Shares in goldminer Ramelius Resources rose early on Wednesday, following news that the company’s board had approved a $250 million share buyback program.
Shares in goldminer Ramelius Resources rose early on Wednesday, following news that the company’s board had approved a $250 million share buyback program.
After briefly touching $3.71 in the first six minutes of the trading session, Ramelius closed trade up 6 per cent to $3.59.
The buyback scheme, which will begin on Christmas Eve (December 24) will be facilitated over the coming 18 months.
Along with the buyback – part of its FY26 and FY27 capitalisation strategy – an increase in Ramelius’ minimum dividend of 2 cents per share each year will be included.
The capitalisation strategy is comprised of three key variables – re-investing into the company, increasing returns for Ramelius shareholders and also sustaining a strong balance sheet.
“This capital management initiative is underpinned by our track record of consistently delivering strong free cash flow and our confidence that it will continue into the future,” Ramelius boss Mark Zeptner said.
“Importantly, we remain fully funded, our production profile is growing and we anticipate further increase in our free cash flow returns.
“As our capital investments over the coming years start to yield benefits, we anticipate being able to provide shareholders with even better returns.”
The goldminer also provided an update in relation to the investment and ongoing development of several of its assets.
At the Dalgaranga gold project – which it secured through its $2.4 billion acquisition of Spartan Resources earlier this year – Ramelius will continue to develop the Never Never underground mine over the next two financial years and is anticipating a ‘steady state production’ of around 1 million tonnes per annum in the early stages of FY28.
Ramelius said it will also invest in its Mt Magnet hub, by way of a processing plant upgrade, which will increase throughput to 4.3 million tonnes per annum.
In FY25, the goldminer produced 301,644 ounces, which was the first time it has surpassed the 300,000 marker.
