Announcement - ASX:RMS
Ramelius to sell Edna May to Forrestania for $300m: $200m cash, $100m shares, subject to conditions
Ramelius Resources has agreed to sell its Edna May gold hub near Westonia in WA to Forrestania Resources for $300m. The price is $200m of upfront cash and $100m in Forrestania shares, which are locked up for 18 months and then subject to six months of orderly sale. Completion depends on Forrestania raising at least $200m and gaining shareholder approval, and was expected in the September 2026 quarter.
(price sensitive) - Ramelius Resources announced: "Sale of Edna May Gold Hub" (2 pages) - read the original
What investors must know
- Total consideration is $300m: $200m upfront cash and $100m in Forrestania shares, with a $20m deposit payable to Ramelius.
- Footnote 2 lets Forrestania raise the cash component to as much as $250m and cut the share component to as little as $50m.
- The share component is subject to 18 months of escrow plus a further six months of orderly sale commitment.
- Completion requires Forrestania to announce at least $200m in binding equity commitments, obtain shareholder approval under ASX Listing Rule 7.1, and secure third-party consents.
- Edna May has been on care and maintenance since April 2025 and produced 760koz of gold between 2018 and 2025.
- Ramelius expects to become a substantial shareholder in Forrestania, which had an approximate market capitalisation of $570m at the 26 June 2026 close of $0.425.
- The announcement gives no sale-price comparison with what Ramelius paid in 2017 or with its carrying value, so the 'significant value' claim cannot be checked.
Money: can they follow it up?
- Guidance
- No production or cost guidance given. Edna May has been on care and maintenance since April 2025.
The release gives no Ramelius cash balance, cash flow, Appendix 5B or share count, so those fields are blank. Consideration is $200m upfront cash and $100m in Forrestania shares, plus a $20m deposit payable. The announcement does not say whether the deposit forms part of the $200m. Footnote 2 allows the cash to rise to $250m and the shares to fall to $50m. The 760koz is cumulative production for 2018 to 2025, not a period figure, so gold_oz is left blank. The release does not show the proceeds' effect on Ramelius's cash position or any gain or loss on sale. All values are A$ as stated, with no conversion.
Appendix 5B explained - why runway predicts raisings - every company's runway
How the price reacted
News signal mixed, and on day 1 the stock moved +2.5% against the gold index (XGD). After 20 trading days: +4.6% against the XGD.
From the last close before the market could trade on it ($3.00 on 26 Jun 2026), with day-1 volume 0.6x the 20-day average.
RMS's past price-sensitive news
After 9 earlier announcements, RMS rose on day 1 5 times and fell 4 times - an average move of +1.0%.
No earlier price-sensitive reactions for Ramelius are on record, so there is no company-specific pattern to compare. The share price was A$3.00 at the 26 June 2026 close before release and is recorded at A$3.68 now, about 23% higher. Over the same period the XGD rose 14.9%. The data cannot separate this announcement from sector and market moves, and it does not indicate how the stock will trade.
Past reactions describe what happened, not what will. How prices react to results
The historical pattern
What share prices did after past results like this one, from DrillScore's own records. It describes the past: it isn't a forecast for RMS and it isn't advice.
After 39 other announcements read as 'mixed', stocks moved +0.5% by day 1, +0.8% by day 5 and +0.6% by day 20 against the XGD on average.
- Day 1
- +0.5%
- Day 5
- +0.8%
- Day 20
- +0.6%
Only 1 of RMS's earlier announcements have traded - too few to show a pattern.
In the 20 trading days before this release the XGD gold index moved +1.1% (steady). After 13 past gold announcements released into a steady gold index, stocks moved +0.9% by day 1, -1.8% by day 5 and +15.0% by day 20 on average - before taking the market's own move out.
