Cheers for that rhart3. Annoyingly, RMS have not yet shared the conference call on the website.
A great read after finally getting a chance to sit down. Agree with you post entirely. RMS has almost run down its hedges, which... feels a little surreal, considering how many years they have been heavily hedged. Prices trending up, and it would seem that this quarter, for example, will see an average price at least $100 above the June Q ($2254), at perhaps $2350+. That is an extra $7m if they hit guidance.
$50m at Marda sounds right, if the grade matches the reserves (360k x 1.9 x POG).
A great result with Vivien, even if it only ends up contributing around 30-35k for FY2022 (it was suppose to have run out already). If they extend it further, great, if not, RMS has more than enough other U/G options to move their Vivien team to.
I like the new guidance for FY2022. No need to be so exact with the numbers, considering the amount of challenges facing producers. I guess I also like the guidance because it has a very nice upside number. First time in RMS history it has been able to put 300k as a target for a years production. Well done to every single employee at RMS.
Production 280k Mid guidance As I read it currently, AISC will be mid $1475. A further non-sustaining capex of $72m ($257 per ounce) Exploration of $32m ($114 per ounce) AIC = $1846. That is actually a very good outcome when you look across the sector.
I note that RRL provided guidance for FY2022. They are nice numbers, but... they just spent $900m buying a low AISC project. They need good numbers (oh, and don't get me started on their mine life.... its shorter than RMS'). RRLs AIC for FY2022 will be approx $1760 AUD. RMS is only $85 above that. RMS is literally 50% of the market cap of RRL... (RRL has $300m in debt)
Did I mention that RMS is going to be spending 3 2 M i l l i o n on exploration in FY2022. Incredible stuff and I seriously look forward to seeing what they can achieve.
That being said, RMS does not everything its own way. It would seem that Shannon U/G is finally running out of steam. No complaints, as the deposit has been incredibly profitable.
Tangs - Hesperus does indeed look positive. Some good wide intercepts that will hopefully prove up some more open pit ore.
Eridanus continues to surprise, with... the posabiltiy of look-a-like targets now getting tested (Macross). Lots of results pending, but... unless they are exceptional, I guess we will find out in the Sept Q. One of the few negatives of becoming bigger and bigger, the results, get released less often (but... that is just a tiny thing of course).
More results due...
More..
But of course, all the labs are behind, so.. RMS is in line like everyone else.
Happy to have RMS as a core stock in my porfolio.
RMS Price at posting:
$1.65 Sentiment: Buy Disclosure: Held
(20min delay)