Ramelius Resources (ASX:RMS) Is Up 7.3% After Announcing A$250m Buyback And Higher Dividend - What's Changed

• Ramelius Resources has launched a A$250 million share buyback program, approved on 10 December 2025, to repurchase up to 73,964,497 shares (3.84% of its 1,924,864,769 issued shares) by June 2027 as a way of returning capital to investors.
• Alongside the buyback, Ramelius has lifted its minimum annual dividend to 2 cents per share and outlined a 5‑year growth plan targeting higher gold production, signalling confidence in cash generation and business expansion plans.
• We’ll now examine how Ramelius’s A$250 million buyback shapes its investment narrative, especially around future earnings assumptions and valuation.

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Ramelius Resources Investment Narrative Recap

To own Ramelius Resources, you need to be comfortable with a gold producer that is actively returning capital while funding ambitious growth in production. The A$250 million buyback and higher minimum dividend support the near term appeal of cash returns, but do not remove the key risk around successfully integrating acquisitions and delivering on its 5 year expansion plans.

The most relevant recent development here is Ramelius’s A$2.4 billion agreement to acquire Spartan Resources, which sits at the heart of its push toward a larger mid tier gold profile. This deal, alongside the new buyback, sharpens the focus on execution risk, capital allocation discipline and how well Ramelius can balance higher output targets with maintaining its currently strong margins and return on equity.

Yet behind the headline capital returns, investors should also be aware of the risk that...

Read the full narrative on Ramelius Resources (it's free!)

Ramelius Resources’ narrative projects A$1.6 billion revenue and A$409.5 million earnings by 2028.

Uncover how Ramelius Resources' forecasts yield a A$4.33 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span roughly A$1.68 to A$7.17 per share, underscoring how far apart individual views can be. Set against Ramelius’s buyback and acquisition led growth plans, this spread invites you to weigh different assumptions about future production, integration risk and cash generation before deciding where you stand.

Explore 6 other fair value estimates on Ramelius Resources - why the stock might be worth less than half the current price!

Build Your Own Ramelius Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ramelius Resources research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Ramelius Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ramelius Resources' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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