high cost producer= highly leveraged to gold $, page-12

Disc. I reluctantly sold when I read director (Gordon) sold nearly all his direct shareholding. Looking/wondering whether to get back in, or whether increase holdings elsewhere.

The benefits of RMS have been written about, so I'll play the devil's advocate and and announce the negatives as I see them.

Firslty, as of next week, RMS drops out of the All Ords. Depending on POG next week, this could become a good entry point.

Secondly, RMS have not delivered on their promises as yet. Would like to see if their increase in gold production and drop in AISC do actually manifest themselves.

And thirdly, all this talk of leverage to POG is not truly accurate. Some is, BUT 1492ozs per month (for 8 months till August) have already been sold ($16m already received) at about A$ 1330/oz. ATM that is $200/oz below current price. (At least their 7,500 ozs of put options at $1,200/oz have beeen paid for and will probably expire without delivery).

OK, shoot away.


(Sorry if David has already written this as I've had him on ignore for a couple of years).