Hey Jim, just had a chance to listen to the call. MZ spoke very well, but then, he did have a lot of good news to talk about. More dividends on the way, but patience is required. I did find it interesting that the brokers are so appreciative of RMS presentation, or... more accurately, they appreciate the company providing clear information to the market.... which to me says, they are sick of having to read everyone else's that hide information etc.... Just another little tip of the hat to RMS, and why I hold such a large amount of equity in them. Very much agree about the questions asked.
*I note that the CFO made it very clear, that their balance sheet strength, is not just their net cash, but their strong capacity to utilize debt... for the right asset.
*Interesting to note what MZ said about the POG in AUD, as in, at a price below $2000 AUD, the mine plan over the medium term, would be altered. But... this was mainly just a general statement, as for starters, the hedging alone gives them a 2 year buffer. Still, I feel its important to know what would occur. In either case, RMS is well positioned, with due to their low forecast AISC (there would be NO sudden changes. Worst thing that could be done...)
*On the lookout for the right asset.... bolt on, or... 3rd production center. They are not seeing expectations change that much. They are sweating all the assets they are looking at. But... they won't overpay (nothing really surprising there).
*Early production of Penny is a high priority... once in full production, overall AISC should be closer to $1100-1200 AUD. Some cost pressures in staffing, but.... should be able to be mitigated due to the new assets coming online (Marda, Tampia, Penny...)
*Penny West exploration.... early indications.. so so, but... they want to find another Penny North.
*Vivien... Supposed to finish up in October, but, have to wait for all the drilling to be completed to know if they can extend it further (find out in the June Q).
*Richard's question on Tampia was hilarious, I think RMS is actually... now farming the land they purchased, so... yeah, I guess we are into agriculture as well (though MZ did not actually agree or disagree to the land generating an income, that's just me speculating). Agree about your May/June target for the first ore to be processed. A good outcome and slightly ahead of schedue.
*Updated mine plan later this year (June/July), which will include Enda May Stage 3, and Eridanus/Deeps. Should be quite interesting to see just how big this will be. It was all spelled out last year with the LOM plan, but still, its coming around fast.
Interesting to note the production forecast for 2023.... I am hopeful that 2022 will see a small increase, as the likes of Tampia and Penny come in a little earlier.
RMS Price at posting:
$1.37 Sentiment: Hold Disclosure: Held
(20min delay)