Ann: 2024 Resources and Reserves Statement, page-8

Hmmm.... without the acquisition of Cue (and small upgrade at Roe), RMS mineral resource would only have increased by 200k.


Stockpiles have increased by 2.1mt, which brings them close to 10mt of low grade ore, that is currently profitable to process, but... no spare capacity (and eve if they did have a further 800kt of throughput, it would take over 10 years to process it.

Yes, RMS are at pains to state that Rebecca/Roe reserves are coming, but.... the market is simply not going to ascribe much/any value to them when there is no indication that they are actually ever going to mine the two deposits. Sort of like RRL and the McPhil project.

Mt Magnet is very reliant on CUE in the near term, which is fine, but.... what if RMS had not been able to outbid WGX....
Without CUE, reserves would have been reduced by 80k.


A lot is riding on the Eridanus pit/underground outcome in December.
Finally, RMS will have to be clear about the longer term non-sustaining capex they will have to spend to even just bring production close to 200k p.a over the medium term.

I know I come across as being negative on RMS, it's not negativity, just being realistic of their position and how the market will value them.... yes, lots FCF right now, but.... the market also is very willing to pay a much higher premium for companies with larger reserves and longer mine lives..... both of which RMS is not strong in currently.

A question for other holders.... what should RMS do?
What happens if they don't pursue SPR? Sure they can sell the shares and make a tidy profit, but are there any other real options at a corporate level for RMS that have real synergies, other than WGX and.... I don't think WGX are at all interested in a deal, why would they, I believe they now have better assets than RMS.

Looking forward to the Rebecca/Roe and Eridanus news in the coming months.