RAMELIUS RESOURCES LIMITED — Annual Report 2015

Aug 27, 2015

1

Full Year Report 30 June 2015

Incorporating Appendix 4E

The Preliminary Final Report under ASX Listing Rule 4.3A is based on the financial statements which have been audited

Contents

• Appendix 4E
• Annual Financial Report including Directors Report Image: Vivien Portal

APPENDIX 4E

Results for announcement to the market

Preliminary Final Report for the year ended 30 June 2015 (Rule 4.3A) Previous corresponding period - 30 June 2014

	30 June	30 June	Movement	Movement
Consolidated	2015	2014	\$	%
Revenue from ordinary activities (\$000's)	131,885	133,035	(1,150)	(0.86)
Profit (loss) before tax (\$000's)	20,537	(102,567)	123,104	120.02
Netprofit (loss) after tax (\$000's)	16,068	(85,512)	101,580	118.79
Net profit (loss) after tax attributable to members (\$000's)	16,068	(85,512)	101,580	118.79
Net asset backing per ordinary security (\$)	0.21	0.20	0.01	5.00

There were no dividends paid in the year ended 30 June 2015.

The directors do not propose to pay any dividend for the year ended 30 June 2015.

Operational highlights

• Commenced mining the Perseverance open pit cutback in January 2015, ensuring a smooth transition from current mining activity at Saturn and Mars open pits
• Underground mine portal completed and decline commenced at the high grade Vivien gold mine
• Commenced mining at the Kathleen Valley gold mine in June 2015
• Maiden ore resource established at the Blackmans gold project, 30km north of Mt Magnet

Financial highlights

• Cash at bank at 30 June 2015 of \$32.4 million (excludes \$3.9 million being \$2.5 million receivable from sale of gold and \$1.4 million of gold on hand)
• In August 2014 the final 2,984 ounces of gold under the Pre-Pay finance facility with Deutsche Bank was repaid
• Secured a \$10M finance facility with the CBA
• Forward sold 86,689 ounces of gold at an average price of A\$1,570 during the financial year

APPENDIX 4E

	12 months to	12 months to	Movement
	30 June 2015	30 June 2014	\$
Performance
Total sales revenue (\$000's)	131,885	133,035	(1,150)
Cost of sales (\$000's)	(106,918)	(165,762)	58,844
Gross profit (loss) (\$000's)	24,967	(32,727)	57,694
Net profit (loss) after tax (NPAT) (\$000's)	16,068	(85,512)	101,580
Basic EPS (cps)	3.48	(23.79)	27.27
Diluted EPS (cps)	3.48	(23.79)	27.27
Cash flows
Cash flow from operating activities (\$000's)	45,776	(6,611)	52,387
	As at	As at	Movement
	30 June 2015	30 June 2014	%
Financial position
Net assets (\$000's)	99,304	77,464	28.19
Cash balance (\$000's)	32,425	12,433	160.80

The audited annual financial report follows.

Ramelius Resources Limited Annual Financial Report

For the Financial Year Ended 30 June 2015

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 2015. Throughout the report, the entity is referred to as the group.

DIRECTORS

The directors of Ramelius Resources Limited (Ramelius or Company) at any time during the financial year and until the date of this report are set out below.

Details of directors' qualifications, experience and special responsibilities are as follows:

Robert Michael Kennedy ASAIT, Grad. Dip (Systems Analysis), FCA, AGIA, Life member AIM, FAICD Independent Non-Executive Chairman

Experience and expertise

Mr Kennedy, a Chartered Accountant, has been non-executive chairman of Ramelius Resources Limited since 2003 ¹ . Mr Kennedy brings to the Board his expertise and extensive experience as chairman and non-executive director of a range of listed public companies in the resources sector.

Apart from his attendance at Board and Committee meetings, Mr Kennedy leads the development of strategies for the development and future growth of the Company. Mr Kennedy also leads the Board's external engagement of the Company meeting with Government, investors and is engaged with the media. He is a regular attendee of Audit Committee functions of the major accounting firms. He conducts the review of the Board including the Managing Director in his executive role.

Independence

In assessing Mr Kennedy's independence, the Board (excluding Mr Kennedy), took into account his ability and consistent track record to think and act independently across a wide range of issues. Whilst Mr Kennedy has been appointed to a number of Resource Industry Boards, due to his extensive knowledge of the industry and the companies all operating domestically, the time required across these companies in no way impedes on his dedication to his role as Chairman of the Board. In taking all of these issues into account, the Board (excluding Mr Kennedy), were unanimous in declaring Mr Kennedy as independent.

Other current directorships

Mr Kennedy is a director of ASX listed companies, Tychean Resources Limited (since 2006), Flinders Mines Limited (since December 2001), Maximus Resources Limited (since 2004) and Monax Mining Limited (since 2004).

Former directorships in the last 3 years

Formerly he was a director of Beach Energy Limited (from December 1991 to December 2012), Crestal Petroleum Limited (formerly Tellus Resources Limited) (from December 2013 to February 2015) and Marmota Energy Limited (from April 2006 to April 2015).

Responsibilities

Membership of the Audit Committee and Nomination and Remuneration Committee.

1 From 1995 to the date of listing, Mr Kennedy was a director of the entity which was a dormant proprietary company.

Mr Mark William Zeptner BEng (Hons) Mining, MAusIMM, MAICD

Managing Director¹

Experience and expertise

Mr Zeptner joined Ramelius Resources Limited on 1 March 2012 as the Chief Operating Officer and was appointed the Chief Executive Officer on 11 June 2014. He has more than 20 years' experience in senior operational and management positions with WMC and Gold Fields Limited at their major gold and nickel assets in Australia and offshore.

Other current directorships None.

Former directorships in the last 3 years None.

Responsibilities Chief Executive Officer.

1 Mr M W Zeptner was appointed Managing Director effective 1 July 2015.

DIRECTORS' REPORT

Michael Andrew Bohm B.AppSc (Mining Eng.), MAusIMM, MAICD Non-Executive Director

Experience and expertise

Mr Bohm joined Ramelius Resources Limited as a non-executive director on 29 November 2012. He is an experienced mining professional with extensive corporate and operational management experience in the minerals industry in Australia, South East Asia, Africa, Chile, Canada and Europe. He is a graduate of the WA School of Mines and has worked as a mining engineer, mine manager, study manager, project manager, project director and Managing Director. He has been directly involved in a number of project developments in the gold, base metals and diamond sectors in both open pit and underground mining environments.

Other current directorships

Mr Bohm is a director of ASX-TSX listed company, Perseus Mining Limited (since 2009) and ASX listed Tawana Resources NL (since 2015)

Former directorships in the last 3 years

Mr Bohm was a former director of Herencia Resources plc (2006 to 2013) listed on the Alternative Investment Market of the London Stock Exchange.

Responsibilities

Chairman of the Nomination and Remuneration Committee and member of the Audit Committee.

Kevin James Lines BSc (Geology), MAusIMM

Non-Executive Director

Experience and expertise

Mr Lines joined Ramelius Resources Limited as a non-executive director on 9 April 2008. He has over 30 years of experience in mineral exploration and mining for gold, copper, lead, zinc and tin. He has held senior geological management positions with Newmont Australia Limited, Normandy Mining Limited and the CRA group of companies. He was the foundation Chief Geologist at Kalgoorlie Consolidated Gold Mines where he led the team that developed the ore-body models and geological systems for the Super-Pit Operations in Kalgoorlie, managed the Eastern Australian Exploration Division of Newmont Australia Limited that included responsibility for the expansive tenement holdings of the Tanami region. The contribution of Mr Lines to the Board is his extensive experience in the assessment and evaluation of exploration projects and development of properties and mining operations overseas.

Other current directorships

None.

Former directorships in the last 3 years None.

Responsibilities

Chairman of the Audit Committee and the Due Diligence Committee and member of the Nomination and Remuneration Committee.

Ian James Gordon BCom, MAICD

Non-Executive Director¹

Experience and expertise

Mr Gordon joined Ramelius Resources Limited in June 2007 and was appointed a director on 18 October 2007. He has more than 20 years of experience in the resources industry in gold, diamonds and base metals. He has held management positions with Rio Tinto Exploration Pty Ltd, Gold Fields Australia Pty Ltd and Delta Gold Limited. He was a director of ASX listed company, Glengarry Resources Limited (2004 to 2005).

Other current directorships

Mr Gordon is the Managing Director of Flinders Mines Limited.

Former directorships in the last 3 years None. Responsibilities Nil.

1 Mr I J Gordon resigned as Non-Executive Director effective 31 August 2014.

DIRECTORS' MEETINGS

The number of directors' meetings (including meetings of Committees of directors) and number of meetings attended by each of the directors of Ramelius during the financial year are:

Nomination and
				Audit and risk		remuneration		Due diligence
Director	Board of directors			committee	committee		committee
	A	B	A	C	A	C	A	C
Mr Robert Michael Kennedy	14	14	4	4	4	4	-	-
Mr Ian James Gordon 1	2	2	-	-	-	-	-	-
Mr Kevin James Lines	14	14	4	4	4	4	-	-
Mr Michael Andrew Bohm	14	14	4	4	4	4	-	-

A Number of meetings attended

B Number of meetings held whilst a director

C Number of meetings held whilst a member

1 Mr I J Gordon resigned as Non-Executive Director effective 31 August 2014

DIRECTORS' INTERESTS

At the date of this report, the interest of each director in shares and options of Ramelius Resources Limited are:

	Number of		Options over
Director	ordinary shares	Nature of interest	ordinary shares	Nature of interest
Mr R M Kennedy	10,350,789	Indirect	-	n/a
Mr M W Zeptner	537,500	Direct and Indirect	3,000,000	Direct
Mr K J Lines	1,000,000	Indirect	-	n/a
Mr M A Bohm	537,000	Direct and indirect	-	n/a

COMPANY SECRETARY

Domenico Antonio Francese BEc., FCA, FFin, ACSA, ACIS

Experience and expertise

Appointed Company Secretary on 21 September 2001. Mr Francese is a Chartered Accountant with an audit and investigations background and more than 12 years experience in a regulatory and supervisory role with the ASX.

Responsibilities

Chief Financial Officer

PRINCIPAL ACTIVITIES

The principal activities of the group during the year included exploration, mine development, mine operations, the sale of gold and milling services. There were no significant changes in those activities during the year.

OPERATING AND FINANCIAL REVIEW

FINANCIAL REVIEW

Sales revenue for the year ended 30 June 2015 decreased by 1% to \$131.9 million compared to \$133.0 million reported in the previous corresponding period, mainly due to:

• lower gold production sold, down 4% to 88,706 ounces compared to 92,830 ounces sold
• lower milling revenue, down 32% to \$1.5 million compared to \$2.2 million
• offset in part by greater average realised gold prices, up 4% from A\$1,404 to A\$1,464, and
• greater silver sales, up 67% from \$0.3 million to \$0.5 million

Gross profit (loss)

Gross profit for the year ended 30 June 2015 was \$25.0 million, up from the previous corresponding period gross loss of \$32.7 million, as follows.

Gross profit (loss)		Jun-15	Jun-14	Movement
Sales revenue	\$M	131.9	133.0	(1.1)
Cash cost of production	\$M	(74.3)	(115.6)	41.3
Cash effect	\$M	57.6	17.4	40.2
Amortisation and depreciation	\$M	(24.7)	(49.8)	25.1
Inventory movements and write-downs	\$M	(7.9)	(0.3)	(7.6)
Gross profit (loss)	\$M	25.0	(32.7)	57.7

Profit (loss)

A profit after income tax was recorded for the year ended 30 June 2015 of \$16.1 million, compared to a loss of \$85.5 million in the previous corresponding period primarily due to improved performance at the Mt Magnet gold project. This was largely driven by cost reductions, an increase in the gold price, offset in part by lower production ounces sold.

OPERATIONS REVIEW

Mining and Milling Operations

Mt Magnet mine

Mining at Mt Magnet continued at the Galaxy open pits (Saturn and Mars) which accessed high grade ore zones below the base of historic open pits, where strip ratios are below the overall average for each pit. The Board approved the development of the Perseverance open pit cutback which commenced in January 2015 ensuring a smooth transition between pits. Perseverance is located at the top of the Hill 50 and Perseverance BIF lodes which form the historic Hill 50 underground mine. The cutback is expected to take two years to complete.

Burbanks processing plant

Milling of Coogee open pit ore continued until stocks were exhausted in late August 2014. Following completion of Coogee ore processing, toll milling commenced with a number of third party ore parcels being milled. A mill clean-out process took place in the period before Burbanks was placed on care and maintenance.

Total group fine gold production decreased by 7% to 86,653 ounces in the financial year compared to 92,887 ounces in the previous corresponding period.

	Jun-15		Jun-14
Production	Dry tonnes mined	Fine gold	Dry tonnes mined	Fine gold
	(high grade)	production (oz)	(high grade)	production (oz)
Mt Magnet Segment	1,287,672	81,683	1,266,139	73,980
Burbanks Segment	-	4,970	147,400	18,907
Total production	1,287,672	86,653	1,413,539	92,887

Group All-In Sustaining Cost (AISC) averaged \$1,178 per ounce for the financial year which was below the average realised gold price of \$1,464 per ounce over the same period.

DIRECTORS' REPORT

Development Projects

Vivien (WA)

The Vivien deposit is a high-grade, quartz vein hosted lode deposit. Ramelius proposes to mine it as a 3 year underground project. A Bankable Feasibility Study (BFS) was completed in May 2014 and all environmental approvals for the mine were obtained. In March 2015, Ramelius commenced preliminary surface works to prepare the project for full mining start-up. Board approval for the commencement of the Vivien decline was obtained in May 2015. Site set up and mobilisation was then completed before establishment of the portal and commencement of the decline.

Ramelius believes the Vivien project will likely extend beyond the current mine plan, given encouraging drill intersections that sit outside the planned mining area. Further drilling of these possible extensions would take place from underground positions once the decline is developed to a point of suitable access.

Kathleen Valley (WA)

Kathleen Valley is comprised of 3 shallow gold deposits potentially mineable as open pit operations. Acquisition of the Kathleen Valley Gold project was completed in September 2014. A maiden Ore Reserve was generated and announced in January 2015. Board approval to commence mining was granted in May 2015, site set-up was completed soon after and open pit mining commenced in June 2015.

Exploration Projects

Blackmans (WA)

The Blackmans gold project is located 30km north of Mt Magnet, in Western Australia. Infill drilling during the financial year intersected numerous significant shallow, high grade intersections. Resource modelling was undertaken during the year resulting in the announcement of a maiden Mineral Resource in June 2015. This is being followed by economic evaluation and Ore Reserve generation.

Coogee (WA)

Coogee is located 100km southeast of Kalgoorlie in Western Australia. Disappointing results were returned from a small programme of infill aircore drilling around anomalous drill results initially reported during the financial year.

Fraser Range Gold & Copper-Nickel Project (WA)

The Fraser Range tenement was granted in October 2014. RC drilling into the targeted magnetic anomaly commenced in December 2014, but the hole was abandoned due to poor ground conditions. A diamond tail was successfully completed in May 2015. No significant gold assays (>0.5 g/t Au) were returned from the drill hole and no further drill testing is proposed at this stage.

Kathleen Valley Gold Project (WA)

An aggregate 1,289m from 20 drill holes were completed in April 2015 along the Mossbecker Shear. Further exploration drilling will focus on testing depth extensions and repetitions to the blind, fault offset Boris lode, located west and down-dip of the shallow Mossbecker deposit.

