RAMELIUS RESOURCES LIMITED — Interim / Quarterly Report 2020

Feb 23, 2020

24 February 2020

APPENDIX 4D: HALF YEAR REPORT FOR THE PERIOD ENDED 31 DECEMBER 2019

Results for announcement to the market

Current reporting period: Half year ended 31 December 2019 Previous corresponding reporting period: Half year ended 31 December 2018

24 February 2020

ISSUED CAPITAL

Ordinary Shares: 658M

DIRECTORS

NON-EXECUTIVE CHAIRMAN: Kevin Lines MANAGING DIRECTOR: Mark Zeptner NON-EXECUTIVE DIRECTORS: Michael Bohm David Southam Natalia Streltsova

COMPANY SECRETARY: Richard Jones

www.rameliusresources.com.au ramelius@rameliusresurces.com.au

RAMELIUS RESOURCES LIMITED

Registered Office

Level 1, 130 Royal Street East Perth, WA 6004 Tel +61 8 9202 1127 PO Box 6070 East Perth, WA 6892

Key Information			2019$'000	2018A$'000
Revenue from ordinary activities		down 13%	158,451	181,846
EarningsbeforeInterest,Tax,DepreciationAmortisation (EBITDA)	&	up 32%	65,910	50,036
Net profit before tax		up 321%	29,621	7,038
Net profit after tax		up 329%	20,494	4,777
Net profit after tax attributable to members		up 329%	20,494	4,777

Dividend information

Dividends recommended but not yet paid

There were no dividends recommended but not yet paid for the half year ended 31 December 2019.

Dividends paid

On 4 October 2019 a final dividend for the year ended 30 June 2019 of 1 cent per fully paid ordinary share was paid. The dividend payment totalled $6,579,000.

Financial results

The following Appendix 4D reporting requirements are found within this half year financial report which has been reviewed by Deloitte Touche Tohmatsu:

Requirement	Title	Reference
Review of results	Directors' report	Page 2
A statement of comprehensive income	Income statement	Page 16
A statement of financial position	Balance sheet	Page 17
A statement of retained earnings	Statement of changes in equity	Page 18
A statement of cash flows	Statement of cash flows	Page 19
Earnings per security	Income statement	Page 16

Net tangible assets per ordinary share	31 December2019A$	31 December2018A$
Net tangible asset backing per ordinary share	0.44	0.47

Earnings per share	31 December2019	31 December2018
	A$	A$
Basic earnings per share	3.11	0.90
Diluted earnings per share	3.06	0.89

Changes in controlled entities

There have been no gains or losses of controlled entities in the half year ended 31 December 2019.

Associates and joint venture entities

The group has the following direct interests in unincorporated joint operations:

Joint operation project	Joint operation partner	Principal activity	31 December2019
Nulla South	Chalice Gold Mines Limited	Gold Exploration	0%*
Gibb Rock	Chalice Gold Mines Limited	Gold Exploration	0%*
Coogee Farm-out	Unlisted entity	Gold Exploration	Diluting 100%
Jupiter	Kinetic Gold#	Gold Exploration	0%*

* Ramelius earning in.

Kinetic Gold is a subsidiary of Renaissance Gold Inc.

Audit

This report is based on financial statements which have been subject to a review by Deloitte Touche Tohmatsu.

2020 Half year report

For the six months ended 31 December 2019

It is recommended that the 2020 half year report is read in conjunction with the 30 June 2019 annual financial report of Ramelius Resources Limited together with any public announcements made by Ramelius Resources Limited during the half year ended 31 December 2019 in accordance with the continuous disclosure obligations arising under the Corporation Act 2001.

About this report

This half year report is a summary of Ramelius and its subsidiary companies' operations and financial position as at 31 December 2019 and performance for the half year ended on that date.

In this report references to 'Ramelius', 'the company', and 'the group' refer to Ramelius Resources Limited (ABN 51 001 717 540) and its subsidiary companies', unless otherwise stated.

References in this report to the 'half year' are to the financial period 1 July 2019 to 31 December 2019 unless otherwise stated. The prior corresponding period is the half year ended 31 December 2018.

All dollar figures are expressed in Australian dollars (AUD) unless otherwise stated.

Table of contents	Page
Directors' report	2
-Operations review	2
-Financial review	7
-Auditor's independence declaration	14
Half yearfinancial report	15
Directors' declaration	29
Independent auditor's review report	30
Corporate directory	32

Your directors present their report on Ramelius Resources Limited for the half year ended 31 December 2019.

Directors

Except as otherwise stated below, the directors in office during half year reporting period and as at the date of this report are shown below.

Kevin Lines Mark Zeptner Michael Bohm David Southam Natalia Streltsova (appointed 1 October 2019)

Significant changes in the state of affairs & events since the end of the half year

Commencement of mining operations at the Marda Gold Project

The Mining Proposal and Mine Closure Plan for the Marda Gold Project were approved in September 2019 with ore mining commencing shortly thereafter. In addition to grade control drilling, site establishment, and roadworks, ore mining commenced at the Dugite and Python open pits. A total of 14,420 tonnes were mined at 1.22 g/t for 564 ounces of contained gold. As at 31 December 2019 a total of 23,480m of RC grade control drilling had been undertaken which represents around 70% of the grade control drilling for these pits.

Greenfinch open pit approval

On 3 October 2019 Ramelius was advised that the revised Clearing Permit application for the Greenfinch open pit project, adjacent to the Company's Edna May gold operations in Western Australia, had been granted by the Department of Mining, Industry Regulation and Safety (DMIRS).

On 28 January 2020 Ramelius further received the final Federal Controlled Action environmental approval to proceed with the project. Whilst production is not scheduled until the 2021 financial year an earlier start date is currently being considered for inclusion in the updated Life-of Mine plan due for publication in the March 2020 Quarter.

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

Acquisition of Spectrum Metals Limited

On 10 February 2020 Ramelius announced it had entered into a Bid Implementation Agreement ("BIA") with Spectrum Metals Limited ("Spectrum") pursuant to which Ramelius will offer to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own under the terms of an off-market takeover offer ("the Offer"). Under the Offer, Spectrum Shareholders will receive one (1) Ramelius share for every ten (10) Spectrum shares held and cash consideration of A$0.017 per Spectrum share held, valuing Spectrum shares at A$0.15 each, based on the volume weighted average price of Ramelius shares traded on 7 February 2020. The Spectrum Board of Directors unanimously recommended that Spectrum shareholders accept the offer in the absence of a superior proposal.

As at 31 December 2019 Ramelius held a relevant interest of 4.9% of the issued and outstanding ordinary shares in Spectrum.

Spectrum is the owner of the high grade Penny West Gold Project which is one of Australia's highest grade undeveloped gold assets with a gold resource currently of 799kt @ 13.8 g/t for 355,500 ounces.

