Related Financial Disclosures (TCFD)
and once again aligned with the Sustainability Accounting
Standard’s Board (SASB) Metals and Mining Industry
Standard framework. We continue to explore options for
reducing the carbon footprint of our operations including
developing options for renewables at Mt Magnet and also
considering similar options for any new plant in the Rebecca
/ Lake Roe region which represent the largest benefit areas.
We will also continue to assess electric truck haulage for our
existing hub and spoke operational model.
Ramelius is an equal-opportunity employer and is doing its
utmost to improve gender diversity within its workforce. We
are fortunate to have two highly qualified female directors
on our Board in Natalia Streltsova and Fiona Murdoch, while
Liz Jones has served as General Manager of Mt Magnet since
2017 overlooking half of our production capacity. All three
are excellent role models for the other women within our
company.
On matters of Board composition, we welcomed Colin
Moorhead as a Non-Executive Director on December 1 last
year. Colin is a geologist and experienced mining executive
who spent more than 20 years with Newcrest Mining,
including leading their global exploration business. Colin has
also been very successful in bringing development projects
into production and, as such, his experience and credentials
are very hard to find and are an excellent fit with our stated
growth strategy. He has been a great fit and has contributed
from the outset.
I extend my gratitude to Colin, Natalia, Fiona and David
Southam for their guidance and wise counsel as fellow
Directors and reserve special thanks for our Managing
Director Mark Zeptner, who has led the company
consistently well for what is nearing on a decade now. My
thanks also go to other members of the senior management
team, the broader workforce and all our contractors
and suppliers. Your efforts do not go unnoticed or
unappreciated.
In my last report to Shareholders a year ago, I made mention
that many gold stocks were trading close to half of their
underlying asset valuations. I said that it is how companies
recover their valuations moving forward that will be the
differentiator. I am pleased to report that, after a brief
hiatus as rising input costs impacted margins and sentiment
against Australian gold producers, Ramelius was returned
to the S&P/ASX200 Index in the September 2023 quarter
rebalancing as investors came to the realisation that the stock
had been well and truly oversold.
The consistent operational delivery, along with a balance of
shareholder returns and funding of growth makes Ramelius
a great company to work for and to invest in. The pieces are
in place for the momentum that we have started the new
financial year to continue and for the company to enjoy an
extended period of prosperity and growth.
Thank you for your support.
Yours Sincerely,
Bob Vassie
Non-Executive Chair
Ramelius Resources Ltd
RAMELIUS RESOURCES ANNUAL REPORT 2023
MANAGING DIRECTOR’S
REPORT
Safety is first and foremost when it comes to being
sustainable and it was pleasing to see a small improvement
in our Total Recordable Injury Frequency Rate for the
2023 financial year. Our focus remains on driving further
improvement in safety performance trends and compliance
with recently introduced workplace health and safety
legislation and the associated implementation of Principal
Mining Hazard Standards.
Following the orderly closure of the Vivien mine during the
year, we are now feeding ore from four mining operations
into two central processing hubs at Mt Magnet and Edna
May, with the high-grade Penny mine effectively replacing
Vivien late in the financial year. Ore haulage from Symes to
Edna May recently began in the September quarter, in this
case effectively replacing Tampia, where mining has finished
and stockpiles are being hauled to the mill. This “hub and
spoke ” arrangement provides us with a level of operational
flexibility that is helpful in maintaining our industry-leading
EBITDA margin, typically above 40%.
Heading into the 2023 financial year, we had anticipated
that Mt Magnet would reclaim the “flagship” mantle from
Edna May and contribute a larger proportion of overall
ounces; ultimately it remained an even split between the two
hubs. This outcome was primarily due to delays experienced
in securing approval from two local shires and Main Roads
WA to run 100t payload quad road-trains on the upgraded
road between the Penny operation and Mt Magnet, 160km
to the north-west.
Aside from the delay with Penny, in the earlier stages of the
year we continued to deal with the impact of COVID-19 on
labour availability, while across the entire reporting period
there was precious little relief from the inflationary pressure
we have seen on key inputs for our business such as labour,
fuel and other consumables.
A Strong Financial Performance
In light of these challenges, it was pleasing to note that
our full-year financial results – built around production of
240,996 ounces of gold at an all-in sustaining cost (AISC)
of A$1,895 an ounce, within guidance, albeit at the lower
end – showed improvement on almost every metric when
compared to the previous 12-month period.
Among the highlights were:
• A 5% increase in revenue to $631.3 million, driven
by an 8% increase in average realised gold price
(A$2,591/oz);
• Underlying EBITDA of $276.3 million, representing
an industry-leading margin of 44%;
• A 3% increase in underlying net profit after tax to
$75.3 million;
• A 57% increase in cash and gold on hand to
$272.1 million;
DEAR FELLOW
SHAREHOLDERS,
From my perspective,
Ramelius has done a decent
job of adhering to its mission
statement: “To be a sustainable
gold producer that focuses on
delivering superior returns for
stakeholders” – over the past
12 months in the face of some
fairly significant headwinds.
8
RAMELIUS RESOURCES ANNUAL REPORT 2023 • A 100% increase in final dividend to 2.0 cents per
share; and
• A 77% improvement in working capital position to
$293.1 million.
We came home with the wind in our sails in the June
Quarter after securing the Penny haul road approval in early
May: production of 68,752 ounces at an AISC of A$1,648/oz
was the strongest three-month performance for the year.
The positive cashflow impact of a more fulsome contribution
from Penny was also apparent: we generated $42.6 million
from operating activities during the quarter after investing
$25.7 million back into capital growth projects.
We see this impact continuing into the current financial year,
in which we have provided production guidance of 250,000-
275,000 ounces at an AISC of A$1,550-1,750 an ounce.
As in the 2023 financial year, production will be weighted
towards the second half. Mine sequencing is expected to
result in a slightly lower mined grade from Penny in the
September quarter than for the rest of the year, while the
contribution from Symes, a shallow, low-strip, high-grade
open pit in close trucking distance to Edna May, should
become more noticeable as the year progresses.
As you will see from this report’s projected breakdown of
production across the various mining operations and in the
presentation published with the annual results in August
2023, we anticipate that this year Mt Magnet will account
for a greater proportion of ounces than Edna May.
The strong earnings and cashflow reported in 2023
financial year ensured we were in a position to declare
a fifth consecutive annual dividend. With the doubling in
the dividend to 2.0 cents per share and an increase in the
Company’s issued capital over the past 12 months, a total
of $19.8 million will be returned to shareholders in mid-
October 2023.
Investing in the Future
Alongside accommodating shareholders that appreciate the
income stream a dividend provides, it is important that we
continue to invest back into the business, to shore up our
future and to enhance our market appeal.
Over the 2023 financial year, we spent $71.1 million on non-
sustaining capital and project development, with the majority
shared between the Galaxy underground at Mt Magnet and
the Penny underground. This financial year we have budgeted
for capex to reduce to $50-60 million. While the upfront
development at Penny is now largely complete, there will be
ongoing investment in the Galaxy underground and spending
on Symes will increase as it moves to production.
On the exploration front, we have increased our budget
to $30 million for this financial year. Opportunities at Mt
Magnet, Penny and the Rebecca/Roe project area stand out
as delivering valuable resource ounce increases and ultimately
bolstering reserves, while there is much potential yet to be
unlocked within the broader exploration portfolio.
We have also maintained our status as a prime mover in the
consolidation of the West Australian gold industry, with the
acquisitions of Breaker Resources and Musgrave Minerals,
both now completed.
Breaker was an all-scrip deal that delivered us an additional
1.7 million ounces in resources in the form of the Lake Roe
Gold Project, as well as ~$75 million in cash held by the
company on its balance sheet.
Lake Roe is located 150km east of Kalgoorlie and within
close proximity of the Rebecca Project, which we acquired
through the takeover of Apollo Consolidated in 2021.
Together, the two projects have an enhanced prospect of
supporting a new processing hub in the region.
We anticipate handing down the findings of a pre-feasibility
study on a combined development in early 2024.
The consideration for the Musgrave acquisition was primarily
scrip supplemented by a modest cash component.
In exchange, we secured the high-grade Cue deposits
defined through outstanding work by Musgrave within a
proverbial stone’s throw of our Checkers processing facility
at Mt Magnet.
As we stated when we launched the offer for Musgrave in
July, one of our key strategic objectives is feeding our existing
hubs at Mt Magnet and Edna May, and, while Mt Magnet
has for a long time now had a solid pipeline of production
opportunities in front of it, adding a high-grade, low-cost
asset like the Cue Project was too good an opportunity to
pass up.
The use of scrip in the Breaker and Musgrave deals has
been important in preserving balance sheet capacity to
pursue another of our strategic objectives – acquiring a third
processing hub. With cash and bullion of $272 million at the
end of June, an undrawn $100 million debt facility at our
disposal and the anticipation of strong cash build over the
coming years, we believe we are well positioned.
There is no doubt that our business development team is
match-fit, having now completed seven company or project
acquisitions in the past six years. But, as with all of those
previous deals, we will maintain discipline and only move
when the right opportunity presents and the right price
can be agreed.
I am proud of the culture we have built at Ramelius, which
is centered around maintaining a “can-do” attitude and
delivering on what we say we are going to do. I believe
this held us in good stead through the difficulties the industry
faced during COVID-19 and that it will continue to serve
us well into the future.
On that note, it is important that I express my thanks to
the entire workforce, senior management, site-based staff,
contractors and suppliers. I would also like to thank the
Board for their support over the past 12 months. We are
fortunate to have a very well-rounded group of directors
setting the course for the company, led by Chair Bob Vassie.
Finally, thank you for your support as shareholders. We are
entering an exciting period for the company as Penny hits
full capacity and I urge you to stay aboard for the next stage
of the journey.
Yours sincerely,
Mark Zeptner
Managing Director
Ramelius Resources Ltd
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RAMELIUS RESOURCES ANNUAL REPORT 2023
REVIEW OF
OPERATIONS
Overview
Mt Magnet Production Centre
Edna May Production Centre
Development and Exploration Projects
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CONTINUED
GROWTH
REFLECTS
OUR
STRATEGY
IN ACTION
10
Figure 1: Ramelius’ operating and development project locations
RAMELIUS RESOURCES ANNUAL REPORT 2023 OVERVIEW
Ramelius is an established mid-tier ASX gold
production and exploration company. Ramelius
produced 240,996 ounces in the 2023 financial year
at an AISC of A$1,895/oz. Both production and
AISC were within the original guidance levels
published in July 2022.
Ramelius has reported underlying earnings before interest
and tax1 (EBIT) of $111.8 million which is comparable to
the prior year (2022: $109.8 million). Whilst the gold price
was higher than last year, this did not translate to improved
earnings due to lower gold production from lower grades at
Mt Magnet and lower throughput at Edna May. The lower
grades at Mt Magnet were due mainly to the completion of
the high-grade Shannon and Vivien mines mid-year. Whilst
the high-grade Penny underground will see an improvement
in margins in the 2024 financial year the impact from Penny
in the current year was relatively small due to the delays
noted earlier.
The statutory EBIT of $92.2 million was 267% up on the
prior year mainly because of the Edna May impairment
recognised in the prior year. Furthermore, the underlying
Net Profit after Tax1 (NPAT) was $75.3 million which was
up 3% on last year’s underlying NPAT of $73.0 million.
In line with the improved gross cash margin (excluding non-
cash items) (see Table 11 of the directors' report) the cash
flows from operations have also reported an increase of
64% to $261.4 million (2022: $159.4 million). In addition to
the operational performance, the cash flow was impacted by
a different income tax profile for Ramelius, whereby in the
prior year tax payments of $50.5 million were made, whist in
the current year, a tax refund of $6.2 million was received.
Further details on the financial performance of the Group
for the 2023 financial year can be found in the financial
review section of the Directors' report.
Production guidance for the 2024 financial year has been
set at 250,000 – 275,000 ounces at an AISC of A$1,550 –
1,750/oz with the production weighting expected to be in
the second half of the year as higher-grade material will be
sourced from Penny and the mining of the Symes open pit
will be in full swing. The AISC will benefit from this increased
grade (notably the increased contribution from Penny) and
throughput increase from the introduction of Symes.
Ounces sold for the year decreased 3% to 243,263 ounces
at an average realised gold price of A$2,591/oz. Ounces
sold were down on the prior year due to lower production.
However, given the higher gold price in the year (from both
forward sales and the spot market), the actual sales revenue
increased 5% on the prior year. Despite a high cost profile
in FY23 the operations continued to generate a strong AISC
margin of A$696/oz, or 27%, which remains competitive
with our peers.
The 2024 and 2025 financial years are forecasted to have
a notably lower AISC with the increased contribution from
Penny ore. In conjunction with this, the higher current spot
price and hedge book should see AISC margins of more than
A$1,000/oz, or 40%, in the 2024 and 2025 financial years.
Edna May
Photo: Michael Lepre
1 Underlying EBIT & NPAT is a non-IFRS measure
that have been adjusted for the impact of asset
impairments, two STI payments recorded in the
year as Ramelius transitioned to accruing for these
in the year the performance is measured, fair value
adjustments, and asset sales not in the ordinary
course of business. Refer to Table 12 & Figure 10
in the Directors' report.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
10 YEAR AISC MARGIN
(Including Forecast for FY 2024 / 2025 Based On Mid Point of Guidance)
GUIDANCE#
AISC MARGIN....
27%
41%
48%
A$1,129/oz
A$1,373/oz
37%
28%
28%
29%
31%
42%
42%
e
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$
A
3,000
2,800
2,600
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
2016
2017
2018
2019
2020
AISC
2016
2022
2023
2024(F)# 2025(F)#
Gold Price
Figure 2: AISC per ounce and realised gold price for 2016 to 2023 + guidance for FY 2024 / 2025
#. The AISC Guidance is based on the mid-point of the Guidance ranges, from RMS ASX Release “June 2023 Quarterly Activities Report”, 27 July 2023 for 2024(F)# and
from RMS ASX Release “3 Year Production Outlook & Study Update”, 14 November 2022 for 2025(F)#. The gold price is based on the forward gold sales book as at 30
June 2023 and a spot price of A$2,880/oz.
Table 2: Summary of Mining and Milling Operations for the 2023 Financial Year
Operational Summary
Unit
Mt Magnet
Edna May
2023
2022
Change
Change %
Open Pit
Ore mined
Grade
Contained gold
Underground
Ore mined
Grade
Contained gold
Total ore mined
Mill Production
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
kt
g/t
Oz
kt
g/t
Oz
kt
kt
g/t
Oz
%
Oz
Oz
Oz
1,238
0.99
39,368
730
4.11
96,465
1,968
1,844
2.28
135,073
95.5
128,988
127,943
1,874
2.07
3,112
1.64
3,596
1.66
(484)
(0.02)
125,007
164,374
192,315
(27,941)
181
3.50
20,353
2,055
1,925
1.94
911
3.99
116,818
4,023
3,769
2.11
120,063
255,136
93.9
112,716
113,053
94.7
241,704
240,996
945
3.93
119,442
4,541
4,239
2.01
273,996
94.9
259,949
258,625
(34)
0.06
(2,624)
(518)
(470)
0.10
(18,860)
(0.2)
(18,245)
(17,269)
128,992
114,271
243,263
251,355
(8,092)
- 13 %
- 1 %
- 15 %
- 4 %
+ 2 %
- 2 %
- 11 %
- 11 %
+ 5 %
- 7 %
+ 0 %
- 7 %
- 7 %
- 3 %
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RAMELIUS RESOURCES ANNUAL REPORT 2023
MT MAGNET PRODUCTION CENTRE
The Mt Magnet production centre includes the multi pit / underground projects of the Mt Magnet Operation along with
high-grade underground ore hauled from the Vivien and Penny Gold Mines. Gold production from the Mt Magnet production
centre totalled 127,943 ounces for the year at an AISC of A$1,850/oz (2022: 126,511 ounces at an AISC of A$1,465/oz).
MINING – MT MAGNET GOLD MINE
Open pit operations at the Mt Magnet Gold Mine focussed on Eridanus and Orion in 2023. At Eridanus mining continued
as planned with 788kt of ore mined at a grade of 1.05g/t for 26,515 ounces of contained gold. Mining of Eridanus has now
progressed past the lower-grade portion of the ore body and accordingly grades are expected to increase in the 2024 financial
year. The Orion pit provided a new source of oxide material for the mill during the year which enabled mill throughput rates
at Mt Magnet to be increased. A stockpile of this softer oxide material was on hand at the end of the year for future use to
maintain the optimal blend for the processing plant.
There were three underground mines in operation at Mt Magnet during the 2023 financial year; Shannon, Hill 60, and Galaxy.
The Shannon underground, which started as an open pit in the 2018 financial year, was completed in January 2023. Mining at
Hill 60 continued steadily over the year with 425kt of ore mined at a grade of 2.71g/t for 37,071 ounces of contained gold.
With the completion of Shannon, the focus moved to the development of the Galaxy underground mine where solid progress
was made with modest tonnages throughout this development phase. Galaxy will provide a steady supply of underground ore
at Mt Magnet in coming years.
MINING – VIVIEN GOLD MINE
After seven and a half years of mining, the last load of ore was trucked from Vivien to Mt Magnet in January 2023 with the
mine placed into care and maintenance shortly thereafter. Vivien was acquired in October 2013 with an initial expected mine
life of three years and an acquisition cost of $10 million. The Vivien Gold Mine produced 259,960 ounces of gold over its life
generating just under $130 million with an IRR of 72%. After the completion of mining operations, many of the staff, including
the Mine Manager, went on to Penny.
Excellent production rates were seen across the year at Vivien with operations focussing on stoping only with no further
development taking place in anticipation of the mines completion.
MINING – PENNY GOLD MINE
Development at Penny continued throughout the year with the completion of the initial development drives. Haulage
commenced late in the Second Quarter using smaller double road trains as road upgrades were undertaken to allow the
larger 105t capacity quad road trains. The upgrade works were completed in February 2023 with final approvals from Main
Roads WA received in May 2023. An accelerated haulage campaign commenced shortly thereafter to target zero high-grade
stockpiles at Penny by 30 June 2023. Despite a slower than expected initial mobilisation, Ramelius trucked nearly all available
material to the mill, with only 4,279t at 4.55g/t remaining on the stockpiles at 30 June 2023 which was the lower-grade ore
(mainly from the small Magenta open pit).
For the financial year a total of 96kt at 10.52g/t was hauled to, and processed at, Mt Magnet. A processing recovery of 96.7%
resulted in 31,471 ounces of gold production attributable to Penny.
MILLING – MT MAGNET PRODUCTION CENTRE
Table 3: Mt Magnet Milling for the 2023 Financial Year
Mt Magnet mill
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
Unit
kt
g/t
Oz
%
Oz
Oz
Oz
2023
1,844
2.28
135,073
95.5
128,988
127,943
128,992
2022
1,732
2.37
131,830
96.2
126,860
126,511
123,112
Change
Change (%)
112
(0.09)
3,243
(0.7)
2,128
1,432
5,880
+ 6 %
- 4 %
+ 2 %
- 1 %
+ 2 %
+ 1 %
+ 5 %
Total tonnes milled at Mt Magnet increased 6% on the prior year to 1,844k tonnes with the introduction of softer oxide ore
from Orion into the blend. Milled grades were down on the prior year due to lower grades from the open pits (mining through
the lower-grade portion of the Eridanus ore body) and less tonnes from the Shannon underground mine with operations there
completing in January 2023. Overall, the combination of higher tonnes at slightly lower grade resulted in an increase of 2,128
ounces (or 2%) in recovered gold for the year.
Gold production from Mt Magnet (mid-point of guidance) is forecast to be 160,000 ounces in the 2024 financial year with an
increased contribution from Penny, and higher grades from Eridanus. This represents a 25% increase on the 2023 financial year.
In line with the increased grades and production, the AISC for Mt Magnet is forecasted at A$1,300/oz, a 30% decrease on the
2023 financial year.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
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. Ore will also be trucked in from the Symes Gold Mine in the 2024 financial quarter. Gold production from
Edna May totalled 113,053 ounces for the year at an AISC of A$1,945 (2022: 132,114 ounces at an AISC of A$1,578/oz). Gold
production decreased 14% on the prior year due to lower throughput (large historic low-grade stockpiles now depleted) and
lower grades from Marda and Tampia.
MINING – EDNA MAY GOLD MINE
The Edna May underground was impacted by high water inflows from underground watercourses throughout the year, which
saw the tonnes mined from the underground drop 15% from the prior year. Total ore mined was 181k tonnes at a grade of
3.50g/t for 20,353 ounces of contained gold.
In mid-June 2023 a temporary escalation of water inflow, that was higher than the installed pumping capacity, led to higher
water levels within the mine. Development works had taken place at these lower levels and at 30 June 2023 it was uncertain as
to whether access to these lower levels, and the benefit from this development work undertaken, would be feasible.
The lower levels of the underground mine are being monitored and if conditions permit, and access is economically feasible,
development deeper into the mine will continue to the 840mRL and 820mRL and ore may be extracted from these levels.
This water ingress event will not materially impact the production and cost guidance for the 2024 financial year.
MINING – TAMPIA GOLD MINE
Operations at Tampia exceeded expectations with a total of 1,592k tonnes mined at a grade of 2.09g/t for 106,739 ounces of
contained gold. Mining operations were completed at Tampia in May 2023, slightly ahead of schedule, with the mining team and
infrastructure at Tampia relocating to the Symes Gold Mine, which commenced in July 2023. Haulage capacity increased over
the year as contractor availability (reduction in COVID-19 related absenteeism’s) improved.
A total 1,021k tonnes were hauled to, and milled at, Edna May at a grade of 2.23g/t and recovery of 92.8% for 67,391 ounces
of recovered gold.
As at 30 June 2023, a stockpile of 1.2M tonnes at a grade of 1.47g/t was available for haulage to Edna May, which is expected
to continue into the early parts of 2025 financial year.
MINING – MARDA GOLD MINE
The mining focus at Marda for the year was the completion of the Golden Orb pit and commencement of the Die Hardy pit.
Mining at Marda for the year totalled 282k tonnes at a grade of 2.01g/t for 18,267 ounces of contained gold, mostly from Die Hardy.
No Die Hardy ore was hauled to Edna May in the year as final road upgrades were completed and permitting obtained. Haulage
from Marda focussed on existing stockpiles with 436k tonnes hauled and milled at Edna May at a grade of 1.66g/t and recovery
of 95.7% for 22,298 ounces of recovered gold. This haulage represents a modest increase on the prior year, with most of the
additional haulage capacity directed to the higher grade Tampia ore in the year.
MILLING – EDNA MAY PRODUCTION CENTRE
Table 4: Edna May Filling for the 2023 Financial Year
Edna May Mill
Tonnes milled
Grade
Contained gold
Recovery
Recovered gold
Gold poured
Gold sold
Unit
kt
g/t
Oz
%
Oz
Oz
Oz
2023
1,925
1.94
120,063
93.9
112,716
113,053
114,271
2022
2,507
1.76
142,166
93.6
133,089
132,114
128,243
Change
(582)
0.18
(22,103)
0.3
(20,373)
(19,061)
(13,972)
Change (%)
- 23 %
+ 10 %
- 16 %
+ 0 %
- 15 %
- 14 %
- 11 %
A total of 1,925k tonnes were processed at the Edna May mill during the year compared to 2,507k tonnes in the prior year
representing a 23% decrease in throughput. This decrease was due to the depletion of the historic low-grade stockpiles at Edna May
during the year, which was offset, in part, by increased haulage capacity from Tampia and Marda. The higher overall mill grade for the
year was due to the historic low-grade stockpile feed being replaced, in part, with the higher-grade ore from Tampia and Marda. The
overall result for the Edna May mill was a 15% reduction in recovered gold when compared to the prior year.
Gold production from Edna May (mid-point of guidance) is forecast to be 102,500 ounces in the 2024 financial year, a 9%
decrease on the 2023 financial year, which is attributable to lower grades from the stockpiled Tampia ore. In line with the
lower gold production, the AISC is forecasted to increase to A$2,200 per an ounce for the 2024 financial year. Importantly,
given a large portion of Edna May production in the 2024 financial year is sourced from the milling of existing ROM stockpiles
at Tampia and Marda, the AISC includes the sunk mining costs in the carrying value of those stockpiles. Therefore, included in
the Edna May AISC calculations is a non-cash component of approximately A$325-350/oz.
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RAMELIUS RESOURCES ANNUAL REPORT 2023 DEVELOPMENT AND
EXPLORATION PROJECTS
DEVELOPMENT PROJECTS
Table 5: Key Ramelius Development P{rojects
PROJECT
Mt Magnet
Galaxy Underground Mine
Hill 50 Underground
Edna May
Symes Find
COMMENTARY
Ongoing mine rehabilitation has reached the fourth ore drive and the new Mars
decline is developing further at depth.
Initial power, pumping, and water supply infrastructure is in place with the first
underground substation and permanent pump station installed. Underground
diamond drilling has been carried out into the Mars orebody with encouraging
results to date, indicating strong gold mineralisation within the banded iron
formation. The Quarterly reports for the financial year provided details of
these results.
Preliminary work has been undertaken to examine the potential to target the Hill
50 resources with diamond drilling at depth. Other development targets at Mt
Magnet, such as Bartus and Eridanus, will be prioritised ahead of this project in
FY 2024.
The most recently reported Mineral Resource (30 June 2022) for Hill 50 was
1.9Mt at 6.0g/t for 360,000 ounces.
An RC infill drilling program was completed at Symes resulting in an updated
Mineral Resource of 1.4Mt at 1.7g/t for 75k ounces of gold. A Pre-Feasibility
Study (PFS) was completed for Symes in the year and the Board approved the
commencement of mining.
A mining contractor has been appointed and the mining teams mobilised to site.
Site set up and earthmoving commenced in July 2023. The entire pit program has
been grade control drilled in advance and, at the date of this report, ore haulage
permitting was in place.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
EXPLORATION PROJECTS
Ramelius’ exploration activities focussed on the Mt Magnet and Rebecca Gold Project areas during the year. Exploration
and resource definition drilling results have been detailed in the Quarterly reports released to the ASX. The table below
summarises the key areas of interest in Ramelius’ exploration portfolio.