Vivien Gem Gold Project (WA)

No significant RC drill results (>1.5 g/t Au) were returned from five deeper holes drilled below the supergene gold mineralisation at Vivien Gem. No further work is currently planned given the focus on other project areas.

Tanami Joint Venture Gold Project (NT) - Ramelius earning 85%

The Company's inaugural drilling programme within its Tanami gold joint venture project (ASX:TYK) commenced in March 2015, whereby Ramelius drilled 15 reconnaissance RC holes. The vertical holes were spaced 500m apart as a first pass drill test. Encouragingly, anomalous geochemical results have been returned for the drill hole assays. In June 2015, Ramelius drilled a further 32 infill reconnaissance RC holes. Encouragingly, the infill drilling confirmed strike continuity and extended the anomalous interface target. A third phase of drilling is now planned.

Condobolin JV (NSW) - Ramelius earning 80%

A detailed 3D-IP survey over the Condobolin JV project was completed in June 2015. Interpretation of the data is continuing.

DIRECTORS' REPORT

Tomalla Option (NSW) - Option to acquire 80%

Two diamond drill holes were completed during a 6 month option period at Tomalla, north of Gloucester in northern NSW. The drilling was designed to confirm historical anomalous intersections. Both holes intersected conglomerates and sandstones with variable chlorite to intense silica-sericite alteration and disseminated to veined pyrite, arsenopyrite and pyrrhotite.

Moonlight Creek Gold Project (Qld)

RC drilling at Moonlight Creek failed to intersect any intrusive breccia related gold mineralisation within 300m from surface.

Corporate

In August 2014 Ramelius repaid the final 2,984 ounces of gold under its Pre-Pay finance facility with Deutsche Bank. The Company successfully repaid the A\$16M facility over 10 months to return to corporate debt free status.

In September 2014 Ramelius acquired the Kathleen Valley Gold Project tenements and adjacent Kathleen Valley and Mt Harries joint ventures for a total of \$4.05 million.

In February 2015, Ramelius entered into forward gold sales contracts for 47,200 ounces of gold at an average price A\$1,582 per ounce, representing approximately 40% of forecast Mt Magnet production volumes over the next two years.

In May 2015, Ramelius secured a \$10M financing facility with the Commonwealth Bank of Australia which at the date of this report remains undrawn. In conjunction with the finance facility, an additional forward gold sales program was put in place. Combined with earlier forward gold sales, and subsequent to 7,418 ounces delivered up to 30 June 2015, Ramelius will deliver a further 79,271 ounces of gold at an average price of A\$1,570 per ounce to March 2017.

DIVIDENDS

Ramelius has not paid, declared or recommended a dividend in the current or preceding year.

STATE OF AFFAIRS

There were no significant changes in the state of affairs of the group that occurred during the financial year not otherwise disclosed in this report or the consolidated financial statements.

SUBSEQUENT EVENTS

Mr Mark William Zeptner was appointed Managing Director of the Company effective 1 July 2015.

In July 2015 Ramelius agreed to lease its Burbanks processing plant to Kidman Resources Limited for a period of one year which may be extended by mutual agreement.

Apart from the above, no matters or circumstances have arisen since 30 June 2015 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.

FUTURE DEVELOPMENTS

In the 2016 financial year, Ramelius will continue its mining and gold production activities at Mt Magnet by transitioning from the Saturn and Mars pits to the Perseverance pit. Mining activities will continue at both the Kathleen Valley and Vivien Gold Projects with production commencing during the financial year. Exploration activities are mainly expected to be carried out at Kathleen Valley and Mt Magnet where further drilling is planned and on the new greenfields farm-in opportunity in the Tanami region in the Northern Territory.

DIRECTORS' REPORT

ENVIRONMENTAL REGULATIONS AND PERFORMANCE

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 necessary State Licences and Works Approvals to carry out associated mining activities and operate a processing plant, to process mined resources. The group's licences and works approvals are such that they are subject to audits both internally and externally by the various regulatory authorities. These industry audits provide the group with valuable information in regard to environmental performance and opportunities to further improve systems and processes, which ultimately assist the business in minimising environmental risk.

Reporting

Due to the various licences and works approvals the group holds, annual environmental reporting (for a 12 month period) is a licence and works approval condition. The group did not experience any reportable environmental incidents for the reporting year 2014-2015. Regulatory agencies requiring annual environmental reports are outlined below but are not limited to the following:

• Department of Environment & Regulation (DER);
• Department of Mines & Petroleum (DMP);
• Tenement Condition Report;
• Native Vegetation Clearing Report;
• Mining Rehabilitation Fund (MRF) Levy;
• Department of Water (DoW);
• National Pollution Inventory (NPI); and
• National Greenhouse and Energy Reporting.

Sustainability

The group is committed to environmental performance and sustainability and works closely with the regulatory authorities to achieve this. Where the business can, 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 our operations, to achieve mutually beneficial outcomes. This includes current operations, future planning and post closure activities.

SHARES UNDER RIGHT

Unissued ordinary shares of Ramelius under right at the date of this report are as follows:

Effective date share		Issue price	Number
rights granted	Expiry date	of rights	under right
15 April 2013	15 April 2016	Nil	70,000

The share right does not entitle the holder to participate in any other share issues of the company or any other entity. There were no other unissued ordinary shares of Ramelius under right at the date of this report.

SHARES UNDER OPTION

Unissued ordinary shares of Ramelius under option at the date of this report are as follows:

Date options				Number
granted/issued	Vesting date	Expiry date	Exercise price	under option
16 April 2014*	11 June 2014	11 June 2016	0.199	1,500,000
16 April 2014*	11 June 2015	11 June 2017	0.249	1,500,000
16 April 2014*	11 June 2016	11 June 2018	0.299	1,500,000

* Included in these share rights were rights granted as remuneration to the five most highly remunerated officers during the year. Details of rights granted to key management personnel are disclosed in the Remuneration Report.

The share option does not entitle the holder to participate in any other share issues of the company or any other entity. There were no other unissued ordinary shares of Ramelius under option at the date of this report.

SHARES ISSUED ON THE EXERCISE OF RIGHTS

The following ordinary shares of Ramelius were issued during the financial year ended 30 June 2015 as a result of the exercise of rights due to the satisfaction of vesting conditions. No amounts are unpaid on any of the shares.

Effective date share		Issue price	Number of ordinary
rights granted	Expiry date	of rights	shares issued
18 July 2011	18 July 2014	Nil	70,000
22 August 2011	22 August 2014	Nil	70,000
1 March 2012	1 March 2015	Nil	150,000
1 April 2012	1 April 2015	Nil	70,000
9 July 2012	9 July 2015	Nil	70,000
15 April 2013	15 April 2016	Nil	70,000

SHARES ISSUED ON THE EXERCISE OF OPTIONS

The following ordinary shares of Ramelius were issued during the financial year ended 30 June 2015 as a result of the exercise of options. No amounts are unpaid on any of the shares.

Effective date share		Exercise price	Number of ordinary
option granted	Expiry date	of options	shares issued
1 August 2014	1 August 2015	0.120	148,172

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

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.

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.

PROCEEDINGS ON BEHALF OF RAMELIUS

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 employ the auditor on assignments additional to their statutory audit duties where the auditor's expertise and experience with the company and/or the group are important. There were no non-audit services provided by the auditor (Grant Thornton) during the financial year.

AUDITOR INDEPENDENCE

A copy of the auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 follows the Directors Report.

DIRECTORS' REPORT

REMUNERATION REPORT

The directors are pleased to present your company's remuneration report which sets out remuneration information for Ramelius' non-executive directors, executive directors and other key management personnel. This remuneration report forms part of the directors' report. It outlines the overall remuneration strategy, framework and practices adopted by Ramelius and its controlled entities for the period 1 July 2014 to 30 June 2015. The remuneration report has been prepared in accordance with Section 300A of the Corporations Act 2001 and its regulations and is designated as audited.

In accordance with the Corporations Act 2001, remuneration details are disclosed for the group's key management personnel. Ramelius' remuneration report:

• Details Board policies for determining remuneration of key management personnel,
• Specifies the relationship between remuneration policies and performance, and
• Identifies remuneration particulars for key management personnel.

1. Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling major activities of the group, directly and indirectly, being the Ramelius directors and senior executives. Directors and senior executives disclosed in this report are as follows:

Names	Position
Directors of Ramelius
Mr R M Kennedy	Non-Executive Chairman
Mr I J Gordon 1	Non-Executive Director
Mr K J Lines	Non-Executive Director
Mr M A Bohm	Non-Executive Director
Other senior executives
Mr M W Zeptner 2	Chief Executive Officer
Mr D A Francese	Company Secretary and Chief Financial Officer
Mr K M Seymour	General Manager - Exploration & Business Development
Mr T J Blyth 3	General Manager - Mt Magnet Gold Project
Mr M C Casey 4	General Manager - Mt Magnet Gold Project

1 Mr I J Gordon ceased as Managing Director and Chief Executive Officer on 10 June 2014 and remained on the board as a Non-Executive Director until his resignation effective 31 August 2014

2 Mr M W Zeptner was appointed Managing Director effective 1 July 2015

3 Mr T J Blyth commenced employment with the company on 14 October 2013

4 Mr M C Casey ceased employment with the company on 11 October 2013

Other than referred to above, there were no changes in directors or senior executives since the end of the reporting period.

2. Remuneration governance

The Nomination and Remuneration Committee is a committee of the Board. It is primarily responsible for making recommendations to the Board on:

• Non-executive director fees,
• Executive remuneration (directors and senior executives), and
• The executive remuneration framework and incentive plan policies.

The objective of the Nomination and Remuneration Committee is to ensure that remuneration policies and structures are fair and competitive and aligned with the long-term interests of the Company. In performing its functions, the Nomination and Remuneration Committee may seek advice from independent remuneration consultants. No independent remuneration consultants were utilised during the financial year.

3. Executive remuneration policy and framework

Ramelius aims to attract, motivate and retain a skilled executive team focused on contributing to Ramelius' objective of creating wealth and adding value for its shareholders. Ramelius' remuneration structure is formed on this basis. The

DIRECTORS' REPORT

remuneration structure is based on a number of factors including the particular experience and performance of the individual in meeting key objectives of Ramelius.

The objective of Ramelius' senior executive remuneration framework includes incentives that seek to encourage alignment of management performance and shareholder interests. The framework aligns senior executive rewards with strategic objectives and the creation of value for shareholders, and conforms to market practices for delivery of rewards.

In determining senior executive remuneration, the Board aims to ensure that remuneration practices are:

• Competitive and reasonable, enabling the company to attract and retain key talent,
• Aligned to the company's strategic and business objectives and the creation of shareholder value,
• Acceptable to shareholders, and
• Transparent.

The senior executive remuneration framework is structured to ensure market competitiveness and is complementary to the reward strategy of the organisation. The remuneration of senior executives is:

• Benchmarked from time to time against similar organisations both within the industry and of comparable market size to ensure uniformity with market practices,
• A reflection of individual roles, levels of seniority and responsibility that key personnel hold,
• Structured to take account of prevailing economic conditions, and
• A mix of fixed remuneration and at risk performance based elements using short and long-term incentives.

The executive remuneration framework has three components:

• Base pay and benefits, including superannuation,
• Short-term performance incentives, and
• Long-term incentives through participation in Ramelius' Employee Share Acquisition Plan, Performance Rights Plan and as approved by the Board.

The combination of these comprises a senior executive's total remuneration package. Incentive plans are regularly reviewed to ensure continued alignment with financial and strategic objectives.

3.1 Executive remuneration mix

To ensure that senior executive remuneration is aligned to company performance, where appropriate, a portion of selected senior executives' target pay is "at risk".

3.2 Base pay and benefits

Senior executives are offered a competitive base pay that comprises the fixed component of pay and rewards. When required, external remuneration consultants are utilised to provide analysis and advice to ensure base pay reflects the market for a comparable role.

Base pay for senior executives is reviewed annually in order to ensure pay remains competitive with the market. A senior executive's pay is also reviewed on promotion. There is no guaranteed base pay increase included in any senior executive contracts. The Managing Director/Chief Executive Officer and senior executives may elect to salary sacrifice part of their fixed remuneration for additional superannuation contributions and other benefits.

3.3 Short-term performance incentives

Short-term incentives (STI) are provided to certain executives under the direction of the Nomination and Remuneration Committee. The Nomination and Remuneration Committee may recommend to the Board the payment of cash bonuses from time to time in order to reward individual executive performance in achieving key objectives. To assist in this assessment, the Nomination and Remuneration Committee receives recommendations from the Managing Director/Chief Executive Officer. This may result in the proportion of remuneration related to performance varying between individuals. STI's are established to encourage the achievement of specific goals that may have been given high levels of importance in relation to growth and profitability of Ramelius.

3.4 Long-term incentives (LTI's)

Long-term incentives are provided via the Ramelius Performance Rights Plan, Employee Share Acquisition Plan and as approved by the Board. The LTI's are designed to focus senior executives on delivering long-term shareholder returns.

DIRECTORS' REPORT

Performance Rights Plan

The Performance Rights Plan enables the Board to grant performance rights (being entitlements to shares in Ramelius subject to satisfaction of vesting conditions) to selected key senior executives as a long-term incentive as determined by the Board in accordance with the terms and conditions of the plan. The plan provides selected senior 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.

Employee Share Acquisition Plan

The Employee Share Acquisition Plan enables the Board to offer eligible employees ordinary fully paid shares in Ramelius as a long-term incentive, in accordance with the terms of the plan. Shares may be offered at no consideration unless the Board determines that market value or some other value is appropriate.

Other long-term incentives

The Board may at its discretion provide share rights/options as a long-term retention incentive to employees.

3.5 Share trading policy

The trading of shares is subject to, and conditional upon, compliance with the company's employee share trading policy. The policy is enforced through a system that includes a requirement that senior executive's confirm compliance with the policy and provide confirmation of dealings in Ramelius securities. The ability for a senior 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. Ramelius' Share 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 schemes. The Share Trading Policy can be viewed on Ramelius' website.

4. Relationship between executive remuneration and Ramelius' performance

The following table shows key performance indicators for the group over the last five years:

	2015	2014	2013	2012	2011
Net profit (loss) after tax (\$000)	16,068	(85,512)	(50,792)	2,339	62,401
Dividend / capital return (\$000)	-	-	-	-	20,395
Share price 30 June (\$)	0.115	0.077	0.110	0.480	1.280
Basic earnings per share (cents)	3.48	(23.8)	(15.1)	0.7	21.4
Diluted earnings per share (cents)	3.48	(23.8)	(15.1)	0.7	21.2

The total remuneration mix for the Managing Director/Chief Executive Officer and other senior executives and the key links between remuneration and Ramelius' performance is detailed and explained according to each type of remuneration referred to in the total remuneration mix below. The following graph illustrates the total remuneration mix for senior executives shown separately for the Managing Director/Chief Executive Officer and other executives.

DIRECTORS' REPORT

Base pay and salaries

Base pay and salary levels have remained reasonably consistent with the remuneration mix in the prior year. Base pay and salary levels are established in accordance with section 3.2 above.

Short term incentives

Based on the difficult market conditions no short term incentive payments were made during the year.

5. Non-executive directors remuneration policy

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 well-balanced group of individuals with pertinent knowledge and experience.