There were no other matters or circumstances that have arisen since 31 December 2019 that have or may significantly affect the group's operations, results, or state of affairs, or may do so in the future.

Operations review

Overview

Ramelius is an established ASX 300 gold production and exploration company. Ramelius has averaged production of in excess of 200,000 ounces per annum over the last two years and has set guidance for the 2020 financial year of 205,000 – 225,000 ounces. Furthermore, a life of mine plan was released on 17 June 2019 which detailed total gold production of 1 million ounces of gold production over a 5 year period.

Figure 1.1: Ramelius' operations locations

During the 2020 half year the company produced 92,084 ounces from its Mt Magnet, Vivien, and Edna May gold mines at an All-In Sustaining Cost ("AISC") of A$1,240 per ounce. Sales for the half year totalled 85,692 ounces at an average realised gold price of A$1,844 generating strong a margin of $A604 per ounce above AISC per ounce.

Operational summary	Unit	Mt Magnet1	Edna May2	Group
Open pit
High grade ore mined	kt	1,264	14	1,278
Grade	g/t	1.30	1.22	1.30
Contained gold	oz	52,915	564	53,479
Underground
High grade ore mined	kt	202	47	249
Grade	g/t	5.00	3.86	4.78
Contained gold	oz	32,457	5,790	38,247
Total ore mined	kt	1,466	61	1,527
Mill production
Tonnes milled	kt	1,018	1,091	2,109
Grade	g/t	2.17	0.79	1.46
Contained gold	oz	70,934	27,832	98,766
Recovery	%	95.7	91.2	94.4
Recovered gold	oz	67,873	25,377	93,250
Gold poured	oz	66,987	25,097	92,084
Gold sold	oz	60,456	25,236	85,692

Table 1.1: Mine operations performance for the 2020 half year

1 In the above table and throughout this report Mt Magnet incorporates the high grade Vivien underground ore which is processed through the Mt Magnet processing plant. 2 In the above table and throughout this report Edna May incorporates the Marda ore which will be processed through the Edna May processing plant.

Average realised gold price v All-in sustaining cost (by Quarter) over last 12 months $/Oz

Figure 1.2: Average realised gold price compared to the all-in sustaining cost (by Quarter)

Mt Magnet

Figure 1.3: Mt Magnet key mining & exploration areas

Mining

Operations at Mt Magnet continued on a multi pit / underground basis throughout the 2020 half year with mining occurring at four open pit and three underground projects. A summary of the main projects for the half year is provided as follows:

Area	Type	Operational commentary
Eridanus	Open Pit	Eridanus ore was the main source of ore feed for Mt Magnet for the half year making up 46%of the ore feed. A total of 471kt of ore was milled at a grade of 1.63 g/t and a recovery of 94.4%for 23,373 ounces of recovered gold.A total of 799kt of high grade ore was mined at a grade of 1.39 g/t for 35,671 ounces ofcontained gold.Operations at Eridanus progressed well with positive reconciliations to the Ore Reserve notedthroughout the half year.
Milky Way	Open Pit	Milky Way ore was the other base load ore source for Mt Magnet for the half year making up33% of the ore feed. A total of 342kt of ore was milled at a grade of 1.24 g/t and a recovery of94.0% for 12,861 ounces of recovered gold.A total of 303kt of high grade ore was mined at a grade of 1.24 g/t for 12,120 ounces ofcontained gold.Mining operations at Milky Way are expected to conclude in the 2020 financial year.
Vegas	Open Pit	Whilst mining continued at Vegas during the half year none of the ore was processed with thehigher grade Milky Way and Eridanus ore treated in preference to the Vegas ore.A total of 161kt of high grade ore was mined at a grade of 0.99 g/t for 5,124 ounces of containedgold.Mining operations at Vegas are expected to conclude in the 2020 financial year.
Stellar	Open Pit	Mining activities at Stellar were suspended in the 2019 financial year as spectacular drill resultswere analysed and mine plan options assessed.Mining activities recommenced in the half year with 586k bcms of material being moved. No oremining took place in the half year. High grade ore is forecast to be mined in the June 2020Quarter.
Hill 60	Underground	Mining at the Hill 60 underground continued during the half year with 42kt of ore being milled ata grade of 2.76 g/t and a recovery of 97.7% for 3,648 ounces of recovered gold.Operations focussed on development during the half year with 1,572 metres being developedand 52kt of development ore being mined at a grade of 2.43 g/t for 4,054 ounces of containedgold.Further lode definition, including sludge drilling, is in progress in preparation for stoping tocommence in the second half of the 2020 financial year.

Area	Type	Operational commentary
Shannon	Underground	Mining at the Shannon underground continued during the half year with 40kt of ore being milledat a grade of 5.66 g/t and a recovery of 97.8% for 7,128 ounces of recovered gold.
		Operations focussed on development during the half year with 1,788 metres being developedand 43kt of development ore being mined at a grade of 5.65 g/t for 7,761 ounces of containedgold.
		Ore development in December 2019 on the 1290 level (3rd ore level) delivered a series of veryhigh grade cuts (+30 g/t) which had a positive impact on the gold production for the half year.
		Stoping will commence in the March 2020 Quarter.
Vivien	Underground	During the half year the Vivien Life-of-Mine was extended to the June 2021 Quarter on the backof a recent mine extension diamond drilling program.
		This mine life extension enabled Ramelius to change the underground mining contractor toRUC Cementation. This contractor changeover, the focus on development, and otheroperationalmatters, resulted in Vivien mining 96kt of ore at a grade of 6.37 g/t for 19,749 ouncesof contained gold. Whilst the tonnage was 16% down on the prior corresponding period thegrade was 23% higher. This resulted in a 4% increase in the contained gold mined.
		A total of 94kt of ore was milled at a grade of 6.60 g/t and recovery of 97.3% for 19,417 ouncesof recovered gold.

Milling

	Dec 19	Dec 18	Change (%)
Kt	1,018	1,016	0 %
g/t	2.17	1.84	+ 18 %
Oz	70,934	60,114	+ 18 %
%	95.7	95.3	0 %
Oz	67,873	57,272	+ 19 %
Oz	66,987	56,628	+ 18 %
Oz	60,456	59,673	+ 1 %

Table 1.2: Mt Magnet mill production for the 2020 half year

A total of 1,018k tonnes were processed at the Mt Magnet mill during the half year which is comparable to the prior corresponding period. However, the grade of the ore was 18% higher resulting in a 19% increase in the recovered gold when compared to the prior corresponding period.

The grades at Mt Magnet increased due to more underground ore being available from the introduction of the high grade feed from the Hill 60 and Shannon underground mines. In addition to this the open pit ore grade increased 18% on the prior corresponding period due to improving grades at Milky Way and the introduction of the higher grade Eridanus ore.