Table 6: Key Ramelius exploration projects
AREA OF INTEREST
COMMENTARY
Mt Magnet Region
Target Generation
Bartus Trend
Target generation activities have been completed, focusing on the prospective
Boogardie Dome region of Mt Magnet.
Recent exploration success in the Bartus East area has highlighted the broader
potential of the Bartus Trend for blind granodiorite intrusive mineralised hosts
analogous to Bartus East. Exploration upside potential remains beneath the
historic Bartus and Bartus South pits, and along strike of a north-easterly trending
structural corridor favourable to emplacement of these intrusives.
Results of the 3D passive seismic survey have demonstrated proof of concept
by delineating areas of high velocity response beneath known large granodiorite
intrusions and identifying areas of high velocity response representing previously
un-identified intrusive bodies.
The Bartus group of deposits are located within the Boogardie Basin domain of
the Mt Magnet goldfield, 6.3km south of the Checkers processing plant.
The deeper Bartus East deposit is a new discovery by the Ramelius exploration
team and has no surface exposure. The host intrusive occurs as a NE striking,
tabular, sub-vertical body, 250m long, 250m high and 20-40m wide, the top of
which starts at 80-100m below surface.
The deposit has been the focus of exploration drilling since late 2021 and in
September 2022 an updated Mineral Resource was reported for the Bartus group
at 4.2Mt at 1.7g/t for 230k ounces (up 858%) which included 2.3Mt and 2.1g/t for
150k ounces at Bartus East.
Geotechnical, resource definition, and exploration diamond drilling are continuing
at the Bartus mining area. Drilling is testing mineralised granodiorite intrusions
beneath and adjacent to pre-existing pits at Bartus East, Bartus and Bartus South.
Infill and deeper extensional drilling are focussing around a previously identified
high-grade pod of mineralisation at depth.
High-grade results at Bartus East are validating and increasing confidence in a
previously identified high-grade core zone, which forms a strike limited pod within
a broader weakly mineralised granodiorite intrusive. Mineralisation is characterised
by stock working with quartz-tourmaline-pyrite veining accompanied by pervasive
silica-sericite-albite-pyrite alteration in the host rock. Higher-grade zones typically
comprise an increase in vein density and/or development of vein brecciation.
Similar mineralised intrusives occur below the Bartus and Bartus South pits, and
depth extensions of mineralisation in these pits is also being evaluated.
Bartus East is a further demonstration that with continued exploration, the
Mt Magnet field continues to deliver resource additions which can add life to
the project.
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RAMELIUS RESOURCES ANNUAL REPORT 2023 AREA OF INTEREST
COMMENTARY
Rebecca Region
Rebecca Gold Project
Kirgella JV
(Ramelius 75% earn in)
Yindi
Infill and extensional resource definition and exploration RC and diamond drilling
progressed over the period, and have provided definition of mineralisation and
lode geometry, and upgraded resource confidence.
Exploration aircore drilling to test near-mine targets has commenced following
earlier infrastructure sterilisation drilling that coincidently also covered several
exploration targets.
Earlier sterilisation work highlighted the T1 Prospect area situated between the
Rebecca and Cleo deposits where broad zones of low-grade anomalism have
been identified.
Water exploration activities included a passive seismic survey to define
palaeochannel morphology in the Rebecca area. The survey has been largely
completed over the southern palaeochannel area and is now in progress over the
north palaeochannel area. Results are indicating palaeochannel targets that will be
the focus of future water exploration drilling.
During the year a farm-in joint venture agreement was executed with private
entity M61 Holdings Pty Ltd covering three exploration licences located to the east
of the Rebecca Project. Ramelius can earn a 75% interest in the project over three
years by expenditure of $2M.
The tenement area captures an interpreted easterly splay off the prospective
regional Laverton Tectonic Zone, and historic regional aircore drilling and
field reconnaissance have identified mafic, banded iron formation (BIF), clastic
sedimentary and intrusive lithologies indicative of a greenstone enclave
within granitoid.
An ultrafine soil geochemical survey has been completed over the predominantly
shallow covered areas at the Kirgella JV area (RMS earning 75%). Some subtle
anomalous gold and multi-element zones have been identified and review is
continuing.
In addition to multiple gold targets, review of data from previously completed
aircore drilling in the Yindi tenement package located to the west of Rebecca
has also identified rare earths anomalism associated with alkali granitoids and
quartz syenite.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
AREA OF INTEREST
COMMENTARY
Roe Region
Bombora
Manna Gold
(Ramelius 100% gold rights)
Edna May Region
Mt Finnerty JV
(Ramelius 75%)
Operational Commentary
Resource evaluation and drill planning has been completed, with the primary
intention of advancing the underground resource. Drilling will commence early in
the 2024 financial year.
Fine fraction soil sampling is in progress on tenements located to the south
of Bombora where Ramelius holds gold rights. Results to date have defined
two broad low order anomalous areas covering strike extents of up to 3km.
The anomalous areas are coincident with southerly extensions of the
Bombora structural corridor.
Operational Commentary
The Mt Finnerty JV is located 200km northeast of Edna May. Drilling has targeted
an area of geological complexity along a granite-greenstone contact where
previous work has returned sporadic high-grade results. Mineralisation is hosted by
narrow laminated veins containing galena-sphalerite-pyrite and rare visible gold.
Drilling traverses to date have been oriented oblique to the northwest trending
granite-greenstone contact. More recent structural data collected from diamond
drilling suggests vein controls that are oblique to the contact with drilling oriented
sub-optimal to this geometry. Regional deposit analogies with similar geology
include high-grade tensional veins at Mt Dimer, Mt Palmer and Radio Hill.
A change of drill orientation at Mt Finnerty will be considered for the next phase
of work.
During the year Ramelius reached a project milestone expenditure level of $2
million to earn a 75% interest in the tenement from Westar Resources Limited.
1818
Edna May
Photo Competition Runner-Up: Simon Ghirardi
RAMELIUS RESOURCES ANNUAL REPORT 2023 RESOURCES AND RESERVES
COMPANY SUMMARY
MINERAL RESOURCES UP 23%
Ramelius Resources Limited (ASX: RMS) (“Ramelius”, “the Company”) reported a 23% increase in Mineral Resources
at 30 June 2023.
Total Mineral Resources are estimated to be:
• 160 Mt at 1.5 g/t Au for 7.6 Moz of gold (refer Table 7)
Total Ore Reserves are estimated to be:
• 18 Mt at 1.6 g/t Au for 930 koz of gold (refer Table 9)
Acquisition of the Roe project delivered a significant increase to Mineral Resources and work is in progress to generate
Ore Reserves for this project.
Overall, Ore Reserves were lower year-on-year once mining depletion was accounted for, with conversion of Resources to
Reserves yet to occur and therefore the focus for FY24 being the following projects (in Resource size order):
• Roe (1.7Moz) and Rebecca (1.4Moz) - combined project with study update expected in early calendar 2024
• Penny (440koz) - Mineral Resource extensions were announced on 15 September 2023 based on recent 13,000m
drilling program including those results received post 30 June 2023 (refer to page 25)
• Bartus (202koz) - open pit and underground studies commenced
The Board approved exploration budget for FY24 is $30M with focus areas including Mt Magnet, Penny and the Rebecca/Roe
area. Historical Mineral Resource growth is shown in the table below.
)
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7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2,200
1,300
1,200
1,400
1,200
1,100
4,300
4,900
953
762
1,262
1,448
2,700
2,119
3,800
3,000
172
2016
118
2017
256
2018
240
2019
380
2020
370
2021
610
2022
530
2023
Measured
Indicated
Inferred
Figure 3: Ramelius Historical Mineral Resources
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RAMELIUS RESOURCES ANNUAL REPORT 2023
MINERAL RESOURCES
Table 7: Mineral Resources
MINERAL RESOURCES AS AT 30 JUNE 2023 - INCLUSIVE OF RESERVES
Project
Deposit
Measured
t
g/t
Indicated
t
g/t
170,000
1.7
9,200
320,000
1.6
17,000
130,000
1.8
7,400
610,000
1.7
33,000
Morning Star
Bartus Group
Boomer
Britannia Well
Brown Hill
Bullocks
Eastern Jaspilite
Eclipse
Eridanus
Franks Tower
Golden Stream
Golden Treasure
Milky Way
Spearmont-
Galtee
Welcome -
Baxter
Open Pit
deposits
Galaxy UG
Hill 50 Deeps
St George
Water Tank Hill
Bartus East
UG deposits
ROM & LG
stocks
Total
Mt Magnet
Rebecca
Duchess
Duke
Cleo
Total Rebecca
Bombora OP
Bombora UG
Crescent-Kopai
Claypan
Total Roe
Edna May
Edna May UG
ROM & LG
stocks
Total Edna May
Mt
Magnet
Rebecca
Roe
Edna
May
Symes
Symes Find
Marda
Tampia
Die Hardy
ROM & LG
stocks
Total Marda
ROM & LG
stocks
Total Tampia
-
-
-
-
-
-
150,000
-
850,000
-
-
-
-
-
-
-
-
-
-
-
2.2
-
1.3
-
-
-
-
-
1,200,000
-
560,000
380,000
-
-
940,000
7,300,000
9,400,000
-
-
-
-
-
-
-
-
-
-
720,000
130,000
30,000
870,000
370,000
-
380,000
380,000
1,800,000
1,800,000
1.5
-
7.6
3.7
-
-
6.1
0.6
1.2
-
-
-
-
-
-
-
-
-
-
1.1
5.0
1.0
1.7
1.3
-
1.4
1.4
1.2
1.2
-
1.9
1.2
1.8
2.0
1.6
3.3
2.8
2.2
1.3
1.0
2.9
1.3
1.1
-
1.5
2.1
5.0
3.0
3.8
2.2
2.3
-
1.7
1.5
0.9
1.1
1.1
1.3
1.5
2.9
-
-
1.5
1.0
5.5
-
1.0
1.9
1.7
-
oz
-
-
-
-
-
-
10,000
-
36,000
-
-
-
-
4,900,000
410,000
1,200,000
180,000
1,100,000
200,000
120,000
170,000
13,000,000
2,200,000
150,000
540,000
820,000
-
-
55,000
25,000,000
-
140,000
45,000
-
-
180,000
140,000
6,500,000
580,000
180,000
200,000
2,300,000
9,800,000
-
380,000
35,000,000
17,000,000
7,300,000
2,000,000
730,000
27,000,000
15,000,000
710,000
-
-
16,000,000
23,000,000
150,000
-
23,000,000
910,000
600,000
-
-
-
-
-
-
-
-
-
-
-
25,000
21,000
970
47,000
15,000
-
18,000
18,000
69,000
69,000
-
Inferred
Total Resource
t
g/t
oz
t
g/t
oz
4,300,000
420,000
790,000
-
490,000
40,000
130,000
41,000
3,900,000
700,000
67,000
360,000
1,600,000
580,000
1.5
1.2
1.0
-
1.2
2.5
2.5
2.1
1.1
1.2
1.2
1.1
1.1
2.6
210,000
16,000
26,000
-
19,000
3,000
11,000
3,000
140,000
26,000
2,700
13,000
57,000
9,200,000
820,000
2,000,000
180,000
1,600,000
240,000
400,000
210,000
18,000,000
2,900,000
220,000
900,000
2,400,000
48,000
580,000
1.7
1.2
1.5
2.1
1.5
3.1
2.5
2.2
1.3
1.0
2.4
1.2
1.1
2.6
510,000
32,000
94,000
12,000
78,000
24,000
32,000
15,000
730,000
97,000
17,000
36,000
86,000
48,000
oz
300,000
16,000
68,000
12,000
59,000
21,000
11,000
12,000
550,000
70,000
14,000
23,000
29,000
-
1,200,000
14,000,000
430,000
92,000
17,000
24,000
160,000
730,000
-
970,000
720,000
-
-
160,000
1,800,000
-
1,900,000
15,000,000
820,000
220,000
73,000
26,000
1,100,000
710,000
66,000
-
-
780,000
700,000
27,000
3,100,000
2,400,000
740,000
230,000
6,500,000
2,700,000
7,300,000
4,100,000
2,000,000
16,000,000
7,000,000
190,000
-
-
730,000
7,200,000
56,000
33,000
-
120,000
-
-
-
-
-
1.3
2.2
5.5
-
-
2.2
3.5
-
1.6
1.4
0.9
1.1
1.0
1.2
1.3
2.5
1.0
1.1
1.8
1.0
7.3
-
1.1
0.9
-
-
-
-
-
580,000
40,000,000
67,000
130,000
-
-
11,000
210,000
-
7,400,000
1,900,000
560,000
200,000
2,500,000
13,000,000
7,300,000
780,000
60,000,000
140,000
72,000
25,000
7,700
240,000
110,000
590,000
130,000
69,000
910,000
220,000
45,000
-
20,000,000
9,700,000
2,700,000
960,000
33,000,000
18,000,000
8,000,000
4,100,000
2,000,000
32,000,000
30,000,000
470,000
30,000
260,000
31,000,000
3,500
1,400,000
-
-
-
-
-
600,000
380,000
980,000
1,800,000
1,800,000
1.4
2.1
6.0
3.5
3.8
2.2
2.8
0.6
1.6
1.5
0.9
1.1
1.1
1.3
1.4
2.6
1.0
1.1
1.6
1.0
6.1
1.0
1.0
1.7
1.7
1.4
1.6
1.2
1.2
1,800,000
500,000
360,000
62,000
24,000
170,000
1,100,000
140,000
3,100,000
960,000
290,000
98,000
34,000
1,400,000
820,000
660,000
130,000
69,000
1,700,000
940,000
92,000
970
1,000,000
75,000
33,000
18,000
51,000
69,000
69,000
600,000
1.7
33,000
-
-
-
-
-
-
Penny North & West
-
350,000
20.0
220,000
81,000
11.0
29,000
430,000
18.0
250,000
Total Resource
13,000,000
1.3
530,000
100,000,000
1.5
4,900,000
45,000,000
1.5
2,200,000 160,000,000
1.5
7,600,000
Figures rounded to 2 significant figures. Rounding errors may occur.
20
RAMELIUS RESOURCES ANNUAL REPORT 2023 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 Galaxy, St George, and Water Tank Hill
underground mines. A large low-grade stockpile has been
generated from mining at Eridanus.
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. Marda, Symes, and Tampia 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 Die Hardy open pit is being mined currently. It is located
130km north of Southern Cross and ore is hauled and milled
at Edna May.
Tampia mining operations commenced in April 2021
and ceased in May 2023. The deposit is hosted within
amphibolite facies mafic rocks, 12km SE of Narembeen in
the WA wheatbelt. Gold is hosted within shallow dipping
lode/shear zones and associated with arsenopyrite. Ore is
hauled 140km to Edna May for milling. Large site stockpiles
have been generated and will continue to feed the Edna May
processing facility throughout the 2024 financial year.
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. Construction of the mining offices and workshops
began in the fourth quarter of 2023 financial year and mining
commenced in June 2023.
The Penny mine was acquired via the takeover of Spectrum
Metals in early 2020. Both Penny West and Penny North
are high-grade quartz-sulphide lodes. Penny West was
discovered and mined by open pit in the early 1990’s and
project development progressed under Ramelius with a pit
access cutback, camp, workshop and offices completed in
2022. An underground decline into Penny North and six
levels of ore development with four stopes were completed
in the 2023 financial year. Ore is hauled 160km to Mt Magnet.
All deposits have been depleted for mining during the 2023
financial year.
Mining and changes to modelling and/or categorisation generally
resulted in decreases for most active projects, with the
exception of Rebecca and Penny. The large increase in resource
was primarily due to the addition of the Roe project.
See RMS ASX releases below for additional Mineral
Resource reporting details:
•
‘Ramelius Makes Recommended Takeover Offer for
Breaker Resources’, 20 March 2023
•
‘June 2023 Quarterly Activities Report’, 27 July 2023
The Rebecca project was acquired via acquisition of Apollo
Consolidated in 2021. The project contains the substantial
Rebecca deposit, plus the smaller Duchess, Duke, and
Cleo deposits and is located 150km east of Kalgoorlie.
Mineralisation occurs in large shear lodes with associated
disseminated pyrrhotite, pyrite and silicification, hosted within
a gneissic granodiorite.
The Roe project was acquired via acquisition of Breaker
Resources in 2023. Resources at Roe include Cresent-Kopai,
Claypan, and the extensive Bombora deposit which are
located 50km southwest of the Rebecca project and 100km
east of Kalgoorlie. Roe mineralisation occurs as disseminated
gold within stockwork and quartz veins associated with
cross cutting shear zones in Archean mafics and fractionated
dolerite intrusives.
The Bartus group of deposits are located within the
Boogardie Basin domain of the Mt Magnet goldfield, 6.3km
south of the Checkers processing plant. Mineralisation is
hosted by sericite-silica-albite altered granodiorite intrusions
with quartz-pyrite+/-tourmaline vein stockworks and
accessory molybdenite.
North Pit Pools - Tampia
Photo: Mikayla Mullen
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RAMELIUS RESOURCES ANNUAL REPORT 2023
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 and whole core. Assay is
carried out by commercial laboratories and accompanied by appropriate QAQC samples.
Generally, a substantial proportion of drill data is historic in nature or gathered by previous owners, however Ramelius has
added significant further drilling for all deposits, especially those forming Ore Reserves. Mineralisation has been modelled via
cross-sectional interpretations, using deposit appropriate lower cut-off grade 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 and Roe, have had some degree of recent production or historic mining.
Further details are available in prior RMS ASX Releases for individual projects.
RESOURCE INVENTORY CHANGE
1,646
495
10
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7,500
7,000
6,500
6.000
5,500
5,000
4,500
4,000
3,500
June 2022
Resource
Mining
Depletion
Ore Stock
Change
Modelling and
Categorisation
Exploration,
Resource and
GC Drilling
Project
Acquisition
June 2023
Resource
Figure 4: Resource Inventory Change
Referring to the above waterfall chart, mining depletion was significantly larger than production due to the removal
of mineralised material below open pits no longer in production. This includes Tampia and Marda Central, and
smaller underground remnants from Mt Magnet which are no longer part of Ramelius mine plans. The drilling related
additions approximately equalled production and were due to significant increases to Bartus East, Symes, and Edna May
Underground resources. The project acquisition increase primarily relates to the Roe project.
22
RAMELIUS RESOURCES ANNUAL REPORT 2023
MINERAL RESOURCE DIAGRAMS
Figure 5: Bartus East Long Section
Figure 6: Roe – Bombora deposit cross-section June 2023 - drilling and lode interpretation
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Figure 7: Rebecca deposit cross-section June 2023 - drilling and lode interpretation
2424
RAMELIUS RESOURCES ANNUAL REPORT 2023 PENNY UPDATED MINERAL RESOURCE
On 14 September 2023 Ramelius released the following commentary regarding its Penny Mineral Resource:
Table 8 – Penny Mineral Resource
Lode
Penny North
Penny West
Total
Measured
g/t
24
-
24
tonnes
48,000
-
48,000
ounces
37,000
-
37,000
tonnes
190,000
110,000
310,000
Indicated
g/t
30
7.9
22
ounces
190,000
29,000
220,000
tonnes
78,000
9,000
87,000
Inferred
g/t
26
4.4
24
ounces
65,000
1,300
67,000
tonnes
320,000
120,000
440,000
Total
g/t
28
7.6
22
ounces
290,000
30,000
320,000
Figures rounded to 2 significant digits. Rounding errors may occur.
The Penny North and Penny West deposits have been the focus of exploration and resource definition drilling since April 2023.
New drilling comprises of 44 underground diamond holes for approximately 15,300m. This drilling has been carried out orthogonally to
strike direction utilising a diamond drill cuddy that was developed for this purpose. The recent drill results at both deposits and underground
development of the lode at Penny North have indicated that the lodes are relatively thinner than the previous interpretations by up to 1m,
but also significantly higher grade than previously estimated. This has resulted in an updated model that has reduced the overall tonnage
slightly while significantly increasing the ounces contained within the estimation.
Interpretation was carried out incorporating the results of the recent drilling with underground face data to produce an updated mineral
resource estimate. The quartz vein mineralisation was domained as the primary host for mineralisation for both lodes. The hanging wall and
footwall of the domains were snapped to the surveyed sample intervals and pickup of the veins within mining developments.
Samples were grouped by domain, composited to 1m intervals, and gold was estimated using anisotropic searches and Ordinary Kriging.
A topcut of 120g/t was utilised at just above the 96 percentile after interrogation of assay domain statistics for both lodes. Densities were
applied by rock type and weathering. Block size is 5mE x 10mN x 5mRL with minimum sub-blocks of 0.5mE x 1mN x 0.5mRL.
Resource categorisation was applied by using the underground development levels at Penny North to classify the Measured category
while envelopes that reflected drill density, thus geological and grade continuity, were used for the Indicated and Inferred resources.
The resource model is reported at a cut-off grade of >2.0g/t and has been depleted as of August 2023.
Figure 8: Penny Updated Mineral Resource
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Edna May
Photo Competition Third Place: James Lee
ORE RESERVES
Table 9: Ore Reserves
Project
Mt Magnet
Edna May
Marda
Tampia
Symes
Penny
Mine
Boomer
Brown Hill
Eridanus
Golden Stream
Morning Star
Total Open Pit
Hill 60
Galaxy
Water Tank Hill
Total Underground
ROM & LG stocks
Mt Magnet Total
Edna May UG
ROM & LG stocks
Edna May Total
Die Hardy
ROM & LG stocks
Total Marda
ROM Stocks
Total Tampia
Symes
Total Symes
Penny Underground
Total Penny
ORE RESERVE STATEMENT AS AT 30 JUNE 2023
t
-
-
-
-
-
-
-
-
-
-
7,300,000
7,300,000
-
30,000
30,000
-
380,000
380,000
1,200,000
1,200,000
-
-
-
-
Proven
g/t
-
-
-
-
-
-
-
-
-
-
0.6
0.6
-
1.0
1.0
-
1.4
1.4
1.5
1.5
-
-
-
-
0.8
oz
-
-
-
-
-
-
-
-
-
-
140,000
140,000
-
970
970
-
18,000
18,000
56,000
56,000
-
-
-
-
210,000
Probable
g/t
1.9
1.6
1.4
2.6
1.4
1.5
3.1
2.4
2.9
2.5
-
1.9
3.3
-
3.3
1.7
-
1.7
-
-
2.2
2.2
14
14
2.6
t
230,000
300,000
2,100,000
85,000
1,600,000
4,300,000
120,000
2,600,000
95,000
2,900,000
-
7,200,000
150,000
-
150,000
300,000
-
300,000
-
-
530,000
530,000
480,000
480,000
8,600,000
oz
14,000
15,000
95,000
7,200
71,000
200,000
12,000
210,000
8,900
230,000
-
430,000
16,000
-
16,000
17,000
-
17,000
-
-
37,000
37,000
210,000
210,000
710,000
t
Total Reserve
g/t
1.9
1.6
1.4
2.6
1.4
1.5
3.1
2.4
2.9
2.5
0.6
1.2
3.3
1.0
2.9
1.7
1.4
1.6
1.5
1.5
2.2
2.2
14
14
1.6
230,000
300,000
2,100,000
85,000
1,600,000
4,300,000
120,000
2,600,000
95,000
2,900,000
7,300,000
14,000,000
150,000
30,000
180,000
300,000
380,000
680,000
1,200,000
1,200,000
530,000
530,000
480,000
480,000
18,000,000
oz
14,000
15,000
95,000
7,200
71,000
200,000
12,000
210,000
8,900
230,000
140,000
570,000
16,000
970
17,000
17,000
18,000
34,000
56,000
56,000
37,000
37,000
210,000
210,000
930,000
Total Reserve
8,900,000
Figures rounded to 2 significant figures. Rounding errors may occur.
ORE RESERVE COMMENTARY
Pit Ore Reserves have been reported from Measured and Indicated Resources only. Current operations are the Eridanus, Brown Hill, Die Hardy and
Symes open pits and the Penny, Edna May, Galaxy, Water Tank Hill / Hill 60 underground mines. All current pit and underground operations were
depleted to 30 June 2023.
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.
Penny underground mine design has incorporated approximately 20koz of Inferred Resource (at lower grade than the average ore reserve) mined
coincidently whilst extracting the Indicated Resource. The mine plan is not dependent upon Inferred Resource for profitability.
A maximum A$2,700/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.
26
RAMELIUS RESOURCES ANNUAL REPORT 2023 RESERVE INVENTORY CHANGE
212
40
43
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 2022
Reserve
Mining
Depletion
Ore Stock
Change
Exploration,
Resource and
GC Addition
June 2023
Reserve
Figure 9: Reserve Inventory Change
Mining depletion of the Ore Reserve for FY23 of 212koz is less than total mined ore in FY23 as a result of:
• mining ore outside of Ore Reserves estimated at 30 June 2022 at Hill 60 Underground and Orion Open Pit
•
•
FY23 depletion at Edna May Underground being partially offset by increased depth or resources and consequent depth of
Ore Reserve design at Edna May
grade control updates during FY23 mining of Tampia and Eridanus open pits identifying additional ore that was identified in
the Ore Reserves estimated at 30 June 2022, within the same pit design
The increase in ore stocks of 40koz reflects the build-up of stockpiles at Tampia and Eridanus because of mining ore faster than
processing plant capacities allows treatment of this ore. The Ore Reserve addition of 43koz is primarily driven by the inclusion
of reserves at Symes.
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 Jake
Ball (Mineral Resources) and Paul Hucker (Ore Reserves), who are Competent Persons and Members of The Australasian
Institute of Mining and Metallurgy. Jake Ball and Paul Hucker are full-time employees of the company. Jake Ball 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”. Jake Ball 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.
27
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RAMELIUS RESOURCES ANNUAL REPORT 2023
SUSTAINABILITY
AT RAMELIUS
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.
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
OUR ENVIRONMENT
• First Nations peoples
• Greenhouse gas emissions and energy
• Taxes, royalties, and supplier payments
• Water and wastewater management
• Community relations and investment
• Biodiversity
• Mine closure and rehabilitation
• Waste and tailings management
28
RAMELIUS RESOURCES ANNUAL REPORT 2023 29
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UNITED NATIONS (UN) SUSTAINABLE DEVELOPMENT GOALS
Ramelius is focused on aligning environmental, social and governance policies and activities across our
operations in accordance with the UN Sustainable Development Goals (SDGs). These are considered the
blueprint to achieving a better and more sustainable future for all, and as such represent a major inspiration
for the future prosperity of our stakeholders.
