I would now like to hand the conference over to Mr. Mark Zeptner, Managing Director. Please go ahead.
Good morning, everyone. Thank you for taking the time to dial into our half year results call. Joining me again this morning is Acting Chief Financial Officer, Ben Ringrose. Given that today's focus is on the financial accounts, I'll leave Ben to do most of the talking, especially around the presentation that has been released to the ASX this morning, before, as always, opening up the line for questions. Before handing over, I will give an overview on how we saw the first half. By way of an overall assessment, we believe this is a very competitive set of underlying results, with improvement seen pretty much in all key metrics when compared to the prior corresponding period.
The company continues to be in a strong financial position, despite the continuation of a challenging labor market and inflationary pressures seen throughout the industry in the second half of 2023. In terms of production, as we announced late last month, total gold produced for the six months to 31 December came in at just over 124,000 ounces, up slightly on the prior period. Based on the half year production result and our expectation of an increasing production profile in the second half, we remain confident of meeting our upgraded full-year guidance of 265,000 ounces -280,000 ounces at the cost of between $1,750 and $1,850 an ounce.
If listeners can turn to slide three of the presentation, where we see our five-year production profile, and at the midpoint, FY 2024 is predicted to deliver record production. That is record production from our portfolio of assets that can be seen both in the production chart breakdown on the left, and obviously on the map over on the right. Where we do manage a dynamic mix of assets, but that mix also affords us a degree of production flexibility. If we move to slide four, where we have the key physical production numbers for the half, all tonnes were mined down, which is not a concern for us, given that we have over 4 million tonnes in stockpiles. But more importantly, both mined and processed grades are up.
When combined with marginally higher mill throughput achieved despite Mount Magnet's CV01 conveyor repairs, led to higher gold production. Also worth noting on this slide is our second half FY 2024 guidance bars in aqua blue. Where we see an expected increase, material increase actually, in gold production and a corresponding drop in all-in sustaining costs in the second half. They speak for themselves, I think. With that, I'll now pass over to Ben.
Thank you, Mark, and thank you all again for joining us this morning for Ramelius Resources' financial results for the half year ended December 2023. It is indeed a very strong set of financial results, with all key metrics comparing positively to the prior corresponding period and continuing to build on our strong second half in FY 2023. At the macro level, whilst we have seen a slowing in the rate at which costs have climbed, they still remain high. But pleasingly, we are noting that the labor constraints faced in the past have eased to an extent since the new year. It is in this environment, high-grade ore sources such as Penny will be the ones that stand out, with Mount Magnet to be further enhanced with the integration of the Cue Gold Project, which has a fast track to development and production.
With its proximity to Mount Magnet, the majority of infrastructure for Cue is in place, and we aim to be able to deliver a new mine plan for Mount Magnet, incorporating Cue, in this current quarter. Before moving on to the presentation itself, I'll have a brief discussion on operational performance for the half year. At Mount Magnet, open pit mining saw notable increases in not only tons, but also grade. This is the result of mining at Eridanus, which is the main source of open pit ore. Progressing, this pit has progressed past the known lower grade portion of the ore body, and this is a trend that we are seeing continue into the second half. Further complementing this is the excellent deeper drill results at Eridanus, which were released in the December quarterly.
The underground operations at Mount Magnet focused on the development of the Galaxy mine, which will provide a steady supply of feed in the coming years. This had a flow-on effect on tonnages, which were down on the prior period. However, with the increased contribution from Penny, the mine grade increased 50% to 5.7 grams. In fact, if we look at Penny in isolation, the mill grade for the period was an impressive 11.7 grams, which was achieved despite most of the feed coming from development ore. With multiple stoping areas becoming available in the second half, we expect the grade at Penny to increase to reserve levels. H2 guidance for Mount Magnet is approximately 85,000 ounces, an increase from H1, and resulting in full-year guidance of 150,000 ounces.
This is a 17% increase on FY 2023, achieved on the back of increasing contributions from Penny and increasing grades at Eridanus. Turning our attention to Edna May, now, where we see Symes was brought into production during the period, which provided an additional high-grade source of ore. Mining at Symes focused on the shallower satellite pits, with a significant stockpile being accumulated. Operations have now moved on to the deeper main pit at Symes, which, along with the stockpiles, will provide feed for Edna May throughout the 2024 calendar year. Importantly, across the Edna May hub, stockpiles now total 1.3 million tonnes at a grade of 1.6 grams. The underground operations at Edna May were extended beyond the expected levels, with the water issues faced late in FY 2023 now under control.
