Ann: Sale of West Kambalda Tenements , page-3

My thought is that its very unclear with the way RMS is trying to go forward with its corporate strategy.

Operationally, Wattle Dam returns back producing 6000 oz of Au per month (improvement to last quarter of just 5493 oz production), assuming the rate is constant that is 18000 oz per quarter or 72000 oz per year. This is just going back to normal, but still short of its previous times when it was producing around 25000 oz (equilivant to 100000 oz per year). This is largely due to Wattle Dam with 2 more years of life left.

To me the recent 3 purchases by RMS are small pie level (and lack a long term outlook):
1. 80% interest in Barlee with 74,000 oz (6g/t) for $4m plus royalties
2. Coogee with 34,800 oz (3.9g/t) for $0.9m
3. 10 West Kambalda tenements (no resource) for $0.3m plus royalties

This compares with SLR’s takeover of PRH (establishing a 3rd mining centre on top of the Mount Monger and Murchison centres), which only is paying $20m, will give SLR a boast of 1m oz (1.9g/t) Au; 10m oz (20.5g/t) Ag; and 95,000 tonnes (0.6%) of Cu.

Coogee is merely complimenting Wattle Dam as well as giving RMS some exploration upside with West Kambalda. Barlee is quite a distance to compliment its Mt Magnet operations.

Don’t forget RMS has more cash on hand than SLR, yet these purchases aren’t convincing making RMS an attractive investment with long term growth outlook, both Wattle Dam and Mt Magnet (6 year) are very limited life mines.

Hence, why, RMS is still under $400m market cap, where both SAR and IGR are over $500m with good growth patterns and SLR is over $800m establishing 3 mining centres with up to 4.5m oz of Au.

So the recent acquisition makes me wonder what RMS is trying to do.