We have chosen the 9 most relevant SDGs that align to our business strategy and stakeholder priorities.
We utilise the relevant SDG icons to highlight where our activities contribute progress towards achieving
the SDG goals and targets.
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.
Our FY 2023 Targets can be found in the 2022 Ramelius Sustainability Report.
The FY 2023 Ramelius Sustainability Report will be released before 31 December 2023.
RAMELIUS RESOURCES ANNUAL REPORT 2023
ANNUAL
FINANCIAL
REPORT
2023
For the year ended 30 June 2023
ABOUT RAMELIUS
Ramelius Resources Limited (Ramelius) listed on the ASX in 2003
and is a well-established, mid-tier Australian gold mining company with
operations in Western Australia. Ramelius has processing centres at
Mt Magnet and Edna May and operates six gold mines. Ore from the
Penny Gold Mine is hauled to, and processed at, Mt Magnet and ore from
the Tampia, Marda, and Symes Gold Mines is hauled to, and processed at,
Edna May.
In addition to this Ramelius has exploration projects throughout
Western Australia, notably the Rebecca and Roe Gold Projects located
approximately 145km and 100km east of Kalgoorlie respectively.
Ramelius produced 240,996 ounces of gold in the 2023 financial year
at an All-in Sustaining Cost (AISC) of A$1,895 per ounce. Guidance
for the 2024 financial year is for gold production of 250,000 to
275,000 ounces at an AISC of A$1,550 – 1,750 per ounce.
Ramelius has approximately 300 employees and over 500 contractors
working across its operating mines in Western Australia.
ABOUT THIS REPORT
This annual financial report is a summary of Ramelius and its subsidiary
companies’ operations, financial performance, and positions as at,
and for the year ended, 30 June 2023. In this report, references to
‘Ramelius’, ‘the Company’, ‘the Group’, ‘we’, ‘us’, and ‘our’ refer to
Ramelius Resources Limited (ABN 51 001 717 540) and its controlled
entities, unless otherwise stated.
References in the report to a ‘year’ are to the financial year ended 30
June 2023 (the previous corresponding year is the financial year ended
30 June 2022) unless otherwise stated. All dollar figures are expressed
in Australian dollars (AUD) unless otherwise stated.
References to AASB refer to the Australian Accounting Standards
Board and IFRS refers to the International Financial Reporting
Standards. There are references to IFRS and non-IFRS financial
information in this report. Non-IFRS financial measures are financial
measures other than those defined or specified under any relevant
accounting standard and may not be comparable with other
companies’ information. Non-IFRS financial measures are used to
enhance the information presented as well as the comparability of
information between reporting periods. Non-IFRS financial information
should be considered in addition to, and is not intended to be a
substitute for, IFRS financial information and measures. Non-IFRS
financial measures are not subject to audit or review.
3030
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
Development and Exploration Projects
Investor Relations
Material Business Risks
Environmental Regulation
Information on Directors
Meetings of Directors
Remuneration Report
Shares Under Option
Insurance of Officers and Indemnities
Proceedings on Behalf of the Company
Non-Audit Services
Auditor Independence
Rounding of Amounts
Auditor’s Independence Declaration
Financial Statements
Financial Statements
Notes to the Financial Statements
Signed Reports
Directors’ Declaration
Independent Auditor’s Report
to the Members
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31
31
31
31
31
31
32
32
37
37
37
40
42
44
45
62
62
63
63
63
63
64
65
66
70
109
109
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RAMELIUS RESOURCES ANNUAL REPORT 2023 DIRECTORS’ REPORT
Your Directors present their report on the consolidated entity consisting of Ramelius Resources Limited and the entities it
controlled at the end of, or during, the year ended 30 June 2023.
DIRECTORS
The following persons were Directors of Ramelius Resources Limited at the date of this report:
Bob Vassie
Mark Zeptner
David Southam
All Directors served on the Board for the period 1 July 2022 to 30 June 2023, except for Colin Moorhead, who was appointed as a Director
of the Company on 1 December 2022.
Natalia Streltsova
Fiona Murdoch
Colin Moorhead
The qualifications, experience, special responsibilities, and other details of the Directors in office as at the date of the report appear on pages
42 to 43 of this report.
COMPANY SECRETARY
The Company Secretary is Richard Jones. Mr Jones has over 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 activities. There were no significant changes to those activities during the year.
KEY HIGHLIGHTS FOR THE YEAR
Key highlights are included on pages 2 and 3 of this report.
DIVIDENDS
Dividends Recommended But Not Yet Paid
Since the end of the 2023 financial year the Directors have recommended the payment of a fully franked final dividend of 2.0 cents per ordinary
share. The fully franked final dividend will have a record date of 15 September 2023 and a payment date of 12 October 2023.
This dividend will be eligible for participation in the Ramelius Dividend Reinvestment Plan. 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 2023 but will be
recognised in subsequent financial reports.
Table 10: Dividends paid during the 2023 financial year
Final ordinary dividend for the 2022 financial year of 1.0 cent (2022: 2.5 cents) per
fully paid share paid on 11 October 2022
2023
$M
8.7
2022
$M
20.4
EVENTS SINCE THE END OF THE FINANCIAL YEAR
Off-Market Takeover Offer for Musgrave Minerals Ltd, Owner of the Cue Gold Project
On 3 July 2023 Ramelius announced a recommended off-market takeover offer (the Offer) for Musgrave Minerals Limited (Musgrave). Under the
offer, Musgrave shareholders are to receive one Ramelius Share for every 4.21 Musgrave Shares held plus an additional $0.04 in cash per Musgrave
Share held. The primary asset of Musgrave is the Cue Gold Project (Cue).
The Cue Gold Project, which is located 40km north of the town of Mount Magnet in WA, has a Mineral Resource of 12.3Mt at 2.30g/t for
927k ounces of contained gold.# If the acquisition is successful Cue will be integrated into the Mt Magnet operations hub.
The offer was subject to limited conditions including:
• 50.1% minimum acceptance threshold;
• No material changes or prescribed occurrences;
• No adverse regulatory events affecting the Offer or Musgrave or its assets; and
• Other customary conditions for a transaction of this type.
#Refer to ASX announcement on 3 July 2023, “Ramelius Makes Recommended Takeover Offer for Musgrave Minerals Ltd, Secures 12.13% in Pre-Bid Acceptances".
3131
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
Under the takeover offer the maximum number of Ramelius Shares to be issued to Musgrave Share and Option holders is 146,355,808, whilst the
maximum cash consideration payable to Musgrave shareholders is $23.6 million.
At the date of this report Ramelius had received acceptances representing 47.36% of Musgrave Shares.
There were no other matters or circumstances that have arisen since 30 June 2023 that have, or may, significantly affect the Group’s operations,
results, or state of affairs, or may do so in the future.
OPERATIONS REVIEW
The Operations Review is included on pages 10 to 14 of this report.
FINANCIAL REVIEW
OVERVIEW
The financial performance for the 2023 financial year was generated from revenue of $631.3 million on the sale of 243,263 ounces of gold from
the combined processing centres at Mt Magnet and Edna May. The 2023 financial performance also included the impact of events not in the ordinary
course of business, which included the pre-tax, non-cash impairment of the Edna May underground mine of $6.9 million (post-tax of $4.8 million).
Table 12 in this report reconciles the statutory earnings to the underlying earnings, which has been adjusted for this, and other items.
The table below shows the financial performance of the Group for the 2023 financial year.
Table 11: Group Financial Performance for the 2023 Financial Year
Financial performance
Revenue
Cash costs of sales1
Gross margin excluding ‘non-cash’ items
Depreciation and amortisation
Inventory movements
Gross profit
Impairment of mine development and PP&E
Impairment of exploration and 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
Edna May
$M
Corp
and other
$M
337.3
(164.6)
172.7
(109.5)
(0.1)
63.1
-
-
-
-
63.1
-
63.1
-
63.1
294.0
(184.8)
109.2
(54.3)
18.3
73.2
(6.9)
-
-
-
66.3
-
66.3
-
66.3
-
-
-
-
-
-
-
(10.2)
-
(27.0)
(37.2)
(1.9)
(39.1)
(28.7)
(67.8)
1 Cash cost of sales exclude depreciation and amortisation and inventory movements.
2023
$M
631.3
(349.4)
281.9
(163.8)
18.2
136.3
(6.9)
(10.2)
-
(27.0)
92.2
(1.9)
90.3
(28.7)
61.6
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
Change
$M
Change
%
27.4
38.3
65.7
18.6
(78.3)
6.0
87.6
6.5
(30.3)
(2.7)
67.1
0.7
67.8
(18.6)
49.2
+5%
-10%
+30%
-10%
-81%
+5%
-93%
-39%
-100%
+11%
+267%
-27%
+301%
+184%
+397%
PROFIT
The Group reported an EBIT of $92.2 million and NPAT of $61.6 million for the financial year ended 30 June 2023. This is a 267% and 397%
increase from the prior year respectively (2022: EBIT $25.1 million and NPAT of $12.4 million). As outlined at Table 12 and Figure 10 on page 33,
when normalising for the effects of impairment charges the underlying NPAT was $75.3 million (2022: $73.0 million) and the underlying earnings
before interest, tax, depreciation, and amortisation (EBITDA) was $276.3 million (2022: $292.8 million).
Gold sales were up on the 2022 financial year due to the higher realised gold price in the year and improved mill throughput at Mt Magnet. These
positive impacts were offset in part by lower gold production from Edna May due to lower throughput (exhaustion of historic low-grade stockpiles).
The Mt Magnet operations reported a gross profit of $63.1 million, an 11% decrease from the prior year (2022: $70.7 million). This was due to lower
grades in the year and the completion of the higher grade Vivien and Shannon mines mid-year. Whilst the gross profit was positively impacted by the
introduction of high-grade ore from Penny in the latter part of the financial year and a higher realised gold price, earnings were impacted by
lower grades from Mt Magnet mines.
At Edna May, a gross profit of $73.2 million was reported representing a 23% increase on the prior year (2022: $59.6 million) despite lower grades
individually from each operation. This increase was driven by the higher realised gold price and lower depreciation and amortisation charge (due to
prior year impairment charges).
Also impacting the earnings for the year was the accrual of short-term incentive (STI) payments relating to the 2023 financial year. Historically the
STI payments were assessed after the release of the financial statements and accordingly the financial results did not include any accrual for STI
payments. The measurement of the STI payments has been brought forward based on specific feedback received by the Company. As such the
2023 income statement abnormally includes an STI payment for FY 2022 (not accrued in prior year) and for FY 2023. The FY 2022 payment has
been added back when calculating the underlying earnings (see Table 12 and Figure 10 on page 33) to remove the impact of this double up.
32
RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
Table 12: Reconciliation of Statutory NPAT to Underlying NPAT, EBIT, and EBITDA.
Underlying result reconciliation ($M)
Statutory NPAT
Tax
Interest income
Finance costs
EBIT
EBIT margin (%)
Depreciation and amortisation
EBITDA
EBITDA margin (%)
Add:
Impairment charges – Edna May
Impairment charges – Exploration
FY 2022 STI payment not accrued
Less:
Fair value adjustments1
Tax adjustments:
Tax effect of adjustments
Underlying result
Underlying margin (%)
NPAT
61.6
n/a
n/a
n/a
n/a
n/a
n/a
n/a
6.9
10.2
3.7
(1.2)
(5.9)
75.3
12%
2023
EBIT
61.6
28.7
(3.9)
5.8
92.2
15%
n/a
n/a
6.9
10.2
3.7
EBITDA
61.6
28.7
(3.9)
5.8
n/a
n/a
164.5
256.7
41%
6.9
10.2
3.7
(1.2)
(1.2)
n/a
111.8
18%
n/a
276.3
44%
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
m
$
A
350.0
300.0
250.0
200.0
150.0
100.0
50.0
0
10.2
3.7
6.9
1.2
276.3
256.7
164.5
111.8
1.9
28.7
5.9
75.3
Statutory
EBITDA
Add back: Exploration
impairment charges
Less: FY2022
STI Payment
not accrued
Depreciation and
amoritisation
Net finance
costs
Tax effect of
underlying
adjustments
Add back: Edna May
impairment charges
Fair value
adjustments
Underlying
EBITDA
Underlying
EBIT
Statutory tax
expense
Underlying
NPAT
Figure 10: Statutory EBITDA to Underlying NPAT
33
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DIRECTORS’ REPORT (continued)
Revenue
Revenue for the year increased by 5% to $631.3 million compared to $603.9 million for the prior year. This was due to an 8% increase in the realised
gold price (2023: A$2,591/oz / 2022: A$2,399/oz) with both an increase in forward prices achieved and the AUD spot price. This was offset, in part,
by a 3% decrease in gold ounces sold (2023: 243,263oz / 2022: 251,3550oz).
The total gold sold of 243,263 ounces included deliveries into the opening hedge book of 108,000 ounces at a realised gold price of A$2,446/oz and
the remaining spot / short-term contract sales of 135,263 ounces at a realised gold price of A$2,707/oz.
At 30 June 2023 the Group’s hedge book totalled 211,000 ounces at an average price of A$2,772/oz, representing an 8% increase in ounces
committed and 10% increase in the average price (2022: 196,000 ounces at A$2,512/oz).
EBIT – Mt Magnet
In the 2023 financial year Mt Magnet was impacted by lower grades from open pit mines (Eridanus mining through a lower-grade section of the ore
body) and the completion of mining at the higher-grade ore sources of Vivien and Shannon (both January 2023). The introduction of commercial
levels of ore from Penny late in 2023 financial year mitigated the impact of the above. The EBIT for Mt Magnet of $63.1 million (2022: $70.7 million)
was down 11% on the prior year.
The total operating cost per tonne for the Mt Magnet mine (excluding Penny and Vivien) was 5% higher than the prior year which is due to
continued cost pressures within the sector and mining more ore at depth. With the introduction of commercial levels of production from Penny,
the total cost per tonne for the MMG CGU increased 14% on the prior year. The ore from Penny is of a much higher grade than other Mt Magnet
sources but does have a higher cost per tonne. A significant portion of the Penny cost per tonne is depreciation and amortisation of the existing
mine development asset, which includes the initial acquisition cost of Spectrum Metals Limited, the prior owner of the Penny project.
With the lower milled grades, the cost per ounce at Mt Magnet increased $298 to $2,125 for the 2023 financial year. The EBIT margin per ounce of
A$484 (2022: $571) was somewhat protected by the higher realised gold price.
The outlook for Mt Magnet remains very positive with increased ore from Penny (full year of haulage in the 2024 financial year) and improving grades
from Eridanus with the lower-grade section of the ore body now largely behind us.
EBIT – Edna May
The Edna May underlying EBIT, before any impairment charges, for the year was $73.2 million which represented a 23% increase from the prior
year (2022: $59.6 million) and resulted from lower depreciation and amortisation charges (due to the impairment charge recorded in the prior year).
Furthermore, in the 2023 financial year there was a significant improvement in the haulage capacity at Edna May which increased 27% on the prior
year and made up 75% of the ore feed for the hub (2022: 46%). During the year the historic low-grade stockpiles at Edna May were depleted which
meant mill throughput was limited to underground ore production and satellite ore haulage capacity. The resultant throughput was 23% down, albeit
at a higher grade, due to the removal of the historic low-grade stockpiles from the ore blend.
The operating cost per tonne increased 16% for the year despite the lower depreciation and amortisation charges, due to increased ore haulage and
the absence of the “free carry” historic Edna May low-grade stockpiles. However, with the higher mill grade, the cost per ounce was marginally lower
at $1,932 (2022: $1,939).
The higher realised gold price for the year saw the EBIT margin per ounce at Edna May increase to $638 (2022: $460).
Impairment – Edna May
In mid-June 2023 a temporary escalation of water inflow, that was higher than the installed pumping capacity, led to higher water levels within the
mine. Development works had taken place at these lower levels and at 30 June 2023 it was uncertain as to whether access to these lower levels, and
the benefit from this development work undertaken, would be feasible. Accordingly, at 30 June 2023, an asset level impairment of $6.9 million has
been recognised for the Edna May underground mine.
The lower levels of the underground mine are being monitored and if conditions permit, and access is economically feasible, development deeper into
the mine will continue to the 840mRL and 820mRL and ore may be extracted from these levels. This water ingress event will not materially impact
the production and cost guidance for the 2024 financial year.
It is important to note this is an asset level impairment triggered by a specific event impacting the Edna May underground mine and associated
infrastructure. A full review of potential impairment indicators for the Edna May Cash Generating Unit (CGU) was undertaken as at 30 June 2023,
as required by accounting guidance, and it was concluded that there were no potential indicators of impairment at the CGU level for Edna May.
Corporate and Other Costs
Corporate and other costs increased 17% on the prior year due to the accrual of the 2023 STI payment, an increased focus on ESG matters across
the industry, and higher share based payment costs (non-cash) due to the Service Rights issued to employees during the year. Offsetting this was a
lower fair value expense on deferred consideration and investments of $0.5 million (2022: $3.8 million). Excluding these non-cash fair value amounts
and the share based payments expense, corporate and other expenses equated to $89 per ounce sold which is slightly higher than the prior year
(2022: $72 per ounce sold).
Other Income
Other income for the year included $1.7 million for the fair value gain on deferred consideration which, in the prior year, was an expense (recognised
in Other Expenses). The fair value gain is the result of ounces being removed from the Edna May underground production profile as a result of the
recent water ingress event. The prior year amount included the $30.3 million consideration received on the termination of a Lithium Royalty over
Liontown Resources Limited’s (LTR) Kathleen Valley Lithium Project.
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RAMELIUS RESOURCES ANNUAL REPORT 2023 DIRECTORS’ REPORT (continued)
Income Tax
The effective tax rate for the Group for the year ended 30 June 2023 was 32%, compared to 45% for the prior year. The prior year effective tax
rate was higher due to the disproportionate impact of certain non-deductible expenses on the lower accounting profit before tax. The effective tax
rate in the current year of 32% is slightly higher than the statutory 30% rate due to certain non-deductible expenses such as share based payments.
As at 30 June 2023 Ramelius had both an outstanding current tax liability due to the ATO (Breaker) and a tax refund due to the Company
(Ramelius). The current tax liability of $6.0 million relates to the 2023 income tax return for Breaker, which is in the process of being finalised.
This outstanding tax liability was known at the time of the acquisition. The 2022 and 2023 income tax returns for Breaker are in the process of being
finalised.
In addition to this, Ramelius separately had a tax refund due of $7.4 million relating to the 2023 income tax return for the Ramelius Tax Consolidated
Group, which at 29 June 2023, excluded Breaker. As the above tax liability relates to Breaker before it formed part of the Ramelius Tax Consolidated
Group it cannot be offset by the tax refund due to Ramelius and must be settled separately. Accordingly, the payable and receivable are shown
separately on the balance sheet as at 30 June 2023.
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 30% to $940.3 million over the year (2022: $720.9 million), mainly as a result of the NPAT for the year
and the acquisition of Breaker Resources NL.
Current Assets
Current assets increased from the prior year by $109.9 million to $401.9 million. The increase was mainly due to the improved cash balance (due
to operating cash flows for the year and cash acquired as part of the Breaker transaction). Inventories did increase over the year however most
of this increase was in non-current stockpiles. The current inventory balance remains high at $137.2 million (2022: $133.6 million) and contains
approximately 91,000 ounces (2022: 79,000 ounces) for future, short-term cashflow realisation.
As at 30 June 2023 a refund for the 2023 income tax year of $7.4 million is due to Ramelius.
All other current assets are largely the in line with last year.
Current Liabilities
Current liabilities decreased by $17.7 million to $108.8 million over the prior year. Trade creditors and accruals were lower with the completion
of mining activities at Vivien and Tampia, along with the open pit mining contractor change at Mt Magnet in early June 2023 (minimal open pit
mining activities at Mt Magnet in June 2023). Trade payables include an accrual of $4.3 million for the stamp duty on the Breaker acquisition
(Roe Gold Project).
The net current asset position increased to $293.1 million from $165.6 million in the prior year, mainly due to the increased cash position and lower
trade and other payables. Balance sheet liquidity at Ramelius remains very healthy with cash and gold of $272.1 million (cash of $251.0 million and
gold with a value of $21.1 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 of non-current assets at 30 June 2023 totalled $770.0 million, which is $110.2 million higher than 30 June 2022. The increase came
largely from the acquisition of the Roe Gold Project, development of Penny and Galaxy underground mines, and classification of $80.5 million of
stockpiles as non-current.
Non-Current Liabilities
Non-current liabilities increased $18.4 million to $122.8 million and is mainly made up of restoration provisions and deferred tax liabilities.
Deferred tax liabilities have increased in line with the capitalisation of deferred mining costs in the year.
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DIRECTORS’ REPORT (continued)
CASH FLOW
Cash provided by operating activities of $261.4 million was up 64%, or $101.7 million, on the prior year. This increase is attributable to improved
cash flow from operations and the change in income tax payments of Ramelius. In the prior year, tax payments of $50.5 million were made whilst in
the current year, a tax refund of $6.2 million was received. A further tax refund of $7.4 million is receivable as at 30 June 2023. Ramelius expects to
return to a tax payable position in the 2024 financial year.
Total cash used in investing activities was $120.8 million which is $72.3 million less than the prior year primarily due to cash being acquired on the
acquisition of Breaker Resources NL, as opposed to a cash payment on the acquisition of Apollo Resources Limited in the prior year. This was offset
by increased spend on development assets (Penny, Galaxy, Mt Magnet open pits, Die Hardy) and the one-off royalty sale in the prior year. A total of
$189.4 million was reinvested into the business, including:
• Payments for the development of open pit and underground mines of $154.3 million;
• Payments for property, plant and equipment, at both existing and new sites, of $13.7 million; and
• Payments for tenements and exploration of $21.4 million.
Cash used in investing activities also included the payment of $8.0 million in stamp duty relating to the 2022 acquisition of Apollo Consolidated
Limited (Rebecca Gold Project). This was the first and final stamp duty payment on the acquisition.
A total of $37.4 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, which includes lease repayments, was $33.0 million (2022: $36.2 million).
Movement in Cash
223.3
Underlying cashflow
of $33.0m
189.4
0.9
180.8
7.2
6.5
147.8
75.1
6.2
8.0
2.4
251.0
m
$
A
500.0
450.0
400.0
350.0
300.0
250.0
200.0
150.0
100.0
50.0
0
Opening
Cash
Capital,
exploration mine
development
Opening cash+
underlying
cashflow
Dividends
Apollo
stamp duty
Tax
Operating
cash flows
(increase
payments)
Other
Sale of
investments
Breaker
Resources
(cash acquired)#
Contingent
consideration
Closing cash
# Shown here is the gross cash acquired on the acquisition of Breaker Resources NL. In the cash flow statement, the net cash acquired figure is shown which includes $0.9 million in acquisition
related costs paid.
Figure 11: Movement in Cash for the 2023 Financial Year
Cash and gold at 30 June 2023 totalled $272.1 million (2022: $172.9 million) comprising cash and cash equivalents of $251.0 million
(2022: $147.8 million) and gold on hand of 7,344 ounces (2022: 9,611 ounces). Using a spot price of A$2,880/oz the gold on hand had a value
of $21.1 million (2022: $25.1 million at a spot price of A$2,617/oz).
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
FINANCIAL RISK MANAGEMENT
Ramelius held forward gold sales contracts at 30 June 2023 totalling 211,000 ounces of gold at an average price of A$2,772 per ounce over a
period to December 2025. This compared to 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.
As part of its risk management program, Ramelius, for the first time, has fixed the diesel price for a small portion of expected usage over the next
18 months. In total, and as at 30 June 2023, 10.2 million litres have been hedged at an average price of $0.91/L (pricing excludes freight and fuel
taxes) out to December 2024.
The Syndicated Facility Agreement (SFA) is with Commonwealth Bank of Australia, BNP Paribas (Australia branch) and National Australia Bank
Limited. The SFA facility limit includes 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 (expiring 31 March 2024) with the option to extend by a further
year on the basis that certain market standard conditions are met.
The $100 million corporate facility is currently undrawn, and the Company remains debt free.
DEVELOPMENT AND EXPLORATION PROJECTS
See pages 15 to 18 of the Review of Operations
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 – July 2022;
• Diggers and Dealers – August 2022;
• Denver Gold Forum – September 2022;
• Euroz Hartleys Gold Day – October 2022;
• Macquarie WA Forum – November 2022;
• RIU Conference – February 2023;
• BMO Global Metals – February 2023;
• Ord Minnett East Coast Mining Conference – March 2023;
• Shaw and Partners Gold Day – May 2023; 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:
• Fluctuations in the Gold Price and Australian Dollar
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.
Declining gold prices can also impact operations by requiring a reassessment of the feasibility of mine plans and certain projects and initiatives.
The development of new ore bodies, commencement and timing of open pit cutbacks, commencement of development projects and the
ongoing commitment to exploration projects can all potentially be impacted by a decline in the prevailing gold price. Even if a project is
ultimately determined to be economically viable, the need to conduct such a reassessment could potentially cause substantial delays and/or
may interrupt operations, which may have a material adverse effect on Ramelius’ results of operations and financial condition.
• Hedging Risk
Ramelius has hedging agreements in place for the forward sale of fixed quantities of gold production from its operations. There is a risk
that Ramelius may not be able to deliver the amount of gold required under its hedging arrangements if, for example, there is a production
shortage. In this event, Ramelius’ financial performance may be adversely affected.
Under the hedging agreements, rising gold prices could result in part of Ramelius’ gold production being sold at less than the prevailing spot
price at the time of sale.
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DIRECTORS’ REPORT (continued)
Ramelius also has a small number of hedging agreements in place for fixed quantities of diesel over the next 18 months. These hedging
arrangements are financially settled monthly based on the price fixed in the hedging agreement and actual floating diesel price for the month
being settled. There is a risk that Ramelius may not physically use the diesel being hedged. In this event, Ramelius’ financial performance may be
adversely affected.