In accordance with Ramelius' Constitution, the total amount of remuneration of non-executive directors is within the aggregate limit of \$550,000 per annum as approved by shareholders at the 2010 Annual General Meeting. Nonexecutive 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 schemes designed for the remuneration of senior executives, share rights or bonus 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.

6. Voting and comments made at the company's 2014 Annual General Meeting

Of the total valid available votes lodged, Ramelius received 85% of "yes" votes on its remuneration report for the 2014 financial year. The company did not receive any specific feedback at the AGM on its remuneration practices.

7. Details of remuneration

Details of remuneration fees paid to non-executive directors are set out below.

	Directors	Super
Non-executive directors	fees	contributions	Total
	\$	\$	\$
Mr R M Kennedy
2015	154,832	14,709	169,541
2014	155,059	14,355	169,414
Mr I J Gordon 1
2015	-	-	-
2014	-	-	-
Mr K J Lines
2015	77,064	7,707	84,771
2014	77,064	7,707	84,771
Mr M A Bohm
2015	64,220	20,551	84,771
2014	70,642	14,129	84,771
Total
2015	296,116	42,967	339,083
2014	302,765	36,191	338,956

1 Mr I J Gordon has waived his right to receive Non-Executive Director fees and resigned as Non-Executive Director effective 31 August 2014

DIRECTORS' REPORT

Details of the remuneration package by value and by component for executive directors and other senior executives in the current and previous reporting period are set out below:

	Short-term benefits		Post employment benefits	Long-term benefits			Share-based payments 1
Senior executives	Salary & annual leave	STI cash bonus	Super contributions	Long service leave	Termination benefits	Options	LTI rights	Total
	\$	\$	\$	\$	\$	\$	\$	\$
Mr M W Zeptner 2
2015	437,500	-	30,000	5,273	-	53,460	93,770	620,003
2014	390,556	-	25,000	4,950	-	53,360	140,272	614,138
Mr I J Gordon 3 2015	-	-	-	-	-	-	-	-
2014	440,206	-	25,000	78,361	460,421	-	175,919	1,179,907
Mr D A Francese 2015 2014	299,583 304,576	- -	29,958 24,965	8,639 8,639	- -	- -	- 35,184	338,180 373,364
Mr K M Seymour 2015	260,000	-	26,000	9,523	-	-	-	295,523
2014	260,000	-	26,000	6,193	-	-	35,184	327,377
Mr T J Blyth 4 2015	300,000	-	30,000	736	-	-	-	330,736
2014	214,516	-	21,451	-	-	-	-	235,967
Mr M C Casey 5
2015	-	-	-	-	-	-	-	-
2014	88,065	-	24,556	-	220,143	-	93,613	426,377
Total 2015	1,297,083	-	115,958	24,171	-	53,460	93,770	1,584,442
2014	1,697,919	-	146,972	98,143	680,564	53,360	480,172	3,157,130

1 Rights and options relate to rights and options over ordinary shares issued to key management personnel. The fair value of rights and options granted shown above is non-cash and was determined in accordance with applicable accounting standards and represents the fair value calculated at the time rights and options were granted and not when shares were issued

2 Mr M W Zeptner was appointed Managing Director effective 1 July 2015

3 Mr I J Gordon ceased as Managing Director and Chief Executive Officer on 10 June 2014

4 Mr T J Blyth commenced employment with the company on 14 October 2013

5 Mr M C Casey ceased employment with the company on 11 October 2013 and did not receive the shares under right which had not vested at that date. These have been expensed in full and reflected above in accordance with Accounting Standards

The relative proportions of remuneration that are 'at risk' and those that are fixed are as follows:

Senior executives	Fixed remuneration	At risk - short term incentive (STI)	At risk - long term incentive (LTI) 1
Mr M W Zeptner 2
2015	76.3%	0.0%	23.7%
2014	68.5%	0.0%	31.5%
Mr I J Gordon 3
2015	-	-	-
2014	85.1%	0.0%	14.9%

DIRECTORS' REPORT

	Fixed	At risk - short term	At risk - long term
Senior executives	remuneration	incentive (STI)	incentive (LTI) 1
Mr D A Francese
2015	100.0%	-	-
2014	90.6%	-	9.4%
Mr K M Seymour
2015	100.0%	-	-
2014	89.3%	-	10.7%
Mr T J Blyth 4
2015	100.0%	-	-
2014	100.0%	-	-
Mr M C Casey 5
2015	-	-	-
2014	78.0%	-	22.0%

1 Since the LTI's are provided exclusively by way of right and option, the percentages disclosed also reflect the value of remuneration consisting of rights and options, based on the value of rights and options expensed in the year

2 Mr M W Zeptner was appointed Managing Director effective 1 July 2015

3 Mr I J Gordon ceased as Managing Director and Chief Executive Officer on 10 June 2014

4 Mr T J Blyth commenced employment with the company on 14 October 2013

5 Mr M C Casey ceased employment with the company on 11 October 2013 and did not receive the shares under right which had not vested at that date. These have been expensed in full and reflected above in accordance with Accounting Standards

8. Service agreements

Remuneration and other terms of employment for senior 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.

Name and position	Term of agreement	Base salary including super 1	Company / employee notice period	Termination benefit 2
Mr M W Zeptner 4 Chief Executive Officer	On-going commencing 1 Jul 2015	\$495,000	6 / 3 months	6 months base salary 3
Mr D A Francese Company Secretary and Chief Financial Officer	On-going commencing 31 Dec 2008	\$329,541	6 / 3 months	6 months base salary 3
Mr K M Seymour General Manager - Business Development and Exploration	On-going commencing 1 Jul 2009	\$286,000	3 / 3 months	3 months base salary
Mr T J Blyth General Manager - Mt Magnet Gold Project	Commencing 14 Oct 2013	\$330,000	3 / 3 months	3 months base salary

1 Base salaries quoted are for the year ended 30 June 2015, they are reviewed annually by the Nomination and Remuneration Committee

2 Termination benefits are payable on early termination by the company, other than for gross misconduct, unless otherwise indicated

3 In certain circumstances the termination benefit may be 12 months base salary

4 Mr M W Zeptner was appointed Managing Director effective 1 July 2015 at which point his salary was increased to \$495,000 including superannuation

DIRECTORS' REPORT

9. Details of share-based compensation and bonuses

For grant of options or rights to deferred shares included in the remuneration tables above, the percentage of available grant that was paid, or that vested, in the financial year, and the percentage forfeited because the person did not meet the service and performance criteria is set out below. The minimum value of the rights yet to vest is nil, as the rights will be forfeited if the key management persons fail to satisfy the vesting conditions. The maximum value of the 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.

9.1 Cash bonuses

Cash bonuses are paid at the discretion of the Board on achievement of key milestones that are important for the company. No cash bonuses were paid in the financial year.

9.2 Options

The terms and conditions of each grant of options affecting remuneration in the current or a future reporting period are as follows.

Grant date	Vesting and exercise date	Expiry date	Exercise price	Value per option at grant date	Vested
16 April 2014	11 June 2014	11 June 2016	\$0.199	\$0.028	100%
16 April 2014	11 June 2015	11 June 2017	\$0.249	\$0.027	100%
16 April 2014	11 June 2016	11 June 2018	\$0.299	\$0.029	n/a

Options granted under the plan carry no dividend or voting right.

Details of options over ordinary shares in the company provided as remuneration to key management personnel are shown below. When exercisable, each option is convertible into one ordinary share of Ramelius.

		Shares under option
Senior	Financial		Value				Financial year in which	Fair value in financial year in
executive	year	Number	per	Vested	Vested	Forfeited	options may	which options
	granted	granted	option 1	%	number	%	vest 2	may vest 1
Mr M Zeptner 3	2014	1,500,000	\$0.028	100%	1,500,000	-	2014	53,360
	2014	1,500,000	\$0.027	100%	1,500,000	-	2015	53,460
	2014	1,500,000	\$0.029	n/a	-	-	2016	19,180

1 The fair value of options granted as remuneration shown in tables above was determined in accordance with applicable accounting standards

2 Options first become exercisable, subject to satisfaction of vesting conditions 3 Mr M W Zeptner was appointed Managing Director effective 1 July 2015

The assessed fair value at grant date of options granted to the individual is allocated equally over the period from grant date to vesting date, and the amount is included in the remuneration tables above.

Fair values at grant date are determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free rate for the term of the option.

There were no ordinary shares in the company provided as a result of the exercise of remuneration options to key management personnel.

9.3 Rights to deferred shares

Details of rights over ordinary shares in Ramelius provided as remuneration are set out below.

Executive		Rights to deferred shares
director and senior executives	Financial year	Number	Value per	Vested	Vested	Forfeited	Financial year in which rights may	Fair value in financial year in which rights
	granted	granted	share 1	%	number	%	vest 2	may vest 1
Mr M Zeptner
	2015	-	-	33.33%	150,000	-	2015	93,771
	2014	-	-	33.33%	150,000	-	2014	140,272
	2013	-	-	33.33%	150,000	-	2013	140,272
	2012	450,000	\$0.936	-	-	-	-	46,885

1 The fair value of rights granted as remuneration shown above was determined in accordance with applicable accounting standards.

2 Rights first become exercisable, subject to satisfaction of vesting at each anniversary date. Rights vest evenly over three years at each anniversary of the effective grant date.

Rights granted carry no dividend or voting right. When vested, each right is convertible into one ordinary share.

The assessed fair value at effective grant date of share rights granted to the individuals is allocated equally over the period from effective grant date to vesting date, and the amount is included in the remuneration tables above. The fair value of share rights is determined using the market price of the underlying shares at the date the rights were granted and assumes that all holders continue to be employees of the group until the end of the vesting period. The risk that this vesting condition is not met is 10%.

There were no rights provided to key management personnel during the period and none were outstanding at the date of this report.

9.4 Equity instruments held by key management personnel

The tables below show the number of options over ordinary shares, rights to deferred shares and shares in the company that were held during the financial year by key management personnel of the group, including their close family members and entities related to them.

There were no shares granted during the reporting period as compensation.

Names	Shares	Options 4	Rights
Directors of Ramelius
Mr R M Kennedy	10,350,789 2	-	-
Mr K J Lines	1,000,000 2	500,000 2	-
Mr M A Bohm	400,000 1	25,000 1	-
	137,500 2	13,750 2	-
Other key management personnel
Mr M W Zeptner 3	525,000 1	3,037,500 1	-
	12,500 2	-	-
Mr D A Francese	1,276,460 1	38,462 1	-
Mr K M Seymour	194,866 1		-
	129,994 2	32,487 2	-
Mr T J Blyth	-	-	-

1 Held directly

3 M W Zeptner was appointed Managing Director effective 1 July 2015

4 Apart from 3,000,000 options associated with Mr Zeptner's share based remuneration, all other options relate to an entitlement offer made in 2014 whereby 1 option was received for every 2 shares acquired which expired on 1 August 2015.

² Held by entities in which a relevant interest is held

DIRECTORS' REPORT

Movements in equity instruments held by key management personnel are as follows:

	Shares	Options 1	Rights
Mr R M Kennedy
1 July 2014	8,033,333	-	-
Acquired	2,317,456	1,004,167	-
Sold	-	(1,004,167)	-
Balance at 30 June 2015	10,350,789	-	-
Mr I J Gordon
1 July 2014	803,521	-	-
Acquired	41,832	20,916	-
Other 3	(845,353)	(20,916)	-
Balance at 30 June 2015	-	-	-
Mr K J Lines
1 July 2014	-	-	-
Acquired	1,000,000	500,000	-
Balance at 30 June 2015	1,000,000	500,000	-
Mr M A Bohm
1 July 2014	210,000	-	-
Acquired	327,500	138,750	-
Sold	-	(100,000)	-
Balance at 30 June 2015	537,500	38,750	-
Mr M W Zeptner		2
1 July 2014	312,500	1,500,000	150,000
Acquired	75,000	37,500 2	-
Vested	-	1,500,000	-
Vested and exercised	150,000	-	(150,000)
Balance at 30 June 2015	537,500	3,037,500	-
Mr D A Francese
1 July 2014	1,199,536	-	-
Acquired	76,924	38,462	-
Balance at 30 June 2015	1,276,460	38,462	-
	Shares	Options 1	Rights
Mr K M Seymour
1 July 2014	259,887	-	-
Acquired	64,973	32,487	-
Balance at 30 June 2015	324,860	32,487	-

Mr T J Blyth
1 July 2014				$\sim$			$\overline{\phantom{a}}$
Movement				$\overline{ }$			$\blacksquare$

		2015	2014
Name	Transaction		S
Mr R M Kennedy	Amount paid to a related party of the director in respect of a
	leased property in Adelaide SA on an arm's length basis from 1
	July 2014 to 30 June 2015.	90.968	88,139

Level 1, 67 Greenhill Rd Wayville SA 5034

Correspondence to: GPO Box 1270 Adelaide SA 5001

T 61 8 8372 6666 F 61 8 8372 6677 E info.sa@au.gt.com W www.grantthornton.com.au

AUDITOR'S INDEPENDENCE DECLARATION TO THE DIRECTORS OF RAMELIUS RESOURCES LIMITED

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Ramelius Resources Limited for the year ended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been:

• a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
• b no contraventions of any applicable code of professional conduct in relation to the audit.

GRANT THORNTON SOUTH AUSTRALIAN PARTNERSHIP Chartered Accountants

S J Gray Partner

Adelaide, 27 August 2015

Grant Thornton South Australian Partnership ABN 27 244 906 724 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

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Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 30 JUNE 2015

		Consolidated
		2015	2014
	Note	\$000's	\$000's
Sales revenue	5(a)	131,885	133,035
Cost of production	5(b)	(106,918)	(165,762)
Gross profit (loss)		24,967	(32,727)
Other expenses	5(c)	(4,920)	(69,080)
Other income	5(d)	1,348	215
Operating profit (loss) before interest income and finance cost		21,395	(101,592)
Interest income	5(e)	552	721
Finance costs	5(e)	(1,410)	(1,696)
Profit (loss) before income tax		20,537	(102,567)
Income tax benefit (expense)	7	(4,469)	17,055
Profit (loss) for the year		16,068	(85,512)
Earnings per share (cents per share)
Basic earnings per share	8	3.48	(23.8)
Diluted earnings per share	8	3.48	(23.8)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2015

	Consolidated
	2015	2014
	\$000's	\$000's
Profit (loss) for the year	16,068	(85,512)
Other comprehensive income, net of tax
Items that may be reclassified to profit or loss
Change in fair value of available-for-sale assets	(93)	-
Foreign currency translation	133	(67)
Items that will not be reclassified to profit or loss
Change in fair value of available-for-sale assets	-	2,204
Other comprehensive income for the year, net of tax	40	2,137
Total comprehensive income for the year	16,108	(83,375)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2015

		Consolidated
		2015	2014
	Note	\$000's	\$000's
Current assets
Cash and cash equivalents	9	32,425	12,433
Trade and other receivables	10	3,893	3,385
Inventories	11	8,403	15,364
Derivative financial instruments	12	1,078	5
Other current assets	13	744	706
Total current assets		46,543	31,893
Non-current assets
Available-for-sale financial assets		293	400
	14	25,883	36,295
Property, plant and equipment assets Development assets	15 16	46,607	11,900
Intangible assets	17	191	369
Exploration and evaluation expenditure	18	7,734	22,766
Derivative financial instruments	12	103	-
Deferred tax assets	7	29,799	29,948
Total non-current assets		110,610	101,678
Total assets		157,153	133,571
Current liabilities
Trade and other payables	19	17,515	16,679
Borrowings	20	1,062	1,275
Deferred revenue	21	-	4,000
Provisions	22	2,074	2,141
Total current liabilities		20,651	24,095
Non-current liabilities
Borrowings	20	-	1,062
Provisions	22	24,552	22,673
Derivative financial instruments	12	170	-
Deferred tax liabilities	7	12,476	8,277
Total non-current liabilities		37,198	32,012
Total liabilities		57,849	56,107
Net assets		99,304	77,464
Equity
Share capital	23	124,251	118,743
Reserves	24	3,086	2,822
Retained losses		(28,033)	(44,101)
Total equity		99,304	77,464

