Ramelius Resources shares rally on $250m buyback, dividend lift
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More news: Ramelius Resources was one of the top performers on the ASX 200 in morning trade after the gold miner announced a $250 million share buyback program and lifted its minimum annual dividend to 2 cents per share.
Ramelius shares were up 6.2% to $3.59 at 12:10pm AEDT. The stock is now up 51.5% over the last 12 months.
Ramelius Resources announces $250m share buyback, lifts minimum dividend
The news: Gold miner Ramelius Resources has announced it will begin a $250 million share buyback program and lifted its minimum annual dividend to 2 cents per share as part of its capital allocation priorities for FY26 and FY27.
The context: In order of priority, Ramelius will focus on re-investment into the business, increase in shareholder returns and to maintain a strong balance sheet.
This is a shift from the FY24 and FY25 capital allocation priorities in order of maintaining a strong balance sheet, re-investing in the business and shareholder returns.
The change is partly due to Ramelius’ free cash flow being expected to significantly increase in FY28 and FY29 meaning priorities could then shift to shareholder returns, reinvestment in the business and maintaining a strong balance sheet.
Earlier this year, Ramelius acquired rival gold miner Spartan Resources for for $0.25 cash and 0.6957 new Ramelius shares per Spartan share.
What they said: “This capital management initiative is underpinned by our track record of consistently delivering strong free cash flow and our confidence that it will continue into the future,” Ramelius managing director Mark Zeptner said.
“Importantly, we remain fully funded, our production profile is growing and we anticipate further increases in our free cash flow returns. As our capital investments over the coming years start to yield benefits, we anticipate being able to provide shareholders with even better returns”.
The source: ASX
