2nd quarter activities and cashflow report , page-11

One of the key reasons for the current state of the stock market, for both companies and investors themselves, is over borrowing. Whether it's rising interest repayments for those with borrowings, or margin calls for those investors engaging in the risky business of owning more shares than they can afford, these past 5 or 6 months have been a reality check for many, and brought a sudden and painful realisation that the good times don't go on for ever.

Amidst all this, the Australian economy, and especially the mining sector, remains strong. But success is not a given - you can have the resource, but getting it out of the ground profitably is the only measure of success. Look at yesterday's announcement by View Resources - voluntary administration as costs rise and grades fall.

Now is the time to go back to basics, looking for well managed companies, in the right commodities, with the right tenements and with borrowings in check.

RMS seems to fit these criteria. No borrowings; own their own processing plant; in the next 12 months, they will dig out of Wattle Dam somewhere between 67,000 and 271,000 oz from 103,000 tonnes of dirt. At prices in excess of AUD$1,000 per oz, with a capital cost of $15 mill and operating cost of $9 mill, there's plenty in the bank for futher exploration of their exciting range of tenements!

I might be missing something, but this looks a no-brainer at a market cap of around $170 mill.