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2015

		Share		Foreign
		based	Available	exchange	Asset
	Share	payment 1	for-sale 1	translation 1	revaluation 1	Retained	Total
	capital	reserve	reserve	reserve	reserve	losses	equity
	\$000's	\$000's	\$000's	\$000's	\$000's	\$000's	\$000's
Balance at 30 June 2013	112,650	4,946	(2,204)	(66)	634	37,707	153,667
Profit (loss) for the year	-	-	-	-	- -	(85,512)	(85,512)
Other comprehensive income	-	-	2,204	(67)	-	-	2,137
Total comprehensive income	-	-	2,204	(67)	-	(85,512)	(83,375)
Transactions with owners in their capacity as owners:
Share capital	6,256	-	-	-	-	-	6,256
Transaction costs net of tax	(163)	-	-	-	-	-	(163)
Share-based payments	-	1,079	-	-	-	-	1,079
Transfer of reserves	-	(3,704)	-	-	-	3,704	-
Balance at 30 June 2014	118,743	2,321	-	(133)	634	(44,101)	77,464
Profit (loss) for the year	-	-	-	-	-	16,068	16,068
Other comprehensive income	-	-	(93)	133	-	-	40
Total comprehensive income	-	-	(93)	133	-	16,068	16,108
Transactions with owners in their capacity as owners:
Share capital	5,699	-	-	-	-	-	5,699
Transaction costs net of tax	(191)	-	-	-	-	-	(191)
Share-based payments	-	224	-	-	-	-	224
Balance at 30 June 2015	124,251	2,545	(93)	-	634	(28,033)	99,304

1 Refer Note 24 for description of reserves.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2015

		Consolidated
		2015	2014
	Note	\$000's	\$000's
Cash flows from operating activities
Receipts from operations		126,466	120,713
Payments to suppliers and employees		(80,411)	(127,639)
Interest received		574	817
Finance costs		(853)	(993)
Income taxes refunded (paid)		-	491
Net cash provided by (used in) operating activities	28 (b)	45,776	(6,611)
Cash flows from investing activities
Receipts on settlement of derivatives		-	15
Payment for derivatives		(141)	(1,674)
Payments for property, plant and equipment		(1,581)	(4,947)
Payments for development		(20,246)	(17,636)
Proceeds from sale of property, plant and equipment		41	37
Proceeds from the sale of available-for-sale financial assets		-	5,122
Payments for available-for-sale financial assets		(26)	-
Payments for mining tenements and exploration		(7,879)	(15,669)
Payments for site rehabilitation and demobilisation		(40)	(868)
Net cash provided by (used in) investing activities		(29,872)	(35,620)
Cash flows from financing activities
Repayment of borrowings		(1,275)	(1,275)
Proceeds from forward sales contract		-	16,000
Proceeds from issue of shares		5,700	5,254
Proceeds associated with shares to be issued		-	1,002
Transaction costs from issue of shares		(343)	(112)
Transaction costs associated with shares to be issued		-	(51)
Net cash provided by (used in) financing activities		4,082	20,818
Net increase (decrease) in cash and cash equivalents		19,986	(21,413)
Cash at beginning of financial year		12,433	33,847
Effects of exchange rate changes on cash held		6	(1)
Cash and cash equivalents at end of financial year	28 (a)	32,425	12,433

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

The financial report of Ramelius Resources Limited for the year ended 30 June 2015 was authorised for issue in accordance with a resolution of the directors on 27 August 2015. Ramelius Resources Limited is a listed public company, incorporated and domiciled in Australia whose shares are publicly listed on the Australian Securities Exchange Limited (ASX).

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of this financial report are presented below. These policies have been consistently applied to all years presented, unless otherwise stated. This annual financial report includes the consolidated financial statements and notes of Ramelius Resources Limited and its controlled entities.

a) Basis of preparation and statement of compliance

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standard Board (AASB) and the Corporations Act 2001. Ramelius is a for-profit entity for the purposes of preparing the financial statements. The financial report has been presented in Australian dollars and rounded to the nearest \$1,000 unless otherwise stated.

(i) Compliance with IFRS

The consolidated financial statements of the group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (AASB).

(ii) Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through profit and loss and certain classes of property, plant and equipment.

(iii) New and amended standards adopted by the group

A number of new and revised standards are effective for annual periods beginning on or after 1 July 2014. Information on these new standards is presented below.

AASB 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities

AASB 2012-3 adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria of AASB 132, including clarifying the meaning of "currently has a legally enforceable right of set-off" and that some gross settlement systems may be considered equivalent to net settlement. Management has reviewed the impact of this amendment and has concluded that there is no material effect on the financial statements during the period or comparative periods covered by these financial statements.

AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets These narrow-scope amendments address disclosure of information about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal. When developing IFRS 13 Fair Value Measurement, the IASB decided to amend IAS36 Impairment of Assets to require disclosures about the recoverable amount of impaired assets. The IASB noticed however that some of the amendments made in introducing those requirements resulted in the requirement being more broadly applicable than the IASB had intended. These amendments to IAS 36 therefore clarify the IASB's original intention that the scope of those disclosures is limited to the recoverable amount of impaired assets that is based on fair value less costs of disposal. AASB 2013-3 makes the equivalent amendments to AASB 136 Impairment of Assets. Management has reviewed the impact of this amendment and has concluded that there is no material effect on the financial statements during the period or comparative periods covered by these financial statements.

AASB 2014-1 Amendments to Australian Accounting Standards (Part A: Annual Improvements 2010-2012 and 2011-2013 Cycles)

Part A of AASB 2014-1 makes amendments to various Australian Accounting Standards arising from the issuance by the IASB of International Financial Reporting Standards Annual Improvements to IFRSs 2010-2012 Cycle and Annual Improvements to IFRSs 2011-2013 Cycle.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Among other improvements, the amendments arising from Annual Improvements to IFRSs 2010-2012 Cycle:

• clarify that the definition of a 'related party' includes a management entity that provides key management personnel services to the reporting entity (either directly or through a group entity)
• amend AASB 8 Operating Segments to explicitly require the disclosure of judgements made by management in applying the aggregation criteria.

Management has reviewed the impact of this amendment and has concluded that other than additional disclosures in the segment note, there is no material effect on the financial statements during the period or comparative periods covered by these financial statements.

(iv) New standards and interpretations not yet adopted

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2015 reporting periods and have not been early adopted by the group. The group's assessment of the impact of these new standards and interpretations is set out below.

AASB 9 Financial Instruments (December 2014)

AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities and introduces new rules for hedge accounting. In December 2014, the AASB made further changes to the classification and measurement rules and also introduced a new impairment model. These latest amendments now complete the new financial instruments standard. This standard does not apply mandatorily before 1 January 2018. The group has reviewed the impact of this amendment and has concluded that there is no material effect on the financial statements during the periods covered by these financial statements.

AASB 15 Revenue from Contracts with Customers

AASB 15 replaces AASB 118 Revenue and AASB 111 Construction Contracts. The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer - so the notion of control replaces the existing notion of risks and rewards. The standard permits a modified retrospective approach for the adoption. Under this approach entities will recognise transitional adjustments in retained earnings on the date of initial application (e.g. 1 July 2017), i.e. without restating the comparative period. They will only need to apply the new rules to contracts that are not completed as of the date of initial application. This standard does not apply mandatorily before 1 July 2017. The group has reviewed the impact of this amendment and has concluded that there is no material effect on the financial statements during the periods covered by these financial statements.

There are no other standards that are not yet effective and that are expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

(v) Critical accounting estimates

The preparation of financial statements requires the use of certain accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 4.

b) Principles of consolidation

The consolidated financial statements incorporate the financial statements of the parent entity, Ramelius Resources Limited, and its controlled entities (referred to as the 'consolidated group' or 'group' in these financial statements). A list of controlled entities is contained in Note 31 to the consolidated financial statements. All controlled entities have a 30 June financial year end.

(i) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the group, refer to Note 1(ee).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries are consistent with those adopted by the group.

(ii) Changes in ownership interests

When the group ceases to have control, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.

c) Joint arrangements

Under AASB 11 Joint Arrangement 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, rather than the legal structure of the joint 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. Details of the joint operations are shown in Note 32.

d) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker. The Chief Operating Decision Maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer.

e) Foreign currency

(i) Functional and presentation currency

Items included in the financial statements of each of the group's entities are measured using the currency of the primary economic environment in which the entity operates. The functional currency of Ramelius Resources Limited and its Australian controlled entities is Australian dollars. The functional currency of the group's foreign entity (which was dissolved in the financial year) is US dollars. The consolidated financial statements are presented in Australian dollars (\$).

(ii) Transactions and balances

Transactions in foreign currencies are initially recorded in the functional currency at exchange rates prevailing at the date of the transaction. The subsequent payment or receipt of funds related to a transaction is translated at the rate applicable on the date of payment or receipt. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange at the reporting date. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

All exchange differences in the consolidated financial report are taken to the Income Statement.

(iii) Group companies

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• assets and liabilities for each Statement of Financial Position presented are translated at the closing rate at the date of that Statement of Financial Position,
• income and expenses for each income statement and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and
• all resulting exchange differences are recognised in other comprehensive income.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

f) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from 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 significant risks and rewards of ownership of the goods and the cessation of all involvement with those goods.

Gold bullion and silver sales

Revenue from gold bullion and silver sales is brought to account when the significant risks and rewards of ownership have transferred to the buyer and selling prices are known or can be reasonably estimated.

Interest revenue is recognised as it is accrued using the effective interest rate method.

All revenue is stated net of goods and services tax (GST).

g) Government grant

Grants from the government are recognised at their fair value when there is a reasonable assurance that the grant will be received and the group complies with the attached conditions. Government grants relating to exploration and evaluation expenditure are recognised against the exploration and evaluation asset to match the grants with the costs that the grants are intended to compensate.

h) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

i) Income tax

The income tax expense (benefit) for the year comprises current income tax expense (benefit) and deferred tax expense (benefit).

Current and deferred income tax expense (benefit) is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity.

(i) Current income tax

Current income tax expense charged to the profit or loss 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.

(ii) Deferred income tax

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 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 manner in which management expects to recover or settle the carrying amount of the related asset or liability.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

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.

(iii) 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.

j) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of goods and services tax, except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated in the Consolidated Statement of Financial Position inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Consolidated Statement of Financial Position.

Cash flows are included in the Consolidated Statement of Cash Flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

k) Cash and cash equivalents

Cash and cash equivalents in the Consolidated Statement of Financial Position 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 Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

l) Trade and other receivables

Trade receivables comprising bullion awaiting settlement are initially recorded at the fair value of contracted sale proceeds expected to be received only when there is a passing of significant risks and rewards of ownership to the customer. Collectability of debtors is reviewed on an ongoing basis. Receivables which are known to be uncollectible are written off and an allowance account (provision for impairment of trade receivables) is raised where objective evidence exists that the debt will not be collected. Other receivables are initially measured at fair value then amortised at cost, less an allowance for impairment.

m) Inventories

Gold ore, gold in circuit and poured gold bars are physically measured or estimated and valued at the lower of cost and net realisable value. Cost represents the weighted average cost incurred in converting ore into finished goods and includes direct costs and an appropriate allocation of fixed and variable production overhead costs, including depreciation and amortisation.

By-products inventory on hand obtained as a result of the gold production process to extract gold are valued at the lower of cost and net realisable value.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Consumables and stores are valued 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.

Gold ore 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. If ore is not expected to be processed within 12 months after reporting date, it is classified as non-current assets. 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.

n) 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.

Properties are shown at fair value based on valuations by external independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the carrying amount of the asset and the net amount is restated to the revalued amount of the asset. All other plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

The net carrying amount of property, plant and equipment is reviewed for impairment in accordance with Note 1(u).

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.

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 unit-of-production basis when depreciating certain mine specific assets, which results in a depreciation/amortisation charge proportional to the depletion of the anticipated remaining life of mine production. For the remainder of assets the straight line method is used, resulting in estimated useful lives for each class of depreciable assets as follows:

Class of fixed asset	Useful life
Properties	40 years
Plant and equipment	2.5 - 25 years
Mine and exploration equipment	2 - 33.3 years
Motor vehicles	8 - 12 years

Estimates of remaining useful lives and depreciation methods are reviewed bi-annually for all major items of plant and equipment. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the Income Statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

o) Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys the right to use the asset.

Leases of plant and equipment under which the group assumes substantially all the risks and benefits incidental to ownership are classified as finance leases. Other leases are classified as operating leases.

Finance leases are capitalised, with a lease asset and a lease liability equal to the fair value of the leased asset, or if lower, at the present value of the minimum lease payments determined at the inception of the lease. Lease payments are apportioned between the finance charges and reduction of the lease liability. The finance charge component within the lease payments is expensed. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term if there is no reasonable certainty that the group will obtain ownership by the end of the lease term.

Payments made under operating leases are expensed on a straight-line basis over the leased term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property.

p) Exploration, evaluation and feasibility expenditure

Exploration and evaluation

Exploration and evaluation costs related to areas of interest are capitalised and carried forward to the extent that:

• (i) Rights to tenure of the area of interest are current; and
• (ii) a) Costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively by sale; or
• b) 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.

Deferred 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, refer Note 1(r).

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.

q) 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 unitof-production basis over the estimated economic reserve of the mine to which the rights related.

r) 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

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.

Amortisation and impairment

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 Note 1(u).

s) 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.

Surface mining costs

Mining costs incurred during the production stage of operations are deferred as part of determining the cost of inventories. 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 amount of waste mined by the quantity of gold ounces contained in the ore. Mining costs incurred in the period are deferred to the extent that the current period waste to contained gold ounce ratio exceeds the life-of-mine waste-to-ore (lifeof-mine) ratio. The life-of-mine ratio is based on economically recoverable reserves of the operation.

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.

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 unitof-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 release of deferred mining costs is included in site operating costs.

t) Intangible assets

Costs incurred in acquiring software are capitalised as intangible assets. Costs capitalised include external costs of materials and services. Costs associated with administration and maintenance of software is expensed as incurred in other expenses in the Income Statement. Amortisation is calculated on the useful life, ranging from three to five years.

u) Impairment of non-financial assets

The carrying amounts of all non-financial assets are reviewed half-yearly to determine whether there is an indication of impairment. Where an indicator of impairment exists, a formal estimate of the recoverable amount is made. The recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Any excess of the asset's carrying value over its recoverable amount is expensed as an impairment loss to the Income Statement. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

v) Available-for-sale assets

The group's investments are designated as available-for-sale financial assets. The group's investments in listed securities are initially measured at fair value plus transaction costs. Subsequent to initial recognition, available-for-sale financial assets are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in the Income Statement. Impairment losses on equity instruments that were recognised in profit or loss are not reversed through profit or loss in a subsequent period.

