Well, thanks all for joining the conference and attending this session. For those that haven't followed Ramelius, we're listed on the ASX, currently producing approximately 200,000 ounces a year. We're on a real projection as we go forward with the asset we acquired last year with Spartan Resources for AUD 2.5 billion. I'll let you read the disclaimer here. For those that haven't followed the story, we historically had two operating assets being Mount Magnet, which is the production hub that would generate approximately 350,000 ounces per annum once we're in full production. We historically also used to produce at the Edna May asset, which we acquired from Evolution several years ago. That's now put under care and maintenance, and we've done that when the gold price Australian was at approximately AUD 3,000 an ounce.
We are disciplined on what we do, and we only look to invest in projects that make large returns and a high margin business. The third project, which is looking to be in development in two years, is the Rebecca Roe project, and that's two deposits in which we've joined together. The Rebecca deposit's approximately 800,000 ounces, and Roe of 300,000 ounces. Rebecca is fully permitted, all in Western Australia, and Roe, we're going through a process which I'll talk about a bit more shortly. The thing with Ramelius is we want to ensure we also get returns to our shareholders, but we also want to invest into the ground and exploration. We established a share buyback policy for AUD 250 million over the financial year 2026, FY 2027 in totality. These are referencing Australian dollars.
We've also established minimum AUD 0.02 per year in FY 2026 and in FY 2027 to ensure we will be returning to shareholders during this investment phase we're about to undertake. As you can see here, this is just the first or the financial year 2026 production update. You'll see there the different quarters. The first quarter, Q1, produced 55,000 ounces. That was when we had the Penny, was in the high-grade zones, also Q. It came off a little bit. In Q3, we had a lower production due to two reasons. One being there was a six-day mill shutdown, and then the second, Cyclone Narelle decided to visit, or close to the mine. We had increased rainfall, and it shut down some of the roads in which we're trucking the ore. That was the last probably week or so in the production of the quarter.
We produced about AUD 5,000 less than planned in Q3, but we still feel we can make that up in Q4. Why I say we can do that is, one, we've got several ounces of stockpiles available to us. We're starting to get into the high-grade material that is Dalgaranga, or the Never Never ore. Also, we'll be re-entering the high-grade open pit of Cue. For those in the room that do follow the Australian Stock Exchange market, there has been some restraints in the area. For us, we've got a long-term contract with a large oil producer. We haven't missed one delivery. What we also wanted to try to do here is just show you what would be the scenario if there was reduction in fuel and restrictions were to be in place.
On the right-hand side, you'll see we only need 2% of diesel fuel generation or power to ensure the mills continue to operate. That is crucial in the context of we have stockpiles of 2.2 million tons, just under 0.9 grams per ton. We can still be generating probably AUD 20 million in cash flow at AUD 6,000 an ounce per month under the scenario that we would have to minimize the haulage and mining contract production. As we go forward, you can see we've got gas and solar. Next year, we're looking to put in wind farm also, and that will also reduce the gas cost as we move forward. Now into the long game we call our medium-term production profile. As you can see here, 195-205 production guidance in FY 2026. At midpoint there, AUD 1,825.
For us is really the low point in this production profile, and we're looking to grow 170% growth from FY 2026-FY 2030. As you can see, we've plotted two things on the bar chart or the line charts, one representing the Ramelius all-in sustaining cost, and that's in Australian dollars. What we're targeting is approximately under AUD 2,000 an ounce, or that's approximately $1,400. What you can also see here in the blue line is that our peer group in the Australian market is approximately AUD 400-AUD 500 less than that of our peer group. That's because of our high grade in nature business that we have historically run and continue to do so as we go forward. The blue represents the Mount Magnet contribution, which when in full flight, will be at 350,000 ounces production per annum.
In the yellow is the Rebecca Roe project we're looking to develop in FY 2027 and into production in FY 2028, production FY 2029, which in full flight will be approximately 150,000 ounces per year. Very much a fully funded growth profile. We've got AUD 500 million in the bank, Australian, and also got AUD 600 million in the bank and AUD 500 million credit facility available to us. What this here shows is a historical margin. As you can see, we've been pretty consistent in growing our margins in the business. Obviously with the spike in gold price, we'll see that margin continue to increase. What we've done as a business is look to establish a business at AUD 4,500 gold price. Anything above that is pure higher margins.
