is rms overvalued..., page-18

I wonder if we see massive buyers swooping in to take it over $2 tomorrow...


I love this announcement!


For Immediate Release
Wednesday 9 May 2007
CASH RETURN INCLUDED IN RAMELIUS
SHAREHOLDER BENEFITS

There is to be a cash return to shareholders included in a capital management
program announced today by listed gold producer, Ramelius Resources Limited.
Ramelius is rewarding shareholders with cash and option benefits after, gold grades
and cash flows significantly exceeded expectations from its Wattle Dam open-pit
mine near Kambalda in Western Australia.
Today’s announcement follows the release of details by Ramelius last week of
bonanza gold intersections at Wattle Dam which have the potential to transform the
Company’s WA operations into a longer-term gold mine.
Ramelius’ Chairman, Mr Robert Kennedy, said “today’s three tiered initiative
demonstrates that the Company need not be reliant on shareholders or other capital
raising channels to fund future expansion of the Wattle Dam mine”.
The capital management program includes:

• A cash return of 7.5 cents per ordinary share to eligible Ramelius
shareholders, at a cost to the Company of approximately A$12.5 million;
• A half cent a share maiden dividend – and on which a franking decision has
yet to be determined – will be paid on 3 August, absorbing up to $834,348 if
all outstanding eligible options are converted by the record date;
• A new 1-for-10 bonus options package exercisable at $1.00 per option by
30 June 2009. This compares with the closing price for Ramelius on the ASX
last night (Tuesday 8 May 2007) of $1.255.
Points of particular importance to Ramelius investors are:
• Option holders converting prior to the relevant record dates will be eligible to
participate in the cash return, maiden dividend and new 1 for 10 bonus option
entitlement;
• The new options package could potentially generate an additional cash inflow
of up to A$16.68 million for Ramelius; and
• A full conversion of all outstanding RMSO and RMSOA listed options will
generate approximately A$12.5 million.
issued through

FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311
231 South Road, MILE END SA 5031
Ph: 08 8234 9555 Fax: 08 8234 9566
[email protected]


The capital management program will be subject to approval at a general meeting of
shareholders expected to be held on 15 June 2007.

“The cash stream being generated by our outstanding and above forecast gold
production at Wattle Dam means we can now self fund planned growth at the mine
without needing to dilute shareholder value in raising equity for capital works
commitments,” Mr Kennedy said.
“The proposed capital return will give back to shareholders capital currently
considered surplus to our needs in the medium term while providing the upside
available through the dividend and bonus issue opportunities including those
optionholders who convert by the relevant record dates” he said.
“Ramelius is in an exceptionally enviable financial, cash flow and operational position
for a mining and minerals exploration company”.
“We have around $5 million in the bank (as at 31 March this year), generated $13.4
million in gold and gold nugget sales revenue since mining commenced last year,
and at a gold price of A$850 per oz, we have approximately $31 million worth of gold
in stockpiles at Wattle Dam awaiting processing through our wholly-owned mill”.

“This is not including the new high grade gold intercepts announced last week and for
which a resource upgrade is now our objective”.
“The Company’s continued strong cash flow and absence of debt will also allow
Ramelius the freedom to make acquisitions in the future.”
Mr Kennedy said “the Company had been able to declare a maiden dividend in light
of the higher than expected revenues from Wattle Dam”.
Mr Kennedy described the 1 free Bonus Option for every 10 Ramelius shares held
component of the package as a “reward to shareholders for their on-going support of
the Company”.
“Ramelius has emerged from being a quiet achiever to putting fire back into
Australia’s gold sector in a manner which outstrips more fancied commodities by
setting, equally, new exploration benchmarks, new production and revenue outcomes
and significant long-term upside from proven and emerging resource potential,” Mr
Kennedy said.
The Company is currently considering either a cutback to the existing open pit, or
commencement of the mine’s maiden underground mining operations.