RAMELIUS RESOURCES LIMITED — Investor Presentation 2020

Aug 23, 2020

Ramelius Resources Limited Full Year Results Presentation

24 August 2020

Mark Zeptner Managing Director & CEO

Tim Manners Chief Financial Officer

ASX:RMS

FY20 RESULTS PRESENTATION • AUGUST 2020

1

CAUTIONARY STATEMENT

Forward Looking Statements

This presentation contains certain forward looking statements with respect to Ramelius Resources Ltd’s (Ramelius) financial condition, results of operations, production targets and other matters that are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in or implied by those forward looking statements. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are beyond the control of Ramelius that may cause actual results to differ materially from those expressed in the forward looking statements contained herein. Ramelius gives no warranties in relation to the information and statements within this presentation.

2

FY20 RESULTS PRESENTATION • AUGUST 2020

DELIVERING SHAREHOLDER RETURNS – RECORDS BROKEN EVERYWHERE YOU LOOK

==> picture [767 x 320] intentionally omitted <==

----- Start of picture text -----

Corporate Snapshot Share Price Performance FY20 [^]
➢ Shares on Issue [] : 806M 80 $2.50
1.45Moz Mine Plan
➢ Market Cap @ A$2.00/sh [] : A$1.6B 70
➢ Cash & Gold: A$185.5M $2.00
60 Spectrum
Life of Mine
➢ Debt: A$24.4M Mine Life ExtensionVivien (Mt Magnet) AnnouncedAquisition Update
50
$1.50
Record Production
✓ 40
– 230koz produced (up 17% on FY19) Spectrum
Acquisition
$1.00
✓ Record Net Profit (after Tax) 30 Complete
– A$113.4M (up 420% on FY19)
20
Dividend Announced
Major Increase in $0.50
Best in Class Capital Returns (first since 2010) Eridanus Resource
✓ 10 (Mt Magnet)
– 176% share price appreciation
0 $0.00
Doubling of Dividend Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
✓
– 2.0c fully franked (from 1.0c in FY19)
Daily Volume (LHS) Share Price (RHS)
Million Shares
----- End of picture text -----

*Updated to 17 August 2020 ^ Source: FactSet

3

FY20 RESULTS PRESENTATION • AUGUST 2020

FY2020 FINANCIAL HIGHLIGHTS[^]

Financials	Units	Year End 30 Jun 2020	Year End 30 Jun 2019	% Change
Revenue	A$’000	460,574	352,770	31 %
EBITDA	A$’000	256,025	112,214	128 %
EBIT	A$’000	152,512	30,718	396 %
Statutory Net profit after Tax#	A$’000	113,415	21,832	420 %
Cash Flow from Operations	A$’000	236,031	136,983	72 %
Net Mine Cash Flow*	A$’000	97,510	70,546	38 %
Group Cash Flow	A$’000	69,855	27,606	153 %
Basic Earnings per share (cents)	cps	16.4	3.7	339%
Dividend per Share (fully franked)	cps	2.0	1.0	100 %

^ Refer to ASX Announcement “Appendix 4E and Financial Report for Year Ended 30 June 2020” released on 24 August 2020

• Cash from operations less capital, mine development, leases and rehabilitation

4

FY20 RESULTS PRESENTATION • AUGUST 2020

Underlying NPAT is $107.8M after reversing $10.1M in a tax loss benefit and $4.4M in exploration write-off (post tax)

RECONCILIATION OF NPAT YEAR-ON-YEAR

• Higher gold price and higher production was backbone of 420% NPAT increase

• Lower operating costs driven by higher grade and low cost operations at Eridanus

▪ Underlying costs per tonne and costs per bcm elsewhere in the Group remain in line with, or are lower, than those for FY19

▪ Higher tax expense follows higher pre-tax profit

==> picture [541 x 300] intentionally omitted <==

5

FY20 RESULTS PRESENTATION • AUGUST 2020

CREATING A HISTORY OF PROFITS & DIVIDENDS

==> picture [395 x 261] intentionally omitted <==

----- Start of picture text -----

420% increase in
FY20 NPAT
----- End of picture text -----

==> picture [395 x 260] intentionally omitted <==

6

FY20 RESULTS PRESENTATION • AUGUST 2020

MOVEMENT IN CASH BALANCE

• Cash from operations driven from increase gold production and higher A$ gold prices

• Mine Development mostly on Eridanus, Marda and Shannon

• SPX Acquisition cash outlay of A$30.7M (net of cash acquired)

• Net debt to be repaid in FY21

Net Mine Cash Flow[*] $97.5 Million

• Cash on Hand A$165.7M (plus A$19.8M in bullion)