Edna May

Mining

During the half year mining operations at Edna May focussed on the underground mine with significant capital and operating development being achieved (1,634 metres). Ore mining, which was mainly from the development levels, totalled 47kt at a grade of 3.86 g/t for 5,790 ounces of contained gold. Both the Jonathan and Fuji lodes are performing well and matching reserve expectations. Stope production will ramp up during the second half of the 2020 financial year.

Mining and site establishment works commenced at the Marda Gold Project during the period. The Mining Proposal was approved on 24 September 2019 with the site works (including clearing, grade control drilling, office construction, pre strip, and road upgrades) commencing shortly thereafter. A total of 14,420 tonnes of ore was mined at 1.22 g/t for 564 ounces of contained gold which was stockpiled at Marda at 31 December 2019 awaiting the completion of the haul road upgrades. Haulage of the Marda ore to Edna May for processing will commence early in the March 2020 Quarter.

Milling
		Dec 19	Dec 18	Change (%)
Mill production
Tonnes milled	Kt	1,091	1,412	- 23 %
Grade	g/t	0.79	1.08	- 27 %
Contained gold	Oz	27,832	49,203	- 43 %
Recovery	%	91.2	94.4	- 3 %
Recovered gold	Oz	25,377	46,441	- 45 %
Gold poured	Oz	25,097	47,423	- 47 %
Gold sold	Oz	25,236	47,963	- 47 %

Table 1.3: Edna May mill production for the 2020 half year

Throughput for the year, when compared to the prior corresponding period, was down 23% due to the planned change to a 12:9 milling schedule (12 days on / 9 days off) to preserve the low grade ore stockpiles for future blending purposes. A return to the continuous milling schedule is expected in the 2020 calendar year, when Marda and Greenfinch ore becomes available.

The bulk of the ore feed at Edna May (95%) was from the low grade stockpiles which impacted both the milled grade and the mill recovery in the half year. Notwithstanding the low grade ore exceeding expectations with a milled grade of 0.66 g/t for the half year, this is below the milled grades in the prior corresponding period with the primary ore source in that period being the high grade ore from the Stage 2 open pit.

Financial review

Financial performance	MtMagnet$M	EdnaMay$M	Corp &other$M	GroupDec 19$M	Dec 18$M	Change$M	Change%
RevenueCash costs of production	111.8(57.1)	46.6(29.7)	--	158.4(86.8)	181.9(124.8)	(23.5)38.0	- 13 %- 30 %
Gross margin excluding "non-cash" items	54.7	16.9	-	71.6	57.1	14.5	+ 25 %
Amortisation and depreciation	(25.4)	(9.9)	-	(35.3)	(42.7)	7.4	- 17 %
Gross profit	29.3	7.0	-	36.3	14.4	21.9	+ 152 %
Earnings before interest & tax (EBIT)	29.3	7.0	(5.8)	30.5	7.3	23.2	+ 318 %
Profit / (loss) before income tax	29.3	7.0	(6.7)	29.6	7.1	22.5	+ 321 %
Income tax expense	-	-	(9.1)	(9.1)	(2.3)	(6.8)	+ 304 %
Profit / (loss) for the year from continuingoperations	29.3	7.0	(15.8)	20.5	4.8	15.7	+ 329 %

Table 2.1: 2020 half year financial performance

Figure 2.1: Revenue reconciliation between 2019 and 2018

Revenue

Revenue for the half year ended 31 December 2019 decreased by 13% to $158.4 million compared to $181.9 million for the half year ended 31 December 2018. The main driver behind this has been the production variances from Edna May and the timing of gold sales which has been offset by the improved gold price:

• Mt Magnet gold sales increased by 1% or 783 ounces despite the 18% increase in gold poured due to the timing of the gold sales;
• Edna May gold sales decreased by 47% or 22,727 ounces which is in line with the lower production from Edna May as previously discussed;
• The realised gold price was $1,844 per ounce, a 10% increase on the prior corresponding period. Sales were a mix of spot and forward sales with the average spot price being $2,164 per ounce (compared to an average for the half year period of $2,159 per ounce) and the average price of deliveries into the hedge book of $1,793 per ounce; and
• The spot gold price increased over the prior 6 months enabling the realisation of a higher average price (+10%) and an increase in the average price of the company's hedge book (+11%).

Earnings before interest & tax (EBIT)

The EBIT for the half year ended 31 December 2019 was $30.5 million compared to $7.3 million for the prior corresponding period, representing a 318% increase. The EBIT margin increased from 4% to 19% representing a significant improvement in financial returns for the business.

Mt Magnet delivered an EBIT of $29.3 million for the half year ended 31 December 2019 which was up from the $3.5 million EBIT for the prior corresponding period. Profitability at Mt Magnet increased from an EBIT margin in 2018 of 4% to 26% in 2019, which was attributable to the higher gold price and the higher grades at Mt Magnet from Vivien & Shannon. The operating cost per tonne has remained comparable to the prior corresponding period.

Edna May delivered an EBIT of $7.0 million for the half year ended 31 December 2019 compared to $10.9 million for the prior corresponding period. Whilst EBIT has reduced the EBIT margin has remained comparable to the prior corresponding period at 15% for the half year ended 31 December 2019. This margin has been maintained despite the lower grades due to the low grade ore, which made up 95% of the feed during the period, being "free carry" which only attracts processing and selling costs.

Figure 2.2: Reconciliation of movement in EBIT from 2018 to 2019

Depreciation & amortisation charges are down on the prior corresponding period as a result of mine life extensions and the stage in the mine life cycle for the open pit mines at Mt Magnet.

Net Profit After Tax (NPAT)

A net profit after income tax of $20.5 million was recorded for the half year ended 31 December 2019, representing an increase of 329% from the prior corresponding period.

Net finance costs, which include interest income, interest expense on lease liabilities, and non-cash financing costs relating to the unwinding of provisions and contingent consideration, were higher than the half year ended 31 December 2018 due to the interest charges incurred under the lease accounting framework.

The effective tax rate of the group for the half year ended 31 December 2019 was 31% compared to 32% for the prior corresponding period. This is higher than the prescribed rate of 30% due to minor non-deductible expenditure.

Balance Sheet

Total assets have increased to $454 million (30 June 2019: $397 million) primarily due to increases in inventory, mine development assets, and exploration and evaluation expenditure as well as the recognition of $29.1 million in right of use assets under the new leasing accounting framework. Inventories increased as stockpiles were accumulated at Mt Magnet, particularly at Eridanus where the positive reconciliations between mining and the Ore Reserve resulted in ore mining exceeding mill requirements.

In addition to the ore stockpiles, gold bullion on hand increased 6,392 ounces mainly as a result of the timing of the gold deliveries and sales towards the end of December 2019.