Under the hedging agreements, falling diesel prices could result in part of Ramelius’ diesel usage being purchased at prices higher than the
prevailing diesel price in the month of usage.
• 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, native title and cultural heritage, and land access.
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. To the extent such approvals are required and not retained or obtained in a timely manner or at
all, Ramelius may be curtailed or prohibited from continuing or proceeding with production and exploration.
• Landholder Access and Native Title
The grant and exercise of rights under mining tenements can be affected by the type of underlying land ownership (for example, whether
private (freehold) land or subject to a pastoral lease) and the nature of any improvements or other activities being conducted on that land.
In addition, some of Ramelius’ tenements are located within areas that are the subject of claims or applications for native title determination.
The Native Title Act 1993 (Cth) and related State native title legislation and aboriginal heritage legislation may affect the ability to obtain access
to certain exploration areas or to obtain mining production titles.
While access issues are faced by many mining companies and are a common aspect of mining project development, the ability to negotiate
satisfactory commercial arrangements with landowners, farmers, occupiers and native title groups is important.
Ramelius may be required to pay land compensation to landowners and others who have an interest in the area covered by mining tenements.
The ability to resolve compensation issues and compensation costs involved may have an impact on the timing of access to land and, as such,
the future development and financial performance of operations. The degree to which this may impact on activities will depend on a number of
factors, including the status of particular tenements and their locations. At this stage, Ramelius is not able to quantify the impact, if any, of such
matters on its operations.
• 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.
• Geological and Geotechnical Conditions
There is a risk that unforeseen geological and geotechnical difficulties may be encountered when developing and mining Ore Reserves, such as
unusual or unexpected geological conditions, pit wall failures, rock bursts, seismicity and cave-ins. In any of these events, a loss of revenue may be
caused due to the lower than expected production and/or higher than anticipated operation and maintenance costs and/or on-going unplanned
capital expenditure in order to meet production targets.
• Production, Cost and Capital Estimates
The ability of Ramelius to achieve production targets or meet operating and capital expenditure estimates on a timely basis cannot be assured.
The assets of the Combined Entity, as any others, are subject to uncertainty with ore tonnes, grade, metallurgical recovery, geotechnical
conditions, operational environment, funding for development, regulatory changes, accidents and other unforeseen circumstances such as
unplanned mechanical failure of plant or equipment.
Ramelius prepares estimates of future production, cash costs and capital costs of production for its operations. No assurance can be given that
such estimates will be achieved. Failure to achieve production or cost estimates or material increases in costs (particularly in the current business
environment with its associated inflationary and supply pressures and resultant costs impact) could have an adverse impact on Ramelius’ future
cash flows, profitability, results of operations and financial condition.
Costs of production may also be affected by a variety of factors, including: changing waste-to-ore ratios, ore grade, metallurgy, labour costs,
cost of commodities, general inflationary pressures and currency exchange rates. Ramelius is exposed to increased supply and cost pressures
impacting on the economy generally and the resources sector in particular.
Production cost increases could result in Ramelius not realising its operational or development plans or in such plans costing more than
expected or taking longer to realise than expected. Any of these outcomes could have an adverse effect on Ramelius’ financial and operational
performance.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
• Exploration and Development Risk
The 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. Ramelius must continually replace
Ore Reserves and Mineral Resources depleted by production to maintain production levels over the long term. Ore Reserves and Mineral
Resources can be replaced by expanding known ore bodies, locating new deposits or making acquisitions.
The exploration for, and development of, mineral deposits is highly speculative in nature and 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. Also, if a discovery is
made, it may take several years from the initial phases of drilling until production is possible.
There is a risk that depletion of Ore Reserves and Mineral Resources will not be offset by discoveries or acquisitions or that divestitures of
assets will lead to a lower reserve base. The Ore Reserve and Mineral Resource base of Ramelius may decline if Ore Reserves and Mineral
Resources are mined without adequate replacement and Ramelius may not be able to sustain production beyond the current mine lives, based
on current production rates.
• 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.
• Agreements with Third Parties
Ramelius is, and will, be subject to various contracts and agreements with third parties. Ramelius’ operating model is to engage third parties
(contractors) for open pit and underground mining, ore haulage, and drill and blast services. There is a risk of financial failure or default by a
counterparty to these arrangements. Any breach or failure may lead to penalties or termination of the relevant contract. In addition, Ramelius’
interest in the relevant subject matter may be jeopardised.
• Weather and Climate Change
Some of Ramelius’ sites and operations may from time to time be subject to severe storms and high rainfall leading to flooding and associated
damage which may result in delays to or loss of production.
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. Further details regarding
Ramelius’ assessment of environment, climate change and weather risks and its efforts pursuant to the Task Force on Climate-Related Financial
Disclosures framework are outlined in its 2022 Sustainability Report.
• Environmental Risks
Mining and exploration have inherent risks and liabilities associated with safety and damage to the environment, including the disposal of waste
products occurring as a result of mineral exploration and production, giving rise to potentially substantial costs for environmental rehabilitation,
damage control and losses.
Ramelius is subject to environmental laws and regulations in connection with its operations and could be subject to liability due to risks inherent
in its activities, including unforeseen circumstances. In particular, the disposal of mining and process waste and mine water discharge are under
constant legislative scrutiny and regulation. Approvals are required for land clearing and ground disturbing activities. Delays in obtaining such
approvals could result in the delay to Ramelius’ anticipated mining or exploration activities.
• Loss of Key Personnel
Ramelius’ success depends on the competencies of its directors, senior management, and operational personnel. The loss of one or more of
the directors or senior management could have an adverse effect on Ramelius’ business, financial position, and results of operations.
The resulting impact from such an event would depend on the timing and quality of any replacement. In the current tight Western Australian
labour market operational personal, both staff and contractors, are in high demand. Whilst Ramelius endeavours to be an employer of choice
there is elevated turnover in the industry that may impact the business depending on the timing and quality of replacement operation
personnel in current vacant positions.
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DIRECTORS’ REPORT (continued)
• Community Relations
Ramelius has an established community relations function, both at a corporate level and at each of the operations. Ramelius has developed
a community engagement framework, including a set of principles, policies and procedures designed to provide a structured and consistent
approach to community activities across its sites whilst recognising that, fundamentally, community relations is about people connecting with
people. Ramelius recognises that a failure to appropriately manage local community stakeholder expectations may lead to dissatisfactions which
have the potential to disrupt production and exploration activities.
• COVID-19
Ramelius’ performance may be adversely affected in the short to medium term by any uncertainty caused by COVID-19. Any governmental or
industry measures taken in response to COVID-19 may adversely impact the Group’s operations and are likely to be beyond the control
of Ramelius.
The Directors continue to monitor the situation and have considered the impact of COVID-19 on Ramelius’ business and financial performance,
including the potential impact of COVID-19 on the Group. The situation in Western Australia is currently under control with Government
restriction largely removed. However, the situation is continually evolving, and the consequences are therefore inevitably uncertain.
Ramelius continues to operate under any 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.
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.
• Acquisitions
Ramelius regularly identifies and assesses potential opportunities for acquisitions and growth initiatives where it considers the opportunities
may create shareholder value and it will continue to do so. While Ramelius intends to undertake appropriate due diligence to properly assess
such opportunities and initiatives, benefits expected from investments, acquisitions or growth opportunities may take longer than expected to
be achieved, or not be achieved at all, which may have a material impact on the value of Ramelius. In the ordinary course of business, Ramelius
similarly evaluates various strategic options to maximise value creation for shareholders, including in relation to its existing businesses and assets.
• Litigation Risks
Ramelius is exposed to possible litigation risks including contractual disputes, occupational health and safety claims and employee claims.
Further, Ramelius may be involved in disputes with other parties in the future which may result in litigation. Any such claim or dispute if proven,
may impact adversely on Ramelius’ operations, financial performance and financial position. Ramelius is not currently engaged in any litigation.
• Risk of Conflict
Conflict events including, but not limited to, significant riots or acts of terrorism, invasion, hostilities (whether war be declared or not), or war
may adversely affect the operating and financial performance of Ramelius. Escalation of the current conflict in Ukraine may increase market
volatility generally and/or volatility in global commodity prices generally.
• Cyber Security and IT
Ramelius relies on IT infrastructure and systems and the efficient and uninterrupted operation of core technologies. Ramelius’ core technologies
and other systems and operations could be exposed to damage or interruption from system failures, computer viruses, cyber-attacks, power or
telecommunication provider’s failure or human error. These events may cause one or more of Ramelius’ core systems to become unavailable.
Any interruptions to these operations would impact Ramelius’ ability to operate and could result in business interruption and loss of revenue
and could therefore adversely affect Ramelius’ operating and financial performance.
• Economic Conditions
Factors such as (but not limited to) political movements, stock market trends, interest rates, inflation levels, commodity prices, foreign exchange
rates, industrial disruption, environmental impacts, international competition, taxation changes and legislative or regulatory changes, may all have
an adverse impact on Ramelius’ operating costs, profit margins and share price. These factors are beyond the control of Ramelius and Ramelius
cannot, to any degree of certainty, predict how they will impact on Ramelius.
Prolonged deterioration in general economic conditions could potentially have an adverse impact on Ramelius and its operations.
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 environmental legislative framework to carry out associated mining activities
and operate facilities to process mined resources.
Importantly, all environmental approvals across the Group are managed in accordance with Part V of the Environmental Protection Act 1986 and
therefore, there are no ministerial statements required. The Group’s licences, permits and approvals are such that they are subject to audits both
internally and externally by the various regulatory authorities. These audits provide the Group with valuable information in regard to compliance with
statutory requirements, environmental performance and opportunities to further improve systems and processes, which ultimately assist the business
in minimising environmental risk.
40
RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
REPORTING
Due to the various permits, licences and approvals the Group holds, annual environmental reporting (for a twelve-month period) is an approval
condition. The Group did not experience any reportable environmental incidents for the reporting year 2022-2023.
Table 13: Relevant statutory requirements for environmental management
Agency
Relevant Legislation
Reporting Requirement
Department of Water and Environmental Regulation (DWER)
Environmental Protection Act 1986 (WA)
Contaminated Sites Act 2003 (WA)
Rights in Water and Irrigation Act 1914 (WA)
Department of Mines, Industry Regulation and Safety (DMIRS)
Mining Act 1978 (WA)
Mining Rehabilitation Fund Act 2012 (WA)
Department of Biodiversity, Conservation and Attractions
(DBCA)
Department of Climate Change, Energy, the Environmental
and Water (DCCEEW) (Cth)
Clean Energy Regulator (Cth)
Biodiversity Conservation Act 2016 (WA)
Environmental Protection and Biodiversity
Conservation Act 1999 (Cth)
National Greenhouse and Energy Reporting Act
2007 (Cth)
Prescribed Premises Licence
• Annual Environmental Report
• Annual Audit Compliance Report
Groundwater Abstraction Licence
• Annual Groundwater Monitoring Summary
• Operating Strategy
Tenement Conditions
Native Vegetation Clearing Report
Annual Environmental Report
Mining Rehabilitation Fund Levy
Annual Monitoring Report
National Pollutant Inventory
Annual Compliance Report
National Greenhouse and Energy Reporting
Scheme (NGERS)
• Annual submission
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.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
INFORMATION ON DIRECTORS
The following information is current as at the date of this report.
Bob Vassie
Non-Executive
Independent Chair
Mark Zeptner
Managing Director and
Chief Executive Officer
FAusIMM GAICD B.MinTech (Hons)
Mining
BEng (Hons) Mining MAusIMM
MAICD
David Southam
Non-Executive
Independent Director
B.Comm CPA MAICD
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 and 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.
Interest in Shares and Options
152,500 Ordinary Shares
Special Responsibilities
Chair of the Board
Member of Audit Committee
Member of Nomination and Remuneration
Committee
Member of Risk and 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
(resigned 2 February 2020)
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
4,583,587 Ordinary Shares
124,387 Performance Rights over Ordinary
Shares which vested after 30 June 2023 and
expire on 1 July 2030.
442,528 Performance Rights over Ordinary
Shares vesting on 1 July 2024 and expiring on
1 July 2031.
859,902 Performance Rights over Ordinary
Shares vesting on 1 July 2025 and expiring on
1 July 2032.
Special Responsibilities
Chief Executive Officer
Directorships held in other listed
entities in the last three years
None.
Experience
Mr Southam is a Certified Practicing
Accountant with more than 30 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
20,528 Ordinary Shares
Special Responsibilities
Chair of Audit Committee
Member of Nomination and Remuneration
Committee
Directorships held in other listed
entities in the last three years
Managing Director of
Cygnus Metals Limited (Non-Executive Director
from 1 November 2022 and Managing Director
from 13 February 2023)
Previously Managing Director of
Mincor Resources NL
(resigned 12 August 2022)
42
RAMELIUS RESOURCES ANNUAL REPORT 2023 DIRECTORS’ REPORT (continued)
Natalia Streltsova
Non-Executive
Independent Director
Fiona Murdoch
Non-Executive
Independent Director
Colin Moorhead
Non-Executive
Independent Director
MSc PhD (Chem Eng) GAICD
LLB (Hons) MBA GAICD
BSc (Hons) FAusIMM GAICD
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, North and South
America, and Central Asia.
Interest in Shares and Options
62,000 Ordinary Shares
Special Responsibilities
Chair of Risk and Sustainability Committee
Directorships held in other listed
entities in the last three years
Non-Executive Director of
Neometals Limited
Non-Executive Chair
Australian Potash Limited
Non-Executive Director of
Centaurus Metals Limited
Previously Non-Executive Director of
Western Areas Limited (resigned 20 June 2022)
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 including with MIM
Holdings, Xstrata Queensland and the
AMCI Group.
Ms Murdoch has extensive domestic and
international experience with major projects
and operations in Western Australia,
Northern Territory and Queensland, and
in the United Kingdom, Germany, South
America, Dominican Republic, Papua New
Guinea and the Philippines.
Interest in Shares and Options
64,500 Ordinary Shares
Special Responsibilities
Chair of Nomination and Remuneration
Committee
Member of Risk and Sustainability Committee
(resigned from Committee on 1 July 2023)
Member of Audit Committee
Directorships held in other listed
entities in the last three years
Non-Executive Director NRW Holdings Ltd
Non-Executive Director Metro Mining Limited
Previously Non-Executive Director of KGL
Resources Limited (resigned 15 October 2021)
Experience
Mr Moorhead is a Geologist and very
experienced resources executive having
spent 28 years with Newcrest Mining,
including eight years on the executive
committee responsible for global exploration
and resource development. Following this, he
joined PT Merdeka Copper Gold Tbk as CEO,
leading the very successful development of the
Tujuh Bukit gold mine in Indonesia. He went
on to become an Executive Director and later
Non-Executive Director until June 2020.
Mr Moorhead was appointed Non-Executive
Director in December 2022.
Interest in Shares and Options
Nil
Special Responsibilities
None
Appointed member of Risk and Sustainability
Committee on 1 July 2023
Directorships held in other listed
entities in the last three years
Executive Chairman of Sihayo Gold Limited
Executive Chairman of Xanadu Mines Limited
Non-Executive Director of Aeris Resources
Limited
Non-Executive Director of Coda Minerals
Limited
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
MEETINGS OF DIRECTORS
The number of meetings of the Company’s Board of Directors and each Board Committee held during the year ended 30 June 2023, and number of
meetings attended by each Director were:
Table 14: Director Attendance at Board and Committee Meeting for the 2023 Financial Year
Director
Bob Vassie
Mark Zeptner
David Southam
Natalia Streltsova
Fiona Murdoch
Colin Moorhead
Meetings of Committees
Full Meetings
of Directors1
Audit
Committee
Nomination and
Remuneration Committee
Risk and Sustainability
Committee
A
17
16
17
15
17
9
B
17
17
17
17
17
11
A
3
-
3
-
3
-
B
3
-
3
-
3
-
A
5
-
4
-
5
-
B
5
-
5
-
5
-
A
5
-
-
5
5
-
B
5
-
-
5
5
-
A = Number of meetings attended; B = Number of meetings held during the time the Director held office or was a member of the Committee during the year.
1 The number of meetings of Directors includes 8 meetings which were called at short notice.
Penny Pit
Photo: Mikayla Ginbey
44
RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (AUDITED)
The Directors present the Ramelius Resources Limited 2023 Remuneration Report, outlining key aspects of our remuneration policy and framework,
and the remuneration awarded during the year. This Remuneration Report is prepared in accordance with the requirements of the Corporations Act
2001 (the Act) and its regulations. In the interest of ease of access to information and transparency this remuneration report includes both voluntary
and statutory disclosures.
9. Executive KMP remuneration summary
(statutory disclosure)
10. Executive KMP share ownership
11. Executive KMP Performance and
Service Rights held
12. Executive service agreements
Non-Executive Director Remuneration
13. Non-Executive Directors
13.1 Overview of Non-Executive Director
remuneration policy and arrangements
13.2 Non-Executive Director fees and
other benefits
13.3 Non-Executive Director remuneration
13.4 Non-Executive Director share ownership
Other Remuneration Information
14. Further information on remuneration
14.1 Share trading restrictions
14.2 Other transactions and balances
with key management personnel
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15. Independent audit of remuneration report
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CONTENTS
Background and Governance
1. 2023 Key Management Personnel
2. Five-year historical financial performance
3. Remuneration governance
3.1 Determination of remuneration of
Non-Executive Directors
3.2 Use of remuneration consultants
Executive Remuneration
4. Executive KMP remuneration framework
and link to performance
5. Executive KMP remuneration mix
6. Fixed annual remuneration
7. Short-term at-risk remuneration
7.1 FY 2022 short-term at-risk incentive
(STI) (recognised and paid in FY 2023)
7.2 FY 2023 short-term at-risk incentive
(STI) (to be paid after 30 June 2023)
8. Long-term at-risk remuneration
8.1 FY 2020 – 2022 LTI Plan
(Performance Rights granted in FY 2020
vested during FY 2023)
8.2 FY 2021 – 2023 LTI Plan
(Performance Rights granted in FY 2021
unvested at 30 June 2023)
8.3 FY 2022 – 2024 LTI Plan
(Performance Rights granted in FY 2022
unvested at 30 June 2023)
8.4 FY 2023 – 2025 LTI Plan
(Performance Rights granted in FY 2023
unvested at 30 June 2023)
8.5 Service Rights granted in FY 2023
unvested at 30 June 2023
8.6 Summary of Performance and
Service Rights on issue at 30 June 2023
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
1. 2023 KEY MANAGEMENT PERSONNEL
The Ramelius key management personnel (KMP) includes the Directors of Ramelius Resources Limited and the Executive KMP. An Executive KMP is
defined as a person having authority and responsibility for planning, directing, and controlling the major activities of the Group, directly or indirectly,
and whom is a direct report to the Managing Director / Chief Executive Officer. The KMP for the 2023 financial year are as follows:
Current Non-Executive Directors
Bob Vassie
David Southam
Natalia Streltsova
Fiona Murdoch
Colin Moorhead
Former Non-Executive Director
Michael Bohm
Current Executive KMP
Mark Zeptner, Managing Director / Chief Executive Officer
Duncan Coutts, Chief Operating Officer
Tim Manners, Chief Financial Officer
Richard Jones, Co Sec and EGM Legal / HR / Risk / Sustainability
Peter Ruzicka, Executive General Manager – Exploration
These Directors were members of the Board of Ramelius Resources Limited throughout the
whole of the 2023 financial year.
Joined the Board of Ramelius Resources Limited on 1 December 2022.
Retired from the Board of Ramelius Resources Limited on 31 May 2022.
These Executive KMP held their positions throughout the whole of the 2023 financial year.
2. FIVE-YEAR HISTORICAL FINANCIAL PERFORMANCE
In addition to strengthening the balance sheet over the 2023 financial year Ramelius has delivered a solid set of financial results.
Table 15: Key Financial Achievements and Shareholder Return for the 2019 to 2023 Financial Year
Gold sold
Average realised gold price
Net profit after tax (NPAT)
Underlying NPAT1
Dividend
Share price 30 June
Basic earnings per share
Underlying basic earnings per share2
Unit
koz
A$/oz
$M
$M
cps
$
cents
cents
2019
203
$1,726
21.8
22.4
1.0
0.73
3.74
3.83
2020
228
$2,014
113.4
106.8
2.0
1.99
16.43
15.48
2021
277
$2,282
126.8
120.9
2.5
1.70
15.64
14.91
2022
251
$2,399
12.4
73.0
1.0
0.87
1.47
8.63
2023
241
$2,591
61.6
75.3
2.0
1.27
6.95
8.49
1 This is considered a Non-IFRS measure. The adjustments to underlying NPAT CGU, asset, and exploration impairment charges, fair value adjustments on deferred consideration and investments, and
one off asset sales. Refer to table 12 in the Directors Report which sets out the adjustments to underlying NPAT for the 2023 financial year.
2 Underlying basic earnings per share is derived from the Underlying NPAT discussed above.
3. REMUNERATION GOVERNANCE
The Board is responsible for setting remuneration policy and determining Non-Executive Director, Executive Director, and Executive KMP
remuneration. The Board also ensures that the remuneration framework is aligned with the Group’s strategic and business objectives, the creation
of shareholder value, and remains fair and competitive. In addition, the Board is responsible for approving the remuneration of, and overseeing
the performance review, of the Managing Director, for approving the remuneration of the other Executive KMP, and approving all targets and
performance conditions set under the Executive KMP variable (otherwise known as ‘at-risk’) remuneration framework.
The Board delegates responsibility to the Nomination and Remuneration Committee (NRC) for reviewing and making recommendations to the
Board on these matters. The NRC calculates the achievement of performance conditions, including to decrease or increase at-risk remuneration
outcomes. The NRC may exercise these powers when approving at-risk remuneration award outcomes to ensure that they are fair and reasonable
and may use this discretion to decrease or increase the outcome as it considers appropriate. Whilst the NRC takes on the responsibility of this role
the ultimate approval and accountability lies with the Board.
The NRC comprises Non-Executive Directors Fiona Murdoch (Chair), Bob Vassie, and David Southam. The Committee meets several times a year as
required to review and make recommendations to the Board in accordance with the Nomination and Remuneration Committee Charter (the NRC
Charter) to ensure that Executive KMP remuneration remains aligned to the remuneration framework. A copy of the NRC Charter is available
under Corporate Governance section of the Group’s website at http://www.rameliusresources.com.au.
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RAMELIUS RESOURCES ANNUAL REPORT 2023 DIRECTORS’ REPORT (continued)
The NRC makes recommendations to the Board regarding all aspects of Executive KMP remuneration. This includes making recommendations
in relation to the targets (including threshold and stretch performance targets) to be included in the assessment of any at-risk remuneration.
The Managing Director provides updates and makes recommendations to the NRC on these matters in relation to his direct reports throughout
the year but is not involved in making recommendations in relation to his own remuneration. To inform the Board and NRC, and to assist with
their decision-making processes, additional information and data is sought from management and remuneration consultants, as required.
Of the total valid available votes lodged on its Remuneration Report for the 2022 financial year, Ramelius received a ‘FOR’ vote of 98.65%.
Specific feedback was received during the 2023 financial year regarding Ramelius’ practice of assessing cash at-risk remuneration after
the preparation and audit of the annual financial report each year. Based on this feedback Ramelius has now brought the review of
at-risk payments by the NRC forward so that it can be included in this Remuneration Report and the 2023 Annual Financial Report.
Accordingly, the 2023 Remuneration Report will show two cash at-risk remuneration amounts, one paid in the 2023 financial year
relating to the 2022 financial year performance, and one accrued relating to the performance in the 2023 financial year, that will be
paid after 30 June 2023. The Remuneration Report also now discloses the long-term incentives (LTIs) that have been issued that have
an impact on the remuneration disclosed for the 2023 financial year, namely, those Performance and Service Rights granted in the
2020 – 2023 financial years.
This will be the only year where two amounts are shown; going forward only the one amount, being that accrued that
relates to the financial year in question, will be shown in the Remuneration Report. This is a transition in reporting only
and there has been only one at-risk remuneration cash payment made in the 2023 financial year.
3.1 DETERMINATION OF REMUNERATION OF NON-EXECUTIVE DIRECTORS
The Board is responsible for assessing Non-Executive Director fees, assisted by the NRC. In setting the Non-Executive Director fees, including
committee fees, the Board considers other Australian ASX companies of a comparable size and complexity. In the event of any proposed increase
in fees, including committee fees, an external remuneration consultant may be engaged. The NRC and Board consider this benchmarking and any
external remuneration consultant opinion, along with other factors such as the reasonableness of any change to the fees in the context of the
external environment and any regulatory changes impacting Board accountability, before proposing any increase in fees. See section 13 of this
report for further information on Non-Executive Director remuneration.
3.2 USE OF REMUNERATION CONSULTANTS
No remuneration recommendations as defined in section 9B of the Corporations Act 2001 were obtained during the financial year ended
30 June 2023.
4. EXECUTIVE KMP REMUNERATION FRAMEWORK
AND LINK TO PERFORMANCE
The primary objective of Ramelius is to create shareholder value. The guiding remuneration principles aim to attract, motivate, and retain a skilled
executive team focusing on performance and behaviours consistent with this objective, as well as with the Ramelius Essentials and the Group’s
overall strategic priorities. The remuneration framework is based on several factors including the experience and performance of the individual in
meeting key objectives of Ramelius.
Key Remuneration Practices
Structured to have a suitable mix of fixed and at-risk performance related components
1 Attract, incentivise, and maintain key talent with competitive and reasonable remuneration packages
2 Align with the Group’s strategic priorities and creation of shareholder value
3 Align management performance and shareholder interests through share and performance rights interest
4 Distinctly demonstrate a link between performance and remuneration
5
6 Acceptable to shareholders
Transparent and fit for purpose
7
Benchmarked annually against similar organisations both within the industry and of comparable market size to ensure conformity with market practices
8
Reflect individual roles, levels or seniority and responsibility that key personnel hold
9
10 Ramelius’ strong ‘one team’ focus is reflected in Group wide performance measures
11 Structured to take account of prevailing economic conditions
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
Ramelius’ remuneration framework combines elements of fixed remuneration and at-risk remuneration, comprising short and long-term
incentive plans as detailed below. Incentive plans are regularly reviewed to ensure continued alignment with financial and strategic objectives.