Development works there are now complete, and operations are solely focused on harvesting the remaining ore body. This has led to a noticeable increase in tons mined when compared to the prior reporting period. With the introduction of Symes as a third haulage route and improved underground tonnages, mill throughput at Edna May increased 4% on the prior period. Guidance for Edna May for the second half of FY 2024 is approximately 65,000 ounces, which is an increase on the first half again, and results in guidance for FY 2024 of 122,000 ounces, an 8% increase on the prior period. Now returning to the presentation itself and slide five.
There, you'll see that Ramelius generated record half-year revenues of just under AUD 350 million, which was achieved on high gold production and an improved gold price of over $2,800 an ounce. At the group level, the EBITDA was a tad over AUD 140 million, which represents a 40% increase from December 2022 and an impressive 40% margin. While peer results are still being released, we believe this will compare very favorably. The EBITDA increased with the growing contribution from Penny, which had a margin of more than 70%. With such a standout asset in Penny, it is easy for other operations to be overshadowed, but it's worth pointing out here the performance of Symes and its importance to Edna May.
Symes generated an EBITDA of AUD 20 million at a margin of 65%, which is, I'm sure you will agree, a stellar performance for an asset we bought for AUD 2 million. Moving on to slide six, and looking at the earnings by operation, we can see that these are weighted to Mount Magnet, which is as we would expect, being our flagship asset and the contribution of Penny. The EBITDA for Mount Magnet is 54% or over AUD 1,500 an ounce, which leaves Ramelius with a positive earnings outlook that will only be further enhanced with the addition of Cue. At the gross profit level, the operating costs at Mount Magnet were AUD 154 a ton, which included a significant D&A charge relating to the Penny acquisition.
With the increased mill grade, the resulting cost per ounce at Mount Magnet was AUD 2,000, a 7% decrease on the prior period. Remaining on slide six and moving on to Edna May, where the operating cost was AUD 121 a ton, which had increased costs, with more tons being hauled to the mill. The cost per ounce was AUD 2,300, with Edna May continuing to generate healthy returns for the business. The resulting NPAT for the group was AUD 41.2 million for the half year, a 42% increase on the prior period. Now, moving on to the cash flow of the business and slide seven.
We reported an underlying cash flow, which includes the increase in the value of gold on hand, of just over AUD 52 million, representing our second consecutive half year period in which the underlying cash flow was more than AUD 50 million. Operational cash flows for the half year, including the increased bullion holdings, were AUD 121 million, with AUD 90 million of this invested in mine development, exploration, and the acquisition of Cue. After taking into account the return to shareholders by way of the dividend payment of AUD 17 million in the period and the net cash outflow for the acquisition of Cue of AUD 19 million, our ending cash and gold balance was AUD 282 million.
Cash flow is expected to be particularly strong over the remainder of the financial year, with increased contributions from Penny, high-grade mining from Eridanus, and the monetization of stockpiles across Edna May. As those who follow Ramelius will know, we've invested well in our business over the years, and we are now entering a very strong phase of cash generation, with these prior investments coming to fruition. The final slide from myself is slide eight, referring to the balance sheet, which is one of our most important assets. This has never been stronger, and not only due to our cash and gold balance and debt-free position, but we also have significant ore stockpiles, which give Ramelius security of ore feed over the coming years, as well as a strong cash generation outlook.
Our working capital position is AUD 294 million, with trade and other payables of AUD 72 million, which includes AUD 14 million of stamp duty on the acquisition of Breaker and Musgrave, which we expect to be settled in this calendar year. This leaves a true payables balance of AUD 57 million, which represents creditors' days of 36. Our operations rely heavily on mining and haulage contractors, and we pride ourselves on diligent creditor management. Final point in our balance sheet before moving on: The net assets of the group have now grown to in excess of AUD 1 billion. This is a remarkable milestone, coming from AUD 170 million when I first started here in 2017. Our hedge book currently sits at 192,000 ounces at an average price of over $2,900 an ounce.
What you will see going forward in this is an accelerated reduction in this position. Further details on this will be provided in the next quarterly report, but we expect the book to be closer to 160,000 ounces by 30 June. So before handing back to Mark, the financial highlights here are clear. AUD 282 million in cash and gold, which we expect to see increase as the second half unfolds, ideally ending somewhere around AUD 400 million by 30 June. We are debt-free with AUD 100 million in available finance facilities, and we have over 145,000 ounces of gold in stocks and in circuit, which have a book value of just over AUD 200 million, but importantly, will generate cash flow well in excess of this amount, particularly at the current gold prices.