We're looking at 50%-60% margin at AUD 4,500, where the current Australian gold price is AUD 6,700. Obviously this margin will significantly grow. One thing you'd probably point out for our business is that all these expansions, especially at Mount Magnet, is to facilitate higher grade to be put into the system. We're not looking to increase the mill size to bringing additional low-grade ounces to reduce the mill costs, which were very competitive at AUD 22 a ton. It is to bring in the higher margin, higher grade production that will come from the Dalgaranga or the Never Never ore body. I pulled up this chart just to give you a feel for how we view ourselves and what sort of metrics we do look at, return on invested capital, return on capital. These also factor in the hedge book.
We had a large hedge book in place. We've paid that all out in the March quarter just gone. If we hadn't have had these hedges in place, in this period, we would have been in the top performer return on capital at 36%. We would have been top return on capital of 33%, and we would have been at 24% for that last metric. As you can see here, we continued to perform well, invest well. Actually, Scotia put out a report recently. I think we had in 2025, the TSX peer group was about 12% and the average for the last three years was about 18%. We stack up pretty well compared to our TSX peers also. This one's an interesting one.
For us, we really wanted to be very transparent and demonstrate what free cash flow generation will be coming into the business in the short term and the medium term that is overlaid by that five-year production profile. As you can see, lower levels of production in FY 2026, FY 2027. That's when we're looking to build or expand on the Mount Magnet mill, with AUD 223 being invested in that period. We've also got the development of Dalgaranga mine, which is going extremely well, which I'll jump into a moment. It's AUD 82 million. Come FY 2028, we're looking to develop the Rebecca Roe project at AUD 300 million.
What we're doing, as I said earlier, is in FY 2026 and FY 2027, we're looking to reinvest into the business with that AUD 250 million in buyback and also the minimum AUD 0.02 per year in FY 2026, FY 2027 in our high investment period. The numbers I'd point out to you is FY 2028, just under AUD 750 million in free cash flow generation Australian, FY 2029 at over AUD 1 billion, and then in FY 2030 at approximately just under AUD 1.75 billion. These are the factors you should be using. As we go forward into FY 2028, we'll be targeting a 40% payout ratio. These are significant numbers, and we're also building another mine to grow. We're not into the best part of the ore body, as I'll show shortly.
This just shows you our operating cash flow. For us, we just wanted to demonstrate the bubble grows, as you saw previously. As we get the production at Mount Magnet increase, we get Rebecca Roe into production. We invested last year in Cube and Galaxy. This year, it's the mine development at Dalgaranga, the Mount Magnet mill, and then we move into FY 2028, 2029, Rebecca Roe. We have purposely scheduled these developments out to ensure we have free cash flow generation to return to our shareholders.
With that AUD 250 million buyback plus the minimum share, we can maintain and then grow our return to our shareholders, which has always been a focus of the business. This is demonstrating this. As you can see, every year, we've continued to grow on our dividends, with a payout ratio up until the end of FY 2025 of 29%. As noted, we've got FY 2026, FY 2027 are the two periods in when we're reinvesting into the business, which you saw in the previous slide.
Once again, in FY 2026, we've topped up in effect the minimum dividend with the buyback. As you can see here, because of the increase in the cash flow projection from where we started on targeting that AUD 4,500, we are already over and growing with that. That'll only also accentuate even further as we get into FY 2028. Mount Magnet, t his is the real engine of the business. As you can see here, the orange represents the contribution from Dalgaranga. If you convert that all-in sustaining cost up the top, it's approximately $1,300 all-in sustaining we're sort of targeting at this production hub. More importantly, this gets better. Come financial year 2031-2036 is when we only start to get into the high-grade zone of the Dalgaranga deposit, and we're also increasing our capacity.
Come FY 2028, we're looking to increase from the 1.9 million tons capacity up to 4.1, then 4.3. This, once again, is to enable the ore contribution from the Dalgaranga deposit. The mine development has gone really well. Two fronts. One, we're probably about a month ahead of schedule, and secondly, we're probably seeing grades higher than planned in our production profile. For us, we're looking to be getting 200,000 tons at 3.7 grams per ton. As you can see on the first stope, we delivered 40,000 tons at 7.4, and we had stockpiles, which were primarily development, at 52,000 tons at 3.6. Extremely great start. Already generating cash flow from this mine in a really short period of time. We only closed this transaction back in July. We put out our five-year plan in October, and we're already seeing the benefit. The actual geology itself.