The fair value of listed equity securities are determined by reference to quoted market prices.

w) 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.

x) Employee benefits

Wages, salaries, salary at risk, annual leave and sick leave

Liabilities arising in respect of wages and salaries, salary at risk, annual leave and any other employee benefits expected to be wholly settled within 12 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 salary at risk) and 'current provisions' (for annual leave and salary at risk) in respect of employee services up to the reporting date. Costs incurred in relation to nonaccumulating 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 12 months are discounted using the rates attaching to notional government securities 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 groups experience with staff departures and periods of service. Related on-costs have also been included in the liability.

Provision is made for the group's liability for employee benefits arising from services rendered by employees to reporting date. Employee benefits that are expected to be settled within one year are measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year are measured at the present value of the estimated future cash outflows to be made for those benefits. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.

The obligations are presented as current liabilities in the Statement of Financial Position 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.

Share-based payments

The group provides benefits to employees (including the executive 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 rights plan or as approved by the Board as follows:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

(i) Employee share acquisition plan

The group operates an Employee Share Acquisition Plan where employees may be issued shares and/or options. Fair value of the equity to which employees become entitled is measured at grant date and recognised as an employee benefits expense over the vesting period with a corresponding increase in equity. Fair value of shares issued is determined with reference to the latest ASX share price. Options are valued using an appropriate valuation technique which takes vesting conditions into account.

(ii) Performance rights plan

The group has a Performance Rights 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.

(iii)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.

Termination benefits

Termination benefits are payable when employment is terminated by the group before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The group recognises termination benefits at the earlier of the following dates: (a) when the group can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of AASB 137 and involves the payment of terminations benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

y) 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.

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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

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.

z) Financial instruments

Initial recognition and measurement

Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified 'at fair value through profit or loss' in which case transaction costs are expensed immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method or at cost. 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. The group does not designate any interest in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments.

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest rate method.

• (ii) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.
• (iii)Derivative financial instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The group uses derivative financial instruments to hedge its exposure to changes in commodity prices arising in the normal course of business. The group does not trade in derivatives for speculative purposes. Derivative financial instruments are recognised at fair value on the date a derivative contract is entered into. Derivatives are valued on a mark-tomarket valuation and the gain or loss on re-measurement to fair value is recognised through the Income Statement.

(iv) Available-for-sale financial assets

Available-for-sale financial assets include any financial assets not included in the above categories. The group's accounting policy for available-for-sale financial assets is discussed at Note 1(v).

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.

Impairment

At each reporting date, the group assesses whether there is objective evidence that a financial instrument has been impaired. If there is objective evidence of impairment, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously not recognised in the profit or loss, is removed from equity and recognised in profit or loss.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

aa) Deferred revenue

Deferred revenue represents forward sold gold bullion under a contracted gold pre-pay facility at an agreed upon gold price. The contract entered into and which continues to be held for the purpose of receipt or delivery of gold bullion in accordance with the entity's expected purchase, sale, or usage requirements is recognised as a liability in the Statement of Financial Position. The liability is reduced and revenue is recognised in the Income Statement upon delivery of gold bullion in equal instalments over the life of the pre-pay facility.

bb) Derivative activity

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. Changes in the fair value of any derivative instrument (which does not qualify for hedge accounting) are recognised immediately in profit or loss and are included in other income or other expenses.

cc) 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.

dd) Earnings per share (EPS)

Basic EPS is calculated as net profit attributable to equity holders, adjusted to exclude costs of servicing equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element. Diluted EPS is calculated as net profit attributable to equity holders, adjusted for:

• costs of servicing equity (other than dividends),
• The after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses,
• other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares,

divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

ee) Business combinations

Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values of the:

• assets transferred,
• liabilities incurred,
• equity interests issued by the group,
• asset or liability resulting from a contingent consideration arrangement, and
• any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The group recognises any noncontrolling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the noncontrolling interest's proportionate share of the acquired entity's net identifiable assets.

Acquisition-related costs are expensed as incurred.

The excess of the:

• consideration transferred,
• amount of any non-controlling interest in the acquired entity, and
• acquisition-date fair value of any previous equity interest in the acquired entity

over the fair value of the net identifiable assets acquired is recognised as an increase in the assets acquired. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired, the difference is recognised directly in profit or loss as a bargain purchase.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such re-measurement are recognised in profit or loss.

ff) Parent entity information

The financial information of the parent entity, Ramelius Resources Limited, disclosed in Note 34 has been prepared on the same basis as the consolidated financial statements.

gg) Rounding of amounts

The company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to the 'rounding off' of amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.

2 FINANCIAL RISK MANAGEMENT POLICIES

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 still 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).

The directors are responsible for monitoring and managing financial risk exposures of the group. The group holds the following financial instruments:

	Consolidated
	2015	2014
	\$000's	\$000's
Financial assets
Cash at bank	13,147	4,520
Term deposits	19,278	7,913
Receivables	3,893	3,385
Derivative financial instruments	1,181	5
Available-for-sale financial assets	293	400
Total financial assets	37,792	16,223
Financial liabilities
Payables	17,515	16,679
Borrowings	1,062	2,337
Derivative financial instruments	170	-
Deferred revenue	-	4,000
Total financial liabilities	18,747	23,016

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

a) Liquidity risk

Liquidity risk arises from the possibility that the group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. Prudent liquidity risk management implies maintaining sufficient cash to meet obligations when due. The group manages liquidity risk by monitoring forecast cash flows.

i. Maturities of financial liabilities

(a) Payables

Trade and other payables are expected to be settled within 6 months.

(b) Borrowings

The table below analyses the group's financial arrangements at 30 June 2015 into relevant maturity groupings based on their contractual maturities. The amounts disclosed below represent a hire purchase paid in equal monthly instalments for the Mt Magnet mine camp which is held as security over the hire purchase. The hire purchase may be cancelled by Ramelius at any time at a cost equivalent to one month's repayment.

Contractual maturities of financial liabilities	Less than 6 months	6 - 12 months	1 - 2 years	2 - 5 Years	Total
Hire purchase (including finance charges)	703	469	-	-	1,172

ii. Derivative financial liabilities

The table below analyses the group's derivative liabilities at 30 June 2015 into relevant maturity groupings based on their contractual maturities.

Contractual maturities of derivative financial	Less than	6 - 12	1 - 2	2 - 5	Total
liabilities	6 months	months	years	Years
Derivative financial liabilities	-	-	170	-	170

b) Credit risk exposures

Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The credit risk on financial assets of the entity which have been recognised in the Consolidated Statement of Financial Position is the carrying amount, net of any provision for doubtful debts. Credit risk is managed through the consideration of credit worthiness of customers and counterparties. This ensures to the extent possible, that customers and counterparties to transactions are able to pay their obligations when due and payable. Such monitoring is used in assessing impairment.

i. Past due but not impaired

As at 30 June 2015, there were no trade or other receivables considered past due but not impaired.

ii. Impaired trade receivables

Individual receivables which are known to be uncollectable are written off by reducing the carrying amount directly. The other receivables are assessed to determine whether there is objective evidence that an impairment has been incurred but not yet identified. For these receivables the estimated impairment losses are recognised in a separate provision for impairment. The group considers that there is evidence of impairment if any of the following indicators are present:

• significant financial difficulties of the debtor,
• probability that the debtor will enter bankruptcy or financial reorganisation, and
• default or delinquency in payments (past due)

Receivables for which an impairment provision was recognised are written off against the provision when there is no expectation of recovering additional cash. Impairment losses are recognised in profit or loss within other expenses. Subsequent recoveries of amounts previously written off are credited against other expenses. Individually impaired trade receivables relate to a debtor where milling services were provided and payment of the remaining balance has not been made within the agreed terms. The ageing of this debtor is greater than 12 months.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

c) Market risk

i. 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. Currently, the group does not directly hedge against this risk. 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.

ii. 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. The group is exposed to commodity price risk due to the sale of gold on physical delivery at prices determined by market at the time of sale. The group manages commodity price risk through the use of derivative financial instruments as follows:

Forward sales contracts

Gold price risk is managed with hedging strategies through the use of forward sales contracts which effectively fix the gold price and thus cash flow receivable. Gold forward sales contracts are marked to market at fair value through profit and loss.

Put options

Gold price risk is 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 profit and loss.

Gold prices, gold futures and economic forecasts 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 which could result in a change in these risks. Notwithstanding this, the sensitivity analysis is still valid for gold prices above any floor prices that may be put in place. Any impacts from such hedging would be in relation to revenue from gold sales.

Based on gold sales of 83,878oz (92,830oz less forward sold gold of 8,952oz) in 2014 and 78,304oz (88,706oz less forward sold gold of 10,402oz) in 2015, if gold price in Australian dollars 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:

	Consolidated
	2015	2014
	\$000's	\$000's
Impact on pre-tax profit (loss)
Increase in gold price by A\$100	7,830	8,388
Decrease in gold price by A\$100	(7,830)	(8,388)
Impact on equity
Increase in gold price by A\$100	7,830	8,388
Decrease in gold price by A\$100	(7,830)	(8,388)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

iii. Cash flow and fair value Interest rate risk

Exposure to interest rate risk arises on financial assets and liabilities recognised at reporting date whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. Cash is held in an interest yielding cheque account and on short-term call deposits where the interest rate is both fixed and variable according to the financial asset. Interest rate risk on cash assets is managed with a mixture of fixed and floating rate cash deposits. Borrowing interest rates are fixed over the life of the financial liability. Interest rate risk on borrowings is managed with a fixed borrowing rate.

Interest rate sensitivity analysis

The group has performed a sensitivity analysis relating to its exposure to interest rate risk at reporting date. This sensitivity analysis demonstrates the effect on the current year results and equity which could result in a change in these risks.

Based on the cash at the end of the financial year, if interest rates were to change by + / - 2% with all other variables remaining constant, the estimated impact on pre-tax profit (loss) and equity would have been as follows:

	Consolidated
	2015	2014
	\$000's	\$000's
Impact on pre-tax profit (loss)
Increase in interest rate by 2%	649	249
Decrease in interest rate by 2%	(649)	(249)
Impact on equity
Increase in interest rate by 2%	649	249
Decrease in interest rate by 2%	(649)	(249)

d) Capital risk management

Ramelius' objective when managing capital is to maintain a strong capital base capable of withstanding cash flow variability, whilst providing flexibility to pursue its growth aspirations. Ramelius aims to maintain an optimal capital structure to reduce the cost of capital and maximise shareholder returns. Ramelius' capital structure is equity as shown in the Statement of Financial Position.

The group is not subject to any externally imposed capital requirements.

e) Fair value measurement

The financial assets and liabilities of the group are recognised on the Consolidated Statement of Financial Position at their fair value in accordance with the accounting policies in Note 1. 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 the valuation provided from the relevant financial institution. 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Available-for-sale financial assets are measured at fair value using the closing price on the reporting date as listed on the Australian Securities Exchange Limited (ASX). Available for sale financial assets 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.

Fair value measurement of non-financial instruments

Properties are measured at fair value using 2011 valuations made by an independent valuer. At 30 June 2015, the directors are of the opinion that the carrying amounts of properties approximate their fair value. The valuations would be recognised as a Level 2 in the fair value hierarchy.

The valuation depends on a number of characteristics of observable market transactions in similar properties that are used for valuation. Although this input is a subjective judgement, management considers that the carrying amounts would not be materially affected by reasonably possible alternative assumptions.

3 OPERATING SEGMENTS

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, the Chief Executive Officer, in order to make strategic decisions. Reportable operating segments include Mt Magnet, Burbanks and exploration.

The Chief Executive Officer monitors performance in these areas separately. Unless stated otherwise, all amounts reported to the Chief Executive Officer are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the group.

The group operates primarily in one business segment, namely the exploration, development and production of minerals with a focus on gold.

Details of the performance of each of these operating segments for the financial years ended 30 June 2015 and 30 June 2014 are set out below:

2015 Segment performance	Mt Magnet \$000's	Burbanks \$000's	Exploration \$000's	Total \$000's
Segment revenue
Sales revenue	123,060	8,825	۰	131,885
Segment cost of production
Cost of production before:	(92, 100)	(3,096)		(95, 196)
Amortisation and depreciation	(23, 265)	(1, 477)	٠	(24, 742)
Movement in inventory	(5,536)	(2,360)	۰	(7,896)
Deferred stripping costs	20,916	۰	٠	20,916
Segment cost of production	(99, 985)	(6,933)	۰	(106, 918)
Gross margin	23,075	1,892		24,967
Interest income				552
Finance cost				(1, 410)
Other income (expenses)				(2,916)
Impairment & exploration write-off	(91)	821	(1, 386)	(656)
Profit (loss) before income tax				20,537

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

	Mt Magnet	Burbanks	Exploration	Total
2014 Segment performance	\$000's	\$000's	\$000's	\$000's
Segment revenue
Sales revenue	103,889	29,146	۰	133,035
Segment cost of production
Cost of production before	(123, 879)	(20, 182)		(144,061)
Amortisation and depreciation	(41, 226)	(8,601)		(49, 827)
Movement in inventory	11,236	1,061		12,297
Deferred stripping costs	11,435	4,394		15,829
Segment cost of production	(142, 434)	(23, 328)	۰	(165, 762)
Gross margin	(38, 545)	5,818	۰	(32, 727)
Interest income				721
Finance cost				(1,696)
Other income (expenses)				(8, 382)
Impairment & exploration write-off	(54, 117)	(3,712)	(2,654)	(60, 483)
Profit before income tax				(102, 567)
2015 Segment position	Mt Magnet	Burbanks	Exploration	Total
	\$000's	\$000's	\$000's	\$000's
Capitalised expenditure
Property, plant and equipment	1,817	6		1,823
Site development	24,972			24,972
Exploration assets		٠	8,226	8,226
Segment assets	81.254	2.491	8.086	91,831

47

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

	Mt Magnet	Burbanks	Exploration	Total
2014 Segment position	\$000's	\$000's	\$000's	\$000's
Capitalised expenditure
Property, plant and equipment	4,287	600	۰	4,887
Site development	11,773	5,736	۰	17,509
Exploration assets	٠	٠	15,119	15,119
Segment assets	57,735	6,425	23,251	87,411
Corporate and unallocated assets
Cash and cash equivalents				12,433
Trade and other receivables				2,852
Derivative financial instruments				5
Other current assets				149
Available-for-sale financial asset				400
Property, plant and equipment				373
Deferred tax assets				29,948

2015 Segment position	Mt Magnet \$000's	Burbanks \$000's	Exploration S000's	Total \$000's
Segment liabilities	(41, 152)	(2, 196)	(875)	(44, 223)
Corporate and unallocated assets
Trade and other payables				(366)
Short-term provisions				(561)
Long-term provisions				(53)
Derivative financial instruments				(170)
Deferred tax liabilities				(12, 476)

	Mt Magnet	Burbanks	Exploration	Total
2014 Segment position	\$000's	\$000's	\$000's	\$000's
Segment liabilities	(41,950)	(4,345)	(574)	(46, 869)
Corporate and unallocated assets
Trade and other payables				(515)
Short-term provisions				(382)
Long-term provisions				(64)
Deferred tax liabilities				(8, 277)
Total consolidated liaibilities				(56, 107)

Major customers

Ramelius provides goods that are more than 10% of external revenue through the Western Australian Mint in Perth, Australia. Goods provided through the Western Australian Mint account for 99% (2014: 98%) of sales revenue.

