Forrestania Buys Edna May Gold Hub for $300 Million
Synopsis
Ramelius Resources has agreed to sell its Edna May Gold Hub in Western Australia to Forrestania Resources for $300 million, comprising $200 million in cash and $100 million in shares.
Ramelius Resources is selling its Edna May Gold Hub in Western Australia to Forrestania Resources for $300 million via cash and shares, effectively changing hands to a gold processing hub in the state.
The deal is for the Edna May open pit, 2.9 mtpa capacity processing plant, associated infrastructure and mining leases.
Ramelius will receive $200 million in cash, with the potential for another $100 million in Forrestania Resources shares, on condition of normal conditions precedent, with the sale expected to conclude in the third quarter of 2026.
Sale Follows Edna May Production Wind-Down
This is the latest of a series of sales agreements to get Edna May from stockpile processing into care and maintenance, completed March 2025. FY2025 Annual Report indicates that production reached 53,556 ounces of gold that year whereas activity on site wound down, with a 132,268 oz gold production in FY2024.
Its project portfolio continues to develop across the Hyden and Southern Cross districts, and Forrestania said the processing plant will be refurbished as a central facility for treating ore from surrounding areas.
Gold Sector Continues to Draw Investment
The acquisition comes at a time where Western Australia produces about 70% of Australia’s gold production, making it the top gold-producing Australian state.
Australia stands as the second largest global producer of gold behind China, with data from U.S. Geological Survey Mineral Commodity Summaries 2025 showing Australia is now well ahead of Russia, Canada, and the US in gold production.
The Australian Government’s most recent resources and energy quarterly survey shows that the country’s gold exports will generate close to $36 billion in fiscal 2025, despite oscillations in international commodity markets.
Gold, along with liquid natural gas and iron ore, represents one of the top mineral export products from Australia.
Ramelius Strengthens Balance Sheet
The sale should boost Ramelius' balance sheet significantly. The end of the financial saw revenue of $1.2 billion, with net after tax profit recorded at $474.2 million.
Furthermore, Ramelius achieved operating cash flow of $770.5 million and concluded the fiscal year with cash and gold reserves totalling $809.7 million.
In addition, the share sale will make Ramelius a stakeholder in Forrestania, giving Forrestania operational control of a resource hub potentially capable of servicing future gold production in the region.
Source: Capital Brief
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