Table 16: Elements of Executive KMP Remuneration
Fixed Annual Remuneration (FAR)
Short-Term At-Risk Incentive (STI)
Long-Term At-Risk Incentive (LTI)
Award
Cash salary, superannuation, and
direct costs of any employee benefits.
Cash – Executive KMP can earn a cash-
based incentive by achieving specific
performance measures.
Rights – Executive KMP can participate in an
equity-based incentive through the award of Performance
Rights.
Performance
Period
Duration of employment.
Structure
Fixed.
One-year performance period beginning
1 July and ending 30 June the following year.
If an Executive KMP commences part way
through the performance period, their STI
is prorated.
The STI award is calculated as a percentage
of the Executive KMP’s FAR (refer to
section 5 of this Remuneration Report).
Purpose
Approach
Attract, engage and retain a high
performing workforce to ensure
the Group delivers on its strategic
objectives.
Fixed remuneration is reviewed
annually 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.
Key Terms
Not applicable.
Reward Executive KMP for achievement
of a Group wide selection of structured
key performance measures which are
considered important for the Group’s
growth and profitability and are core
drivers of short-term performance.
Annual STI performance objectives
and measures are set, and if achieved, a
cash payment made. Awards up to the
maximum amount payable can be achieved
when performance is superior reflecting
the achievement of Stretch objectives.
The Annual STI performance remuneration
is weighted 100% towards Group wide
performance metrics reflecting the ‘one
team’ approach at Ramelius.
Continued Employment.
Participants must remain employed by the
Group throughout the performance period,
up to, and including the payment date. The
normal performance period being one-year.
There are several modifiers considered by
the Board which may result in a downward
reduction in the STI.
Three-year performance period beginning 1 July in
the year of award up to vesting date.
The number of Performance Rights granted under the LTI
award is based on a maximum percentage of the Executive
KMP’s FAR and is dependent upon the individual’s skill,
responsibilities, and ability to influence financial or other key
objectives (refer to section 5 of this Remuneration Report).
The number of Performance Rights granted is calculated by
dividing the LTI remuneration dollar by the 5-day Volume
Weighted Average Price (VWAP) of Ramelius shares up to
and including the start date of the performance period.
Align Executive KMP remuneration with the creation
of shareholder value over the long term.
Annual LTI objectives are set for Executive KMP based on
long-term value creation for shareholders. Rights which vest
following the achievement of the objectives are converted to
shares on the vesting date.
Any Performance Rights that do not vest will lapse after
testing.
There is no re-testing of Performance Rights.
Performance Rights have a $nil exercise price.
Continued Employment.
Participants must remain employed by the Group
throughout the performance period, up to and including the
vesting date for LTI awards to vest. The normal performance
period being three years.
Where an Executive KMP 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.
Other
Benefits
Malus or
Clawback
provisions
Board
Discretion
The Group allows an Executive KMP to salary sacrifice certain items such as
superannuation and motor vehicles (on a total cost basis).
Not applicable.
In the event of fraud, dishonesty, gross misconduct or a material misstatement of the financial statements, the Board may make a determination
that could include not conferring the amount of an STI otherwise payable, cancelling unvested rights, and the forfeiture of shares allocated on
vesting of rights that are at the relevant time unexercised, to ensure Executives do not obtain an unfair benefit.
The Board has the discretion to adjust the STI payment or the LTI Performance Rights awarded.
At the 2022 AGM, shareholders approved the Ramelius Performance Plan which included the ability for the Company to award Service Rights to
Executive KMP (excluding the Managing Director). In addition to the FAR, STI, and LTI noted above Executive KMP (excluding the Managing Director)
were issued Service Rights during the 2023 financial year – Refer to Section 8.5 of this Remuneration Report for further information.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
5. EXECUTIVE KMP REMUNERATION MIX
The tables below provides information on the remuneration packages of Executive KMP, including the maximum at-risk percentages for both the
STI and LTI. Information is provided for the 2022 and 2023 financial year incentives.
Table 17: Executive FAR and Maximum At-Risk Payments for the 2022 Financial Year
FY 2022 / Name
Mark Zeptner
Duncan Coutts
Tim Manners
Richard Jones
Peter Ruzicka
Maximum at-risk
FAR1
770,000
550,000
456,500
354,750
302,500
STI2
75.0%
60.0%
60.0%
60.0%
60.0%
LTI3
100%
50%
50%
50%
50%
1 Fixed annual remuneration (salary and superannuation) for the 2022 financial year.
2 STI payment for FY 2022 performance which was assessed and paid in the 2023 financial year (no amount recognised in the 2022 financial report).
3 LTI Performance Rights granted in the 2022 financial year with the measurement period commencing on 1 July 2021. Three year measurement period ends 30 June 2024 with vesting assessed
shortly thereafter.
Table 18: Executive FAR and Maximum At-Risk Payments for the 2023 Financial Year
FY 2023 / Name
Mark Zeptner
Duncan Coutts
Tim Manners
Richard Jones
Peter Ruzicka
Maximum at-risk
FAR1
808,308
580,125
481,504
381,308
324,538
STI2
75.0%
60.0%
60.0%
60.0%
60.0%
LTI3
100%
50%
50%
50%
50%
Service
Rights4
n/a5
33%
33%
33%
33%
1 Fixed annual remuneration (salary and superannuation) for the 2023 financial year.
2 STI payment for FY 2023 performance which will has been assessed and will be paid in the 2024 financial year (amount recognised in the 2023 financial report).
3 LTI Performance Rights granted in the 2023 financial year with the measurement period commencing on 1 July 2022. Three year measurement period ends 30 June 2025 with
vesting assessed shortly thereafter.
4 Service Rights granted in the 2023 financial year vesting 1 July 2024. Refer to Section 8.5 of this Remuneration Report.
5 The Managing Director was not eligible for the grant of Service Rights.
Information regarding the actual STI earned for the 2022 and 2023 financial years by the Executive KMP is shown in Section 7 of this Remuneration
Report, for the actual LTIs vested in the year refer to Section 8.
The charts below show each component of the remuneration framework for the Managing Director / Chief Executive Officer and other Executive
KMP as a percentage of the total remuneration for the 2023 financial year. The at-risk cash remuneration incudes amounts paid in the 2023 financial
year for the 2022 financial year performance and an accrued amount for the 2023 financial year performance to be paid in the 2024 financial year.
Managing Director /
Chief Executive Officer
Fixed Annual Remuneration (for FY2023 only)
33.7%
At-Risk Remuneration - Cash-Foregone#
At-Risk Remuneration
At-Risk Remuneration - Cash#
At-Risk Remuneration - Performance Rights
32.9%
33.3%
18.1%
15.2%
Figure 12: Managing Director / Chief Executive Officer Remuneration Mix for the 2023 Financial Year
# The at-risk cash remuneration foregone and paid relates to both the 2022 and 2023 STI payments which were paid or accrued in the year as this is the first year Ramelius has transitioned
to accruing STI payments (see Section 3 of this Remuneration Report). Accordingly, these components will show as a disproportionately large component on the Managing Director / Chief
Executive Officer total remuneration for this year only.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
Other Executive KMP
#The at-risk cash remuneration foregone
and paid relates to both the 2022 and
2023 STI payments which were paid
or accrued in the year as this is the
first year Ramelius has transitioned to
accruing STI payments (see Section 3 of
this Remuneration Report). Accordingly,
these components will show as a
disproportionately large component on the
other Executive KMP total remuneration
for this year only.
Fixed Annual Remuneration (for FY2023 only)
39.5%
At-Risk Remuneration - Cash-Foregone#
At-Risk Remuneration
At-Risk Remuneration - Cash#
At-Risk Remuneration - Performance
and Service Rights
30.8%
29.8%
17.9%
11.9%
Figure 13: Other Executive KMP Remuneration Mix for the 2023 Financial Year
The following sections 6 – 9 of this Report provide information regarding the components of the Executive KMP remuneration.
6. FIXED ANNUAL REMUNERATION
The fixed annual remuneration (FAR) comprises an employee’s cash salary, superannuation, and direct costs of any employee benefits (such as car
parking) and includes any fringe benefits tax charges related to these benefits. The Group allows an Executive KMP to salary sacrifice certain items
such as superannuation and motor vehicles (on a total cost basis).
Table 36 in section 9 below (statutory remuneration table) shows the FAR paid to Executive KMP in FY 2023 and FY 2022. See section 12 for the
FAR payable to Executive KMP in FY 2024.
FY 2022 SHORT-TERM AT-RISK INCENTIVE (STI) (RECOGNISED AND PAID IN FY 2023)
7. SHORT-TERM AT-RISK REMUNERATION
7.1
The at-risk award was finalised following a review of the financial results, operations and safety, changes to the Mine Plan, and the annual Resources
and Reserves Statement by the NRC. This occurred late in the First Quarter of FY 2023 and was paid early in the Second Quarter of FY 2023.
Therefore, no amount was provided for or recognised in the 2022 Annual Financial Report and Remuneration Report as the review by the NRC
was yet to take place at the time of those reports. As mentioned, going forward reporting on at-risk incentive remuneration such as the STI will be
detailed in the Remuneration Report for the financial year to which it relates.
Given the importance of, and focus on, safety within the Group a Safety KPI was introduced to the performance metrics for the FY 2022 STI.
Table 19: FY 2022 STI Plan Executive KMP Key Components and Operation
Plan Name
FY 2022 STI Plan
Participants
Performance Period
Award Value
Testing Date
Other Terms and
Conditions
Performance Measures
All employees. Non-Executive Directors cannot participate.
One-year performance period beginning 1 July 2021 and ending 30 June 2022.
Award value is equal to a percentage of the Executive KMP’s FAR as shown in table 17 in section 5 of this Remuneration Report.
The FY 2022 STI award review occurred in the First Quarter of FY 2023 and was paid early in the Second Quarter of FY 2023.
Going forward STI awards are determined in line with the approval of the Financial Statements for the end of the performance
period, being 30 June 2022.
For any at-risk payment to 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.
The performance measures considered in the determination of the FY 2022 STI remuneration are detailed below.
The FY 2022 STI performance remuneration is weighted 100% towards Group wide performance metrics reflecting the ‘one team’
approach at Ramelius.
The performance is measured relative to the Budget with Threshold, Target and Stretch cases considered.
Safety – The Total Reportable Injury Frequency Rate (TRIFR) measures the rate of restricted work injuries (RWIs) and lost
time injuries (LTIs) that occur per million hours worked. Safety is key to our licence to operate and our operational performance.
Gold production is directly linked to the financial returns we generate for our shareholders.
All-in sustaining cost (AISC) is an industry accepted measure of how much each ounce of gold costs to produce. Disciplined cost
control and efficient use of capital is critical to maintaining control over costs.
Net Profit After Tax (NPAT) is a measure of the financial returns we generate for our shareholders.
Growth addition to our Mine Plan is vital to the continued operational and financial performance of our business including
discovery, Reserve additions, and mergers and acquisitions.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
Table 20: FY 2022 Annual KPI Performance
Annual KPI1
Safety (TRIFR)
Gold Production
AISC
NPAT
Growth
MD / CEO
Exec KMP
Performance Measures
Weighting
20%
15%
15%
25%
25%
20%
15 – 20%
15 – 20%
15 – 20%
20 – 35%
Threshold
92.5%
100%
100%
110%
Replacement
Target
85%
102.5%
95%
120%
1 Year
Stretch
70%
107.5%
90%
130%
2 Years
Performance Outcome
Target
Not Achieved
Target (Discretion)
Not Achieved
T/hold (Discretion)
1 The performance measure percentages for threshold, target and stretch categories in the table above are relative to the Board approved budgets or Mine Plan.
The factors influencing the Board’s exercise of discretion are detailed below. The discretion resulted in an increase of the FY 2022 STI measurement
outcome, from 12.2% to 20.5% (from 13.8% to 23.8% for the Managing Director).
Table 21: Details on Discretion Applied to FY 2022 Performance Measures
Performance
Measure
Growth
AISC
Discretion Applied
No new Mine Plan was published in the 2022 financial year due primarily to the volatile cost environment precluding the finalisation of a
new Mine Plan containing reliable future costs. Despite this the updated Mineral Resources and Ore Reserves Statement, which provided
an alternative indication of growth in ounces, over the 2022 financial year, increased 15% with the inclusion of the Rebecca Gold Project
following the successful takeover of Apollo Consolidated Limited. In addition, Ore Reserves were maintained at 1.1Moz as a result of
the Company replacing production during the year. This equated to the Threshold KPI performance measure of Ore Reserve
depletion replacement.
At the time the FY 2022 Budget and performance measures were approved, the Board was aware that COVID-19 would have an impact,
however given the extent of those impacts was uncertain, the FY 2022 Budget was not adjusted and was a ‘business as usual’ budget.
The actual AISC outcome for FY 2022 was A$1,523/oz which fell within the market Guidance AISC.
The Board also considered a normalised AISC taking into account the significant cost increases experienced and outside of the control of
management, such as labour, fuel, steel and reagents which resulted in the normalised AISC achieving the Target KPI performance measure.
Table 22: Outcome for the FY 2022 short-term at-risk remuneration, paid in October 2022
Name
Mark Zeptner
Duncan Coutts
Tim Manners
Richard Jones
Peter Ruzicka
Maximum At-Risk Payment1
At-Risk Payment Awarded1
At-Risk Payment Foregone1
%
75.0%
60.0%
60.0%
60.0%
60.0%
$
638,138
364,650
302,660
235,199
200,558
%
23.8%
20.0%
21.0%
20.0%
21.0%
$
202,077
121,550
105,931
78,400
70,195
%
51.2%
40.0%
39.0%
40.0%
39.0%
$
436,061
243,100
196,729
156,799
130,363
1 Amounts disclosed above include superannuation attributable to the at-risk payment.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
7.2
FY 2023 SHORT-TERM AT-RISK INCENTIVE (STI) (TO BE PAID AFTER 30 JUNE 2023)
In the 2023 financial year, ESG related actions and targets were reflected within the remuneration framework for the Executive KMP. Ramelius is
committed to understanding and responsibly managing the ways our operations impact the communities and environments in which we operate and
therefore the ESG targets were incorporated to ensure this is at the forefront of our mindset. The safety and ESG related goals and targets for
FY 2023 account for 30% of the total short-term at-risk remuneration assessment criteria for 2023.
Table 23: FY 2023 STI Plan Executive KMP Key Components and Pperation
Performance
Measure
Participants
Performance
Period
Award Value
Testing Date
Other Terms
and Conditions
Performance
Measures
Discretion Applied
All employees. Non-Executive Directors cannot participate.
One-year performance period beginning 1 July 2022 and ending 30 June 2023.
Award value is equal to a percentage of the Executive KMP’s FAR as shown in table 18 in section 5 of this Remuneration Report.
Incentive payments are determined in line with the approval of the Financial Statements for the end of the performance period, being
30 June 2023.
For any at-risk payment to 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.
The performance measures considered in the determination of the FY 2023 STI remuneration are detailed below.
The FY 2023 STI performance remuneration is weighted 100% towards Group wide performance metrics reflecting the ‘one team’
approach at Ramelius.
The performance is measured relative to the Budget with Threshold, Target and Stretch cases considered.
Sustainability
Safety
ESG
The Total Reportable Injury Frequency Rate (TRIFR) measures the rate of restricted work
injuries (RWIs) and lost time injuries (LTIs) that occur per million hours worked. Safety is key
to our licence to operate and our operational performance.
Environment, Safety, and Governance (ESG) targets and actions. Ramelius strives to be a
good corporate citizen and support the communities in which we operate. Doing so supports
our current and future licence to operate which impacts the operational performance of our
business.
Production
Gold Production
Gold production is directly linked to the financial returns we generate for our shareholders.
Financial
AISC
All-in sustaining cost (AISC) is an industry accepted measure of how much each ounce
of gold costs to produce. Disciplined cost control and efficient use of capital is critical to
maintaining control over costs.
NPAT
Net Profit After Tax (NPAT) is a measure of the financial returns we generate for our
shareholders
Growth
Discovery/ Reserve
addition
Discovery / Reserve addition to our Mine Plan is vital to the continued operational and
financial performance of our business including discovery, Reserve additions, and mergers and
acquisitions.
Table 24: Outcome for the FY 2023 Short-Term At-Risk Remuneration, to be Paid in FY 2024
Performance Measures
Annual KPI1
Weighting
Threshold
Sustainability
Production
Financial
Growth
Safety (TRIFR)
ESG
Gold production
AISC
NPAT
Discovery / Reserve addition
20%
10%
20%
20%
10%
20%
92.5%
50%
100%
100%
110%
Replacement
Target
85%
70%
102.5%
95%
120%
1 Year
Stretch
Performance Outcome
70%
90%
107.5%
90%
130%
2 Years
Threshold
Target / Stretch2
Not achieved
Threshold
Stretch
Threshold (discretion)
1 The performance measure percentages for threshold, target and stretch categories in the table above are relative to the Board approved budgets or Mine Plan.
2 Actual performance achieved was between the Target and Stretch measures. The outcome for this KPI has been pro-rated based on the actual performance achieved.
52
RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
The factors influencing the Board’s exercise of discretion are detailed below. The discretion resulted in a modest increase of the FY 2023 STI
measurement outcome, from 19.33% to 23.33% (from 26.67% to 32.92% for the Managing Director).
Table 25: Details on Discretion Applied to FY 2023 Performance Measures
Performance
Measure
Growth
Discretion Applied
The Board exercised its discretion to award the minimum of Threshold for this performance measure after considering the following:
• whilst an annual long-term Mine Plan was not produced during the 2023 financial year, Ramelius had successfully completed the takeover
of Breaker Resources NL which included the Roe Gold Project that resulted in an increase to the Mineral Resource of 1.7M ounces to
the Mineral Resources#; and
• the Company had made the decision in FY 2023 to defer updating long-term Mine Plan given the time needed to consolidate the
Rebecca and Roe projects.
# See ASX announcement “Ramelius Makes Recommended Takeover Offer for Breaker Resources” dated 20 March 2023.
Table 26: Outcome for the FY 2023 Short-Term At-Risk Remuneration, to be paid in September 2023
Name
Mark Zeptner
Duncan Coutts
Tim Manners
Richard Jones
Peter Ruzicka
Maximum at-risk payment1
At-risk payment awarded1
At-risk payment foregone1
%
75.0%
60.0%
60.0%
60.0%
60.0%
$
672,916
388,363
320,681
253,951
216,143
%
29.2%
23.3%
23.3%
23.3%
23.3%
$
263,309
151,547
126,005
100,053
85,350
%
45.8%
36.7%
36.7%
36.7%
36.7%
$
409,607
234,816
194,677
153,898
130,793
1 Amounts disclosed above include superannuation attributable to the at-risk payment.
8. LONG-TERM AT-RISK REMUNERATION
Under the Ramelius Performance Plan, annual grants of Performance Rights are made to Executives to align remuneration with the creation of
shareholder value over the long-term. The long-term incentives (LTI) are designed to focus Executives on delivering long-term shareholder returns.
Performance Rights (being entitlements to shares in Ramelius subject to satisfaction of vesting conditions) issued to executives as long-term incentives
are 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.
Key features of all Performance Rights discussed below are as follows:
• Some Performance Rights, typically half, vest depending on total shareholder returns (TSR) measured against a benchmark peer group.
Table 27: Proportion of Executive Rights that Vest Relative to per TSR
Relative TSR
Proportion Vested
Below the 50th percentile
At the 50th percentile
Between the 50th and 75th percentile
At and above the 75th percentile
0%
50%
Pro-rata between 50% and 100%
100%
•
•
The other Performance Rights granted will vest if the Ramelius TSR over the measurement period is greater than 15% compounded
annual growth.
The peer group that the LTI is measured against varies year on year. 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.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
Table 28: Relevant Peer Group for Each Issue of Performance Rights
Financial Year Issued
Company
Gascoyne Resources Limited
Saracen Mineral Holdings Limited
Pantoro Limited
Regis Resources Limited
Silver Lake Resources Limited
Westgold Resources Limited
St Barbara Limited
Gold Road Resources Limited
Millennium Minerals Limited
Dacian Gold Limited
Blackham Resources Limited
Northern Star Resources Limited
Resolute Mining Limited
Evolution Mining Limited
IGO Limited
Perseus Mining Limited
De Grey Mining Limited
Bellevue Gold Limited
Red 5 Limited
Capricorn Metals Limited
Aurelia Metals Limited
OceanaGold Corporation
Alkane Resources Limited
ASX Code
GCY
SAR
PNR
RRL
SLR
WGX
SBM
GOR
MOY
DCN
BLK
NST
RSG
EVN
IGO
PRU
DEG
BGL
RED
CMM
AMI
OGC
ALK
2020
3
3
3
3
3
3
3
3
3
3
3
3
3
3
7
7
7
7
7
7
7
7
7
2021
7
3
3
3
3
3
3
3
7
3
7
3
3
3
3
3
3
3
3
3
3
7
7
2022
7
3
3
3
3
3
3
3
7
3
7
3
3
3
3
3
3
3
3
3
3
7
7
2023
7
7
3
3
3
3
3
3
7
7
7
7
3
3
7
3
3
3
3
3
3
3
3
3 Indicates peer included in comparison group for that year.
7 Iindicates peer excluded from comparison group for that year.
8.1
FY 2020 – 2022 LTI PLAN (PERFORMANCE RIGHTS GRANTED IN FY 2020 VESTED
DURING FY 2023)
The key features of the Performance Rights issued in the 2020 financial year are as follows:
• Performance Rights were granted on 9 October 2019 (22 November 2019 for Mark Zeptner).
•
•
•
•
Performance Rights were measured for vesting during the 2023 financial year. The three-year performance period is from
1 July 2019 to 30 June 2022 and relates to Group performance (measurement period).
Under the Ramelius Performance Plan, the number of Rights granted to executives ranges up to 40% (60% for the Managing Director / Chief
Executive Officer) of the executive’s FAR.
Of the FY 2020 Performance Rights that Mark Zeptner held at the start of the 2023 financial year, 214,894 Performance Rights
(or 33%) vest if the Ramelius TSR over the measurement period is greater than 15% compounded annual growth.
For Executive KMP (and the remaining 429,789 Performance Rights (or 67%) held by Mark Zeptner will vest depending on the
TSR measured against the benchmark peer group.
Table 29: LTI Outcome for the Performance Rights Issued in FY 2020 Measured for Vesting in FY 2023
Name
Mark Zeptner
Duncan Coutts
Tim Manners
Richard Jones
Performance
Rights Awarded
Total Performance
Achieved (%)
Performance
Rights vested
Performance
Rights lapsed
644,683
247,294
212,382
160,014
67%
100%
100%
100%
429,789
247,294
212,382
160,014
214,894
-
-
-
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
8.2
FY 2021 – 2023 LTI PLAN (PERFORMANCE RIGHTS GRANTED IN FY 2021
UNVESTED AT 30 JUNE 2023)
The key features of the Performance Rights issued in the 2021 financial year are as follows:
• Performance Rights were granted on 1 October 2020 (26 November 2020 for Mark Zeptner).
•
•
•
Performance Rights were measured for vesting during the 2024 financial year. The three-year performance period is from 1 July 2020 to
30 June 2023 and relates to Group performance (measurement period).
Under the Ramelius Performance Plan, the number of Rights granted to executives ranges up to 40% (100% for the Managing Director /
Chief Executive Officer) of the executive’s FAR.
Half of Performance Rights granted will vest if the Ramelius TSR over the measurement period is greater than 15% compounded annual
growth.
• The remaining half of the Performance Rights issued will vest depending on TSR measured against a benchmark peer group.
Table 30: FY 2021 Performance Rights on Issue at 30 June 2023
Name
Mark Zeptner
Duncan Coutts
Tim Manners
Richard Jones
Performance Rights
Awarded
Lapsed (%)
355,392
102,451
86,275
64,706
0%
0%
0%
0%
Table 31: LTI Outcome for the Performance Rights Issued in FY 2021 Were Measured for Vesting After the 2023 Financial Year
(Assessed on 19 July 2023)
Name
Mark Zeptner
Duncan Coutts
Tim Manners
Richard Jones
Performance
Rights Awarded
Total Performance
Achieved (%)
Performance
Rights Vested
Performance
Rights Lapsed
355,392
102,451
86,275
64,706
35%
35%
35%
35%
124,387
35,858
30,196
22,647
231,005
66,593
56,079
42,059
8.3
FY 2022 – 2024 LTI PLAN (PERFORMANCE RIGHTS GRANTED IN FY 2022 UNVESTED
AT 30 JUNE 2023)
The key features of the Performance Rights issued in the 2022 financial year are as follows:
• Performance Rights were granted on 15 September 2021 (25 November 2021 for Mark Zeptner).
•
•
•
Performance Rights were measured for vesting during the 2025 financial year. The three-year performance period is from
1 July 2021 to 30 June 2024 and relates to Group performance (measurement period).
Under the Ramelius Performance Plan, the number of Rights granted to executives ranges up to 40% (100% for the Managing Director /
Chief Executive Officer) of the executive’s FAR.
Half of Performance Rights granted will vest if the Ramelius TSR over the measurement period is greater than 15%
compounded annual growth.
• The remaining half of the Performance Rights issued will vest depending on TSR measured against a benchmark peer group.
Table 32: FY 2022 Performance Rights on Issue at 30 June 2023 Which Remain Unvested at the Date of this Report
Name
Mark Zeptner
Duncan Coutts
Tim Manners
Richard Jones
Peter Ruzicka
Performance Rights
Awarded
Lapsed (%)
442,528
158,046
131,178
101,940
86,925
0%
0%
0%
0%
0%
55
O
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O
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T
RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
8.4
FY 2023 – 2025 LTI PLAN (PERFORMANCE RIGHTS GRANTED IN FY 2023 UNVESTED
AT 30 JUNE 2023)
The key features of the Performance Rights issued in the 2023 financial year are as follows:
• Performance Rights were granted on 8 September 2022 (24 November 2022 for Mark Zeptner)
• Performance Rights were measured for vesting during the 2026 financial year. The three-year performance period is from
1 July 2022 to 30 June 2025 and relates to Group performance (measurement period).
•
Under the Ramelius Performance Plan, the number of Rights granted to executives ranges up to 50% (100% for the Managing Director /
Chief Executive Officer) of the executive’s FAR.