Segments assets by geographical location

Segment assets of Ramelius are geographically located in Australia.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

4 CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

Judgements, estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable in the circumstances. Estimates and assumptions made assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group. The judgements, estimates and assumptions will, by definition, seldom equal actual results. The judgements, estimates and assumptions having a significant risk of causing material adjustments to the carrying amount of assets and liabilities within the next financial year are detailed below.

a) Exploration and evaluation expenditure

The group's policy for exploration and evaluation is discussed at Note 1(p). Application of this policy requires management to make 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.

b) Development assets

The group defers pre-production mining costs which are calculated in accordance with policy Note 1(s). Changes in an individual mine's design generally results in changes to life-of-mine assumption. 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 are accounted for prospectively.

c) Deferred mining expenditure

The group defers mining costs incurred during the production stage of its operations, which are calculated in accordance with accounting policy Note 1(s). Changes in an individual mine's design will generally result in changes to the life-of-mine waste to contained gold ounces (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 are accounted for prospectively.

d) Ore reserve estimates

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.

e) Recovery of deferred tax assets

Deferred tax assets, including those arising from unutilised tax losses require management to assess the likelihood that the group complies with the relevant taxation legislation and will generate sufficient taxable earnings in future periods, in order to recognise and utilise those deferred tax assets. Estimates of future taxable income are based on forecast cash flows from operations and existing tax laws in the relevant jurisdictions. 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 deductions in future periods.

f) 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. 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 calculated in accordance with accounting policy Note 1(u). 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

g) Unit-of-production method of depreciation and amortisation

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.

h) Provision for restoration and rehabilitation

The group assesses its mine restoration and rehabilitation provision bi-annually in accordance with the accounting policy Note 1(y). 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 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.

i) Share based payments

The group measures the cost of equity settled transactions with employees by reference to the fair value of equity instruments at the date at which they are granted. Fair value is determined using assumptions detailed in Note 25.

j) Impairment of available-for-sale financial assets

The group follows the guidance of AASB 139 Financial Instruments: Recognition and Measurement to determine when an available-for-sale financial asset is impaired. This determination requires significant judgement. In making this judgement, the group evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost and the financial health of and short-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flows.

2015	Consolidated
	2014
\$000's	\$000's

5 REVENUE AND EXPENSES

Profit before tax includes the following revenue, income and expenses whose disclosure is relevant in explaining the performance of the group:

a) Sales revenue
Gold sales	129,851	130,364
Silver sales	470	312
Milling services	1,512	2,250
Other revenue	52	109
Total sales revenue	131,885	133,035

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

		Consolidated
		2015	2014
	Note	\$000's	\$000's
b) Cost of production
Amortisation and depreciation		24,743	49,827
Employee benefits expense		14,438	17,037
Inventory movements		7,894	(12,291)
Inventory write-downs		-	12,556
Mining and milling production costs		56,783	95,376
Royalty costs		3,060	3,257
Total cost of production		106,918	165,762
c) Other expenses Amortisation and depreciation		144	150
Employee benefits expense		2,196	2,594
Equity settled share-based payments		224	1,079
Exploration costs written off		648	647
Loss on sale of non-current assets		3	17
Impairment (impairment reversal) of trade receivables	10	(944)	1,162
Impairment of plant and equipment	15	123	2,550
Impairment of development assets	16	91	54,117
Impairment of exploration and evaluation assets	18	738	2,007
Loss on derivative financial instruments		146	3,179
Foreign exchange losses		3	133
Other expenses		1,548	1,445
Total other expenses		4,920	69,080
d) Other income
Gain on derivative financial instruments		1,341	-
Foreign exchange gains		7	215
Total other income		1,348	215
e) Net finance expenses (income)
Discount unwind on provisions and borrowings		557	703
Interest and finance charges		853	993
Total finance costs		1,410	1,696
Interest income		(552)	(721)
Net finance expenses (income)		858	975
f) Profit (loss) before income tax includes the following specific expenses
Defined contribution superannuation expense		1,341	1,544
Rental expenses relating to operating leases		316	314

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

	Consolidated
	2015	2014
	\$000's	\$000's
6 REMUNERATION OF AUDITORS
Audit and other assurance services
Audit and review of financial statements (\$)	85,000	82,400
Tax compliance services (\$)	-	-
Total remuneration of Grant Thornton (\$)	85,000	82,400
7 INCOME TAX (BENEFIT) EXPENSE
The components of tax (benefit) expense comprise:
Current tax	-	(15,234)
Deferred tax	4,469	(1,823)
Adjustments for current and deferred tax of prior years	-	2
Income tax (benefit) expense	4,469	(17,055)
Reconciliation of income tax (benefit) expense to prima facie tax payable:
Accounting profit before tax	20,537	(102,567)
Income tax expense calculated at 30% (2014: 30%)	6,161	(30,770)
Tax effects of amounts which are not deductible
(taxable) in calculating taxable income:
- non-deducible development	-	824
- share-based payments	67	324
- other non-allowable items	81	(185)
- capital loss not brought to account	-	681
- revenue losses not brought to account	-	12,069
- derecognised losses brought to account	(1,840)	-
Under (over) provision in respect of prior years	-	2
Income tax (benefit) expense	4,469	(17,055)
Applicable weighted average effective tax rate	22%	17%

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

30 June 2015 deferred tax movement

	Balance at 1 July 2014 \$000's	Charged / (credited) to income \$000's	Charged / (credited) to equity \$000's	Balance at 30 June 2015 \$000's
Deferred tax liability
Exploration and evaluation	6,800	(5,289)	-	1,511
Development	1,273	9,461	-	10,734
Inventory - consumables	111	25	-	136
Unrealised foreign exchange gains (losses)	93	2	-	95
Total deferred tax liability	8,277	4,199	-	12,476
Deferred tax asset
Equity transaction costs	409	(206)	121	324
Inventory - deferred mining costs	3,185	(507)	-	2,678
Property, plant and equipment	962	198	-	1,160
Receivables	348	(283)	-	65
Provisions	7,444	544	-	7,988
Tax losses	17,463	-	-	17,463
Other	137	(16)	-	121
Total deferred tax asset	29,948	(270)	121	29,799

30 June 2014 deferred tax movement

	Balance at 1 July 2013 \$000's	Charged / (credited) to income \$000's	Charged / (credited) to equity \$000's	Balance at 30 June 2014 \$000's
Deferred tax liability
Exploration and evaluation	2,363	4,437	-	6,800
Development	21,932	(20,659)	-	1,273
Property, plant and equipment	545	(545)	-	-
Inventory - consumables	101	10	-	111
Unrealised foreign exchange gains (losses)	68	25	-	93
Total deferred tax liability	25,009	(16,732)	-	8,277
Deferred tax asset
Equity transaction costs	529	(191)	71	409
Inventory - deferred mining costs	6,091	(2,906)	-	3,185
Property, plant and equipment	-	962	-	962
Receivables	-	348	-	348
Provisions	8,495	(1,051)	-	7,444
Tax losses	14,291	3,172	-	17,463
Other	148	(11)	-	137
Total deferred tax asset	29,554	323	71	29,948

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Tax effects relating to comprehensive income
		2015			2014
	Pre-tax	Income tax	Net of tax	Pre-tax	Income tax	Net of tax
	amount	effect	amount	amount	effect	amount
	\$000's	\$000's	\$000's	\$000's	\$000's	\$000's
Revaluation of available-for-sale assets Exchange difference on translating foreign	133	(40)	93	-	-	-
controlled entity	(1)	-	(1)	67	-	67

	Consolidated
	2015	2014
	\$000's	\$000's
Franking credits
Franking credits available for subsequent years based on a tax rate of 30% (2014: 30%)	21,826	21,826

The above represents the balance of the franking account as at the end of the reporting period, adjusted for: a) franking credits (debits) that will arise from payment of the current tax liability (current tax asset), and b) franking debits that will arise from the payment of dividends recognised as a liability at the reporting date.

Tax losses

Unused tax losses for which no deferred tax asset has been recognised	37,230	43,366 -
Potential tax benefit at 30%	11,169	13,010 -

All unused tax losses were incurred by Australian entities that are not part of the tax consolidated group. See Note 4(e) for information about recognised tax losses and significant judgements made in relation to them.

8 EARNINGS PER SHARE

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 that they are dilutive. Options are not included in the calculation of diluted earnings per share as they are antidilutive. Rights and options are not included in the calculation of basic earnings per share.

(85,512)
359,522
-
359,522

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

	Consolidated
		2015	2014
	Note	\$000's	\$000's
9 CASH AND CASH EQUIVALENTS
Cash at bank and in hand		13,147	4,520
Deposits at call 1		19,278	7,913
Total cash and cash equivalents		32,425	12,433

1 Includes \$2,308,916 (2014: \$2,071,900) of deposits provided as security against unconditional bank guarantees in favour of the Central Land Council in the Northern Territory for exploration purposes and in favour of other entities to secure supply of gas and electricity. Also includes a \$10,000,000 reserve account balance associated with forward gold sales and a finance facility agreement consisting of a minimum reserve amount of \$5,000,000 and an additional temporary amount of \$5,000,000 as security for forward gold sales until all conditions precedent and subsequent under the finance facility are met.

Risk exposure

The group's exposure to interest rate risk is discussed in Note 2. 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.

10 TRADE AND OTHER RECEIVABLES

	2,725	1,186
2(b)	(218)	(1,162)
	2,507	24
	1,386	3,361
	3,893	3,385

1 The reversal of provision for impairment totalled \$944,227 (2014: nil) and represents amounts subsequently received from debtor.

Classification of trade and other receivables

Trade receivables are amounts due from customers for goods sold and services performed in the ordinary course of business. Trade receivables are generally due for settlement within 30 days and therefore are all classified as current. The group's impairment and other accounting policies for trade and other receivables are outlined in Notes 1(l) and 2(b). Other receivables comprise accrued interest, refundable deposits and amounts due from taxation authorities. If collection of the amounts is expected in one year or less they are classified as current assets. If not, they are classified as non-current assets.

Fair values of trade and other receivables

Due to the short-term nature of the current receivables, their carrying amount is assumed to be the same as their fair value. For non-current receivables, the fair values are also not significantly different to their carrying amounts.

Impairment and risk exposure

Refer Note 2 for more information on the risk management policy of the group and credit quality of trade receivables.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

	Consolidated
	2015	2014
	\$000's	\$000's
11 INVENTORIES
Gold nuggets at cost	80	80
Ore stockpiles	1,300	4,351
Gold in circuit	1,618	6,463
Consumables and supplies	5,405	4,470
Total inventories	8,403	15,364

Inventory expense

There were no write-downs of inventories to net realisable value recognised as an expense during the year ended (2014: \$12.6 million). Inventory write-down expense is included in 'cost of sales' in the profit and loss.

12 DERIVATIVE FINANCIAL INSTRUMENTS

1,078	5
103	-
(170)	-
	-
	(67)

In February 2015, Ramelius entered into forward gold sales contracts for 47,200 ounces of gold. In May 2015, an additional forward gold sales program was put in place for 39,489 ounces of gold. Total forward gold sales, prior to 7,418 ounces delivered up to 30 June 2015 was 86,689 ounces of gold at an average price of A\$1,570 per ounce to March 2017.

Purpose and recognition

Derivatives are used to hedge cash flow risk associated with future transactions. Current assets and liabilities reflect those instruments which are due for settlement within one year based on a valuation at year end including those instruments which have been settled prior to their expiry but subsequent to 30 June 2015. Non-current assets and liabilities reflect those instruments which are due for settlement after one year from the end of the reporting period.

Risk exposures and fair value measurements

Information about the group's exposure to credit risk, foreign exchange risk and the methods and assumptions used in determining fair values is provided in Note 2. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of the abovementioned derivative financial assets.

13 OTHER CURRENT ASSETS

Prepayments 744 706

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

		Consolidated
		2015	2014
	Note	\$000's	\$000's
14 AVAILABLE-FOR-SALE FINANCIAL ASSETS
Shares in listed corporations at fair value		293	400
Classification of financial assets as available-for-sale Investments are designated as available-for-sale financial assets if they do not have fixed maturities and fixed or determinable payments, and management intends to hold them for the medium to long-term. The financial assets are presented as non-current assets unless they mature, or management intends to dispose of them within 12 months of the end of the reporting period.
Impairment indicators for available-for-sale financial assets A security is considered to be impaired if there has been a significant and prolonged decline in the fair value below cost. See Notes 1(u), 2(e) and 4(j) for further details about the group's impairment policies and significant estimates, judgements and assumptions for available-for-sale financial assets.
Amounts recognised in profit or loss and other comprehensive income During the year, the following gains (losses) were recognised in the profit or loss and other comprehensive income.
Gains (losses) recognised in other comprehensive income		(93)	2,204
Risk exposures and fair value measurements Available-for-sale financial assets are recognised as a Level 1 in the fair value hierarchy as defined under AASB 7 Financial Instruments: Disclosures. Information about the group's exposure to credit risk and the methods and assumptions used in determining fair values is provided in Note 2.
15 PROPERTY, PLANT AND EQUIPMENT ASSETS
Property
Properties at fair value		1,529	1,529
Accumulated depreciation		(132)	(94)
Total property	15(e)	1,397	1,435
Plant and equipment
Plant and equipment at cost		56,489	57,388
Less accumulated depreciation		(32,003)	(22,528)
Total plant and equipment	15(e)	24,486	34,860

(a) Valuation of property

Properties are recognised as a Level 2 in the fair value hierarchy as defined under AASB 13 Fair Value Measurements. The valuation basis of property is fair value being the amounts for which the assets could be exchanged between willing parties in an arm's length transaction, based on current prices in an active market for similar properties in the same location and condition. The 2011 valuations were made by independent valuers. At 30 June 2015, the directors are of the opinion that the carrying amounts of properties approximate their fair values. The revaluation surplus of applicable deferred income taxes was credited to the asset revaluation reserve.

