All right. Well, good morning everyone, and welcome to day two of Diggers & Dealers 2026. We've got a great line-up of speakers here for you this morning. A better night in gold. GDX has printed up roughly 3%, we should see a pretty good move here today in the Aussie markets. Our first presenter today is Mark Zeptner, MD and CEO of Ramelius. They have a five-year outlook with a pathway to 500,000-550,000 ounces, an AISC sub-AUD 2,000 and AUD 1 billion, I'll just repeat that, AUD 1 billion in free cash per annum assuming AUD 4,500 gold by the year of FY 2030. They just printed a very impressive quarter last week. Never Never I think was 40% of production, Zeppy, and they've gone six years of no production misses, which is pretty impressive. With that as an intro, Zeppy, I'll hand it over to you.
Thanks, Brett. Almost feel like I don't have to do the presentation after that intro. It's great to be back in Kalgoorlie, as always. Pretty much 12 months on from completing the combination with Spartan, where just now we're really starting to see the benefits of that value-adding transaction. Today's presentation will revisit where we're up to with respect to the vision that we created 12 months ago, but more importantly, provide some concrete evidence as to why we believe there is upside to our previous plans. Please note the forward-looking statements contained within. We are currently capped at AUD 5.8 billion with AUD 650 million in the bank, almost AUD 100 million of listed investments. That's mainly through our 11% stake in Benz Mining. It's actually a little bit higher today. Also no debt.
All representing excellent upside value for a company growing gold production beyond 500,000 ounces per annum in the next few years. As I mentioned, this time last year, we completed the combination with Spartan, we set a goal to be a +500,000-ounce producer by FY 2030. The numbers you see here are from 2025, so they're obviously outdated. You will note that whilst today we sit with 40% more ore reserves than we had back then, at a higher grade, and a similar cash at bank, our market cap is only about 20% higher. It's one thing to have a vision, or even an aspiration, we all know it's another thing to deliver on it.
Back in October 2025, we produced a five-year plan you see here with 170% production growth, we called this a base case, an achievable plan based largely on high confidence ore reserves and indicated resources. You can see our All-in Sustaining Cost line in orange, our peer group in the light blue, significantly higher. We have delivered on the first piece, being the FY 2026 production guidance, we've updated both our All-in Sustaining Cost and also our peer group for FY 2026. We've all seen cost inflation in the sector, although Ramelius has maintained a sizable margin advantage over our peers in FY 2026, even after adding in the All-in Sustaining Cost increase due to the early commercial production at Dalgaranga, which I'll explain a little bit more shortly.
A key part of delivering production guidance in FY 2026 was bringing the Dalgaranga mine into production within 12 months of ownership, seen here in green. In fact, we saw first ore after only nine months and delivered commercial production a full quarter early, which perversely added approximately AUD 140 an ounce to our All-in Sustaining Cost that you saw on the previous chart. On the map on the right, you can see our projects with the flagship Mount Magnet Project undergoing expansion. The Rebecca- Roe Project, east of Kalgoorlie, where we have obtained a clear approval pathway via the well-understood State Part V process for Roe only last month. Also recently announced the sale of the Edna May Hub for AUD 300 million to Forrestania Resources, with that deal expected to close in September.
We have passed our production low point and as it says at the top of the slide, the production growth starts now. Looking more closely at Dalgaranga, the operations team are doing a great job with the mine ramp up, and we've also made excellent progress on the right. The tonnes, grade, and recovery profile I have on the left is from the 2025 PFS for the Never Never underground mine. FY 2026 was predicted to deliver 200,000 ounces at 3.7 grams a tonne and an 81% metallurgical recovery. The actuals, in the yellow box, show that we've outperformed on both grade and recovery, delivering 181,000 tonnes at 5.06 and between 81%-84% recovery.
The reason why we have a range on recovery is the team are chasing more data to nail down this number, noting that we are co-mingling the Never Never ore with nuggety high-grade ores from the likes of Penny and Cue. I'm led to believe that the metallurgical accounting in this case is more of an art rather than a science. In any case, the story looks positive. Importantly, this level of recovery is only a temporary factor as we look forward to +90% recoveries to grind finer for that Never Never ore. You can see the number of 92.4% that we expect going forward.
