Ann: June 2024 Quarterly Activities Report, page-24

Very much agree about Rebecca/Roe, it should indeed become mining hub, though, in what form is the question.

Fair points about Edna, though I am really surprised that RMS was not able to source any extra ore over the past few years (discovery or acquisition), but perhaps that speaks volumes of the strategic value of the asset, allowing RMS to have a larger production profile, market cap etc to.... undertake better acquisitions. Still, it has been a very valuable generator of cash, as it has basically been filling the hedge, and... as I suspected, RMS have been able to stretch out Edna to early 2025, which.... looks like a pretty good fit for the hedging rolling off (almost covers the first half of FY25 hedging).



You sum it up well, Penny/Cue/Galaxy.

I just listened to the conference call (via RMS website) and Zep mentioned that they have built up a medium grade stockpile of Eridanus ore (3mt at 0.95g/t), which is on top of the 4.65mt of low grade ore at Mt Magnet (0.5g/t). Basically, they are going to start using up the Eridanus ore, whilst Penny and Galaxy increase the grade (the two of them look to only provide perhaps 500ktpa from Galaxy and approx 180ktpa from Penny), leaving approx 1.2mtpa to come from open pits, or... in this case, Eridanus ore, except, that the 0.95g/t will be displaced by Cue ore, which should come in around 600kt, so... around 600ktpa will be taken from the Eridanus stockpiles.... meaning at that pace, 5 years worth, with the other 4.65mt of low grade... sitting still.

Very smart to be displacing Mt Magnet ore with Cue, it's all about making the most margin with every ounce. Though of course.... the 7.65mt of stockpiles, should also be monetized if possible (let alone the other 13mt that could still come from an expanded Eridanus).

Glad the question was asked about non-sustaining capital for FY25 and whether it will be updated in the Dec Q, when they make a decision about Eridanus (U/G or open pit, it's going to cost $$$).It was interesting that the potential plant upgrade is only viable if they go with the expanded open pit option for Eridanus.... MZ mentioned that the plant could be upgraded from 2mtpa to 3mtpa (but... I think that is a little cheeky on his part, as the plant only runs at 1.8mtpa.... but anyway), interesting that it's probably going to be a 50% increase on the current throughput, but again.... this could make a lot of sense even if they do a deal with SPR, as... I have no doubt RMS want Mt Magnet to be a 200k p.a producer to match Dalgaranga, or... simply to be a 200k p.a producer because it can be (but... a plant expansion of 50% and a major cuttback is going to need some serious $$$, luckily, they do!).
Though MZ made light of the possible plant upgrades being inexpensive. If so, why have they not done it already? The stockpiles have been there for years.

MZ was quite firm on not selling Edna May at this stage.... as he still believes Stage 3 will happen one day.... I guess anything is possible, if Gold spikes to $10k?

Also a good question on the tax, to be payable in the 3rd Q of FY25... based on a $3250 gold price, $80-100m is no small figure!

Very interesting discussion about their investment in SPR. They bought in because their Geo team could see it was... a worth asset to invest in, and the updated MRE matched their own internal assumptions (size and grade). He was very cryptic about Never Never..... something "its still a way to go to realise full value"..... is that saying they do indeed believe there is a lot more upside to come??

I loves where MZ talks about Never Never "whilst we'd like to have Never Never in our portfolio, we actually look it at as a nice to have, not a need to have".

He then pivoted to RMS having lots of internal growth options... at Mt Magnet and Rebecca/Roe, but.. if I can be honest, it was not an overly convincing sell (nothing against you MZ, you did very well in the call!). I will also say that MZ was highly appreciative of the SPR team, in a very genuine way.

@plough you asked me on the SPR threads about the unknown upside SPR still has, yep, it's undeniable, but... then I feel RMS management and team should have their own premium of sorts, as RMS has been a standout with in the sector for actually undertaking repeated M&A and making it worth, versus some very very very poor outcomes by less companies. So.. I am on the fence

RMS is playing a good game, Eridanus open pit offers RMS an internal growth option for longer term production, whilst also... potentially using the U/G instead to boost ounces in the near term, irrespective of what happens with Spartan. I tip my hat, they are a very impressive board... say little, do a lot.