Total property, plant and equipment 25,883 36,295

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

	Consolidated
2015	2014
\$000's	\$000's

(b) Carrying amounts that would have been recognised if land and buildings were stated at cost

If properties were stated on the historical cost basis, the amounts would be as follows:

Property

Properties at cost	607	607
Accumulated depreciation	(51)	(36)
Total property assets	556	571

(c) Leased assets

Plant and equipment includes the following amounts where the group is a lessee under a hire purchase finance lease:

Leasehold equipment at cost 1	5,306	5,306
Accumulated depreciation	(4,051)	(2,872)
Total leased assets	1,255	2,434

1 Refer Note 20 for information on non-current assets pledged as security on the hire purchase by the group.

(d) Assets in the course of construction

Plant and equipment includes the following expenditure which is in the course of construction:

Plant and equipment in the course of construction	940	103
(e) Property, plant and equipment asset reconciliation
Property asset reconciliation
Balance at beginning of financial year	1,435	1,473
Depreciation	(38)	(38)
Total property	1,397	1,435
Plant and equipment asset reconciliation
Balance at beginning of financial year	34,860	46,972
Additions	1,961	4,892
Restoration and rehabilitation adjustment	(138)	(2,770)
Disposals / transfers	(89)	(181)
Impairment1	(123)	(2,550)
Assets written-off	(56)	(40)
Depreciation	(11,929)	(11,463)

Total plant and equipment 24,486 34,860

1 Ramelius assesses impairment on a bi-annual basis. The significant and sustained decline in gold prices and resulting fall in market value of gold company share prices reflected in the market capitalisation of Ramelius represented indicators of impairment in the 30 June 2014 financial year. Based on an assessment undertaken on the Burbanks cash generating unit during the 30 June 2014 financial year, which included assessment and sensitivity of the assumptions outlined within 4 (f) of these financial statements, an impairment of \$2,549,800 was recognised. Impairment expense for the 2015 financial year of \$122,745 represents a revision to restoration provision where relative development assets had been previously fully amortised and capitalised costs incurred which are not considered recoverable.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

	Consolidated
	2015	2014
	\$000's	\$000's
16 DEVELOPMENT ASSETS
Development assets at cost	62,103	50,252
Less accumulated amortisation	(15,496)	(38,352)
Total development assets	46,607	11,900
(a) Development asset reconciliation
Balance at beginning of financial year	11,900	86,817
Development cost additions	4,194	1,680
Deferred mining cost additions	20,869	15,830
Transfer from exploration and evaluation expenditure	22,520	42
Impairment1	(91)	(54,117)
Amortisation	(12,785)	(38,352)
Total development assets	46,607	11,900
1 Ramelius assesses impairment on a bi-annual basis. The significant and sustained decline in gold prices and resulting fall in market value of gold company share prices reflected in the market capitalisation of Ramelius represented indicators of impairment in the 30 June 2014 financial year. Based on an assessment undertaken on the Mt Magnet cash generating unit during the 30 June 2014 financial year, which included assessment and sensitivity of the assumptions outlined within Note 4 (f) of these financial statements, an impairment of \$54,116,867 was recognised. Impairment expense for the 2015 financial year of \$90,781 represents a revision to restoration provisions where relative development assets had been previously fully amortised. 17 INTANGIBLE ASSETS
Intangible assets at cost	874	883
Accumulated amortisation	(683)	(514)
Total intangible assets	191	369
(a) Intangible asset reconciliation
Balance at beginning of financial year	369	537
Additions	-	25
Amortisation	(178)	(193)
Total intangible assets	191	369
18 EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation	7,734	22,766
(a) Exploration and evaluation expenditure reconciliation
Balance at beginning of financial year
Additions	22,766	9,680
	8,226	15,119
Transfers to development assets	(22,520)	(42)
Impairment 1 Foreign exchange translation	(738) -	(2,007) 16

Total exploration and evaluation expenditure 7,734 22,766

1 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 exploration

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

	Consolidated
	2015	2014
	\$000's	\$000's
19 TRADE AND OTHER PAYABLES
Trade payables	7,327	6,985
Other payables and accrued expenditure	10,188	9,694
Total trade and other payables	17,515	16,679

Classification of trade and other payables

Trade payables are unsecured and are usually paid within 30 days of recognition. 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 2.

20 BORROWINGS

Current
Hire purchase	1,062	1,275
Non-current

Hire purchase - 1,062

Lease liability

The group's lease liability represents deferred payments for the Mt Magnet mine camp which are secured against the mine camp asset. In the event of default, the assets revert to the lessor.

Finance facility

Ramelius entered into a \$10,000,000 finance facility which is secured by a floating charge over Revolving Assets and a fixed charge over all other Collateral of Ramelius Resources Limited and Mt Magnet Gold Pty Ltd. Under the terms of the finance facility, Ramelius is required to maintain a minimum reserve account balance of \$5,000,000 to 31 December 2016 which reduces to \$2,500,000 from 31 December 2016 onwards. At 30 June 2015 the reserve account balance was \$10,000,000 which included a further temporary amount of \$5,000,000 as security for forward gold sales until all required conditions under the facility are met.

21 DEFERRED REVENUE

Current

Deferred revenue - 4,000

Deferred revenue represents forward sold gold bullion under a gold pre-pay facility. Revenue is recognised upon delivery of gold bullion in equal instalments over the life of the pre-pay facility.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

		Consolidated
		2015	2014
	Note	\$000's	\$000's
22 PROVISIONS
Current
Employee benefits		2,074	2,141
Non-current
Employee benefits		441	402
Rehabilitation and restoration costs	1(y)	24,111	22,271
Total non-current provisions		24,552	22,673
Number of employees at year end		102	124
Employee benefits reconciliation
Current
Balance at beginning of financial year		2,141	1,985
Amount provided		1,515	1,850
Amount used		(1,582)	(1,694)
Balance at end of financial year		2,074	2,141
Non-current
Balance at beginning of financial year		402	356
Amount provided		103	124
Amount used		(64)	(78)
Balance at end of financial year		441	402

Provision for long service leave

Provision for long service leave is recognised for employee benefits. In calculating its present value, the probability of leave being taken is based on historical data. Refer Note 1(x) for measurement and recognition criteria.

Rehabilitation and restoration reconciliation
Balance at beginning of financial year	22,271	25,978
Revision of provision 1	1,283	(3,525)
Expenditure on restoration and rehabilitation	-	(885)
Discount unwind	557	703
Total provision for rehabilitation and restoration	24,111	22,271

1 Represents amendments to future restoration and rehabilitation liabilities resulting from an 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.

Provision for rehabilitation and restoration

Provision for rehabilitation and restoration represents management's assessment of expenditure expected to be incurred for various mines and the group's processing plants. Refer Note 1(y) for measurement and recognition criteria.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

23 SHARE CAPITAL

	Number of
a) Ordinary shares	Shares	\$
Share capital at 30 June 2013	337,749,659	112,649,554
Share capital during the 2013-14 financial year
Issue of shares resulting from vesting of rights	1,580,000	-
Shares issued under share purchase plan	1,410,721	253,930
Shares issued under placement	25,000,000	5,000,000
Shares to be issued under placement	15,415,386	1,002,000
Less cost of share issues (net of tax)	-	(112,457)
Less cost of shares to be issued (net of tax)	-	(50,883)
Share capital at 30 June 2014	381,155,766	118,742,144
Share capital during the 2014-15 financial year
Issue of shares resulting from vesting of rights	500,000	-
Shares issued under rights issue	70,521,724	4,583,912
Shares issued under placement	16,892,307	1,098,000
Shares issued from exercise of options	148,172	17,781
Less cost of share issues (net of tax)	-	(190,652)
Share capital at 30 June 2015	469,217,969	124,251,185

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. In the event of winding up of the Company, ordinary shareholders rank after all creditors and are fully entitled to any proceeds of liquidation.

b) Options over shares

Refer Note 25 for further information on options, including details of any options issued, exercised and lapsed during the financial year and options over shares outstanding at financial year end.

c) Rights over shares

Refer Note 25 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.

	Consolidated
	2015	2014
	\$000's	\$000's
24 RESERVES
Share-based payments reserve 1	2,545	2,321
Available-for-sale reserve 2	(93)	-
Foreign currency translation reserve 3	-	(133)
Asset revaluation reserve 4	634	634
Total reserves	3,086	2,822

1 Share-based payments reserve records items recognised as expenses on valuation of employees share options and rights.

2 Available-for-sale reserve records changes in the fair value of available-for-sale financial assets.

3 Foreign currency translation reserve records exchange differences arising on translations of a foreign controlled subsidiary.

4 Asset revaluation reserve records revaluations of non-current assets.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

25 SHARE-BASED PAYMENTS

Shares

Under Ramelius' Employee Share Acquisition Plan, which was approved by shareholders in November 2007, eligible employees are granted ordinary fully paid shares in Ramelius for no cash consideration. All Australian resident permanent employees who are employed by the group are eligible to participate in the plan.

No shares were issued to employees during the 2015 financial year (2014: nil).

Members of the plan receive all the rights of ordinary shareholders. Unrestricted possession of these shares occurs at the earliest of, three years from date of issue or the date employment ceases.

Share rights

As approved by the Board, eligible executives were granted rights to ordinary fully paid shares in Ramelius for no cash consideration. Executives and senior management of Ramelius participate in this plan. Set out below are summaries of the rights granted to employees:

		Exercise	Fair value	Rights at		Rights		Rights at	Date rights next
Effective grant		price	per right 1	start of	Rights	vested &	Rights	end of	vest and become
date	Expiry date	\$	\$	year	granted	exercised	lapsed 2	year	exercisable
2015
18 Jul 2011	18 Jul 2014	-	1.305	70,000	-	70,000	-	-	n/a
22 Aug 2011	22 Aug 2014	-	1.494	70,000	-	70,000	-	-	n/a
1 Mar 2012	1 Mar 2015	-	0.936	150,000	-	150,000	-	-	n/a
1 Apr 2012	1 Apr 2015	-	0.774	70,000	-	70,000	-	-	n/a
9 Jul 2012	9 Jul 2015	-	0.450	140,000	-	70,000	70,000	-	n/a
15 Apr 2013	15 Apr 2016	-	0.230	140,000	-	70,000	-	70,000	15 Apr 2016

Total 640,000 - 500,000 70,000 70,000

		Exercise	Fair value	Rights at		Rights		Rights at	Date rights next
Effective grant		price	per right 1	start of	Rights	vested &	Rights	end of	vest and become
date	Expiry date	\$	\$	year	granted	exercised	lapsed 2	year	exercisable
2014
26 Nov 2010	26 Nov 2013	-	0.869	940,000	-	940,000	-	-	n/a
28 Mar 2011	28 Mar 2014	-	1.296	70,000	-	70,000	-	-	n/a
1 May 2011	1 May 2014	-	1.125	100,000	-	-	100,000	-	n/a
18 Jul 2011	18 Jul 2014	-	1.305	140,000	-	70,000	-	70,000	18 Jul 2014
25 Jul 2011	25 Jul 2014	-	1.296	140,000	-	70,000	70,000	-	n/a
22 Aug 2011	22 Aug 2014	-	1.494	140,000	-	70,000	-	70,000	22 Aug 2014
1 Mar 2012	1 Mar 2015	-	0.936	300,000	-	150,000	-	150,000	1 Mar 2015
1 Apr 2012	1 Apr 2015	-	0.774	140,000	-	70,000	-	70,000	1 Apr 2015
9 Jul 2012	9 Jul 2015	-	0.450	210,000	-	70,000	-	140,000	9 Jul 2014
15 Apr 2013	15 Apr 2016	-	0.230	210,000	-	70,000	-	140,000	15 Apr 2015
Total				2,390,000	-	1,580,000	170,000	640,000

1 The fair value of rights granted as remuneration shown above was determined in accordance with applicable accounting standards.

2 The value of rights that lapsed due to vesting conditions not being satisfied has been determined at the time the rights lapsed as if vesting conditions were satisfied.

The fair value of share rights is determined using the market price of the underlying shares at the date the rights were granted and assumes that all holders continue to be employees of the group until the end of the vesting period. The risk that this vesting condition is not met is 10%.

No rights were issued to employees during the 2015 financial year (2014: nil).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Options

No options were unconditionally granted to employees in the current financial year. In the 2014 financial year, and as approved by the Board, an employee was granted options over ordinary fully paid shares in Ramelius. Details of the options granted are set out below.

		Exercise	Fair value		Options at		Options	Options	Date options next
Effective grant		price 1	per right	Options	start of	Options	exercised	at end of	vest and become
date	Expiry date	\$	\$	granted	year	vested	or lapsed	year	exercisable
2015
16 April 2014	11 Jun 16	0.199	0.028	1,500,000	1,500,000	-		- 1,500,000	11 June 2014
16 April 2014	11 Jun 17	0.249	0.027	1,500,000	-	1,500,000		- 1,500,000	11 June 2015
16 April 2014	11 Jun 18	0.299	0.029	1,500,000	-	-	-	-	11 June 2016

Total	4,500,000	1,500,000	1,500,000	- 3,000,000
1 The exercise price of the options has been adjusted for a 1 for 4 pro-rata rights issue during the financial year in accordance with the terms of the option.

		Exercise	Fair value		Options at		Options	Options	Date options next
Effective grant		price 1	per right	Options	start of	Options	exercised	at end of	vest and become
date	Expiry date	\$	\$	granted	year	vested	or lapsed	year	exercisable
2014
16 April 2014	11 Jun 16	0.200	0.028	1,500,000	-	1,500,000		- 1,500,000	11 June 2014
16 April 2014	11 Jun 17	0.250	0.027	1,500,000	-	-	-	-	11 June 2015
16 April 2014	11 Jun 18	0.300	0.029	1,500,000	-	-	-	-	11 June 2016

Total	4,500,000	-	1,500,000	- 1,500,000

Weighted average remaining contractual life of options outstanding at end of period is 1.95 years (2014: 2.95 years). The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date, expected price volatility of the underlying share and the risk free rate for the term of the option. The expected price volatility is based on historic volatility (based on the remaining life of the options). Model inputs for options granted are as follows:

	Options expiring	Options expiring	Options expiring
Metric	11 June 2016	11 June 2017	11 June 2018
Exercise price	\$0.20	\$0.25	\$0.30
Grant date	16 April 2014	16 April 2014	16 April 2014
Expiry date	11 June 2016	11 June 2017	11 June 2018
Share price at grant date	\$0.11	\$0.11	\$0.11
Expected price volatility	72.50%	65.83%	62.79%
Risk free rate	2.57%	2.74%	2.93%

Expenses arising from share-based payment transactions

Total expenses arising from share-based payment transaction recognised during the period as part of employee benefits expense were as follows:

	Consolidated
	2015	2014
	\$000's	\$000's
Rights	171	1,026
Options	53	53
Total share-based payment expense	224	1,079

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

	Consolidated
2015	2014
\$000's	\$000's

26 COMMITMENTS FOR EXPENDITURE

a) Finance lease commitments

The hire purchase represents finance for mine camp facilities at Mt Magnet. These obligations are provided for in the financial statements.

Within 1 year	1,172	1,406
Later than 1 year but not later than 5 years	-	1,172
Total minimum lease payments	1,172	2,578
Less future finance charges	(110)	(241)
Present value of minimum lease payments	1,062	2,337
Included in the financial statements as borrowings (Note 20):
Current	1,062	1,275
Non-current	-	1,062
b) Capital expenditure commitments Capital expenditure contracted but not provided for in the financial statements.
Within 1 year	817	203
Later than 1 year but not later than 5 years	725	-
Total capital expenditure commitments	1,542	203
c) Operating lease commitments
Future minimum rentals payable on non-cancellable operating leases due:
Within 1 year	605	387
Later than 1 year but not later than 5 years	509	138
Total operating lease commitments	1,114	525

Significant operating leases include the following:

The group has a 3 year non-cancellable operating lease for office space in Adelaide effective from December 2014 at a cost of \$91,067 per annum plus CPI adjustments.

The group has a 1 year non-cancellable operating lease for office space in Perth effective from June 2015 at a cost of \$132,840 per annum plus CPI adjustments.

The group has a 2 year non-cancellable operating lease for storage and dispensing equipment at Mt Magnet effective from January 2015 at a cost of \$92,334 per annum.

The group has 3 year non-cancellable operating leases for storage and dispensing equipment at Vivien effective from March 2015 and June 2015 at a total cost of \$110,760 per annum.

The group has a 3 year non-cancellable operating lease for office hire at Vivien effective from March 2015 at a cost of \$66,606 per annum.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

	Consolidated
2015	2014
\$000's	\$000's

d) 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 1 year	3,341	2,288
Later than 1 year but not later than 5 years	13,096	8,810
Due later than 5 years	27,886	25,483
Total minimum exploration and evaluation commitments	44,323	36,581

e) Other commitments

The group has contractual obligations for various expenditures such as royalties, production based payments, exploration and the cost of goods and services supplied to the group. Such expenditures are predominantly related to the earning of revenue in the ordinary course of business. These obligations are not provided for in the financial statements.

27 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.