Significant amounts of gold were contained in the group's stockpiles and bullion at 31 December 2019:

• Contained gold in ore stockpiles of 35,181 ounces up 86% from 30 June 2019
• Gold in circuit of 3,265 ounces up 55% from 30 June 2019
• Bullion on hand of 11,858 ounces up 117% from 30 June 2019
• Total gold inventories of 50,304 ounces up 90% from 30 June 2019

Mine development assets increased in line with the significant development activity during the half year including the development of Hill 60 and Shannon underground mines and stripping activities at Stellar and Eridanus open pit mines at Mt Magnet. In addition to this the Edna May underground mine was further developed and stripping activities and site establishment commenced at the Marda Gold Project.

Cash on hand at the end of the half year was $61.9 million compared to $95.8 million at 30 June 2019. As at 31 December 2019 a total of 11,858 ounces of gold were on hand with the reported cash and gold bullion on hand at 31 December 2019 being $87.7 million (30 June 2019: $106.8 million).

Cashflow

The net cash from operations for the half year was $54.4 million compared to $62.6 million for the prior corresponding period. This was due to lower sales revenue (volume driven) mitigated somewhat by lower cash operating expenditures. There was also a significant increase in inventory levels in the current period (as the table below shows) as opposed to a reduction seen in the prior corresponding period, a $34.5 million swing. Notionally adding back these inventory movements would have seen a 56% increase in operating cashflow ($73.5 million vs $47.2 million).

	Dec 19$M	Dec 18$M
Ore & gold inventories
Ore stockpiles	+ $10.6	- $10.2
GIC	+ $1.4	- $0.1
Bullion	+ $7.1	- $5.1
Total	+ $19.1	- $15.4

Table 2.2: Movement in ore & gold inventories

A total of $78.9 million was re-invested during the half year which included the following major investments:

• Capital expenditure of $14.4 million including Marda Gold Project infrastructure, new underground mine infrastructure, and tailing dam lifts at the Mt Magnet and Edna May operations;
• Payments for the development of open pit and underground mines of $51.2 million;
• Payments for mining tenements and exploration of $7.9 million; and
• Acquisition of 4.9% of Spectrum Metals Limited totaling $6.6 million.

Free cash flow# for the half year was an outflow of $25.4 million (2018: inflow $27.9 million) which was down on the prior corresponding period due to the large amount development work undertaken in the period and the build up of gold and stockpiles.

Dividends Paid

Dividends paid to members during the half year were as follows:

	31 Dec 2019	31 Dec 2018
Final dividend for the year ended 30 June 2019 of 1 cent per fully paid ordinary share paidon 4 October 2019	6,579	-

Table 2.3: Dividends paid during the half year

Corporate

Ramelius held forward gold sales contracts at 31 December 2019 totalling 239,150 ounces of gold at an average price of A$1,943 per ounce over a period to May 2022.This compared to forward gold sales contracts at 31 December 2018 totalling 172,750 ounces of gold at an average price of A$1,750 per ounce over a period to December 2020. This represents an 11% increase in the average price of the hedge book.

- Free cash flow is defined as operating cash flows plus interest income less payments for development, exploration, property, plant, and equipment, and lease liability repayments and interest.

Development & exploration projects

Development projects

Greenfinch project (Edna May, WA)

On 3 October 2019 Ramelius was advised that the revised Clearing Permit application for the Greenfinch open pit project, adjacent to the Company's Edna May gold operations in Western Australia, had been granted by the Department of Mining, Industry Regulation and Safety (DMIRS).

On 28 January 2020 Ramelius received the final Federal Controlled Action environmental approval to proceed with the project. Whilst production is not scheduled until the 2021 financial year an earlier start date is currently being considered for inclusion in the updated Lifeof Mine plan due for publication in the March 2020 Quarter.

Tampia Hill Gold Project (Narembeen, WA)

Various technical studies, including metallurgy, surface and groundwater hydrology, and ore haulage were well advanced during the half year. Furthermore, stakeholder consultation with landowners, minority owners, relevant Shires, and regulatory bodies is ongoing.

The Tampia Feasibility Study is expected to be finalised in the March 2020 Quarter which will detail the outcome of the above and consider the final investment decision.

In June 2019 initial Mineral Resources of 8.2Mt at 1.7 g/t for 460,000oz of contained gold and Ore Reserves of 2.2Mt at 2.8g/t for 200,000oz of contained gold was announced.

Die Hardy (Marda Gold Project, WA)

The Die Hardy deposit is located 30km north of the Marda Central pits with a total Mineral Resource of 1.5 Mt @ 1.6g/t for 75,000oz.

During the half year 72 RC holes were completed for 4,223m, infilling the drill pattern on 40m sections. Results received to date are encouraging and confirm the moderate dipping, BIF-hosted, 2-9m thick lode zone.

The resource model will be updated in the March 2020 Quarter

Eridanus Resource (Mt Magnet, WA)

The Company reported a significant increase in the Eridanus Resources during the half year of 226% on the previous resource reported in 2018. The new resource reports as 12Mt at 1.3 g/t Au for 490,000 ounces. Eridanus is now the third largest endowment area in the +6Moz Mt Magnet gold camp, after Hill 50 (2.1Moz) and Morning Star (1.2Moz).

Exploration projects

Ramelius' exploration activities focussed around the Mt Magnet and Edna May Gold Projects during the first half of the financial year.

Mt Magnet

Eridanus Deeps Prospect

Drilling & assay results at the Eridanus deposit continue to deliver significant results with wide intersections of stockwork style mineralisation occurring within the host Eridanus Granodiorite, below the current pit. Holes were drilled at multiple orientations in order to work around active mining operations and to test the stockwork mineralisation from various directions. This resulted in a major increase of the Eridanus Mineral Resource to 12Mt @ 1.3 g/t for 490,000 ounces.

Boomer Prospect

Exploration drilling targeted the depth extensions to the Boomer Fault Zone (NE trending Boogardie Break inferred to locally control the gold mineralisation at Boomer). Only disappointing results have been returned from the results received to date, but further drill testing will be required.

Zeus Prospect

Encouragingly, broad zones of anomalous gold mineralisation were intersected during a campaign of RC drilling at Zeus. Further evaluation is required to determine the significance of the results.

Edna May

During the half year Ramelius undertook reconnaissance Aircore drilling throughout the larger Edna May/Tampia/Marda regions (refer to figure 3.1 below). Anomalous results were returned from several prospect areas including Anomaly 11 (located immediately north of the Tampia Resource). Infill Aircore drilling will be planned in order to evaluate the significance of the results received to date.

Figure 3.1: Tampia Hill and Marda Projects proximal to the Westonia / Holleton Greenstone Belts exploration projects around Edna May.

