Hi Alb.
Cheers and I agree about there being no special dividend (I note that I have yet to see a special dividend from any mid or large cap gold producer on the ASX- at least that I follow). They are being amazingly careful with their capital, which as many have noted in recent times, this is very different to 10-15 years ago, when the likes of SLR went on huge buying sprees and bought terrible assets.
I do also agree that RMS is unlikely to hoard gold, although I note that TBR has done this very successfully, so I cannot totally discount it (but it would be a huge pivot). Cash, whilst indeed, is a poor holder of value the medium to long term, does allow the company lots of flexibility to pay for development, or other assets. RMS dividend policy will kick in eventually, so there is no chance of it getting too large (no Apple Inc here!).
I still think there are a few assets in W.A worthy of RMS attention, which would see them put that cash to work. Which would hopefully see them generate far greater returns that just dividend payouts.
That is why I feel the likes of RRL have somewhat locked themselves into not being able to be aggressive and grow. Their dividend payout is quite high... so capital growth is sacrificed.
@Dianella 68 - Hey Jim, thanks for the kind words, just trying to make sure my mind does not lie idle too long! (then I start trading and everything falls apart!
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Great point about RMS and their timing of sales during the quarter. I noticed that also. They got pretty unlucky to have put so much into the hedging in April, just when POG exploded. It is what is is, but still... not a great look.
The average price will indeed likely more than cover the increased AISC going forward.
I find it helps to be reminded of this lag effect, where gold miners are already very profitable, and... their salable product is going up in price.
The sector is going to stick out like a sore thumb many years into the future, whilst... sadly, the vast majority will be shrinking.
As for Tampia, I can only image things will come to a head sooner or later. Both sides likely playing hardball, but... profits are going to be made and hopefully all stakeholders can see that.
Slightly off topic, but.. I keep a close eye on SLR, and continue to wonder what sort of news, will finally propel RMS 'market' valuation above it.?
SLR never provide a life of mine plan with a level of detail even close to RMS, yet... It continues to outperform RMS. What am I missing?
What is it that the 'market' prefers about SLR?
Whatever happens, RMS is sitting on months and months of stockpiles, over $150m in cash and continues to have success operationally and exploration wise.
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