• Half of performance rights granted will vest if the Ramelius TSR over the measurement period is greater than 5% compounded
annual growth.
• The remaining half of the Performance Rights issued will vest depending on TSR measured against a benchmark peer group.
Table 33: FY 2023 Performance Rights on Issue at 30 June 2023 Which Remain Unvested at the Date of This Report
Name
Mark Zeptner
Duncan Coutts
Tim Manners
Richard Jones
Peter Ruzicka
Performance Rights
Awarded
Lapsed (%)
859,902
311,237
258,779
205,483
175,286
0%
0%
0%
0%
0%
SERVICE RIGHTS GRANTED IN FY 2023 UNVESTED AT 30 JUNE 2023
8.5
During the 2023 financial year Ramelius issued Service Rights across the Group to motivate employees to remain in the employment of Ramelius
considering the extremely difficult labour market environment within Western Australia in the 2022 calendar year. Employee retention in this labour
market is key to the success of Ramelius as high employee turnover can negatively impact safety, production, and costs. The approach was adopted
to minimise the cost of new hires and to limit the poaching of Ramelius employees within the industry after consultation with third party consultants.
As part of this approach Service Rights were issued to Executive KMP, excluding the Managing Director.
Under the Ramelius Performance Plan, the number of Rights granted to Executive KMP was 33% of the executive’s FAR. The number of Rights
granted was 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 30 September 2022, being $0.94 per Ramelius share.
The Service Rights were issued on 1 December 2022 and were subject to a 24 month performance period, commencing on 1 July 2022.
The performance criteria for these Service Rights is that the Executive KMP must remain in the employment of Ramelius for the full two-year
period. The performance period ends on 30 June 2024.
Table 34: FY 2023 Service Rights on Issue at 30 June 2023 Which Remain Unvested at the Date of This Report
Name
Tim Manners
Duncan Coutts
Richard Jones
Peter Ruzicka
Service Rights
Awarded
Lapsed (%)
170,794
205,416
135,619
115,689
0%
0%
0%
0%
56
RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
SUMMARY OF PERFORMANCE AND SERVICE RIGHTS ON ISSUE AT 30 JUNE 2023
8.6
The terms and conditions of Performance and Service Rights on issue, including the impact on current and future in the current remuneration
are as follows (the below table is for all Rights on issue, not just those applicable to Executive KMP):
Table 35: Terms and Conditions of Performance and Service Rights on issue at 30 June 2023
Vesting Date
Expiry Date
Vested
Value1
Grant Date
23 Nov 2016
23 Nov 2016
23 Nov 2016
1 Jul 2017
5 Sep 2018
29 Nov 2018
9 Oct 2019
1 Oct 2020
1 Oct 2020
26 Nov 2020
26 Nov 2020
15 Sep 2021
15 Sep 2021
26 Nov 2021
26 Nov 2021
8 Sep 2022
8 Sep 2022
26 Nov 2022
26 Nov 2022
1 Jul 2017
1 Jul 2018
1 Jul 2019
1 Jul 2020
1 Jul 2021
1 Jul 2021
1 Jul 2022
1 Jul 2023
1 Jul 2023
1 Jul 2023
1 Jul 2023
1 Jul 2024
1 Jul 2024
1 Jul 2024
1 Jul 2024
1 Jul 2025
1 Jul 2025
1 Jul 2025
1 Jul 2025
1 Jul 2024
1 Jul 2025
1 Jul 2026
1 Jul 2027
1 Jul 2028
1 Jul 2028
1 Jul 2029
1 Jul 2030
1 Jul 2030
1 Jul 2030
1 Jul 2030
1 Jul 2031
1 Jul 2031
1 Jul 2031
1 Jul 2031
1 Jul 2032
1 Jul 2032
1 Jul 2032
1 Jul 2032
Sub-Total Performance Rights
1 Dec 2022
1 Dec 2022
31 Dec 2023
30 Jun 2024
31 Dec 2025
30 Jun 2026
Sub-Total Service Rights
Total (All Rights)
1 This is the value of each Performance or Service right on the Grant Date.
2 Expense is the expense for the 2023 financial year.
3 Value to be expensed is the value of the Rights that will be expensed in future reporting periods.
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
No
No
No
No
No
No
No
No
$0.33
$0.32
$0.37
$0.33
$0.39
$0.27
$1.22
$1.31
$1.81
$0.94
$1.42
$0.67
$0.95
$0.83
$0.96
$0.22
$0.26
$0.39
$0.35
$0.91
$0.90
Expense2
-
-
-
-
-
-
-
107,847
162,865
64,865
97,538
111,075
158,157
68,537
79,738
81,579
95,237
41,974
37,169
1,106,581
4,604,375
589,105
5,193,480
6,300,061
Value to be
Expensed3
-
-
-
-
-
-
-
-
-
-
-
155,313
221,147
68,537
79,738
253,223
295,619
125,922
111,508
1,311,007
5,113,650
1,124,810
6,238,460
7,549,467
Rights
on Issue
101,138
129,593
161,819
772,933
746,399
189,655
1,319,783
362,451
362,451
177,696
177,696
592,073
592,073
221,264
221,264
1,514,946
1,514,946
429,951
429,951
10,018,082
10,738,150
1,904,350
12,642,500
22,660,582
57
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
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58
RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
10. EXECUTIVE KMP SHARE OWNERSHIP
Table 37: Number of Shares Held Directly, Indirectly, or Beneficially by the Current Executive KMP (including their related parties)
Name
Mark Zeptner
Duncan Coutts
Tim Manners1
Richard Jones
Peter Ruzicka
Balance at
Start of Year
2,762,500
381,705
-
-
-
1 The share price on the date of exercise was $0.73
Received
During Year on
Exercising of
Performance
Rights
1,821,087
-
212,382
-
-
Sold During
Year
Balance at
End of Year
-
(381,705)
(212,382)
-
-
4,583,587
-
-
-
-
11. EXECUTIVE KMP PERFORMANCE AND SERVICE RIGHTS HELD
Table 38: Number of Performance Rights Held by the Current Executive KMP
Balance at the
End of the Year
Value
to Vest1
Vested
Unvested
$
Name
Grant Year
Mark Zeptner
2017
2019
2020
2021
2022
2023
Duncan Coutts
2020
2021
2022
2023
Tim Manners
2020
2021
2022
2023
Peter Ruzicka
2022
2023
Richard Jones
2020
2021
2022
2023
Balance at
Start of Year
Granted
During the
Year
Vested
Number
Number
%
500,000
568,956
967,025
355,392
442,528
-
247,294
102,451
158,046
-
212,382
86,275
131,178
-
86,925
-
160,014
64,706
101,940
-
-
-
-
-
-
859,902
-
-
-
311,237
-
-
-
258,779
-
175,286
-
-
-
205,483
-
-
429,789
-
-
-
247,294
-
-
-
212,382
-
-
-
-
-
160,014
-
-
-
-
-
67%
-
-
-
100%
-
-
-
100%
-
-
-
-
-
100%
-
-
-
Exercised
Number
(500,000)
(568,956)
(752,131)
-
-
-
-
-
-
-
-
-
-
-
-
-
247,294
-
-
-
(212,382)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
160,014
-
-
-
-
-
-
355,392
442,528
859,902
-
102,451
158,046
311,237
-
86,275
131,178
258,779
86,925
175,286
-
64,706
101,940
205,483
-
-
-
-
148,274
237,430
-
-
45,294
52,617
-
-
37,594
43,749
24,912
29,634
-
-
29,215
34,739
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.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
Table 39: Number of Service Rights Held by the Current Executive KMP
Name
Grant Year
Duncan Coutts
2023
Tim Manners
2023
Peter Ruzicka
2023
Richard Jones
2023
Balance at
Start of Year
Granted
During The
Year
Vested
Number
Number
%
Exercised
Number
Balance at the
End of the Year
Value to vest1
Vested
Unvested
$
-
-
-
-
205,416
170,794
115,689
135,619
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
205,416
116,763
170,794
97,083
115,689
65,760
135,619
77,089
1The maximum value of the Service 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.
2The Managing Director was not eligible for the grant of Service Rights during the 2023 financial year.
12. EXECUTIVE SERVICE AGREEMENTS
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.
Table 40: Terms of Employment for Executive KMP
Name and Position
Mark Zeptner3
Managing Director / Chief Executive Officer
Duncan Coutts
Chief Operating Officer
Tim Manners
Chief Financial Officer
Richard Jones
Co Sec & EGM Legal / HR / Risk / Sustainability
Peter Ruzicka
Executive General Manager –
Exploration
Term of
Agreement
On-going,
no fixed term.
On-going,
no fixed term.
On-going,
no fixed term.
On-going,
no fixed term.
On-going,
no fixed term.
20241
20231
Company / Employee
Notice Period
Termination
Benefit2
852,563
808,308
6 / 3 months
6 months base salary
611,888
580,125
6 / 3 months
6 months base salary
507,867
481,504
6 / 3 months
6 months base salary
402,185
381,308
6 / 3 months
6 months base salary
342,307
324,538
3 / 3 months
3 months base salary
1Fixed annual remuneration (salary + superannuation) for the financial year noted.
2Termination benefits are payable on early termination by the company, other than for gross misconduct, unless otherwise indicated.
3In certain circumstances, but always subject to the Corporations Act 2001 and ASX Listing Rules, the termination benefit may be 12 months base salary.
13. NON-EXECUTIVE DIRECTORS
13.1
OVERVIEW OF NON-EXECUTIVE DIRECTOR REMUNERATION POLICY
AND ARRANGEMENTS
There were no changes to the Non-Executive Director remuneration for the 2023 financial year apart from statutory increases to
superannuation rates.
Non-Executive Director fees are determined using the following guidelines. Fees are:
• Determined by the nature of the role, responsibility and time commitment necessary to perform required duties;
• Not performance or incentive based but are fixed amounts; and
• Determined by the desire to attract a group of individuals with pertinent knowledge and experience.
In accordance with the Company’s Constitution, the total amount of remuneration of Non-Executive Directors is within the aggregate limit of
$1,000,000 per annum as approved by shareholders at the 2021 Annual General Meeting.
60
RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
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 plans designed for the remuneration of an Executives,
share rights or at-risk STI 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.
13.2 NON-EXECUTIVE DIRECTOR FEES AND OTHER BENEFITS
Table 41: Details of Remuneration Fees Paid for the Board and Each Committee for the 2023 and 2022 Financial Years
Board and Committee Fees (Excluding Superannuation)
Board Fees
Chair – Bob Vassie
Members – all Non-Executive Directors1
Committee Fees Audit Committee
Chair – David Southam
Members – Bob Vassie, Fiona Murdoch2
Risk and Sustainability Committee
Chair – Natalia Streltsova
Members – Bob Vassie, Fiona Murdoch2
Nomination and Remuneration Committee
Chair – Fiona Murdoch2
Members – Bob Vassie, David Southam
2023
190,000
115,000
15,455
9,091
15,455
9,091
15,455
9,091
2022
190,000
115,000
15,455
9,091
15,455
9,091
15,455
9,091
1Colin Moorhead joined the Board on 1 December 2022.
2On 1 July 2023 Fiona Murdoch resigned from the Risk and Sustainability Committee and was replaced by Colin Moorhead.
13.3 NON-EXECUTIVE DIRECTOR REMUNERATION
Table 42: Remuneration Fees Paid to Non-Executive Directors
Name and Role
Non-Executive Directors
Bob Vassie
Non-Executive Chair
David Southam
Non-Executive Director
Natalia Streltsova1
Non-Executive Director
Fiona Murdoch2
Non-Executive Director
Colin Moorhead3
Non-Executive Director
Former Non-Executive Directors
Michael Bohm4
Non-Executive Director
Total
Year
Base Fee
Audit
Committee Fees
Risk and
Sustainability
Nomination
and
Remuneration
Super-
annuation
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
190,000
190,000
115,000
115,000
115,000
115,000
115,000
67,083
67,083
-
-
105,417
602,083
592,500
9,091
9,091
15,455
15,455
-
4,545
9,091
4,545
-
-
-
-
33,637
33,636
9,091
9,091
-
-
15,455
15,455
9,091
5,545
-
-
-
8,333
33,637
38,424
9,091
9,091
9,091
9,091
-
-
15,455
1,286
-
-
-
14,167
33,637
33,635
22,814
21,727
14,652
13,954
13,697
13,500
15,606
7,746
7,044
-
-
12,792
73,813
69,719
Total
240,087
239,000
154,198
153,500
144,152
148,500
164,243
85,205
74,127
-
-
140,709
776,807
766,914
1 Natalia Streltsova resigned from the Audit Committee on 1 January 2022.
2 Fiona Murdoch was appointed as a Non-Executive Director on 1 December 2021 and joined the Audit Committee and Risk and Sustainability Committee on 1 January 2022.
Fiona Murdoch was appointed Chair of the Nomination and Remuneration Committee on 1 June 2022.
3 Colin Moorhead was appointed as a Non-Executive Director on 1 December 2022. From 1 July 2023 Colin Moorhead will become a member of the Risk and Sustainability Committee.
4 Michael Bohm retired as a Non-Executive Director on 31 May 2022.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
13.4 NON-EXECUTIVE DIRECTOR SHARE OWNERSHIP
Table 43: Details of Non-Executive Director Share Ownership
Name
Bob Vassie
David Southam
Natalia Streltsova
Fiona Murdoch
Colin Moorhead
Balance at Start of Year
Acquired During Year
Sold During Year
Balance at End of Year
80,000
20,217
12,000
34,500
-
72,500
311
50,000
30,000
-
-
-
-
-
-
152,500
20,528
62,000
64,500
-
14. FURTHER INFORMATION ON REMUNERATION
14.1 SHARE TRADING RESTRICTIONS
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 plans. The Securities Trading Policy can be viewed
on the Company’s website.
14.2 OTHER TRANSACTIONS AND BALANCES WITH KEY MANAGEMENT PERSONNEL
There were no loans made to key management personnel or their personally related parties during the current or prior financial year. There were
no other transactions with key management personnel.
INDEPENDENT AUDIT OF REMUNERATION REPORT
15.
The remuneration report has been audited by Deloitte Touche Tohmatsu (Deloitte). Please see page 110 of this financial report for Deloitte’s report
on the remuneration report.
Remuneration Report Ends.
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.
Ramelius has agreed to indemnify its auditors, Deloitte, to the extent permitted by law, against any claim by a third party arising from Ramelius’
breach of their agreement. The indemnity stipulates that Ramelius will meet the full amount of any such liabilities including a reasonable amount of
legal costs.
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.
62
RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
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.
On 1 July 2023 a Non-Assurance Services Procedure was implemented to comply with APES 10 Code of Ethics for Professional Accountants.
This procedure formalises the process that must be undertaken when and if the auditor is engage on any non-assurance related work.
During the year NIL was paid for non-audit related services provided by the auditor of the parent entity, its related practices and non-related audit
firms (2022: $68,000). Further details of the amounts paid or payable to the auditor for audit and non-audit services during the year are disclosed in
Note 29 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 64.
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
28 August 2023
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RAMELIUS RESOURCES ANNUAL REPORT 2023
DIRECTORS’ REPORT (continued)
AUDITOR’S INDEPENDENCE DECLARATION
64
RAMELIUS RESOURCES ANNUAL REPORT 2023 RAMELIUS RESOURCES ANNUAL REPORT 2023
65
FINANCIAL
REPORT
CONTENTS
Financial Statements
Income Statement and Statement
of Comprehensive Income
Balance Sheet
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
to the Members
66
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68
69
70
109
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INCOME STATEMENT
For the year ended 30 June 2023
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
8,9
10
1
2
3
17
17
2023
$’000
631,339
(494,946)
136,393
(28,906)
(6,908)
(10,205)
1,860
3,939
(5,873)
90,300
(28,739)
61,561
Cents
6.95
6.81
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
STATEMENT OF
COMPREHENSIVE INCOME
For the year ended 30 June 2023
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
16
16
2023
$’000
61,561
2022
$’000
12,402
(125)
(159)
4,406
4,281
434
275
Total comprehensive income for the year
65,842
12,677
66
RAMELIUS RESOURCES ANNUAL REPORT 2023 BALANCE SHEET
As at 30 June 2023
Current assets
Cash and cash equivalents
Trade and other receivables
Tax receivable
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
Financial instruments at fair value through profit or loss
Lease liabilities
Deferred consideration
Tax payable
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
Note
4
3
5
6
5
7
8
9
10
11
12
13
3
14
12
13
3
14
15
16
2023
$’000
250,958
2,694
7,433
137,164
3,669
401,918
961
80,493
2,737
78,633
295,253
311,891
769,968
2022
$’000
147,781
1,920
5,245
133,587
3,519
292,052
552
66,052
5,576
101,962
268,999
216,615
659,756
1,171,886
951,808
69,595
590
17,970
1,958
5,970
12,707
108,790
10,468
921
67,787
43,668
122,844
82,315
-
25,687
3,793
-
14,673
126,468
25,128
3,840
30,864
44,641
104,473
231,634
230,941
940,252
720,867
627,421
(27,413)
340,244
940,252
465,184
(26,034)
281,717
720,867
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RAMELIUS RESOURCES ANNUAL REPORT 2023
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2023
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
Balance at 30 June 2022
Share
capital
$’000
379,391
Share based
payment reserve
$’000
4,232
Other
reserves
$’000
(37,509)
-
-
-
-
570
85,223
465,184
-
-
-
-
1,788
-
6,020
-
275
275
-
-
5,180
(32,054)
Retained
profits
$’000
289,667
12,402
-
12,402
(20,352)
-
-
281,717
Total
equity
$’000
635,781
12,402
275
12,677
(20,352)
2,358
90,403
720,867
Balance at 1 July 2022
465,184
6,020
(32,054)
281,717
720,867
-
-
-
-
-
-
6,300
(1,870)
-
4,281
4,281
61,561
-
61,561
61,561
4,281
65,842
(5,663)
5,663
-
-
-
-
-
(8,697)
(7,219)
-
-
-
-
1,000
6,300
-
153,462
940,252
-
(4,427)
10,450
(37,863)
340,244
Profit for the year
Other comprehensive gain
Total comprehensive income
Transfer of gain on disposal of equity investments
at fair value through other comprehensive income
to retained earnings
Transactions with owners in their
capacity as owners:
Payment of dividends
Shares issued on settlement of
deferred consideration
Share based payments
Shares issued on the exercise of
performance rights
Shares issued for the acquisition of Breaker
Resources NL (Note 15, 16 and 20)
Balance at 30 June 2023
Refer to Note 16 for details on reserves.
-
-
-
-
1,478
1,000
-
1,870
157,889
627,421
68
RAMELIUS RESOURCES ANNUAL REPORT 2023 STATEMENT OF CASH FLOWS
For the year ended 30 June 2023
Cash flows from operating activities
Receipts from operations
Payments to suppliers and employees
Interest received
Income tax refunded / (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 non-core projects and royalties
Net cash acquired on the acquisition of Breaker Resources NL
Payments for the acquisition of Apollo Consolidated Limited
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
Commitment fees and other finance cost
Payment of principal elements and interest for leases
Dividends paid
Net cash used in financing activities
Note
4
1
20
13
14
12
19
2023
$’000
630,810
(378,780)
3,102
6,244
261,376
(13,654)
(154,266)
8
-
74,227
(8,033)
-
6,502
(21,440)
(2,388)
(1,740)
(120,784)
(1,428)
(28,768)
(7,219)
(37,415)
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)
Net increase / (decrease) in cash and cash equivalents
103,177
(80,721)
Cash and cash equivalents at the beginning of the financial year
147,781
228,502
Cash and cash equivalents at the end of the financial year
4
250,958
147,781
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RAMELIUS RESOURCES ANNUAL REPORT 2023
CONTENTS OF THE
NOTES TO THE FINANCIAL
STATEMENTS
Notes to the Financial Statements
About this Report
Segment Information
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
Note 8: Property, Plant and Equipment
Note 9: Mine Development
71
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75
75
75
76
79
79
80
81
81
82
84
Note 10: Exploration and Evaluation Assets 85
Group Information
Note 20: Asset Acquisition
Note 21: Interests in Other Entities
Note 22: Parent Entity Information
Note 23: Deed of Cross Guarantee
Note 24: Related Party Transactions
Unrecognised Items
Note 25: Contingent Liabilities
Note 26: Commitments
Other Information
Note 27: Events Occurring after
the Reporting Period
Note 28: Share Based Payments
Note 29: Remuneration of Auditors
Note 30: Accounting Policies
98
98
99
100
102
104
104
104
104
105
105
105
108
108
Note 11: Trade and Other Payables
Note 12: Lease Liabilities
Note 13: Deferred Consideration
Note 14: Provisions
Capital
Note 15: Share Capital
Note 16: Reserves
Note 17: Earnings Per Share
Risk
Note 18: Financial Instruments
and Financial Risk Management
Note 19: Capital Risk Management
87
87
90
90
92
92
92
93
94
94
97
70
RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
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 2023 was authorised for issue in accordance with a
resolution of the Directors on 28 August 2023. 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 2022. Refer to Note 30 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 30 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
78
83, 85 & 87
83 & 85
85
85
85
86
89
91
91
Note 3
Note 8, 9 & 10
Note 8 & 9
Note 9
Note 9
Note 9
Note 10
Note 12
Note 14
Note 14
Recovery of deferred tax assets
Impairment of assets
Depreciation and amortisation
Production stripping
Deferred mining expenditure
Ore Reserves
Exploration and evaluation expenditure
Leases
Provision for restoration and rehabilitation
Provision for long service leave
Principles of Consolidation
The consolidated financial statements comprise the financial statements of the parent entity, Ramelius Resources Limited, and its controlled entities.
A list of controlled entities is contained in Note 21 to the consolidated financial statements. All controlled entities have a 30 June financial year end.
In preparing the consolidated financial statements, all inter-company balances and transactions, income and expenses and profits and losses
resulting from intra-group transactions have been eliminated.
Subsidiaries are consolidated from the date on which control is obtained to the date on which control is disposed. The acquisition of subsidiaries is
accounted for using the acquisition method of accounting.
Foreign Currency
The functional currencies of overseas subsidiaries are listed in Note 21. As at the reporting date, the assets and liabilities of overseas subsidiaries
are translated into Australian dollars at the rate of exchange ruling at the balance sheet date and the income statements are translated at the
average exchange rates for the year. The exchange differences arising on the translation are taken directly to a separate component of equity.
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.
71
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
SEGMENT INFORMATION
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 Breaker Resources NL (Roe Gold Project) which was completed in June 2023 (see Note 20). This resulted in an increase
in exploration and 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
10 to 14 and 32 to 37.
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 Mount Magnet region including the Vivien and Penny Gold Mines.
• Edna May: mining and processing of gold from the Edna May region including the Marda, Tampia, and Symes Gold Mines.
• Exploration: exploration and evaluation of gold mineralisation, notably the Rebecca and Roe projects.
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 2023 and 2022 are set out below:
72
RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
NOTES TO THE FINANCIAL STATEMENTS
SEGMENT INFORMATION
Segment Results
2023 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 PPE
Segment margin
Interest income
Other income
Finance costs
Other expenses
Profit before income tax
Total segment assets
Total segment liabilities
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 PPE
Segment margin
Interest income
Other income
Finance costs
Other expenses
Profit before income tax
Total segment assets
Total segment liabilities
Mt Magnet
$’000
Edna May
$’000
Exploration
$’000
Total
$’000
337,280
(269,759)
(109,493)
(102)
105,201
63,127
-
-
63,127
294,059
(227,940)
(54,309)
18,343
43,113
73,266
-
(6,908)
66,358
-
-
-
-
-
-
(10,205)
-
(10,205)
459,055
87,871
135,143
59,573
312,653
2,827
631,339
(497,699)
(163,802)
18,241
148,314
136,393
(10,205)
(6,908)
119,280
3,939
1,860
(5,873)
(28,906)
90,300
906,851
150,271
Mt Magnet
$’000
Edna May
$’000
Exploration
$’000
Total
$’000
295,609
(241,908)
(80,101)
51,080
45,971
70,651
-
-
70,651
308,282
(227,727)
(102,294)
45,405
35,949
59,615
-
(94,500)
(34,885)
-
-
-
-
-
-
(16,971)
-
(16,971)
447,401
101,271
125,190
82,244
217,149
13,413
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
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
SEGMENT INFORMATION
Segment Gross Margin Reconciliation
Segment margin reconciles to profit before income tax for the year ended 30 June 2023 and 30 June 2022 as follows:
Segment margin
Other income
Interest income
Depreciation and amortisation
Employee benefit expense
Equity settled share based payments
Exploration and evaluation costs
Fair value gains loss on deferred consideration at FVPL
Foreign exchange gain / (loss)
Fair value movements in Investments at FVPL
Change in fair value of Financial Instruments 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
Tax receivable
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
2023
$’000
119,280
3
3,939
(693)
(12,416)
(6,300)
(461)
1,710
119
(495)
(722)
28
(5,873)
(7,819)
90,300
2022
$’000
18,795
63
501
(639)
(10,779)
(2,358)
-
(2,166)
365
(1,670)
-
30,250
(3,129)
(6,708)
22,525
906,851
789,740
250,958
7,433
2,963
12
2,737
932
1,171,886
147,781
5,245
2,095
13
5,576
1,358
951,808
150,271
196,928
5,951
5,970
961
243
261
190
67,787
231,634
1,456
-
974
208
458
53
30,864
230,941
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.
74
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
GROUP PERFORMANCE
NOTE 1: REVENUE
The Group derives the following types of revenue:
Revenue
Gold sales
Silver sales
Other revenue
Total revenue
Other income
Gain on sale of non-core projects and royalties
Gain on disposal of property, plant and equipment
Foreign exchange gains
Change in fair value of Edna May deferred consideration
Total other income
Note
13
2023
$’000
630,274
929
136
631,339
28
3
119
1,710
1,860
2022
$’000
602,915
644
332
603,891
30,250
63
365
-
30,678
Recognising Revenue from Major Business Activities
Revenue (general)
Revenue is recognised when a performance obligation is satisfied at the amount of the transaction price that is allocated to that performance
obligation. The transaction price is the amount of consideration to which an entity expects to be entitled to in exchange for transferring the
promised goods or services to a customer. Revenue from the 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 been 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.
