Ramelius Resources Limited

This report is an updated version of the report published on 01 November 2022 on 3:55 PM (GMT +11)

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Ramelius Resources Limited (ASX: RMS) is engaged in mine operations (including the production and sale of gold), mine development, and exploration and evaluation.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~28.34% of the total shareholding. Dimensional Fund Advisors, L.P. and The Vanguard Group, Inc.  hold a maximum stake in the company at ~4.97% and ~4.68%, respectively.

1.4 Key Metrics:

During FY22, the company recorded an EBITDA margin of 48.1% against 41.7% of industry median. In addition, it posted asset turnover ratio of 0.67x as compared to 0.62x of industry median. Below is captured the trend of the current ratio and debt-to-equity ratio:

Section 2: Business Updates, Quarterly Highlights, and Financial Summary:

2.1 Business Updates:

2.2 1QFY23 Highlights:

2.3 Insights of FY22: RMS introduced a Dividend Reinvestment Plan (DRP) for the first time in FY22, enabling shareholders to elect to reinvest their dividends into RMS shares. It declared fully franked dividend of 1.0 cent per share during the year:

Section 3: Key Risks and Outlook:

Projects Overview: The below picture provides an overview of the company’s key projects:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 01, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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