With that, I'll now hand you back to Mark to summarize.
Thanks, Ben. I'll try not to lose where I'm up to, this time. We are on slide nine, and to summarize where, why we think we're so well positioned for not only 2024, but going forward. Just briefly, we do have largely the same management team that's performed so well for us over the years, still in place. You know, I, I think they're no small feat in, the current labor market. We do, as Ben has pointed out, have our strongest balance sheet ever, and we retain a disciplined approach to any investment decisions. We continue to strongly support greenfields and brownfields exploration, and we believe we'll continue to, add resource answers. As highlighted by the recent RIU presentation given by our EGM Exploration, Peter Ruzicka.
As we've been talking about for a little while, keep an eye out for the new Mount Magnet mine plan this quarter and the Rebecca- Roe PFS closer to midyear. Thanks, Harmony. If we can now open the line for questions, please.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Hayden Bairstow from Argonaut. Please go ahead.
Good morning. Morning, guys. So just a couple of questions to me. Just firstly, on Rebecca- Roe, just keen to understand the range of outcomes and the feasibility. So not so much on CapEx and everything, but more just on timing. I mean, what are you thinking on how much work needs to be done on the project itself and then also the whole approvals process?
Thanks, Hayden. Obviously at Roe, we're still drilling, particularly the underground Tura lodes, and Northern Flat lodes. Looking to convert inferred resources to indicated resources. So the Roe side of the project obviously is further behind Rebecca, which is, we've done a fair amount of drilling there, and actually at Rebecca, we're looking for water sources. And we're very advanced in those other bits that a PFS requires. We've already commenced work on the approvals process. We'd be looking to lodge that, I believe, later this year. And there is sort of two paths. We've assumed the worst case, which is a Part IV assessment, as opposed to a Part V, and there's about a 12-month difference.
We'll be able to obviously provide a lot more detail on timing to the market, in and around the time of the PFS itself, around mid-year.
Yeah, okay. And then just at Magnet, just keen to understand as you get into these Cue assets, just the mix on sort of tonnage from pits versus underground, filling that 2 million ton mill. I mean, what is it, is it likely to be a bit of a shift there? Or obviously, Penny still getting decent grades, it's the key focus, but just keen to understand how that might look.
Yeah, well, look, without being able to quote numbers, Hayden, obviously, the highest grade goes in first, so Penny will always go in first. Cue, we're really, it's largely open pits in the first four or five years at least. So that will really, those open pit tonnages will largely replace Eridanus and Brown Hill. And then the top-up will come from the undergrounds at Mount Magnet, which is, by the time Cue gets up and running, largely Galaxy. So we'll be replacing Eridanus, let's say 1.2 grams, 1.5 grams with potentially 4-gram open pit material. Probably not of the same volumes from Cue, so there will be still some makeup from stockpiles.
Like I said, I can't give you the numbers, but, you know, we're looking at some very strong gold production out of Mount Magnet in FY 2025 when the Cue comes in.
Yeah, perfect. Just one final one. Can you just confirm the timing? You might have mentioned at the start, just on the release of the Mount Magnet plan and then the PFS for Rebecca.
Yeah, this quarter, Hayden. Thank you. Yeah.
For both?
No, this quarter for the Mount Magnet mine plan. What was the second one? Sorry, I missed.
Rebecca PFS.
Oh, Rebecca's mid-year.
Okay, beautiful. Thanks, guys.
Thank you. Your next question comes from Andrew Bowler, from Macquarie. Please go ahead.
Just following up from Hayden's questions on Rebecca, I mean, obviously, you know, heading towards the PFS, but just wondering how you're thinking about funding for that project. I mean, obviously, you're heading into, you know, quite a strong period of cash generation. In light of that, with the, you know, up to 30% free cash flow payout for the dividend, are you considering, sort of maintaining the cadence of the divvy, given the Rebecca funding coming up? Or, you know, are you looking for other ways to fund Rebecca?
To be honest, at this point in time, it hasn't occupied a lot of our thoughts in terms of funding. I think we'll be in a very good place to have a lot of options in that regard. And in terms of the cadence of the divvy, without speaking for the board and prior to making any decisions on that, we would look to, A, have a sustainable dividend that we do build upon. But I think, you know, with AUD 400-odd million in the bank, and strong cash flows going into FY 2025, we'll have plenty of options, with the facility that Ben mentioned also. We'll make those decisions at the time. The first things is to produce the study, make those decisions from there.
But we do have a number of options, Andrew.