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
Note
5
2023
$’000
279,514
49,985
19,886
163,802
(18,241)
494,946
2022
$’000
319,566
45,236
22,913
182,395
(96,485)
473,625
75
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A
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S
E
R
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S
U
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A
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A
B
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L
I
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Y
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP PERFORMANCE
Other Expenses
Employee benefit expense
Equity settled share based payments
Other expenses
Change in fair value of financial instruments at FVPL
Fair value losses on investments at FVPL
Change in fair value of Edna May deferred consideration
Depreciation and amortisation
Exploration and evaluation costs
Total other expenses
Finance costs
Provisions: unwinding of discount
Deferred consideration: unwinding of discount
Interest on leases
Commitment fees and other finance costs
Total finance costs
Note
28
7
13
14
13
12
2023
$’000
12,416
6,300
7,819
722
495
-
693
461
28,906
1,924
344
2,177
1,428
5,873
2022
$’000
10,779
2,358
6,708
-
1,670
2,166
639
298
24,618
739
482
1,434
474
3,129
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, and 10 for further details on impairment.
Employee Benefits Expense
The Group’s accounting policy for liabilities associated with employee benefits is set out in Note 14. The policy relating to share-based
payments is set out in Note 28.
NOTE 3: INCOME TAX EXPENSE
This note provides an analysis of the Group’s income tax expense, shows what amounts are recognised directly in equity and how
the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the
Groups tax position.
The components of tax expense comprise:
Current tax
Deferred tax
Income tax expense
Recognition of income tax expense to prima facie 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
76
2023
$’000
(8,432)
37,171
28,739
90,300
27,090
1,890
(5)
344
-
(580)
28,739
32%
2022
$’000
14,862
(4,739)
10,123
22,525
6,758
708
71
3,841
(1,173)
(82)
10,123
45%
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
GROUP PERFORMANCE
Deferred Tax Movement
30 June 2023
Deferred tax liability (DTL)
Exploration and evaluation
Mine development
Inventory – consumables
Total DTL
Deferred tax asset (DTA)
Inventory – deferred mining costs
Inventory – stock
Property, plant and equipment
Provisions
Leases (see Note 12)
Investments at FVOCI
Tax losses
Other
Total DTA
Net deferred tax liability #
1 July 2022
$’000
Transfers
$’000
Other
comprehensive
income
$’000
Income
statement
$’000
30 June 2023
$’000
14,901
35,279
1,448
51,628
196
(269)
1,238
16,266
259
(248)
2,257
1,065
20,764
(30,864)
(1,669)
1,669
(110)
(110)
(196)
269
-
-
-
-
-
396
469
579
-
-
-
-
-
-
-
-
-
248
-
-
248
248
9,203
26,553
(437)
35,319
-
-
(2,348)
(38)
105
-
173
(323)
(2,431)
(37,750)
22,435
63,501
901
86,837
-
-
(1,110)
16,228
364
-
2,430
1,138
19,050
(67,787)
# Deferred tax assets and liabilities have been offset for presentation on the balance sheet pursuant to set off provisions
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)
(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
77
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O
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S
I
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E
S
O
U
R
C
E
S
A
N
D
R
E
S
E
R
V
E
S
S
U
S
T
A
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A
B
I
I
L
I
T
Y
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P
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F
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A
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP PERFORMANCE
2023
2022
Gross
Net (30%)
Gross
Net (30%)
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
8,096
16,191
24,287
2,429
4,857
7,286
7,522
21,862
29,384
2,257
6,558
8,815
Ramelius has unused tax losses at 30 June 2023 that have come about from acquisitions in prior years. The total unused tax losses for which a
deferred tax asset has been recognised at 30 June 2023 were $8,096,000 (with a tax benefit of $2,429,000) made up of Apollo Consolidated Limited
($541,000 (tax benefit of $163,000)) and Explaurum Operations Pty Limited ($7,555,000 (tax benefit of $2,266,000)). A deferred tax asset has been
recognised for these unused tax losses.
No tax losses, for which a deferred tax asset has been recognised, were recouped in the year as Ramelius has a tax loss position for the 2023
financial year. The utilisation of tax losses depends upon the generation of future taxable profits. Ramelius believes tax losses to be recoverable based
on current taxable income projections, which are underpinned by life of mine models. Utilisation is also 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. During the year $5,663,000 (tax benefit of
$1,699,000) of carried forward capital losses were recognised to offset the capital gain made on the disposal of investments during the year.
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.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised, or the liability
is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the way management expects to
recover or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future
taxable profits will be available against which the benefits of the deferred tax asset can be utilised. The amount of benefits brought to account
or which may be realised in the future is based on the assumption that no adverse change will occur in income tax legislation and the anticipation
that the Group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility
imposed by the law.
78
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
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.
Breaker Resources NL (Breaker), and its controlled entities, entered the Ramelius tax consolidated Group on 29 June 2023.
Current Tax payable (Breaker)
As at 30 June 2023 Ramelius had outstanding current tax liability due to the ATO. The current tax liability of $5,970,000 relates to the 2023 income
tax return for Breaker which is in the process of being finalised. This outstanding tax liability was known at the time of the acquisition. The 2022 and
2023 income tax returns for Breaker are in the process of being finalised.
Claiming the Loss Carry Back Tax Offset
The Company intends to apply the tax loss carry back rules for the 2023 financial year. It is estimated this will result in a cash refund due to Ramelius
of $7,433,000, which has been recognised as a current receivable on the balance sheet as at 30 June 2023. The expected cash refund is subject to
the ATO assessing the Company’s 2023 income tax return, which is expected to be lodged in the Second Quarter of the 2024 financial year.
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 on investments at FVPL
Fair value loss on financial assets at FVPL
Items presented as investing or financing activities
Gain on sale of non-core projects and royalties
Other
(Increase) / decrease in assets
Prepayments
Trade and other receivables
Inventories
Financial assets at FVPL
Deferred tax assets
Increase / (decrease) in liabilities
Trade and other payables
Current tax receivable
Provisions
Deferred tax liabilities
Net cash provided by operating activities
Note
28
8,9
14
13
13
7
1
2023
$’000
140,221
110,737
250,958
2022
$’000
147,751
30
147,781
61,561
12,402
6,300
164,495
10,205
6,908
1,924
344
(1,710)
(119)
495
722
(28)
3,603
(65)
(272)
(18,018)
590
24,348
(9,540)
(2,188)
(505)
12,327
261,377
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
79
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S
I
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E
S
O
U
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C
E
S
A
N
D
R
E
S
E
R
V
E
S
S
U
S
T
A
N
A
B
I
I
L
I
T
Y
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F
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
Recognition and Measurement
Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank, demand deposits held with banks, other short-term highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in values. For the purposes of the
Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.
Risk Exposure
The Group’s exposure to interest rate risk is discussed in Note 18. In relation to cash and cash equivalents only, the 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.
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
Net cash
Balance at 1 July 2021
Cash flows
Lease additions (including interest)
Balance at 30 June 2022
Cash flows
Lease additions (including interest)
Balance at 30 June 2023
NOTE 5: INVENTORIES
Current
Ore stockpiles
Gold in circuit
Gold bullion, nuggets and doré
Consumables and supplies
Total current inventories
Non-current
Ore stockpiles
Total non-current inventories
Leases
$’000
(26,037)
25,537
(50,315)
(50,815)
28,768
(6,391)
(28,456)
2023
$’000
250,958
(17,970)
(10,468)
222,520
Cash
$’000
228,502
(80,721)
-
147,781
103,177
-
250,958
2023
$’000
94,407
11,074
15,563
16,120
137,164
80,493
80,493
2022
$’000
147,781
(25,687)
(25,128)
96,966
Net Cash
$’000
202,465
(55,184)
(50,315)
96,966
131,945
(6,391)
222,520
2022
$’000
93,302
7,582
16,361
16,342
133,587
66,052
66,052
Inventory Expense
The carrying value of net realisable value provision is $31,661,000 (2022: $30,140,000), with write-downs through the cost of sales amounting to
$1,521,000 (2022: $28,360,000). These were recognised as an expense during the year ended 30 June 2023 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.
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 net realisable value of non-current inventory is determined by reference to consensus
gold prices, exchange rates, inflation and relevant discount rates and includes the use of estimates and judgements.
80
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
The non-current ore stockpiles represent the stockpiles held at Eridanus, Marda and Tampia 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 and 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
2023
$’000
3,669
3,669
2022
$’000
3,519
3,519
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 or loss recognised before income tax:
Loss recognised through profit and loss
Gains recognised in other comprehensive income
1,623
1,114
2,737
(495)
4,406
3,967
1,609
5,576
(1,670)
434
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 Incomes
An investment at fair value through other comprehensive income comprises equity securities that 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.
Investments are classified as Level 1 in the fair value hierarchy.
81
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O
N
S
I
R
E
S
O
U
R
C
E
S
A
N
D
R
E
S
E
R
V
E
S
S
U
S
T
A
N
A
B
I
I
L
I
T
Y
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
R
E
P
O
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
NOTE 8: PROPERTY, PLANT AND EQUIPMENT
2023
As at 1 July 2022
Cost
Accumulated depreciation
Net book amount
Year ended 30 June 2023
Opening net book amount
Additions on the acquisition of subsidiary
Additions
Disposals
Transfers
Depreciation charge
Impairment
Closing net book amount
As at 30 June 2023
Cost
Accumulated depreciation
Net book amount
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
Land and
buildings
$’000
16,874
(6,434)
10,440
10,440
-
-
-
-
(3,417)
-
7,023
16,874
(9,851)
7,023
Plant and
equipment
$’000
150,280
(115,966)
34,314
34,314
277
4,562
(311)
8,795
(10,488)
-
37,149
185,161
(148,012)
37,149
Assets under
construction
$’000
Right of use
assets
$’000
7,259
-
7,259
7,259
-
9,092
-
(8,795)
-
(319)
7,237
7,237
-
7,237
109,605
(59,656)
49,949
49,949
-
4,214
-
-
(26,939)
-
27,224
113,819
(86,595)
27,224
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
Total
$’000
284,018
(182,056)
101,962
101,962
277
17,868
(311)
-
(40,844)
(319)
78,633
323,091
(244,458)
78,633
Total
$’000
236,032
(135,855)
100,177
100,177
(217)
72,549
(50)
-
(46,786)
(23,711)
101,962
284,018
(182,056)
101,962
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
82
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
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.
Impairment
In mid-June 2023 a temporary escalation of water inflow, that was higher than the installed pumping capacity, led to higher water within the mine.
Development works, including the installation of pumping infrastructure, had taken place at these lower levels and at 30 June 2023 it was uncertain
as to whether access to these lower levels, and the benefit from this development work undertaken and infrastructure installed, would be feasible.
Accordingly, at 30 June 2023, asset level impairment of $6,908,000 has been booked for the Edna May underground mine. This impairment included
$319,000 for pumping infrastructure (items of property, plant and equipment) and mine development of $6,589,000 (items of mine development,
not recognised as property, plant and equipment – see Note 9).
The lower levels of the underground mine are being monitored and if conditions permit, and access is economically feasible, development deeper
into the mine will continue to the 840mRL and 820mRL and ore may be extracted from these levels.
This water ingress event will not materially impact the production and cost guidance for the 2024 financial year.
It is important to note this is an asset level impairment triggered by a specific event impacting the Edna May underground mine development. A full
review of potential impairment indicators for the Edna May and Mt Magnet CGUs was undertaken as at 30 June 2023, as required by accounting
guidance, and it was concluded that there were no potential indicators of impairment at the CGU level for Edna May and Mt Magnet.
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.
83
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
NOTE 9: MINE DEVELOPMENT
Mine development
Less: accumulated amortisation and impairment
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
14
8
10
2023
$’000
991,835
(696,582)
295,253
268,999
154,266
(6,589)
(3,334)
-
5,562
(123,651)
295,253
2022
$’000
841,930
(572,931)
268,999
375,338
94,181
(70,789)
6,300
217
-
(136,248)
268,999
Impairment
A specific water inflow event at the Edna May underground mine in mid-June 2023 resulted in the impairment, at the asset level, of mine
development assets. For the year this totalled $6,589,000 in mine development impairment charges. See Note 8 for further details.
Recognition and Measurement
Mine development
Development assets represent expenditure in respect of exploration, evaluation, feasibility and development incurred by or on behalf of the Group,
including overburden removal and construction costs, previously accumulated and carried forward in relation to areas of interest in which mining
has now commenced. Such expenditure comprises net direct costs and an appropriate allocation of directly related overhead expenditure.
All expenditure incurred prior to commencement of production from each development property is carried forward to the extent to which
recoupment out of future revenue from the sale of production, or from the sale of the property, is reasonably assured.
When further development expenditure is incurred in respect of a mine property after commencement of production, such expenditure is carried
forward as part of the cost of the mine property only when future economic benefits are reasonably assured, otherwise the expenditure is classified
as part of the cost of production and expensed as incurred. Such capitalised development expenditure is added to the total carrying value of
development assets being amortised.
Deferred Mining Expenditure – Pre-Production Mine Development
Pre-production mining costs incurred by the Group in relation to accessing recoverable reserves are carried forward as part of ‘development assets’
when future economic benefits are established, otherwise such expenditure is expensed as part of the cost of production.
Deferred Stripping 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.
84
RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
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.
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 for further information.
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. Forecast 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 at reporting date.
NOTE 10: EXPLORATION AND EVALUATION ASSETS
Note
2023
$’000
2022
$’000
Exploration and evaluation
311,891
216,615
Exploration and evaluation asset reconciliation
Opening net book amount
Additions on the acquisition of subsidiary
Additions
Impairment loss
Transfer to development asset
Closing net book amount
20
9
216,615
89,603
21,440
(10,205)
(5,562)
311,891
31,253
174,303
27,732
(16,673)
-
216,615
Transfer to Development Assets
A total of $5,562,000 was transferred from exploration and evaluation assets during the 2023 year (2022: nil), relating to the
Symes Gold Mine.
85
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
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.
Deferre 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.
Key Judgement, Estimates and Assumptions: Exploration, Evaluation and Deferred Easibility 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 $10,205,000 was recognised during the year.
86
RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
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 $10,205,000 (2022: $16,673,000) 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.
NOTE 11: TRADE AND OTHER PAYABLES
Trade payables
Other payables and accruals
Total trade and other payables
2023
$’000
24,015
45,580
69,595
2022
$’000
23,346
58,969
82,315
Recognition an 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 from the end of the month of invoice. The carrying amounts of trade and other payables are assumed to be the same as their fair values,
due to their short-term nature.
Risk Exposure
The Group’s exposure to cash flow risk is discussed in Note 18.
NOTE 12: LEASE LIABILITIES
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
Year 4
Gross lease liability
Less future interest charges
Total lease liability
2023
$’000
17,970
10,468
28,438
50,815
4,214
2,177
(28,768)
28,438
19,178
9,424
765
733
30,100
(1,662)
28,438
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
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.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
The Group also has certain leases of assets with lease terms of twelve months or less and leases of storage containers and equipment for which
the assets are of low value. The Group applies the short-term lease and lease of low value assets recognition exemptions for these leases.
Set out below are the carrying amounts of right of use assets recognised and the movements during the period (as shown in property, plant
and equipment):
2023
As at 1 July 2022
Additions
Depreciation charge
As at 30 June 2023
2022
As at 1 July 2021
Additions
Depreciation charge
As at 30 June 2022
Land and
buildings
$’000
Plant and
equipment
$’000
665
48
(224)
489
47,872
4,106
(25,565)
26,413
Land and
buildings
$’000
Plant and
equipment
$’000
183
709
(227)
665
23,326
47,734
(23,188)
47,872
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 benefit
Total amount recorded in the income statement resulting from AASB 16
Note
2
3
Vehicles
$’000
1,412
60
(1,150)
322
Vehicles
$’000
2,258
437
(1,283)
1,412
2023
$’000
26,939
2,177
(105)
29,011
Total
$’000
49,949
4,214
(26,939)
27,224
Total
$’000
25,767
48,880
(24,698)
49,949
2022
$’000
24,698
1,434
(178)
25,954
Payments of $1,503,000 (2022: $1,187,000) for short-term leases (lease terms of 12 months or less) were expensed in the income statement
for the year ended 30 June 2023.
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
• Motor vehicles
• Buildings
1 to 5 years
1 to 3 years
2 years
Periodic adjustments are made for any remeasurement of the lease liabilities and for impairment losses, assessed in accordance with the
Group’s impairment policies.
88
RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
Lease Liabilities
Lease liabilities are initially measured as the present value of future minimum lease payments, discounted using the Group’s incremental borrowing
rate if the rate explicit in the lease cannot be readily measured at amortised cost using the effective interest rate over the lease term. Minimum lease
payments are fixed payments or index based variable payments incorporating the Group’s expectations of extension options and do not include
non-lease component of a contract. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in
which the event or condition that triggers the payment occurs.
The lease liability is remeasured when there are changes in the future lease payments arising from a change in rates, index, or lease terms from
exercising an extension or termination options. A corresponding adjustment is made to the carrying amount of the lease assets, with any excess
recognised in the income statement.
Short Term Leases and Leases of Low-Value Assets
The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of twelve months
or less from the commencement date and do not contain a purchase option). It also applies the lease of low value assets recognition exemption to
leases of plant and equipment that are of low value. Lease payments on short-term leases and leases of low value assets are recognised as expense
as they are incurred.
Key Judgements, Estimates and Assumptions:
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 2.74% and 7.52%.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
NOTE 13: 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
Payments1
Unwinding of discount rate
Change in fair value of deferred consideration
Total deferred consideration
Note
2
1
2023
$’000
1,958
-
1,958
-
921
921
7,633
-
(3,388)
344
(1,710)
2,879
1 Payments for deferred consideration (Level 3 in the fair value hierarchy) comprised of $2,388,000 in cash and $1,000,000 (or 952,381 shares) settled
with the issue of Ramelius shares (refer Note 15).
NOTE 14: 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 year1
Expenditure on rehabilitation and restoration
Discount unwind
Total provision for rehabilitation and restoration
Note
2
2023
$’000
8,454
4,253
12,707
717
42,951
43,668
49,686
(2,666)
(1,740)
1,924
47,204
2022
$’000
2,814
979
3,793
2,922
918
3,840
8,539
1,932
(5,486)
482
2,166
7,633
2022
$’000
9,084
5,589
14,673
544
44,097
44,641
43,321
6,300
(674)
739
49,686
1The revision of provision for the year consisted of $3,334,000 capitalised to mine development assets and $668,000 expensed to the income statement.
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.
90
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
GROUP BALANCE SHEET
Employee Benefits – Wages, Salaries, Salary At Risk, Annual Leave and Sick Leave
Liabilities arising in respect of wages and salaries, at-risk payments, 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 at-risk
payments) and ‘current provisions’ (for annual leave and at-risk payments) 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 current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least
twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
Defined Contribution Superannuation Plans
Contributions to defined contribution superannuation plans are expensed when incurred.
Provision for Restoration and Rehabilitation
Estimated costs of decommissioning and removing an asset and restoring the site are included in the cost of the asset as at the date the obligation
first arises and to the extent that it is first recognised as a provision. The Group records the present value of the estimated cost of constructive and
legal obligations to restore operating locations in the period in which the obligation is incurred. The nature of decommissioning activities includes
dismantling and removing structures, rehabilitating mine sites, dismantling operating facilities, closure of plant and waste sites and restoration,
reclamation and revegetation of affected areas.
Typically, the obligation arises when the asset is installed, or the environment is disturbed at the development location. When the liability is initially
recorded, the present value of the estimated cost is capitalised by increasing the carrying amount of the related mining assets. Over time, the
discounted liability is increased for the change in the present value based on the discount rates that reflect the current market assessments and
the risks specific to the liability. Additional disturbances or changes in decommissioning costs will be recognised as additions or changes to the
corresponding asset and rehabilitation liability when incurred.
The unwind effect of discounting the provision is recorded as a finance cost in the Income Statement and the carrying amount capitalised as a part
of mining assets is amortised on a unit of production basis. Costs incurred that relate to an existing condition caused by past operations, but do not
have future economic benefits, are expensed as incurred.
Key Judgement, Estimates and Assumptions
Provision for Restoration and Rehabilitation
The Group assesses its mine restoration and rehabilitation provision 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.
91
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
CAPITAL
NOTE 15: SHARE CAPITAL
Ordinary shares
Share capital at 30 June 2021
Shares issued from exercise of performance rights
Shares issued as part of the acquisition of Apollo Consolidated1
At 30 June 2022
Shares issued from exercise of performance rights
Shares issued as part of the acquisition of Breaker Resources NL1
Shares issued under the dividend reinvestment program
Shares issued for settlement of deferred consideration
At 30 June 2023
Note
Number
of shares
$’000
814,017,266
379,391
1,517,471
51,850,372
867,385,109
2,637,718
118,049,507
2,273,463
952,381
991,298,178
570
85,223
465,184
1,870
157,889
1,478
1,000
627,421
20
19
13
1Represents the value of shares at the date of issue. Details of the acquisition are disclosed in Note 20 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 28 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.
NOTE 16: RESERVES
Reserves
At 1 July 2022
Share based payments expense (Note 28)
Performance rights exercised (Note 15)
Shares issued on the acquisition of Breaker
Resources NL (Note 20)
Other comprehensive income:
Change in fair value of investments
Translation of foreign operation
Other comprehensive income
Transfer to retained earnings
Share based
payments
$’000
Investments at
FVOCI
$’000
NCI acquisition
$’000
Foreign
currency
translation
$’000
6,020
6,300
(1,870)
-
-
-
-
-
581
(33,215)
(54)
-
-
-
4,406
-
4,406
(5,663)
-
-
(4,427)
-
-
-
-
-
-
-
-
(125)
(125)
-
Other
$’000
634
Total
$’000
(26,034)
-
-
-
-
-
-
-
6,300
(1,870)
(4,427)
4,406
(125)
4,281
(5,663)
At 30 June 2023
10,450
(676)
(37,642)
(179)
634
(27,413)
92
RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
CAPITAL
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
When the proportion of equity held by non-controlling interests changes, Ramelius adjusts the carrying amounts of the controlling and
non-controlling interests to reflect changes in the relative interests in the acquiree. NCI acquisition reserve represents accumulated differences
between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid, which is attributed to the
owners of the parent. This reserve relates to the acquisitions of Spectrum Metals Limited, Explaurum Limited, Apollo Consolidated Limited and
Breaker Resources NL.
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.
NOTE 17: 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
2023
Cents
2022
Cents
6.95
6.81
1.47
1.45
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
886,131,291
846,499,406
17,733,605
9,798,361
903,864,896
856,297,767
Calculation of Earnings Per Share
Basic earnings per share is calculated by dividing:
•
•
the profit attributable to owners of the Company, adjusted to exclude costs of servicing equity other than ordinary shares,
by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the year.
Diluted earnings per share adjusts the figures used in determining basic earnings per share to take into account the:
•
•
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares,
weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive
potential ordinary shares.
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. Rights are not included in basic
earnings per share.
93
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
RISK
NOTE 18: FINANCIAL INSTRUMENTS AND FINANCIAL RISK
MANAGEMENT
The Directors are responsible for monitoring and managing financial risk exposures of the Group. The Group holds the following financial
assets and liabilities:
Financial assets
Cash at bank
Term deposits
Trade and other receivables
Tax receivable
Other security bonds and deposits
Investments
Total financial assets
Financial liabilities
Trade and other payables
Financial instruments at fair value through profit and loss
Lease liabilities
Deferred consideration
Total financial liabilities
2023
$’000
140,221
110,737
2,694
7,433
961
2,737
264,783
69,593
590
28,438
2,879
101,500
2022
$’000
147,751
30
1,920
5,245
552
5,576
161,074
82,315
-
50,815
7,633
140,763
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.
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.
94
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
RISK
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 $140,221,000 (2022: $147,751,000) that is available for managing liquidity risk. In addition to this, short-term deposits at call totalled
$110,737,000 (2022: $30,000).
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.
Maturities of financial liabilities
As at 30 June 2023
Trade and other payables
Financial instruments at FVPL
Lease liabilities
Deferred consideration
Total non-derivatives
As at 30 June 2022
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
69,595
245
10,462
1,462
81,764
82,315
15,825
1,829
99,969
-
245
8,715
554
9,514
-
11,978
2,317
14,295
-
100
9,424
1,000
10,524
-
17,703
2,204
19,907
-
-
1,499
-
1,499
-
8,631
1,787
10,418
69,595
590
30,100
3,016
103,301
82,315
54,137
8,137
144,588
69,595
590
28,438
2,879
101,502
82,315
50,815
7,633
140,763
Credit Risk Exposures
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The Group’s credit risk arises from cash
and cash equivalents as well as gold sales, financial and other smaller counterparties. The Group has adopted the policy of trading with recognised
creditworthy counterparties as a means of mitigating the risk of loss from financial defaults.
Cash is deposited only with institutions with a reputable credit rating. The Group does not have any other significant credit risk exposure to a single
counterparty or any group of counterparties having similar characteristics.
95
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
RISK
In determining the recoverability of Trade and other receivables, the Group applied a simplified approach in calculating ECLs in which it recognises a
loss allowance based on lifetime ECLs at each reporting date and where necessary an impairment loss is recognised in profit or loss. The Group
does not have any impaired Trade and other receivables as at 30 June 2023 (2022: nil). No allowance for ECLs has been recognised in profit or loss
for the year as the duration of associated exposures is short and/or the probability of default over the life of these receivables is negligible.
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.
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’s expenses are exposed to commodity price fluctuations, in particular to diesel prices. Price risk relates to the risk that diesel prices will
fluctuate largely due to demand and supply factors for commodities and diesel price commodity speculation. The Group is exposed to commodity
price risk due to the use of diesel in mining and milling activities 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 2023, the Group had 211,000 ounces in forward sales contracts at an average price of A$2,772. Refer to Note 26 for
further details.