- Day 1
- +0.9%
- Day 5
- -1.8%
- Day 20
- +15.0%
A strand leans up or down when its day-5 average is 1% or more either way. Each is shown on its own and never added up into a prediction: small samples swing, and every result is different. The full backtest - how it's worked out
The market it landed in
| Market | On the day | Now | Since |
|---|---|---|---|
| Gold (US$/oz) | US$4,096 | US$3,886 | -5.1% |
| Gold (A$/oz) | A$5,936 | A$5,737 | -3.3% |
| Copper (US$/lb) | US$6.14 | US$6.09 | -0.8% |
| AUD/USD | 0.6901 | 0.6774 | -1.8% |
At release, gold was US$4096.3/oz (A$5935.81/oz). Both have since fallen, to US$3886.3 (down 5.1%) and A$5737.08 (down 3.3%). The announcement gives no Edna May cost or AISC figures, so margins cannot be tested here. The cash portion is stated in dollars, but Forrestania may adjust the mix. The $100m share portion moves with the Forrestania share price, which is not in the data supplied, and with the gold price and restart economics. Sector moves were uneven since release: the S&P/ASX All Ordinaries Gold index (XGD) rose 14.9%, GDX rose 6.0%, GDXJ fell 1.3% and COPX fell 9.1%. Crude oil rose 27.9%, the US 10-year yield rose 0.78 points to 5.154%, and the US dollar index rose 2.0%. A rising-yield, firmer-dollar backdrop is often associated with pressure on gold, but this does not forecast prices.
Against RMS's own history
DrillScore has no earlier intercepts, cash figures, raisings or announcements for Ramelius on record, so no historical comparison is possible. The announcement itself says Edna May produced 760koz between 2018 and 2025 and has been on care and maintenance since April 2025. Ramelius says the sale allows it to focus resources on the Mt Magnet transformation and the Rebecca-Roe development.
Risks & caveats
- Completion is conditional. If Forrestania does not secure the $200m raising or shareholder approval, the sale may not complete.
- The $100m share component is illiquid during escrow and its value moves with the Forrestania share price, which is not in the data supplied.
- Forrestania may change the cash and share mix, so the cash received could be well above or below the $200m headline split.
- Ramelius keeps exposure to the Edna May restart through its shares, so it carries some restart and execution risk after the sale.
- No cost, carrying value, gain or loss, or closure and rehabilitation liability transfer is disclosed.
What's next
- Completion of the sale, with receipt of the cash and Forrestania shares - Expected in the September 2026 quarter as stated on 29 June 2026. That quarter has now passed, and the database does not show whether completion occurred.
- Forrestania announcement of at least $200m in binding equity commitments - not stated
- Forrestania shareholder approval for the share issue under the SAPA and the equity raising (LR 7.1) - not stated
- Payment of the $20m deposit to Ramelius - not stated
- Further transaction updates from Ramelius as appropriate - not stated
Questions worth asking
- Did the sale complete in the September 2026 quarter, and were all conditions (the Forrestania $200m raising, LR 7.1 approval and third-party consents) satisfied?
- Which cash and share mix did Forrestania elect under footnote 2, and what is the final value of the consideration?
- What was the carrying value of Edna May, and what gain or loss will Ramelius record on completion?
- Does Forrestania take on any closure, rehabilitation or other residual liabilities for Edna May?
- How will the cash proceeds be used, and how do they affect the Mt Magnet and Rebecca-Roe plans?
What it means
For someone following Ramelius, this is a portfolio and capital-allocation decision rather than new geology or production. Edna May is an idle asset. The sale would turn it into $200m of cash plus a stake in a buyer that must first raise $200m and win shareholder approval. The cash is the firmer part. The shares carry escrow and price risk, and the headline $300m depends on Forrestania's final mix. The expected completion window of the September 2026 quarter has now passed, so check for any later completion announcement. This is general information, not a recommendation.
General information only - not financial advice. DrillScore's analyses are produced automatically by an AI model (Claude, by Anthropic) from the company's own ASX announcement and public market data, and scored by a fixed formula (how it works). They can be wrong or incomplete, don't consider your objectives or circumstances, and are not a recommendation to buy, sell or hold anything. Always read the original announcement and consider advice from a licensed adviser.
Decoded 15 Nov 2026, 8:17 am by claude-haiku-5-5 - confidence: high. Spotted a mistake? Tell us.
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