Ramelius Resources ended the 2024 financial year by smashing its original production guidance and delivering record gold numbers.

The Mark Zeptner-led Western Australian miner started FY24 targeting production between 250,000-275,000 ounces, which was later upgraded to 285,000-295,000oz.

It came within 2000oz of exceeding that, with a record 293,033oz produced for FY24, including 82,0582oz in the June quarter.

Given the performance, all-in sustaining costs are expected to be at the lower end of the revised A$1550-1650/oz guidance range. 

The Australian gold price has spent most of the past year above $3000/oz and the past four months above $3500/oz, and Ramelius' Mt Magnet and Edna May hubs have consequently been delivering healthy margins, with quarterly free cash flow of $137.3 million.

Cash flow for the full year was $315.8 million, and the miner said expected the strong flow funds to continue into FY25.

Ord Minnett's Paul Kaner said cash generation was higher than expected, and AISC looked set to come in lower than his assumption of $1629/oz.

His estimate is for FY25 production to increase 11% to 325,000oz, generating $374 million in cash.

The analyst has a ‘buy' rating and $2.25 price target on the stock.

It ended the quarter with cash and bullion that increased from $407 million in March to $446 million on June 30.

It recently deployed $180 million to buy a strategic stake in Spartan Resources, including an extra $92 million over the past week, for a 17.9% kingmaking slice of the owner of the rapidly emerging owner of the Dalgaranga gold resources.

A resource upgrade due from Spartan in the near future could be the trigger for a takeover offer.

With Spartan now capitalised at around $1 billion, it would be Ramelius' most ambitious acquisition yet, but it comes with a fully permitted mining operation and more than 2Moz of resources across the Murchison and Gascoyne regions.

Last week, Ramelius upscaled a $100 million revolving debt facility to a larger $175 million deal with a syndicate of investment banks.

Ramelius will deliver its full June quarter results later this month.

The stock was up 3% this morning to $1.96, capitalising the miner at $2.2 billion.

Ramelius has traded between $1.18-2.13 over the past year.

Spartan, which was trading below 28c 12 months ago, was off 1% today at 93.5c.