Diesel price risk is managed through the use of forward contracts which effectively fix the Australian Dollar diesel price for an agreed volume and
thus limiting the exposure for the agreed volumes to fluctuating diesel prices. These contracts are accounted for as Financial Instruments, which are
financially settled monthly based on the price fixed in the forward contract and actual floating price for the month being settled. At 30 June 2023, the
Group had 10.2m litres in forward sales contracts at an average price of A$0.91/L.
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 135,263oz (243,263oz less deliveries into the opening hedge book of 108,000oz) in 2023 and 110,855oz (251,355oz less
forward sales of 140,500oz) in 2022, if gold price in Australian dollars had changed by + / - A$100, with all other variables remaining constant, the
estimated realised impact on pre-tax profit (loss) and equity would have been as follows:
Impact on pre-tax profit
Increase in gold price by A$100
Decrease in gold price by A$100
Impact on equity
Increase in gold price by A$100
Decrease in gold price by A$100
96
2023
$’000
13,526
(13,526)
13,526
(13,526)
2022
$’000
11,086
(11,086)
11,086
(11,086)
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
RISK
Fair Value Measurement
The financial assets and liabilities of the Group are recognised on the balance sheet at their fair value in accordance with the Group’s accounting
policies. Measurement of fair value is grouped into levels based on the degree to which fair value is observable in accordance with AASB 7 Financial
Instruments: Disclosure.
•
•
•
Level 1 – fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3 – fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
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. Investments in listed equity instruments are measured at fair value using the closing price on the reporting date
as listed on the Australian Securities Exchange Limited (ASX). Investments in listed equity instruments 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 19: 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.
Dividends
Ordinary Shares
Final ordinary dividend for the 2022 financial year of 1.0 cents (2021: 2.5 cent) per
fully paid share paid on 11 October 2022
Total dividends paid
2023
$’000
8,697
8,697
2022
$’000
20,352
20,352
The dividend for the 2022 financial year was settled by cash of $7,219,000 and the issue of 2,273,463 Ramelius shares with the value of
$1,478,000 as part of the dividend reinvestment plan.
Franked dividends
Franking credits available for subsequent reporting periods based on a tax rate of 30%
62,257
74,288
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.
97
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP INFORMATION
NOTE 20: ASSET ACQUISITION
Roe Gold Project (Breaker Resources NL)
The Roe Gold Project (Roe) is the primary asset of Breaker Resources NL (Breaker) which was acquired during the financial year. The Roe Gold
Project is located 100km east of Kalgoorlie in Australia’s premier gold province at the southern end of the Keith-Kilkenny Tectonic Zone. The Roe
Gold Project has a Mineral Resource of 32Mt @ 1.6g/t for 1.7 million ounces of contained gold.
On 20 March 2023, Ramelius announced a recommended off-market takeover offer for Breaker. Under the offer, Breaker shareholders were to
receive 1 Ramelius Share for every 2.82 Breaker Shares held. Control was obtained on 1 May 2023 with Ramelius holding a relevant interest in
Breaker of 50.99%, or 168,482,992 Breaker Shares. The compulsory acquisition process commenced on 22 May 2023 with Ramelius obtaining
100% control on 29 June 2023.
A total of 118,049,507 Ramelius Shares were issued to Breaker shareholders as part of the takeover. Acquisition costs totalled $5,173,000 million
of which $4,326,000 relates to stamp duty on the transaction which remains payable at 30 June 2023. The total purchase consideration paid as at
30 June 2023 is detailed in the table below.
The Group has determined that the transaction does not constitute a business combination in accordance with AASB 3 Business Combinations.
The acquisition of the net assets meets the definition of, and has been accounted for, as an asset acquisition. When an asset acquisition does not
constitute a business combination, the assets and liabilities are assigned a carrying amount based on their relative fair values in an asset purchase
transaction and no deferred tax will arise in relation to the acquired assets and assumed liabilities as the initial recognition exemption for deferred
tax under AASB 112 Income Taxes is applied. No goodwill arises on the acquisition and transactions costs of the acquisition are included in the
capitalised cost of the asset.
Details of the purchase consideration and the net assets acquired are as follows:
Purchase consideration
Cash paid
Ordinary shares issued (118,049,507)
NCI reserve
Acquisition costs
Total purchase consideration
$’000
66
157,889
(4,427)
5,503
159,031
The fair value of the shares issued to Breaker shareholders is the Ramelius share price on 1 May 2023 (the date on which control was obtained)
of $1.30 per share. The value of the shares recorded in the Share Capital of Ramelius is the $1.30 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 (see Note 16).
Net assets acquired
Cash and cash equivalents
Trade and other receivables
Property, plant and equipment
Exploration and evaluation assets
Trade and other payables
Tax payable
Net identifiable assets acquired
Net cash inflow on the acquisition of subsidiary
Cash consideration
Acquisition costs
Less: acquisition costs provided for but not paid
Less: cash balance acquired
Net inflow of cash – investing activities
$’000
75,470
159
277
89,603
(508)
(5,970)
159,031
$’000
(66)
(5,173)
4,326
75,140
74,227
98
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
GROUP INFORMATION
NOTE 21: INTERESTS IN OTHER ENTITIES
Controlled Eentities
The Group’s principal subsidiaries at 30 June 2023 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
Ramelius Kalgoorlie Pty Ltd
Subsidiaries of Mt Magnet Gold Pty Limited
Spectrum Metals Limited
Subsidiaries of Spectrum Metals Limited
Penny Operations 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 Ramelius Kalgoorlie Pty Ltd
Apollo Consolidated Limited
Breaker Resources NL
Subsidiaries of Apollo Consolidated Limited
AC Minerals Pty Ltd
Aspire Minerals Pty Ltd
AC28 Pty Ltd
Subsidiaries of Aspire Mineral Pty Ltd
Mount Fouimba Resources Côte d’lvoire S.A.
Subsidiaries of AC28 Pty Ltd
Apollo Guinea SARLU
Subsidiaries of Breaker Resources NL
Breaker Resources Lithium Pty Ltd
Lake Roe Gold Mining Pty Ltd
Country of
incorporation
Functional
currency
Percentage
owned
2023
%
Percentage
owned
2022
%
Australia
Australian dollars
n/a
n/a
Australia
Australia
USA
Australia
Australia
Australia
Australian dollars
Australian dollars
US dollars
Australian dollars
Australian dollars
Australian dollars
100
100
100
100
100
100
100
100
100
100
100
100
Australia
Australian dollars
100
100
Australia
Australian dollars
100
100
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australian dollars
Australian dollars
Australian dollars
Australian dollars
Australian dollars
Australian dollars
Australian dollars
Australian dollars
Australian dollars
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
100
100
100
Côte d’lvoire
West African frank
100
100
Guinea
Guinean franc
100
100
Australia
Australia
Australian dollars
Australian dollars
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.
99
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP INFORMATION
Joint Operations
The Group has the following direct interests in unincorporated joint operations at 30 June 2023 and 30 June 2022:
Joint operation
project
Nulla South
Gibb Rock
Parker Dome
Mt Finnerty
Jupiter
Kirgella
Louisa
Joint operation
partner
Chalice Gold Mines Limited
Chalice Gold Mines Limited
Unlisted entity
Rouge Resources1
Kinetic Gold2
Unlisted entity
IGO Newsearch Pty Ltd (previously
Independence Newsearch Pty Ltd)3
* Ramelius earning in
^ Ramelius farming out
1. Rouge Resources is a subsidiary of Westar Resources Limited
2. Kinetic Gold is a subsidiary of Renaissance Gold Inc.
3. IGO Newsearch Pty Ltd is a subsidiary of IGO Limited
Principal
activity
Gold
Gold
Gold
Gold
Gold
Gold
Nickel, Platinum Group Elements (PGE)
and Base Metals
Interest (%)
2023
75%
-
-
75%
0%
75%*
25%^
2022
75%
0%*
0%*
0%*
0%
0%
-
The share of assets in unincorporated joint operations is as follows:
Non-current assets
Exploration and evaluation assets
2023
$’000
4,049
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.
NOTE 22: 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
Profit/(Loss) after income tax
Total comprehensive income/loss
100
2023
$’000
2022
$’000
185,817
695,949
(6,016)
(6,305)
689,644
137,089
549,555
(9,220)
(9,635)
539,920
627,421
465,184
10,317
(678)
52,584
689,644
(15,685)
(15,685)
5,887
579
68,270
539,920
(18,634)
(18,634)
RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP INFORMATION
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
2023
$’000
370
1,374
799
2,543
2022
$’000
412
1,641
1,155
3,208
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 $81,940 (2022: $104,102). 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. In June 2023 Breaker Resources NL, Breaker Lithium Pty Ltd and Lake Roe Gold Mining
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.
101
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
GROUP INFORMATION
NOTE 23: DEED OF CROSS GUARANTEE
Pursuant to ASIC Instrument 2016/785, wholly owned controlled entities Mt Magnet Gold Pty Ltd, RMSXG Pty Ltd, Ramelius Operations Pty Ltd,
Edna May Operations Pty Ltd, Marda Operations Pty Ltd, Explaurum Ltd, Tampia Operations Pty Ltd, Ninghan Exploration Pty Ltd, Spectrum Metals
Ltd, Penny Operations Pty Ltd, Ramelius Kalgoorlie Pty Ltd, Apollo Consolidated Limited, AC Minerals Pty Ltd, Aspire Minerals Pty Ltd, AC 28 Pty
Ltd, Breaker Resources NL, Breaker Lithium Pty Ltd and Lake Roe Gold Mining Pty Ltd are relieved from the Corporations Act 2001 requirements for
preparation, audit and lodgement of its financial reports and Director’s Report.
It is a condition of the Class Order that the Company and each of its eligible controlled entities enter into a Deed of Cross Guarantee.
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
2023
$’000
631,339
(494,946)
136,393
(28,865)
(10,205)
(6,908)
1,860
3,939
(5,873)
90,341
(28,739)
61,602
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
4,406
4,406
435
435
Total comprehensive income for the year
66,008
12,890
102
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
GROUP INFORMATION
Balance sheet
Current assets
Cash and cash equivalents
Trade and other receivables
Tax receivable
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
Financial assets at FVPL
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
2023
$’000
250,958
2,694
7,433
137,164
3,669
401,918
-
80,493
961
2,737
78,633
295,253
311,891
769,968
2022
$’000
147,781
1,920
5,245
133,587
3,519
292,052
1,963
66,052
552
5,576
101,962
268,999
216,615
661,719
1,171,886
953,771
69,595
590
17,970
1,958
5,970
12,707
108,790
10,468
921
67,787
43,668
122,844
82,315
-
25,687
3,793
-
14,673
126,468
25,128
3,840
30,864
44,641
104,473
231,634
230,941
940,252
722,830
627,421
(27,234)
340,065
940,252
465,184
(25,982)
283,628
722,830
103
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
UNRECOGNISED ITEMS
NOTE 24: 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
1Short-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 21.
2023
$’000
4,540,661
211,314
45,320
945,508
5,742,803
2022
$’000
3,621,991
208,383
54,651
933,092
4,818,117
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 25: 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 $81,940 (2022: $104,102). These bank guarantees are fully secured by cash on term deposit.
NOTE 26: COMMITMENTS
Gold Delivery Commitments
Forward sale contracts are accounted for as sale contracts with revenue recognised once gold has been physically delivered. The physical gold
delivery contracts are considered own use contracts and therefore do not fall within the scope of AASB 9 Financial Instruments: Recognition and
Measurement. As a result, no derivatives are required to be recognised. Forward gold sale contract delivery commitments are shown below:
Gold for
Physical Delivery
Oz
Contracted
Sales Price
A$/oz
Committed
Gold Sales Value
$’000
114,000
97,000
211,000
108,000
88,000
196,000
$2,646
$2,921
$2,772
$2,446
$2,593
$2,512
301,612
283,361
584,973
264,207
228,214
492,421
Gold Delivery Commitments
As at 30 June 2023
Within one-year
Between one and five years
Total
As at 30 June 2022
Within one-year
Between one and five years
Total
104
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION
Capital Expenditure Commitments
Capital expenditure contracted but not provided for in the financial statements:
Within one-year
2023
$’000
3,832
2022
$’000
3,287
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
2023
$’000
6,714
19,667
21,535
47,916
2022
$’000
5,852
17,257
17,059
40,168
NOTE 27: EVENTS OCCURRING AFTER THE REPORTING PERIOD
Acquisition of the Cue Gold Project (Musgrave Minerals Limited)
On 3 July 2023 Ramelius announced a recommended off-market takeover offer (the Offer) for Musgrave Minerals Limited (Musgrave). Under the
offer, Musgrave shareholders are to receive 1 Ramelius Share for every 4.21 Musgrave Shares held plus an additional $0.04 in cash per Musgrave
Share held. The primary asset of Musgrave is the Cue Gold Project (Cue).
The Cue Gold Project, which is located 40km north of the town of Mount Magnet in WA, has a Mineral Resource of 12.3Mt at 2.30g/t for 927k
ounces of contained gold. If the acquisition is successful Cue will be integrated into the Mt Magnet operations hub.
The offer was not subject to any further due diligence and was only subject to limited conditions including:
•
•
•
•
50.1% minimum acceptance threshold;
No material changes or prescribed occurrences;
No adverse regulatory events affecting the Offer or Musgrave or its assets; and
Other customary conditions for a transaction of this type.
Under the takeover offer the maximum number of Ramelius Shares to be issued to Musgrave Share and Option holders is 146,355,808 whilst the
maximum cash consideration payable to Musgrave shareholder is $23.6 million.
At the date of this report Ramelius had received acceptances representing 47.36% of Musgrave Shares.
There were no matters or circumstances that have arisen since 30 June 2023 that have significantly affected, or may significantly affect:
(a) The Group’s operations in future financial years,
(b) The results of operations in future financial years, or
(c) The Group’s state of affairs in future financial years.
NOTE 28: SHARE BASED PAYMENTS
Performance Rights
Under the Ramelius Performance Plan 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.
105
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION
Service Rights
During the 2023 financial year Ramelius issued Service Rights across the Group to motivate employees to remain in the employment of
Ramelius considering the extremely difficult labour market environment within Western Australia in the 2022 calendar year. As part of this
approach Service Rights were issued to all employees (who were employed at 1 July 2022 or entered into an employment agreement with
Ramelius before 31 December 2022) excluding the Managing Director and Non-Executive Directors.
Under the Ramelius Performance Plan, the number of Rights granted to employees ranged between 25 - 33% of the employee’s Fixed
Annual Remuneration (FAR), depending on their organisational level. The number of Rights granted was calculated by dividing the employees
FAR by the volume weighted average price of Ramelius shares traded on the Australian Securities Exchange during the 5-trading day period prior
to 30 September 2022, being $0.94 per Ramelius share.
The Service Rights were issued on 1 December 2022 and were subject to a performance period ranging between 18 and 24 months, commencing
on 1 July 2022. The performance criteria for these Service Rights is that the employee must remain in the employment of Ramelius for the full
performance period. The performance periods end on 31 December 2023 and 30 June 2024.
The table set out below summarises the performance and service rights (collectively incentive rights) granted:
As at 1 July
Incentive rights granted
Incentive rights forfeited
Incentive rights exercised
As at 30 June
Vested and exercisable at 30 June
2023
Service
Rights
-
13,682,577
(1,040,077)
-
12,642,500
nil
2023
Performance
Rights
9,733,070
4,496,951
(1,574,224)
(2,637,718)
10,018,079
3,421,320
2022
Performance
Rights
9,410,411
2,152,869
(312,739)
(1,517,471)
9,733,070
3,606,628
The fair value at grant date is independently determined using a Monte Carlo Simulations pricing model that takes into account the exercise price,
the term of the performance right, the share price at grant date, expected price volatility of the underlying share and the risk free rate for the term
of the performance right. The expected price volatility is based on historic volatility (based on the remaining life of the performance right). Model
inputs for performance rights granted during the year are as follows:
Metric
Exercise price
Grant date
Life
Share price at grant date
Expected price volatility
Risk free rate
Performance Rights
Granted
Service Rghts
Granted
8 Sep 2022
$nil
8 Sep 2022
2.8 years
$0.71
50%
3.57%
26 Nov 2022
$nil
26 Nov 2022
2.6 years
$0.87
55%
3.34%
1 Dec 2022
$nil
1 Dec 2022
1.5 – 2 years
$0.92
55%
3.14%
106
RAMELIUS RESOURCES ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION
Performance and service rights outstanding at the end of the year have the following expiry date:
Grant Date
23 November 2016
23 November 2016
23 November 2016
22 December 2016
1 July 2017
5 September 2018
29 November 2018
9 October 2019
22 November 2019
22 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
8 September 2022
8 September 2022
26 November 2022
26 November 2022
Sub-total Performance rights
1 December 2022
1 December 2022
Sub-total service rights
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 2030
1 July 2030
1 July 2031
1 July 2031
1 July 2031
1 July 2031
1 July 2032
1 July 2032
1 July 2032
1 July 2032
31 December 2025
30 June 2026
2023
Rights on Issue
101,138
129,593
161,819
-
772,933
746,399
189,655
1,319,783
-
-
362,451
362,451
177,696
177,696
592,073
592,073
221,264
221,264
1,514,946
1,514,946
429,951
429,951
10,018,082
10,738,150
1,904,350
12,642,500
22,660,582
2022
Rights on Issue
21,914
129,593
241,043
500,000
772,933
746,399
872,404
2,022,621
322,342
644,683
475,439
475,439
177,696
177,696
855,171
855,171
221,264
221,264
-
-
-
-
9,733,072
-
-
-
9,733,072
Weighted average remaining contractual life of performance rights outstanding
at the end of the year
Weighted average remaining contractual life of service rights outstanding at the
end of the year
7.21 years
6.90 years
2.58 years
n/a
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
Service rights
Total share based payment expense
2023
$’000
1,107
5,193
6,300
2022
$’000
2,358
-
2,358
Recognition and Measurement
The Group provides benefits to employees (including the Managing Director / Chief Executive Officer) in the form of share based compensation,
whereby employees render services in exchange for shares or options and / or rights over shares (equity settled transactions).
The cost of these equity settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at
which they are granted. The Group issues share based remuneration in accordance with the employee share acquisition plan, the performance plan
or as approved by the Board on the next page.
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RAMELIUS RESOURCES ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS:
OTHER INFORMATION
(i) Performance plan
The Group has a Performance 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.
(i) Other Long-Term Incentives
The Board may at its discretion provide share rights either to recruit or as a long-term retention incentive to key executives and employees.
The fair value of options and/or rights granted is recognised as an employee benefits expense with a corresponding increase in equity. The total
amount to be expensed is determined by reference to the fair value of the options and/or rights granted, which includes any market performance
conditions and the impact of any non-vesting conditions but excludes the impact of any service and non-market performance vesting conditions.
Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognised
over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity
revises its estimates of the number of options and/or rights that are expected to vest based on the non-market vesting conditions. It recognises the
impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
Upon exercise of the rights, the balance of the share based payments reserve relating to those rights remains in the share based payments reserve
until it is transferred to retained earnings.
NOTE 29: 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
2023
$’000
271,750
-
-
271,750
2022
$’000
196,700
43,000
25,000
264,700
NOTE 30: 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 2022.
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2023 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.
108
RAMELIUS RESOURCES ANNUAL REPORT 2023 DIRECTORS’ DECLARATION
In the Directors’ Opinion:
(a) the financial statements and notes set out on pages 65 to 108 are in accordance with the Corporations Act 2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and
(ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023 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 23
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 23.
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
28 August 2023
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RAMELIUS RESOURCES ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
to the Members of Ramelius Resources Limited
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2
Brookfield Place
123 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt ttoo tthhee
mmeemmbbeerrss ooff RRaammeelliiuuss RReessoouurrcceess LLiimmiitteedd
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 2023, 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 2023 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.
110
RAMELIUS RESOURCES ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
to the Members of Ramelius Resources Limited
KKeeyy AAuuddiitt MMaatttteerr
HHooww tthhee ssccooppee ooff oouurr aauuddiitt rreessppoonnddeedd ttoo tthhee KKeeyy AAuuddiitt
MMaatttteerr
AAccqquuiissiittiioonn ooff BBrreeaakkeerr RReessoouurrcceess NNLL
On 1 May 2023, the Group gained over 50%
ownership interest in Breaker Resources NL
(Breaker), which was considered to have given the
Group control. The compulsory acquisition process
commenced on 22 May 2023, with 100% control
being obtained on 29 June 2023.
The acquisition, which was accounted for as an
asset acquisition, completed for a total
consideration of $159.0 million as disclosed in Note
20.
Accounting for this acquisition requires judgement
in relation to number of areas, including but not
limited to:
•
•
•
determining if the transaction constitutes a
business combination or an asset
acquisition;
determining the fair value of consideration
paid; and
determining the appropriate accounting
for the acquisition of the non-controlling
interest subsequent to the date control
was obtained.
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
accounting for the transaction;
assessing the nature of the transaction with
regards to the requirements of AASB 3 Business
Combinations to conclude on the appropriateness
of the acquisition being accounted for as an asset
acquisition, as opposed to a business
combination;
assessing the appropriateness of the acquisition
date, being the date that Ramelius obtained
control over Breaker Resources NL;
reading the relevant bidder’s statement 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,
including assessing the valuation and accounting
treatment of the acquisition of the non-controlling
interests subsequent to the date of control;
completing audit procedures to support the
accuracy and completeness of the assets acquired
and liabilities assumed at control date;
in conjunction with our tax experts, assessing the
reasonableness of the tax liabilities assumed on
acquisition; and
testing the mathematical accuracy of the
calculations prepared by management.
We also assessed the appropriateness of the disclosures
included in Note 20 to the financial statements.
AAccccoouunnttiinngg ffoorr mmiinnee ddeevveellooppmmeenntt
At 30 June 2023, the carrying value of mine
development assets amounts to $295.3 million as
disclosed in Note 9.
During the year the Group incurred $154.3 million
of capital expenditure related to mine development
assets, and recognised related amortisation
expenses of $123.7 million.
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;
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RAMELIUS RESOURCES ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
to the Members of Ramelius Resources Limited
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, including determining the ore
reserves over which mine development
assets are amortised.
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.
•
•
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 to
the specific mine development assets;
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.
112
RAMELIUS RESOURCES ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
to the Members of Ramelius Resources Limited
IInnvveennttoorryy vvaalluuaattiioonn aanndd ccllaassssiiffiiccaattiioonn
At 30 June 2023, the Group held inventories of
$217.7 million, of which $174.9 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 an additional net realisable value
write down expense of $1.5 million during the year
(2022: $28.4 million expense), which increased the
valuation allowance to $31.7 million.
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; and
the estimation of costs to sell; and the
expected consumption pattern of the ore
stock on hand.
Other Information
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.
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, Chair’s Report, Managing Director’s Report,
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, Chair’s Report,
Managing Director’s Report, 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
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RAMELIUS RESOURCES ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
to the Members of Ramelius Resources Limited
as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair
view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Group’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure, and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the
direction, supervision, and performance of the Group’s audit. We remain solely responsible for our audit
opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore the key audit matters. We describe these
114
RAMELIUS RESOURCES ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
to the Members of Ramelius Resources Limited
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
RReeppoorrtt oonn tthhee RReemmuunneerraattiioonn RReeppoorrtt
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 45 to 62 of the Directors’ Report for the year ended 30
June 2023.
In our opinion, the Remuneration Report of Ramelius Resources Limited, for the year ended 30 June 2023, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
DDEELLOOIITTTTEE TTOOUUCCHHEE TTOOHHMMAATTSSUU
DDaavviidd NNeewwmmaann
Partner
Chartered Accountants
Perth, 28 August 2023
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RAMELIUS RESOURCES ANNUAL REPORT 2023
SHAREHOLDER INFORMATION
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 10 October 2023 are as follows:
Number of
Performance Rights
Exercise
Price
101,138
129,593
161,819
722,933
936,054
1,319,783
1,388,427
1,626,673
3,889,793
nil
nil
nil
nil
nil
nil
nil
nil
nil
Expiry
Date
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*
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.
UNQUOTED AND RESTRICTED EQUITY SHARES
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 10 October 2023 which are unquoted restricted securities held by
employees as long-term incentives are as follows:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Rounding
Total
Total Holders
Units
3,519
5,360
2,343
3,859
558
1,777,588
14,655,779
17,971,337
117,393,923
968,010,945
15,639
1,119,809,572
% Units
0.16
1.31
1.60
10.48
86.44
0.01
100.00
Unmarketable Parcels
Minimum $ 500.00 parcel at $1.4950 per unit
Minimum Parcel
Size
335
Holders
1,101
Units
122,581
116
RAMELIUS RESOURCES ANNUAL REPORT 2023
SHAREHOLDER INFORMATION
TOP HOLDERS (UNGROUPED) AS OF 4 OCTOBER 2023
issued as at 10 October 2023 which are unquoted restricted securities held by employees as long-term incentives are as follows:
Name
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMS PTY LTD
NATIONAL NOMINEES LIMITED
STRAMIG HOLDINGS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
Rank
1
2
3
4
5
6
7
8
9 WEST TRADE ENTERPRISES PTY LTD
10
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
11 MR RICHARD ARTHUR LOCKWOOD
12
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
13 WESTMINEX PTY LTD
14 MR MARK WILLIAM ZEPTNER
15 MR HENDRICUS PETRUS INDRISIE
16
17
18
19 MR KENNETH JOSEPH HALL
20
PATINA RESOURCES PTY LTD
CITICORP NOMINEES PTY LIMITED
SOUTHERN CROSS CAPITAL PTY LTD
BRAZIL FARMING PTY LTD
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
Total Remaining Holders Balance
Units
371,474,559
155,077,366
134,982,568
42,010,757
39,971,879
9,650,000
7,455,800
5,953,037
5,485,000
5,044,284
4,796,913
3,632,689
3,562,946
3,445,474
3,000,000
2,965,947
2,555,000
2,000,000
2,000,000
2,000,000
807,064,219
312,715,157
% Units
33.17
13.85
12.05
3.75
3.57
0.86
0.67
0.53
0.49
0.45
0.43
0.32
0.32
0.31
0.27
0.26
0.23
0.18
0.18
0.18
72.07
27.93
117
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RAMELIUS RESOURCES ANNUAL REPORT 2023
Penny at sunset
Photo: Perry Kasper
www.rameliusresources.com.au