Symes' Find

Step out RC drilling was completed during the half year outside the maiden Indicated and Inferred Mineral Resource of 0.5Mt at 1.90g/t for 34,000 ounces. The drilling has further delineated a broad southeast trending surficial laterite gold anomaly (at plus 0.50 g/t Au) which remains open to the southeast.

Further step out RC drilling, targeting the southern strike and plunge projection of the higher grade shoots at Symes' Find recommenced in late in the half year after the winter crops had been harvested.

Westonia / Holleton / Mt Hampton Projects

Land access and compensation agreements continue to be negotiated with various private land-owners in the district to allow Ramelius more flexibility to schedule its planned exploration activities without disrupting any farmers' crops throughout the year.

Nulla South Farm-in & Joint Venture Project – Ramelius earning 75%

No exploration drilling was undertaken during the half year with the key target areas under crop during this time.

Gibb Rock Farm-in & Joint Venture Project – Ramelius earning 75%

Ramelius continues to advance land access and is designing work programmes over selected target areas within the project.

Other

Tanami Joint Venture (NT) – Ramelius 85%

The Tanami Joint Venture was terminated during the half year.

Kathleen Valley Gold Project (WA) – Ramelius (1.5% NSR only)

The sale of the Kathleen Valley Gold Project tenements, encompassing the remnant resources at Mossbecker, Yellow Aster and Nil Desperandum was completed in December. Ramelius retains a 1.5% NSR royalty on any future gold production, subject to the purchaser having the right to acquire the royalty entitlement at any stage.

Auditor independence

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 14.

Rounding of Amounts

The company is of the kind referred to in ASIC Legislative Instrument 2016/191 relating to the 'rounding off' of amounts in the directors' report. Amounts in the directors' report have been rounded off in accordance with the instrument to the nearest thousand dollars, or in certain cases, to the nearest dollar.

This report is made in accordance with a resolution of directors.

____________________

Kevin James Lines Chairman

Perth 21 February 2020

Deloitte Touche Tohmatsu ABN 74 490 121 060

Tower 2, Brookfield Place 123 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia

Tel: +61 8 9365 7000 Fax: +61 8 9365 7001 www.deloitte.com.au

The Board of Directors Ramelius Resources Limited Level 1, 130 Royal Street East Perth WA 6892

21 February 2020

Dear Directors

Auditor's Independence Declaration to Ramelius Resources Limited

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Ramelius Resources Limited.

As lead audit partner for the review of the financial statements of Ramelius Resources Limited for the half year ended 31 December 2019, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
• (ii) any applicable code of professional conduct in relation to the review.

Yours faithfully

DELOITTE TOUCHE TOHMATSU

David Newman Partner Chartered Accountant

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Asia Pacific Limited and the Deloitte Network.

Income statement and statement of other comprehensive income	Page 16
Balance sheet	Page 17
Statement of changes in equity	Page 18
Statement of cash flows	Page 19

1.	Corporate information	Page 20
2.	Basis of preparation and significant accounting policies	Page 20

3.	Segment information	Page 22
4.	Revenue	Page 23
5.	Expenses	Page 23
6.	Income tax	Page 24
7.	Financial assets	Page 24
8.	Property, plant and equipment	Page 25
9.	Development assets	Page 26
10.	Exploration and evaluation expenditure	Page 26
11.	Lease liabilities	Page 27
12.	Share capital	Page 27
13.	Dividends	Page 27
	Other items
14.	Commitments	Page 28

14.	Commitments	Page 28
15.	Events occurring after the reporting period	Page 28

INCOME STATEMENT

For the half year ended 31 December 2019

		2019	2018
	Note	$'000	$'000
Revenue	4(a)	158,451	181,846
Cost of production	5(a)	(122,169)	(167,445)
Gross profit		36,282	14,401
Other expenses	5(b)	(6,900)	(9,261)
Other income	4(b)	1,081	2,144
Interest income		603	889
Finance costs	5(c)	(1,445)	(1,135)
Profit before income tax		29,621	7,038
Income tax expense	6	(9,127)	(2,261)
Profit for the half year from continuing operations		20,494	4,777
Earnings per share		Cents	Cents
Basic earnings per share		3.11	0.90
Diluted earnings per share		3.06	0.89

STATEMENT OF COMPREHENSIVE INCOME

For the half year ended 31 December 2019

	2019	2018
	$'000	$'000
Profit for the half year	20,494	4,777
Other comprehensive income, net of tax
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations	(1)	18
Items that may not be reclassified to profit or loss:
Change in fair value of financial assets	(940)	(50)
Other comprehensive (loss) / income for the half year, net of tax	(941)	(32)
Total comprehensive income for the half year	19,553	4,745

Total liabilities 161,764 117,627

Non-current liabilities

Net assets		291,970	278,942
Equity
Share capital	12	214,423	214,218
Reserves		(8,070)	(7,674)
Retained earnings		85,617	72,398
Total equity		291,970	278,942

Note

Cash and cash equivalents 61,948 95,815 Trade and other receivables 5,539 6,774 Inventories 60,843 41,067 Other assets 5,906 8,629 Total current assets 134,236 152,285

Other assets 507 1,488 Financial assets 7 5,779 101 Property, plant, and equipment 8 78,557 43,823 Development assets 9 128,103 99,430 Exploration and evaluation expenditure 10 106,552 99,442 Total non-current assets 319,498 244,284

Total assets 453,734 396,569

Trade and other payables 49,166 44,926 Lease liabilities 11 14,864 - Provisions 6,965 6,852 Current liabilities 70,995 51,778

Lease liabilities 11 15,113 - Provisions 46,749 45,987 Contingent consideration 12,739 12,121 Deferred tax liabilities 16,168 7,741 Total non-current liabilities 90,769 65,849

31 Dec 2019 $'000 30 Jun 2019 $'000

BALANCE SHEET

As at 31 December 2019

Current assets

Non-current assets

Current liabilities

		Page 17

STATEMENT OF CHANGES IN EQUITY

For the half year ended 31 December 2019

		Share
		based			Non
	Share	payment	Other	Retained	controlling	Total
	capital	reserve	reserves	profits	interest	equity
	$000's	$000's	$000's	$000's	$'000	$000's
Balance at 30 June 2018	149,568	1,545	339	50,520	-	201,972
Profit for the half year	-	-	-	4,777	-	4,777
Other comprehensive income	-	-	(32)	-	-	(32)
Total comprehensive income	-	-	(32)	4,777	-	4,745
Transactions with owners in theircapacity as owners:
Share capital	16,432	-	-	-	-	16,432
Share-based payments	118	289	-	45		452
Unissued shares relating to Explaurumacquisition	-	-	11,295	-	-	11,295
Non-controlling interest in Explaurum	-	-	-	-	27,828	27,828
Balance at 31 December 2018	166,118	1,834	11,602	55,342	27,828	262,724