(a) Expenditure on mineral rights and tenements

Tomalla

Ramelius signed a purchase option and joint venture agreement with Mr R P Hewett providing Ramelius with an option to acquire two Exploration Licences (EL71/49 & 48/48) & one Prospecting Licence (PL10/94) in New South Wales north of Gloucester. Ramelius may earn an 80% interest in the project by spending \$500,000 within 1.5 years, as well as a \$50,000 option and payment of \$100,000 for the transfer of interest in the tenements.

Cavanaghs

Ramelius signed a farm-in and joint venture agreement with Iron Wheal Pty Ltd. Ramelius intends to farm-in on two granted Prospecting Licences (PL58/1550 & 58/1552), five PL applications (PLA58/1669 – 58/1673) and one Exploration Licence application (ELA58/483) in the Murchison region. Ramelius may earn a 70% interest in the project by spending \$2,000,000 within 4 years, as well as a \$30,000 option and payment of \$300,000 for the transfer of interest in the tenements.

Condobolin

Ramelius signed a farm-in and joint venture agreement with Clancy Exploration Limited. Ramelius intends to farm-in on one Exploration Licence (EL77/48) in New South Wales. Ramelius may earn an 80% interest in the project by spending \$2,000,000 within 4 years.

(b) 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 \$2,308,916 (2014: \$2,071,900). These bank guarantees are fully secured by cash on term deposit.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

		Consolidated
	2015	2014
Note	\$000's	\$000's

28 CASH FLOW INFORMATION

a) Reconciliation of cash

For the purposes of the Consolidated Statement of Cash Flows, cash includes cash on hand and at bank and highly liquid investments in money market instruments, net of outstanding bank overdrafts. Cash at end of the financial year as shown in the Consolidated Statement of Cash Flows is reconciled to the related items in the Consolidated Statement of Financial Position as follows:

Cash		13,147	4,520
Cash on deposit		19,278	7,913
Total cash and cash equivalents	9	32,425	12,433
b) Reconciliation of net profit to net cash provided by operating activities
Profit (loss) after income tax		16,068	(85,512)
Non-cash items
- Share-based payments		224	1,079
- Depreciation and amortisation		24,887	49,977
- Stock write-downs		-	12,556
- Impairment of assets		8	59,836
- Write-off of foreign currency translation reserve		132	-
- Tenement costs written-off		-	33
- Discount unwind on provisions		557	703
- Effect of exchange rate		(5)	(82)
- Net fair value of derivative instruments		(863)	3,179
Items presented as investing or financing activities
- Available-for-sale investments		-	20
- (Gain) loss on disposal of non-current assets		3	11
- Non-current assets written off		17	40
- Demobilisation and restoration activities		40	868
Changes in assets and liabilities
(Increase) decrease
- Prepayments		(52)	74
- Trade and other receivables		307	(921)
- Inventories		7,045	(11,878)
- Deferred revenue		(4,000)	(12,000)
- Deferred tax assets		270	(394)
(Decrease) increase
- Trade and other payables		(3,032)	(6,925)
- Provisions		(29)	(1,034)
- Current tax liabilities		-	491
- Deferred tax liabilities		4,199	(16,732)
Net cash provided by (used in) operating activities		45,776	(6,611)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Consolidated
2015	2014
\$	\$

29 RELATED PARTIES

Transactions with related parties are on normal commercial terms and at conditions no more favourable than those available to other parties unless otherwise stated.

a) Key management personnel compensation

Total key management personnel compensation	1,923,525	3,496,086
Share-based payments	147,231	533,532
Termination benefits	-	758,926
Other long-term benefits	24,170	19,782
Post-employment benefits	158,924	183,163
Short-term employee benefits	1,593,200	2,000,683

Detailed remuneration disclosures are provided in the Remuneration Report.

b) Subsidiaries

Interests in subsidiaries are set out in Note 31.

c) Transactions with other related parties

The terms and conditions of transactions with directors and their director related entities were no more favourable to the directors and their director related entities than those available, or which might reasonably be expected to be available, on similar transactions to non-director related entities on an arm's length basis.

The aggregate amounts recognised during the year (excluding re-imbursement of expenses incurred on behalf of Ramelius) relating to directors and their director-related entities were as follows:

	2015	2014
Transaction	\$	\$
Amount paid to a related party of the director in respect of a
leased property in Adelaide SA on an arm's length basis from 1
July 2014 to 30 June 2015.	90,968	88,139

A \$13,935 bond has been paid to a related party of Mr Kennedy in relation to the leased property in Adelaide SA which is receivable on completion of the lease term or upon termination.

There was no other amount receivable from or payable to directors and their related entities at reporting date.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

30 DEED OF CROSS GUARANTEE

Pursuant to Class Order 98/1418, wholly-owned subsidiary Mt Magnet Gold Pty Ltd (formerly Mt Magnet Gold NL) (Subsidiary) is relieved from the Corporations Act requirements for preparation, audit and lodgement of its financial reports.

As a condition of the Class Order, Ramelius and Mt Magnet Gold Pty Ltd (the Closed Group) entered into a Deed of Cross Guarantee on 15 December 2011 (Deed). The effect of the Deed is that Ramelius has guaranteed to pay any deficiency in the event of winding up of the abovementioned Subsidiary under certain provisions of the Corporations Act 2001. Mt Magnet Gold Pty Ltd has also given a similar guarantee in the event that Ramelius is wound up.

The Consolidated Statement of Comprehensive Income and Statement of Financial Position of the Closed Group are as follows:

	Closed Group
Consolidated Statement of Comprehensive Income	2015	2014
	\$000's	\$000's
Sales revenue	130,350	129,740
Cost of production	(104,111)	(162,408)
Gross profit (loss)	26,239	(32,668)
Other expenses	(5,605)	(66,155)
Other income	1,363	215
Operating profit (loss) before interest income and finance cost	21,997	(98,608)
Interest income	538	675
Finance costs	(1,375)	(1,646)
Profit (loss) before income tax	21,160	(99,579)
Income tax benefit (expense)	(4,611)	15,922
Profit (loss) for the year	16,549	(83,657)
Other comprehensive income
Net change in fair value of available-for-sale assets	(93)	2,204
Other comprehensive income for the year, net of tax	(93)	2,204
Total comprehensive income for the year	16,456	(81,453)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

	Closed Group
Consolidated Statement of Financial Position	2015	2014
	\$000's	\$000's
Current assets
Cash and cash equivalents	31,356	12,037
Trade and other receivables	3,864	3,215
Inventories	7,843	14,801
Derivative financial instruments Other current assets	1,078	5
	722	678
Total current assets	44,863	30,736
Non-current assets
Available-for-sale financial assets	293	400
Trade and other receivables	976	375
Exploration and evaluation expenditure	7,734	22,766
Property, plant, equipment and development assets	70,662	44,824
Intangible assets	191	358
Derivative financial instruments	103	-
Deferred tax assets	28,664	28,638
Total non-current assets	108,623	97,361
Total assets	153,486	128,097
Current liabilities
Trade and other payables	17,554	15,576
Borrowings	1,062	5,275
Provisions	2,074	1,878
Total current liabilities	20,690	22,729
Non-current liabilities
Borrowings	-	1,062
Provisions	22,509	20,574
Derivative financial instruments	170	-
Deferred tax liabilities	12,474	8,277
Total non-current liabilities	35,153	29,913
Total liabilities	55,843	52,642
Net assets	97,643	75,455
Equity
Share capital	124,251	118,743
Reserves	3,086	2,955
Retained losses	(29,694)	(46,243)
Total equity	97,643	75,455

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

31 INVESTMENTS IN CONTROLLED ENTITIES

The consolidated financial statements incorporate assets, liabilities and results of the ultimate parent entity, Ramelius Resources Limited, and the following subsidiaries in accordance with the accounting policy described in Note 1(b).

	Country of	Percentage Owned (%) 1
	Incorporation	2015	2014
Parent entity
Ramelius Resources Limited	Australia
Subsidiaries of Ramelius Resources Limited
Ramelius Milling Services Pty Ltd	Australia	100	100
Ramelius Nevada LLC 2	United States	-	100
Mt Magnet Gold Pty Ltd	Australia	100	100

1 Percentage of voting power is in proportion to ownership.

2 Company dissolved 4 November 2014.

32 INTERESTS IN JOINT OPERATIONS

The group has a direct interest in a number of unincorporated joint operations at 30 June 2015, as follows:

Joint venture project	Principal activities	Interest
Tanami 1	Gold	85%
Tomalla 2	Gold	80%
Cavanagh 3	Nickel	70%
Condoblin 4	Gold	80%

1 Ramelius may earn an 85% interest by spending \$500,000 within 3 years including payment of \$50,000 option.

2 Ramelius may earn an 80% interest spending \$500,000 within 1.5 years, as well as a \$50,000 option and payment of \$100,000 for the transfer of interest in tenements. 3 Ramelius may earn a 70% interest by spending \$2,000,000 within 4 years, as well as a \$30,000 option and payment of \$300,000 for the transfer of interest in tenements.

4 Ramelius may earn an 80% interest by spending \$2,000,000 within 4 years.

Ramelius' share of assets in unincorporated joint operations is as follows:

		Consolidated
	2015 \$000's	2014 \$000's
Non-current assets
Exploration and evaluation expenditure (Note 18)	755	67

33 SUBSEQUENT EVENTS

Mr Mark William Zeptner was appointed Managing Director of the Company effective 1 July 2015.

In July 2015 Ramelius agreed to lease its Burbanks processing plant to Kidman Resources Limited for a period of one year which may be extended by mutual agreement.

Apart from the above, no matters or circumstances have arisen since 30 June 2015 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

34 PARENT ENTITY INFORMATION

	Parent entity
	2015	2014
	\$000's	\$000's
a) Summary of financial information
Financial statements for the parent entity show the following aggregate amounts:
Current assets	24,886	11,684
Total assets	107,864	79,825
Current liabilities	(5,359)	(2,033)
Total liabilities	(13,478)	(6,144)
Net assets	94,386	73,681
Equity
Share capital	124,251	118,743
Reserves
Share-based payment reserve	2,545	2,321
Available-for-sale reserve	(93)	-
Retained losses	(32,317)	(47,383)
Total equity	94,386	73,681
b) Income Statement
Profit (loss) after income tax	15,066	(128,191)
Total comprehensive income (loss)	14,973	(125,987)
c) Commitments
(i) Operating lease commitments
Future minimum rentals payable on non-cancellable operating leases due:
Within 1 year	468	180
Later than 1 year but not later than 5 years	462	-
Total operating lease commitments	930	180
(ii) 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 1 year 1,375 350 Later than 1 year but not later than 5 years 5,511 1,415 Later than 5 years 4,938 2,033 Total minimum exploration and evaluation commitments 11,824 3,798

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Significant operating leases include the following:

Ramelius has a 3 year non-cancellable operating lease for office space in Adelaide effective from December 2014 at a cost of \$91,067 per annum plus CPI adjustments.

Ramelius has a 1 year non-cancellable operating lease for office space in Perth effective from June 2015 at a cost of \$132,840 per annum plus CPI adjustments.

Ramelius has 3 year non-cancellable operating leases for storage and dispensing equipment at Vivien effective from March 2015 and June 2015 at a total cost of \$110,760 per annum.

Ramelius has a 3 year non-cancellable operating lease for office hire at Vivien effective from March 2015 at a cost of \$66,606 per annum.

(iii) Other commitments

Ramelius Resources Limited has contractual obligations for various expenditures such as royalties, production based payments, exploration and the cost of goods and services supplied to the parent entity. Such expenditures are predominantly related to the earning of revenue in the ordinary course of business. These obligations are not provided for in the parent entity financial statements.

d) 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.

(i) Expenditure on mineral rights and tenements

Tomalla

Ramelius signed a purchase option and joint venture agreement with Mr R P Hewett providing Ramelius with an option to acquire two Exploration Licences (EL71/49 & 48/48) & one Prospecting Licence (PL10/94) in New South Wales north of Gloucester. Ramelius may earn an 80% interest in the project by spending \$500,000 within 1.5 years, as well as a \$50,000 option and payment of \$100,000 for the transfer of interest in the tenements.

Cavanaghs

Ramelius signed a farm-in and joint venture agreement with Iron Wheal Pty Ltd. Ramelius intends to farm-in on two granted Prospecting Licences (PL58/1550 & 58/1552), five PL applications (PLA58/1669 – 58/1673) and one Exploration Licence application (ELA58/483) in the Murchison region. Ramelius may earn a 70% interest in the project by spending \$2,000,000 within 4 years, as well as a \$30,000 option and payment of \$300,000 for the transfer of interest in the tenements.

Condobolin

Ramelius signed a farm-in and joint venture agreement with Clancy Exploration Limited. Ramelius intends to farm-in on one Exploration Licence (EL77/48) in New South Wales. Ramelius may earn an 80% interest in the project by spending \$2,000,000 within 4 years.

(ii) 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 \$2,291,916 (2014: \$2,054,900). These bank guarantees are fully secured by cash on term deposit.

e) Guarantees in relation to debts of subsidiaries

Ramelius and Mt Magnet Gold Pty Ltd (the Closed Group) entered into a Deed of Cross Guarantee on 15 December 2011 (Deed) as noted in Note 30 above. The effect of the Deed is that Ramelius has guaranteed to pay any deficiency in the event of winding up of the abovementioned Subsidiary under certain provisions of the Corporations Act 2001. Mt Magnet Gold Pty Ltd has also given a similar guarantee in the event that Ramelius is wound up.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

35 COMPANY DETAILS

The registered office and principal place of business of Ramelius is:

Suite 4, 148 Greenhill Road PARKSIDE SA 5063

Level 1, 67 Greenhill Rd Wayville SA 5034

Correspondence to: GPO Box 1270 Adelaide SA 5001

T 61 8 8372 6666 F 61 8 8372 6677 E info.sa@au.gt.com W www.grantthornton.com.au

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAMELIUS RESOURCES LIMITED

Report on the financial report

We have audited the accompanying financial report of Ramelius Resources Limited (the "Company"), which comprises the statement of financial position as at 30 June 2015, the income statement, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors' declaration of the company the consolidated entity comprising the Company and the entities it controlled at the year's end or from time to time during the financial year.

Directors' responsibility 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. The Directors' responsibility also includes such internal control 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. The Directors also state, in the notes to the financial report, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, the financial statements comply with International Financial Reporting Standards.

Auditor's responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require us to comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

Grant Thornton South Australian Partnership ABN 27 244 906 724 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

'Grant Thornton' refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another's acts or omissions. In the Australian context only, the use of the term 'Grant Thornton' may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the Company's preparation of the financial report that gives a true and fair view 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 Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor's opinion

In our opinion:

• a the financial report of Ramelius Resources Limited is in accordance with the Corporations Act 2001, including:
• i giving a true and fair view of the consolidated entity's financial position as at 30 June 2015 and of their performance for the year ended on that date; and
• ii complying with Australian Accounting Standards and the Corporations Regulations 2001; and
• b the financial report also complies with International Financial Reporting Standards as disclosed in the notes to the financial statements.

Report on the remuneration report

We have audited the remuneration report included the directors' report for the year ended 30 June 2015. 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.

Auditor's opinion on the remuneration report

In our opinion, the remuneration report of Ramelius Resources Limited for the year ended 30 June 2015, complies with section 300A of the Corporations Act 2001.

GRANT THORNTON SOUTH AUSTRALIAN PARTNERSHIP Chartered Accountants

S J Gray Partner

Adelaide, 27 August 2015