Ann: Ramelius H1 FY2019 Results, page-3

Earnings before interest and tax (EBIT)The EBIT for the half-year was $7.3 million compared to $21.3 million in the prior corresponding period. Earnings for the half-year havebeen impacted by:

• Lower grades at Mt Magnet (namely from the Milky Way open pit and Water Tank Hill underground mine) as operations focussedon opening up new ore sources);
• Lower grades at Vivien as ore was predominantly sourced from strike ends of the lode);
• Increased grades and production at Edna May;
• Increased operating costs on a per tonne basis at Edna May as the mine progressed to its final depth; and
• Higher realised gold prices.
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The net cash from operations for the half-year was $63.5 million compared to $59.6 million in the prior corresponding period with theincrease being driven by higher cash margins during the half-year (refer table 1). The improved cash margins resulted from an improvedgold price and increased production. A total of $44.2 million was re-invested during the half-year which included:

• mine development costs of $23.4 million,
• exploration & tenement acquisition costs of $8.8 million,
• payments for the acquisition of Marda of $2.1 million,
• payments for the acquisition of Explaurum (net of cash acquired) of $6.3 million (including a loan of $3.7 million), and
• payments for property, plant, and equipment of $3.4 million.