Balance at 1 July 2019	214,218	2,032	(9,706)	72,398	-	278,942
Adoption of AASB 16 Leases (net of tax)	-	-	-	(696)	-	(696)
At 1 July 2019 (restated)	214,218	2,032	(9,706)	71,702	-	278,246
Profit for the half year	-	-	-	20,494	-	20,494
Other comprehensive loss	-	-	(941)	-	-	(941)
Total comprehensive (loss) / income	-	-	(941)	20,494	-	19,553
Transactions with owners in theircapacity as owners:
Payment of dividends	-	-	-	(6,579)	-	(6,579)
Share-based payments	205	545	-	-	-	750
Balance at 31 December 2019	214,423	2,577	(10,647)	85,617	-	291,970

STATEMENT OF CASH FLOWS

For the half year ended 31 December 2019

$'000$'000Cash flows from operating activitiesReceipts from operations163,260182,901Payments to suppliers and employees(108,910)(120,323)Net cash provided by operating activities54,35062,578Cash flows from investing activitiesInterest received559954Payments for property, plant, and equipment(14,400)(3,428)Payments for development assets(51,170)(23,382)Proceeds from sale of tenements900-Payments for the acquisition of Explaurum, net of cash acquired-(2,628)Payments for the acquisition of Marda-(2,102)Loan to Explaurum Limited-(3,700)Payments for financial assets(6,640)-Payments for mining tenements and exploration(7,866)(8,805)Payments for site rehabilitation(300)(202)Net cash used in investing activities(78,917)(43,293)Cash flows from financing activitiesInterest paid(512)(7)Repayment of lease liabilities(6,339)-Payment of dividends(6,579)-Return of secured deposits4,130-Net used in financing activities(9,300)(7)Net (decrease) / increase in cash and cash equivalents(33,867)19,278Cash at the beginning of the half year95,81568,209Cash and cash equivalents at the end of the half year61,94887,487	2019	2018

Note 1: Corporate information

The financial report of Ramelius Resources Limited (referred to as 'Ramelius', 'the company' or 'the group') for the half year ended 31 December 2019 was authorised for issue in accordance with a resolution of the directors on 21 February 2020. Ramelius is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange ('the ASX').

Note 2: Basis of preparation and accounting policies

Statement of compliance

The half year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half year report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report.

Basis of preparation

The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

The company is a company of the kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument, dated 24 March 2016, and in accordance with that Corporations Instrument amounts in the financial report are rounded off to the nearest thousand dollars, unless otherwise indicated.

Accounting policies

The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with those adopted and disclosed in the company's 2019 annual financial report for the year ended 30 June 2019 and corresponding prior period, except those listed below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

New and revised Accounting Standards and Interpretations

The group has adopted AASB 16 Leases as of 1 July 2019.

The leases recognised by the group under AASB 16 predominantly relate to mining equipment utilised under mining services contracts and power infrastructure utilised under power supply agreements.

AASB 16 provides a new lease accounting model which requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months unless the underlying asset is of low value. The depreciation of the lease assets and interest on the lease liabilities are recognised in the income statement.

Before the adoption of AASB 16, the group classified each of its leases (as lessee) at inception as either a finance lease or operating lease. For operating leases, the leased item was not capitalised and the lease payments were recognised in the income statement as incurred. Some mining services contracts and other service contracts are now determined to be leases, these were historically outside the scope of lease accounting. Payments made under mining services contracts and other service contracts were recognised in the income statement as incurred.

Transition to AASB 16

The group adopted the new standard using the modified retrospective approach and applied the practical expedient per AASB 16.C10(a) and (c). Lease liabilities are measured at the present value of future payments on the initial date of application, being 1 July 2019. The lease assets are measured at the same amount as the lease liability, or, as if AASB 16 had been applied from the commencement of the lease using the discount rate at the date of the initial application with any difference between the lease assets and lease liabilities recognised as an adjustment to opening retained earnings on 1 July 2019. The determination as to how to measure the lease asset is made on a lease by lease basis.

As per AASB 16 the comparative information has not been restated for the impact of the application of AASB 16.

Opening adjustments were recognised as at 1 July 2019 as indicated in the table below:

Impact on equity (increase/(decrease)):	Land &buildings$'000	Plant &equipment$'000	Total$'000
Lease assets	428	19,834	20,262
Lease liabilities	(428)	(20,828)	(21,256)
Deferred tax assets	-	298	298
Retained earnings	-	(696)	(696)

Lease liabilities recognised on transition:	$'000
Operating lease commitments disclosed at 30 June 2019	1,343
Add: Service contracts	20,243
Add: Adjustments for future contract rate increases	18
Less: Present value discounting of lease liabilities1	(42)
Less: Short term leases	(253)
Less: Low value leases	(53)
Lease liabilities recognised on transition	21,256

1. Lease liabilities were discounted using a weighted average discount rate of 3.61%

Impact on income statement:	$'000
The application of AASB 16 has resulted in the following amounts being recorded
in the income statement for the half year ended 31 December 2019:
Depreciation of right of use asset (note 8)	6,239
Interest expense (note 5(c))	477
Income tax expense	30
Total amount recorded in the income statement resulting from AASB 16	6,746

Payments of $3,755,000 for short term leases (lease term of 12 months or less) and payments of $14,000 for leases of low value assets were expensed in the income statement for the half year ended 31 December 2019.

Lease accounting policy (applied from 1 July 2019)

When a contract is entered into the group assesses whether the contract contains a lease. A lease arises when the group has the right to direct the use of an identified asset which is not substitutable and to obtain substantially all economic benefits from the use of the assets throughout the period of use. The group separates the lease and non-lease components of the contract and accounts for these separately.

Leases as lessee

Lease assets and lease liabilities are recognised at the lease commencement date, which is when the assets are available for use. The assets are initially measured at cost, which is the present value of future lease payments adjusted for any lease payments made at or before the commencement date, plus any make-good obligations and initial direct costs incurred.

Lease assets are depreciated using the straight line method over the shorter of their useful life and the lease term. Periodic adjustments are made for any re-measurement of the lease liabilities and for impairment losses, assessed in accordance with the group's impairment policies.

Lease liabilities are initially measured as the present value of future minimum lease payments, discounted using the group's incremental borrowing rate if the rate explicit in the lease cannot be readily measured at amortised cost using the effective interest rate. Minimum lease payments are fixed payments or index-based variable payments incorporating the groups expectations of extension options and do not include non-lease component of a contract.

The lease liability is remeasured when there are changes in the future lease payments arising from a change in rates, index, or lease terms from exercising an extension or termination options. A corresponding adjustment is made to the carrying amount of the lease assets, with any excess recognised in the income statement.