At Mount Magnet, there's a lot of detailed engineering work that has been completed, and this quarter will see major works, particularly on Circuit 1, which is the existing circuit, where we're essentially adding a second ball mill to enable the finer grinding to process that Never Never ore. We are progressing to an EPC contract award for the new Circuit 2, where we plan to use a combination of existing equipment from the Dalgaranga Plant and also new equipment where we've basically ordered a number of the long lead items already. This solution will realize approximately AUD 500 million in synergies when you compare it to two separate mills, one at Mount Magnet and one at Dalgaranga, through a combination of capital and operational savings over the mine life, even after accounting for the haulage cost between the two sites.
Also, from a management perspective, we believe that one construction will be more efficient longer term. As part of the operational savings that we do see at Mount Magnet, a lot of this is driven by the significant cost advantage that we see at Mount Magnet as much as 30%. Not only do we have access to the natural gas pipeline, we've had a solar set up and battery storage in place for some time. To complete our 46 MW hybrid power solution, as you can see in the inset, we poured the foundations for two 7 MW wind turbines. This will not only reduce our carbon emissions, but it also makes economic sense over the long life we see at Mount Magnet. Back on costs. Here we show the waterfall chart for FY 2026 to show where the increases came from.
The largest chunk, AUD 143 an ounce, came from the earlier than expected conversion from growth capital to All-in Sustaining Cost at Dalgaranga, as I mentioned earlier. This is obviously a subject of weekly discussions around the world, although we have tried to minimize the amount of diesel in our power generation mix, and we also have used some pretty savvy fuel hedges, which we've also benefited from as well. In line with our mission statement to deliver superior returns for shareholders, in April, we paid our second fully franked interim dividend of AUD 0.03 per share and also completed another AUD 30 million of share buybacks, taking the total bought back to over AUD 140 million, some 57% of the AUD 250 million program we announced late last year.
As everybody else would be, we've been in a blackout period in terms of buying back shares all of July and will continue for much of August, and we'll use this time to consider our preferred mix of buybacks and dividends, accounting for things such as internal valuations, but also impacts such as the capital gains tax and their impact on investor preferences. As it says at the top, we want to maintain returns in FY 2026 and FY 2027 at levels we established in FY 2025 whilst we are building our expansion projects and then grow returns from FY 2028 and onwards as these projects complete and cash flows increase. On to the exceptional exploration upside at Ramelius. Just a note here, Emelie on the screen is out at the Dalgaranga ore shed.
She's one of nine graduates we brought into the business last year on a brand new tailored program, and we're looking to add another seven this year. We are playing a small part in bringing young professionals into the industry. If we look at Mount Magnet, where we have the Mount Magnet production profile and we're noting in the red circles, the tonnages of low grade that is material below 1 gram. By FY 2028 to FY 2030. Then the projects where we are targeting high grade to displace these low grade tonnes in the boxes on the top of the bars. In short, we have likely extensions at the Galaxy and the Cue mines. Also the Gilbey's underground looks very promising. It's not even included in our 2025 plan at all. Let's have a look at each project and its upside individually.
At Cue, we're looking at the likelihood of not only extending the Break of Day underground, but also adding a Lena underground to essentially form a much more significant underground operation at Cue than was envisaged at the time we put the plan back together back in October. Probably most encouraged by the deeper results at Lena. You probably can read them there, but 19.7 at 5.7 meters and 9 meters at 12, only about 400 meters below surface, but well below our conceptual underground design. Suggests significant upside still remains. The question here is Lena getting better at depth? It's certainly getting wider. Now here we have the same area in isometric. Carry out in FY 2027. The plan is to drill both Lena and Break of Day at depth.