As you can see, we've got the open pit up the top, and we just really have only established this to ensure more ventilation through to the bulk part of the mine so we can get the mining rates up. The second sort of drawing there, or the red draw, is where we currently are in the production. For us, what you need to really focus on here is just how small a part of the puzzle we're in right now, given where we're starting the mine. You can see when you get down to year four, year five, in particular, which is FY 2029, FY 2030, is when you get to grade increase and you get to the strike increasing as well. For us, that's the most exciting part. As you can see, it will continue for several years.
That's why the cost will be coming down as the grade is coming up. This is the production profile we'll be sourcing from the Never Never mine. As you see, 0.2 in the first year, 0.6 thousand ton, and then the grade increases. As I said earlier, come FY 2030 is when the grade really picks up and when we're in full production. That's why our cost, as I said, will come down and it's even better after FY 2030, which is not many sort of companies can put forward that your cost profile will be coming down as you're past this period. Probably the other thing just to flag is the only sort of element of this deposit is that it does require finer grind.
Because of that, we're building a separate circuit within the Mount Magnet mill to ensure that we get the highest recoveries. We're willing to accept a lower recovery at 81% for FY 2026, FY 2027, but when the mine is in full production, which is also timed from September 2027, is when we'll have the separate circuit being built. That's what this is trying to explain here. On the left-hand side, down the bottom, that's an existing operating circuit. That's currently running at 1.9 million tons per annum. We're looking to add additional crushing to facilitate that, bringing down from 175 microns to 53 to enable a release of those gold particles within the Dalgaranga deposit. That will be its standalone ore feed feeding the Dalgaranga project.
On the second side there, we're building a separate 2 million ton circuit, which will process all other material. What's in the green in the middle there is approximately AUD 100 million worth of savings. We're taking the Spartan or the Dalgaranga mill. We're reusing some of that equipment, and that's how that AUD 100 million in savings has been generated. Just to get a flavor of what this deposit will become or what this production hub will become, just wanted to show where we're sitting for FY 2025 at just under 250,000 ounces at that low in all-in sustaining cost. When this is in full flight, up to 360,000 ounces at under AUD 1,600 an ounce Aussie price. Top five production hub in Australia and at the lower cost compared to our peers.
The only lower cost producer based on our numbers is the Fosterville Gold mine, which as you know, is sort of coming off its best time. Rebecca Roe, just quickly, this hasn't been a focus of the presentation because we've been more focusing on Mount Magnet. That's sort of front and center for us. The Rebecca Roe project shouldn't be forgotten. As I said, 150,000 ounce producer, AUD 2,600 all-in sustaining cost. We've got the Rebecca project which is being permitted and now the focus is on Roe. For Roe, we've resubmitted application with a view to head down that same path of the Roe project and that'll enable us to be more timeline driven because of the additional hydrological drilling we have done. We no longer need to take that water from the underground and dispense it to the salt water, so the lakes.
So that's basically why the change and why we're taking a little bit longer. But on the timelines and schedules we've set, basically we've already made it fit on this. Once we get Roe, we'll have lots of time based on our current thinking before we have to get into construction. And probably the fun part is the exploration. So for us, we're spending 100 million Australian on exploration this year and we're a little bit different. We're not looking to extend the mine life at the back end. We're going after high grade to displace lower grade material in the next five years.
What we've done is we've asked our geologists, "Okay, guys, tell us what potentially we can extend in mine lives and what's going to be of higher grade to displace the lower-grade material." The way it works in here is for the first or FY 2026, it is what it is. The guidance is here. FY 2027 we're putting forward, we think we can extend the Penny high-grade mine, which is 10-12 grams. We think we can probably get eight-10, extend that for six months. We'll look to increase production that way. You get into FY 2028. The Cue mine is due to finish and that's at a four-five gram ton material. We think we can displace this lower-grade 0.8-0.9 for the next few years. Galaxy is due to finish up.
Galaxy Mine, forming part of the Mount Magnet Complex, is due to finish up at the end of FY 2028. We think we can extend that several years. The example we've given here on our exploration target is Galaxy at 6 million ton-7 million ton at 2.1 grams per ton-2.6 grams per ton for 400,000 ounces-600,000 ounces. That is quite meaningful when you add that into the production mix and displace this lower-grade material. For us, this is the prize. We've got everything we need fully funded. We've got the team in place. We've hit guidance for the last five years in a row, both on production and cost. We think we've got the right mix to ensure shareholder returns and growing the business at the same time. With that, I'll open it up probably on this one.
Yeah, thank you very much, Darren. We are out of time, but great update. Thanks so much.
Thank you.