RMS 3.01% $1.94 ramelius resources limited

I have no specific knowledge of this, but I expect they will...

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    I have no specific knowledge of this, but I expect they will work out what time is needed for the best mining plan and permits without rushing it through.  They have consistently said they have the required ore for EM for 2-3 quarters so no need to rush in.  As I read the update the fact they are easily making production guidance seems like everything is on track and they will hopefully meet AISC guidance also.  EM was already forecast to be $1350-$1450 because it was lower grade, this would usually only blow out if they did not meet the gold production guidance and the large stack of fixed costs had less oz to average out.


    Regarding the cash, the corporate update says "production of 33,786 ounces (October & Novemberonly), on track for Quarter Guidance of 48-52,000 ounces" so there is no indication of shortfall in their mining plan. I am only guessing here but the lower cash increase could be due to other things like how much gold has been sold so far, time of payments to contractors and for inventory.  Also last quarter they forecast "Capital & Project development expenditure of approximately A$20.1M".  So nothing strange in their cash balance.


    That is just my take.  Maybe an Engineer can comment more how long it takes to design a mine pit and mining plan to optimise a resource and make sure it does not collapse on the miners, then hire people and equipment to do it.  I would not expect anything for at least 3 months.

 
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