Short term leases

Short term leases (lease term of 12 months or less) and leases of low value assets are recognised as incurred as an expense in the income statement. Low value assets comprise plant and equipment.

Note 3: Segment information

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 (CODM), being the Managing Director and Chief Executive Officer, to make strategic decisions. Reportable operating segments are Mt Magnet, Edna May and Exploration. The group operates primarily in one business segment, namely the exploration, development and production of minerals with a focus on gold. The CODM monitors performance in these areas separately. Unless stated otherwise, all amounts reported to the CODM are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the group.

Operating segment performance details for the half years ended 31 December 2019 and 31 December 2018 are set out below:

Half year ending 31 December 2019	Mt Magnet$'000	Edna May$'000	Exploration$'000	Total$'000
Segment revenue	111,812	46,639	-	158,451
Cost of production	(105,154)	(45,526)	-	(150,680)
Amortisation and depreciation	(25,403)	(9,851)	-	(35,254)
Movement in inventory	15,485	3,588	-	19,073
Deferred mining costs	32,580	12,112	-	44,692
Gross margin	29,320	6,962	-	36,282
Impairment and exploration write-off	-	-	(896)	(896)
Segment margin	29,320	6,962	(896)	35,386
Interest incomeFinance costsOther itemsProfit before income tax from continuing operations				603(1,445)(4,923)29,621

	Mt Magnet	Edna May	Exploration	Total
Half year ending 31 December 2018	$'000	$'000	$'000	$'000
Segment revenue	100,465	81,381	-	181,846
Cost of production	(85,418)	(44,850)	-	(130,268)
Amortisation and depreciation	(32,768)	(9,897)	-	(42,665)
Movement in inventory	1,368	(16,778)	-	(15,410)
Deferred mining costs	19,898	1,000	-	20,898
Gross margin	3,545	10,856	-	14,401
Impairment and exploration write-off	-	-	(2,877)	(2,877)
Segment margin	3,545	10,856	(2,877)	11,524
Interest income				889
Finance costs				(1,135)
Other items				(4,240)
Profit before income tax from continuing operations				7,038

Note 4: Revenue

The group derives the following types of revenue:

(a)Sales revenue
	31 Dec 2019	31 Dec 2018
Half year ended	$'000	$'000
Gold sales	158,011	181,177
Silver sales	376	402
Other revenue	64	267
Total sales revenue from continuing operations	158,451	181,846

(b) Other income

Change in fair value of Edna May contingent consideration	-	2,130
Gain on divestment of tenements	1,081	-
Foreign exchange gains	-	14
Total other income from continuing operations	1,081	2,144

Note 5: Expenses

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

(a) Cost of production

		31 Dec 2019	31 Dec 2018
Half year ended	Note	$'000	$'000
Mining and milling production costs		76,609	81,738
Employee benefits expense		20,394	19,814
Royalties		8,985	7,819
Amortisation and depreciation	8 & 9	35,254	42,664
Inventory movements		(19,073)	15,410
Total cost of production from continuing operations		122,169	167,445

(b) Other expenses

Half year ended	Note	31 Dec 2019$'000	31 Dec 2018$'000
Employee benefit expense		3,449	3,439
Equity settled share-based payments		750	453
Other expenses		1,599	2,404
Depreciation	8	193	88
Foreign exchange losses		13	-
Exploration and evaluation costs		221	437
Impairment of exploration and evaluation assets	10	675	2,440
Total other expenses from continuing operations		6,900	9,261

(c) Finance costs

		31 Dec 2019	31 Dec 2018
Half year ended	Note	$'000	$'000
Provisions: unwinding of discount		315	471
Contingent consideration: unwinding of discount		618	657
Interest on leases		477	-
Interest and finance charges		35	7
Total finance costs from continuing operations		1,445	1,135

Note 6: Income tax

Income tax expense is recognised based on management's estimate of the weighted average effective income tax rate expected for the half year period. The estimated average tax rate used for the half year ended 31 December 2019 is 31%, compared to 32% for 31 December 2018. The effective tax rate is higher than 30% for the half year due to non-deductible expenditure.

Note 7: Financial assets

	31 Dec 2019$'000	30 Jun 2019$'000
Assets at fair value through other comprehensive income	5,779	101
Total financial assets	5,779	101

During the half year ended 31 December 2019 Ramelius acquired 4.9% of the issued and outstanding ordinary shares in Spectrum Metals Limited. Spectrum Metals Limited is the subject of an off-market takeover bid by Ramelius, for further information refer to Note 15.

Note 8: Property, plant, and equipment

For the half year ended31 December 2019	Land andbuildings$'000	Plant andequipment$'000	Assets underconstruction$'000	Right of useasset$'000	Total$'000
As at 1 July 2019
Cost or fair value	8,651	107,852	2,728	-	119,231
Accumulated depreciation	(1,577)	(73,831)	-	-	(75,408)
Net book amountAdoption of AASB 16 Leases	7,074-	34,021-	2,728-	-20,262	43,82320,262
As at 1 July 2019 (restated)	7,074	34,021	2,728	20,262	64,085
Half year ended 31 December 2019
Opening net book amount	7,074	34,021	2,728	20,262	64,085
Additions	-	-	14,253	15,060	29,313
Transfers	-	4,235	(4,235)	-	-
Depreciation charge	(456)	(8,146)	-	(6,239)	(14,841)
Closing net book amount	6,618	30,110	12,746	29,083	78,557
As at 31 December 2019
Cost or fair value	8,651	112,087	12,746	35,322	168,806
Accumulated depreciation	(2,033)	(81,977)	-	(6,239)	(90,249)
Net book amount	6,618	30,110	12,746	29,083	78,557

	Land and	Plant and	Assets under
For the year ended	buildings	equipment	construction	Total
30 June 2019	$'000	$'000	$'000	$'000
As at 1 July 2018
Cost or fair value	7,096	102,212	1,913	111,221
Accumulated depreciation	(802)	(59,297)	-	(60,099)
Net book amount	6,294	42,915	1,913	51,122
Year ended 30 June 2019
Opening net book amount	6,294	42,915	1,913	51,122
Additions on the acquisition of subsidiary	135	134	-	269
Transfers from mine development	-	249	-	249
Additions	-	-	7,458	7,458
Disposals	-	(6)	-	(6)
Transfers	1,420	5,223	(6,643)	-
Depreciation charge	(775)	(14,494)	-	(15,269)
Closing net book amount	7,074	34,021	2,728	43,823
As at 30 June 2019
Cost or fair value	8,651	107,852	2,728	119,231
Accumulated depreciation	(1,577)	(73,831)	-	(75,408)
Net book amount	7,074	34,021	2,728	43,823

Note 9: Development assets

	31 Dec 2019$'000	30 Jun 2019$'000
Development assets	380,145	330,866
Less: accumulated amortisation	(252,042)	(231,436)
Net book amount	128,103	99,430
Development asset reconciliation
Opening net book amount	99,430	84,728
Additions on the acquisition of subsidiary	-	13,759
Additions	48,727	57,159
Restoration and rehabilitation adjustment	552	3,164
Transfer to Property, plant, and equipment	-	(249)
Transfer from exploration and evaluation asset	-	7,096
Amortisation	(20,606)	(66,227)
Closing net book amount	128,103	99,430

The comparative information shown above reconciling the opening and closing mine development asset written down value is for the financial year ended 30 June 2019.

