$650 million in cash and gold, guidance hit: Why this ASX 200 stock is still falling

Ramelius Resources Ltd (ASX: RMS) shares are back in the red on Wednesday as investors digest the gold producer’s latest update.

At the time of writing, the Ramelius share price is down 3.51% to $2.885.

The move adds to a difficult start to the year for the ASX 200 gold stock. Ramelius shares are now down around 5% over the past month and 30% in 2026.

Ramelius has now closed out FY26, and the market is getting its first look at how the June quarter finished.

Let’s take a closer look at the announcement.

Stronger finish to the year

According to the release, Ramelius produced 53,466 ounces of gold in the June quarter.

That represents a 40% increase on the prior quarter and lifted full-year production to 192,182 ounces.

This means Ramelius finished FY26 inside its guidance range of 185,000 to 205,000 ounces. Management said this was the 6th year in a row that the company has met its production guidance.

The stronger quarter was helped by improved haulage rates, particularly at Dalgaranga, while the Never Never underground operation remained on track.

Managing Director Mark Zeptner said the June quarter was a strong finish to the year and showed “consistent delivery” from the operations team.

Cash and gold balance grows

Ramelius also finished the quarter in a strong financial position.

The company reported underlying free cash flow of $183 million. This included growth capital and exploration, but came before dividends, share buybacks, and tax payments.

It ended June with cash and gold of $649.6 million.

Ramelius also kept returning money to shareholders during the quarter. It paid a fully-franked interim dividend of $54.4 million and completed $30.5 million of share buybacks.

The total buybacks now stand at $140.7 million under the company’s $250 million buyback program.

Why are Ramelius shares falling?

Ramelius hasn’t yet provided final all-in sustaining costs (AISC) for the June quarter. These figures will be included in the full quarterly report, which is due on 29 July.

Until those numbers land, investors don’t have the full margin detail, even though production and cash flow both look healthy.

There is also a lot happening across the project pipeline.

At Mt Magnet, stage one circuit works have started, while stage two and three works are close to completion. The camp expansion, wind project, and major project recruitment are also moving along.

Ramelius is also working through the Edna May Hub transaction. The company estimates this could deliver almost $600 million of pre-tax value once cash, retained free cash flow, and share consideration are included.

The post $650 million in cash and gold, guidance hit: Why this ASX 200 stock is still falling appeared first on The Motley Fool Australia.

More reading

• Ramelius Resources achieves FY26 guidance, grows cash flow and completes Edna May sale
• This ASX gold stock could soar 60% thanks to a big announcement
• 6 ASX gold stocks Morgans rates as a buy
• This beaten-down ASX gold stock is jumping on a $300 million deal
• This ASX gold company’s aggressive M&A program continues with $300 million deal

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.