• Cash from operations less capital, mine development, leases and rehabilitation

7

FY20 RESULTS PRESENTATION • AUGUST 2020

MARGINS RISING: COST CONTROL & IMPROVING GOLD PRICE

▪ Very consistent AISC profile over past 6 years…varying less than 4% over timeframe

▪ Expanding margins in gold bull market…AUD gold price at record levels through FY20 & into FY21

▪ Gold production increased by an average of 21.5% year-onyear over timeframe shown

==> picture [490 x 321] intentionally omitted <==

----- Start of picture text -----

AISC Margin increased from 20%
in FY15 to 42% in FY20
----- End of picture text -----

8

FY20 RESULTS PRESENTATION • AUGUST 2020

BALANCE SHEET

Current Assets A$270.9M

==> picture [361 x 222] intentionally omitted <==

Poised for Growth

▪ Very strong balance sheet; excellent liquidity

• A$185.5M in cash & bullion with approx. 91,000 ozs contained in stockpiles, bullion and GIC

• Net Assets A$515M (up 85% y-o-y)

• Modest debt facility providing financial flexibility

• Hedge book at 30 June 2020 of 247koz at A$2,135/oz

• Poised to act on growth opportunities, both internal and external

9

FY20 RESULTS PRESENTATION • AUGUST 2020

DEMONSTRABLE HISTORY OF ADDING VALUE[* ]

==> picture [747 x 309] intentionally omitted <==

----- Start of picture text -----

▪ Track record of generating positive
(net) cash flow from new projects
In Development
▪ Marda now in production;
development phase largely complete
(270kt ore stockpile on site; contains
approx. $13M in free cashflow)
▪ Targeting Tampia mining
commencement in mid FY21
Operating
▪ Targeting Penny mining
commencement in late FY21
▪
Balance sheet strength to be applied to ^
new acquisitions as opportunities arise
----- End of picture text -----

• ^ Cash component was $31M

• Unaudited cash flows by project

10

FY20 RESULTS PRESENTATION • AUGUST 2020

FY2020 KEY FINANCIAL HIGHLIGHTS

Earnings

• EBITDA: A$256.0M (2019: A$112.2M)

• NPAT: A$113.4M (2019: A$21.8M)

Cashflow

• Cash from operating activities: A$236.0M (2019: A$137.0M)

• Net Mine Cash Flow: A$97.5M (2019: A$70.5M)

Balance Sheet

• Cash & Bullion: A$185.5M (2019: A$106.8M) with A$24.4M bank debt

• New Life of Mine Plan of 1.45Moz[*] funded solely from existing balance sheet

Dividend Payment

• Directors declare 2.0c fully franked dividend (2019: 1.0c fully franked)

• Record date of 2 Sept 2020 and a payment date of 2 Oct 2020

• Refer ASX Announcement “Ramelius Extends Life of Mine by 34% to 1.45Moz” released on 30 June 2020

11

FY20 RESULTS PRESENTATION • AUGUST 2020

PEERS – RELATIVE SHARE PRICE PERFORMANCE OVER FY20^

==> picture [776 x 299] intentionally omitted <==

----- Start of picture text -----

250% 250% ▪ “Best in Class” for FY20
225% 225%
▪
200% 200% Record breaking 4 [th] Quarter
COVID-19
175% 175%
Onset
150% 150% ▪ Element of catch-up from
prior periods of being under
125% 125%
valued (management view)
100% 100%
75% 75% ▪ Market metrics based on
50% 50% FY20 results (Earnings &
25% 25% Cashflow relative to EV)
0% 0% leave RMS well positioned
relative to peers
-25% -25%
-50% -50%
Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
Ramelius Silver Lake Saracen Northern Star Evolution
Gold Road Westgold Red 5 St. Barbara
----- End of picture text -----

^ Source: FactSet

12

FY20 RESULTS PRESENTATION • AUGUST 2020

RAMELIUS

Sunrise at Edna May gold mine

Ramelius Resources Limited ASX Code: RMS Level 1, 130 Royal Street East Perth WA 6004

Authorised for release to the ASX by the Board of Director. For further information contact:

Investor enquiries:

Mark Zeptner Managing Director Ramelius Resources Ltd Ph: +61 8 9202 1127

Tim Manners Chief Financial Officer Ramelius Resources Ltd Ph: +61 8 9202 1127

Media enquiries:

Luke Forrestal Associate Director Media & Capital Partners Ph: +61 411 479 144

13

FY20 RESULTS PRESENTATION • AUGUST 2020