Read above post from Spec re 2028. Other options for RMS are to spend lots of cash on exploration and development before the production Cliff presents itself. It wouldn't take long to destroy the big cash pile being accumulated. Look at past WGX expenditure to get BIG BELL cave producing ($250m?) and now Great Fingal up and running and then add current costs.imagine RMS paying contractors unlike WGX using their own gear.so add 10-15% to those figures if you work it out. You can easily burn up $1bn fairly quickly doing lower grade development,just to try and stand still production wise at RMS.
IMHO - RMS have been able to pick up ready to go or near term operations until now for ever reducing returns. The modus operandi of having to buy another small sugar hit to truck every year or two to keep mills producing the same ounces is getting harder to execute. What's left is lower grade ore supplies on your own tenements and it's very hard to consider swilling beer when your used to swigging champagne through your plants,especially when the cost of processing is the same and your economic trucking distance is reduced.
If Great Fingal new feed comes in at say 10-15g/ton then RMS's dreams of getting WGX and access to its lower cost means of development are all over and the boot ends up on a different foot.
Miners of 30yrs ago used to sugar hit their mines for highgrade and then when the market turned they would disappear due to lack of profitable ore. BB and Northstar showed a different model of processing only ore while it presented a minimum Cash Margin. Reworked the same mine for ore numerous times as gold went up often dropping production oz when the price was up but banking the same steady cash return. BB ended up taking over numerous of those older style milked mines as we know because they had no ore developed ahead for their mills or required considerable cash sustaining input ahead to stay running. They were heading for their own Cliffs. Having been milked for all the easy resource they had with as little sustaining expenditure as possible.
DYOR + DYODD How does RMS accrue its cash?
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