With Break of Day still a focus, we've just been inhibited from doing a lot of drilling in FY 2026 into Break of Day whilst we've been mining the pit. That pit will complete in the new year, 2027. I will note we do have one result at Break of Day at depth, well below the current mine design, 4 meters at four. It shows that the mineralization still continues. At Galaxy, not far from the Mount Magnet mill, we have significantly extended the mine life. Previously, it was about three years. We are now out well beyond FY 2030 and also have the potential for additional ounces from Hesperus on the left, and from Percy South, which is about 250 meters out of the page and obviously not seen on this image.
It's also important to note that the strike length may appear as if it's getting shorter at depth, but that's really a function of drilling. In FY 2027, we expect the strike to increase. I've got one slide on the Eridanus area at Mount Magnet, where we are scheduled to commence the Eridanus cutback in November. This cutback will generate 18 million tons of ore over a five-year period and provide that long-term base load feed for the mill. There is more potential to the north at Franks Tower. Whilst we are in porphyry granodiorites, which typically average about 1.5 grams per ton, the reason why we're interested in Franks Tower is the potential for high grade, as shown with the deeper hits of 3.6 meters at 113 grams within the Franks Tower cutback. But probably more importantly, the 14.8 meters at 54 grams, well below that.
Out at Dalgaranga, similar to Galaxy, we've had two rigs drilling away for the bulk of the year. Mostly on the Gilbey's area underneath the old pit. From time to time, we swing one of those rigs across and do infill drilling at Never Never ahead of the mining front. More often than not, each time we've done that, we've intersected read out here, but I will mention the 3.6 meters at 996 and the 13 meters at 34 grams in the Never Never area, which is tending to be a little bit better every time we drill it than we have modeled. At Gilbey's, we have almost 600,000 ounces of resources and exploration target. We can see a sizable underground operation potential here, which will be a really nice incremental addition to the main game over at Never Never.
I haven't shown our M&A scorecard for some time, where we believe we have a great track record of value-accretive acquisitions over a long period of time. For those who haven't seen it, the cost of the acquisition, be it shares or cash, is in blue. The cash generated. The diamond in the number being the net cash from each project. For this chart, we've grouped Edna May, Tampia, and Symes all together, where we paid AUD 140 million in total. We generated AUD 430 million in pre-tax cash, and we're now looking at realizing AUD 300 million in September. I think that's good business no matter how you look at it. Penny continues to be a great mine, adding AUD 91 million in the quarter. You can see the number in brackets there, the quarterly numbers.
This quarter, Cue took a backseat while we carried out some stripping on several of the pits, including the Break of Day pit. This quarter, we saw the first positive cash flow from Dalgaranga of AUD 56 million, and that excludes approximately AUD 100 million in cash tax savings that we've realized to date from the Spartan transaction. Also worth noting, the PFS numbers on the right from the Dalgaranga PFS from October last year. The cash flows at current gold prices for that project alone are more than our current market cap. Lastly, we continue to put money into Rebecca- Roe as we move closer to production. Again, noting the strong DFS numbers on the right-hand side. Comfort from both the transparency and the track record that this chart demonstrates.
To wrap up as to why Ramelius is such a good investment, in addition to everything that Brett said, especially at a time when our P/NAVs relative to peers is so low, we are a reliable and consistent operator, six years of hitting production guidance, and we do have high margin, long life assets at Mount Magnet and Rebecca- Roe. We are both paying fully franked dividends and buying back shares at levels generally above our peer group. We have one of the best production growth profiles in the sector. We are in the key gold indexes, GDX and ASX 100, and have ample liquidity. Finally, we have committed another AUD 100 million in exploration to fast-track our high-quality, high-grade targets. She's not moving.
Might need some help with the tech.
I'm a slide behind.
I think we had an issue like this yesterday. Just give it a sec.
Maybe it should have been a PDF and not a PowerPoint.
Maybe.
Yep, you heard all that one. Thank you. If you haven't swung by the booth 79, we've got a number of the members of the team there. We do also, if you want to take a trip underground without having to go to Dalgaranga, we have got virtual reality goggles there that you can have a go at that. Probably takes about 5- 10 minutes.