Ann: June 2024 Quarterly Activities Report, page-21

You are dead right @Joelstar if we look across the sector, I struggle find a producer with more 'torque' than RMS on a 1-2 view.
Yet... as I keep flogging the dead horse, now we finally... finally have confirmation that Enda May Stage 3 is dead ($300m in capital, and they don't even discuss the time/permitting etc that would need to be taken into account as well), RMS production profile 'spike' for FY24/25 (it tapers of FY26) is fleeting, unless... RMS goes ahead with Eridanus open pit expansion (whilst this won't cost $300m like Edna May, I gather it's going to be a substantial figure, which right now, the don't want sitting like a lead weight in their capex projections, which currently are incredibly 'light').


This slide from the quarterly presentation says a lot for me.... Going to be a very busy Dec quarter coming up, did you note that RMS recently added back in that they are going to 're' re-evaluate a plant upgrade at Mt Magnet (the last study showed it was not worth the investment, but perhaps a higher POG changes this, plus... if the costs were say, $40-80m (more justifiable with POG high), this could expand their 10 year production profile closer to 200k p.a and lower costs, versus RMS having to mine lots of small open pits which are currently in the mine plan, which... would look a lot nicer on their graphs, and perhaps sit better with the market if they make the bid on SPR? i.e.... merger of equals sort of thing).

Out of interest Joel, what do you think RMS should do, in regards to corporate action, current assets (Reb/Roe), SPR etc...?



I almost got excited about the large exploration spend RMS plans, but when compared to FY24, it's only a 10% or so increase, yet... RMS is generating it's highest ever profits, so why not plough more into their internal assets (from recollection, approx 60% of the funds goes to infil/extensional drilling)?
RMS is likely facing some serious income payments (which obviously is a good problem to have), unless you have a clear way to mitigate that in the near term....... like purchasing an entity with losses.



As I see it, Eridanus stage 1 open pit is being finished off (next 3-6 months will see that ore used up), with Cue ore filling the gap as it ramps up.


I suppose this gives RMS wiggle room in regards to whether to expand Eridanus open pit, or go U/G (though... they have stated 230-330k of U/G versus 500-600k ounces is the current opportunity cost, though again, I struggle to believe they would not go for the open pit, when there would still be substantial U/G ore available in the years ahead (this is basically a similar decision to Edna May Stage 3 approx 2 years ago.... that time they decided no, but.. this time it's Mt Magnet their 'Flagship asset', so.....)).

I am hopeful that Rebecca/Roe is going to look quite good once they finally release some real news about it.
MRE next month is a starting point and should give us a clearer idea of what might actually be mined (bulk U/G mining mixed with open pit Rebecca ore?).



It will be good to see the Cue assets get a fresh set of eyes and more $$ to drill it out. Could become a really important source of feed for Mt Magnet over the longer term.

Well done to the RMS team for buying the put options, instead of more hedging. Finally.....

all good @tangs I had get it right eventually, ever mine ends!

Looks like the next two quarters will be a bit lower than 80k, as they will be using stockpiles to fill the mill whilst Cue slowly comes online. Perhaps that is part of what is holding the share price back?



Anyway, a very impressive report perhaps the most detailed waterfall chart yet.