Note 10: Exploration and evaluation expenditure

Exploration and evaluation	106,552	99,442
Exploration and evaluation asset reconciliation
Opening net book amount	99,442	19,317
Additions on the acquisition of Explaurum	-	72,262
Additions	8,003	17,732
Disposals	(219)
Impairment	(675)	(2,800)
Exchange differences	1	27
Transfer to development asset	-	(7,096)
Closing net book amount	106,552	99,442

The comparative information shown above reconciling the opening and closing exploration and evaluation expenditure written down value is for the financial year ended 30 June 2019.

Note 11: Lease liabilities

See note 2 for discussion on the lease accounting policies

	31 Dec 2019	30 Jun 2019
	$'000	$'000
Maturity analysis:
Year 1	15,703	-
Year 2	9,085	-
Year 3	3,586	-
Year 4	2,057	-
Year 5	1,028	-
Gross lease liability	31,459	-
Less future interest charges	(1,482)	-
Total lease liability	29,977	-
Analysed as:
Current	14,864	-
Non-current	15,113	-
Total lease liability	29,977	-

Note 12: Share capital

	Number of
	shares	$'000
Ordinary shares
Share capital at 1 July 2018	528,509,008	149,568
Shares issued as part of the acquisition of Explaurum Limited	127,778,619	64,232
Shares issued from exercise of options	1,500,000	300
Shares issued from exercise of performance rights	85,342	28
Transfer from share based payment reserve	-	90
At 30 June 2019	657,872,969	214,218
Shares issued from exercise of performance rights	597,414	205
At 31 December 2019	658,470,383	214,423

Note 13: Dividends

	31 Dec 2019$'000	31 Dec 2018$'000
Final dividend for the year ended 30 June 2019 of 1 cent (2018: nil) per fullypaid share paid on 4 October 2019	6,579	-

Note 14: Commitments

(a) Gold delivery commitments

Forward sale contracts are accounted for as sale contracts with revenue recognised once gold has been physically delivered. The physical gold delivery contracts are considered own use contracts and therefore do not fall within the scope of AASB 9 Financial Instruments: Recognition and Measurement. As a result, no derivatives are required to be recognised. Forward gold sale contract delivery commitments are shown below:

	Gold for physicaldelivery	Contracted salesprice	Committed goldsales value
Gold delivery commitments	Oz	A$/oz	$'000
As at 31 December 2019Within one year	135,650	$1,866	253,126
Between one and five years	103,500	$2,044	211,530
Total	239,150	$1,943	464,656
As at 30 June 2019
Within one year	138,800	$1,806	250,605
Between one and five years	102,100	$1,873	191,193
Total	240,900	$1,834	441,798

Note 15: Events occurring after the reporting period

Acquisition of Spectrum Metals Limited

On 10 February 2020 Ramelius announced it had entered into a Bid Implementation Agreement ("BIA") with Spectrum Metals Limited ("Spectrum") pursuant to which Ramelius will offer to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own under the terms of an off-market takeover offer ("the Offer"). Under the Offer, Spectrum Shareholders will receive one (1) Ramelius share for every ten (10) Spectrum shares held and cash consideration of A$0.017 per Spectrum share held, valuing Spectrum shares at A$0.15 each, based on the Volume Weighted Average Price of Ramelius shares traded on 7 February 2020. The Spectrum Board of Directors unanimously recommended that Spectrum shareholders accept the offer in the absence of a superior proposal.

As at 31 December 2019 Ramelius held a relevant interest of 4.9% of the issued and outstanding ordinary shares in Spectrum.

Spectrum is the owner of the high grade Penny West Gold Project which is one of Australia's highest grade undeveloped gold assets with a gold resource currently of 799kt @ 13.8 g/t for 355,500 ounces.

There were no other matters or circumstances that have arisen since 31 December 2019 that have 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.

Directors' declaration

The directors declare that:

• (a) in the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable, and
• (b) in the directors' opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.

Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act 2001.

On behalf of the Directors

Kevin James Lines Chairman

Perth 21 February 2020

Deloitte Touche Tohmatsu ABN 74 490 121 060

Tower 2, Brookfield Place 123 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia

Tel: +61 8 9365 7000 Fax: +61 8 9365 7001 www.deloitte.com.au

Independent Auditor's Review Report to the members of Ramelius Resources Limited

We have reviewed the accompanying half-year financial report of Ramelius Resources Limited, which comprises the consolidated balance sheet as at 31 December 2019, the consolidated income statement, consolidated statement of comprehensive income, the consolidated statement of cash flows and the consolidated statement of changes in equity for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration for Ramelius Resources Limited and the entities it controlled at the end of the half-year or from time to time during the half-year.

Directors' Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2019 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Ramelius Resources Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Asia Pacific Limited and the Deloitte Network.

Auditor's Independence Declaration

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Ramelius Resources Limited, would be in the same terms if given to the directors as at the time of this auditor's review report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Ramelius Resources Limited is not in accordance with the Corporations Act 2001, including:

• (a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2019 and of its performance for the half-year ended on that date; and
• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

DELOITTE TOUCHE TOHMATSU

David Newman Partner Chartered Accountants 21 February 2020

Executive Director

Mark Zeptner Managing Director and Chief Executive Officer

Non-Executive Directors

Kevin Lines (Chairman) Michael Bohm David Southam Natalia Streltsova

Manager Legal & Company Secretary Richard Jones

Chief Operating Officer Duncan Coutts

Chief Financial Officer Tim Manners

Registered office Level 1, 130 Royal Street East Perth WA 6004 Telephone:+ 61 8 9202 1127 Website: www.rameliusresources.com.au Email: ramelius@rameliusresources.com.au

Share registry

Computershare Investor Services Pty Limited Level 5, 115 Grenfell Street Adelaide SA 5000 1300 556 161 (within Australia) + 61 3 9415 4000 (outside Australia)

Auditor

Deloitte Touche Tohmatsu Brookfield Place, Tower 2 123 St Georges Terrace Perth WA 6000 + 61 8 9635 7000

Stock exchange listing Ramelius Resources Limited ("RMS") shares are listed on the Australian Securities Exchange (ASX)