No, all right. And just on Penny, I think you noted that, you know, stoping tonnes ramp up in the second half, you're expecting grades to sort of head towards reserve level. Can you talk about the sort of lumpiness of grades you're expecting there over the next year or so? Or once you get to that reserve level, you're expecting a reasonable, reasonably consistent performance from that operation?
Unfortunately, Andrew, I'll say unfortunately, I think the average will be the reserve grade, but you will see some lumpiness. I've seen some daily reports with 20 grams a ton on them, for example, and you'll get days where it's 7 grams. Depends which part of the ore body you're mining. If you're mining the narrow ends, you'll get lower grade. If you're mining right in the heart of the ore body, you'll get higher grades. So I'd like to say it's an even 14 grams, 15 grams every day. Unfortunately, this ore body doesn't work like that, but we'll end up at about the same point, with some swings and roundabouts.
Thank you. Your next question comes from Paul Kaner, from Ord Minnett. Please go ahead.
Yeah. Hi, gents. Thanks for taking my question. Most of, most of them have been answered already, but maybe just one on, on Edna May Stage Three. Has anything sort of changed in the current environment for you to, to reconsider that option?
Paul, it's Mark. Thanks for the question. I think we mentioned on the quarterly call, I'm just checking it, a couple of weeks ago, that we would get our Mount Magnet mine plan out and then potentially have a look at that. And like we made it clear that, yeah, there was labor and inflationary issues more at play in the second half of last year. Obviously, with you know, the well-documented changes in lithium and nickel, a little bit of heat has come out of the market, and we have seen a little bit of pressure come out of the labor market. Our vacancies are sort of at probably two-year lows, and the prices of some things are going down, and the rise and fall is not in contractor...
Contracts are not always going up as they had seemed to do previously. So look, we'll have a look at that probably in sort of March, April, and see where we're at with that project. So we've got a bit on. We've got Mount Magnet, we've got Edna May, we've got Rebecca- Roe, all in this half, dealing to them.
Yeah, no, understood. And then just maybe one more on incorporating Cue into the mine plan. Just with the approvals process and permitting, is there anything specific there that we should be worried about?
Nothing that anyone should be worried about. We submitted early December, mining proposal, and it's already gone back and forth a couple of times. It's, it's pretty much for us, like a Mount Magnet, additional mine approval. It's quite different than Rebecca- Roe, which is more of a greenfield site. So there's a lot of differences between them and, and no cause for concern, from what we've seen back from the department. In fact, we might actually have our approvals before we, have finished mining at, Eridanus, which is around the middle of the year, because we plan to move that open pit crew once we've finished Eridanus.
Yeah, it's great. That's it for me. Thank you. Thanks very much.
Thanks, Paul.
Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Dr. Richard Hart from Top Wheel. Please go ahead.
Oh, thanks, Mark and Ben. Thanks again, as a shareholder. Well done, given conveyor belt problems and employment problems and COVID, to get where you have. I must say I'm more excited about the future because it looks very rosy. You've got a smorgasbord with the drilling you're doing at Mount Magnet and Penny, and then Cue coming online. I'm being impatient. I'm wondering, I heard Ben say again, the... Well, the two go hand in hand, the new mine plan for Mount Magnet and the feasibility study for Cue. Are we looking at the end of the quarter or more imminent, or can't you tell me?
The guys are working on it. It'll, it'll come out when it's ready to go, and then all I've given a commitment to the market is that it'll be within this quarter, Richard. You know, we have got this call, we've got the BMO conference is in the U.S. and things like that, but as soon as it's ready, we'll, we'll release it to the market.
Thanks, Mark. That's exactly what I expected. I just thought I'd have a try. The other thing is with Cue, which is even a harder question, you've just said about mining Eridanus at the end. Is there any rough idea when the Musgrave ore might hit the ROM pad at Mount Magnet, or is that too hard a question?
No, I think we've stated that the December 2024 quarter. We're hoping to be mining in the September quarter, with ore pretty close to surface. First ore, anyway, in the December quarter of 2024.
Well, again, congratulations. You've got a whole range of options for Mount Magnet, and the drill results keep coming. So thanks again for all your help.
Thanks, Richard.
Thank you. There are no further questions at this time. I'll now hand back to Mr. Zeptner for closing remarks.
Okay, just to wrap up, in summary, I'll only add that, upon delivering this solid, profit result in this half, just gone with a forecast to perform even better in, the second half, we're very well placed to deliver our tenth, Ben, tenth?
Yep.
Consecutive full-year profit, and potentially, its sixth, consecutive annual dividend later in the year. Thank you for listening in. Enjoy the rest of your day, everyone.
Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.