If you want to get a handle on how much extra cash is coming in, this is THE slide: Look at guidance for gold price in the 2nf half of FY25. First half was $3,541/oz ($524m revenue on 148koz). Second half is guided to a year end figure of around $4,250/oz (suggesting $1,275m on 300k/oz). That suggests a full + $230m of additional revenue in 2nd half over 1st half.
So, on my back of the envelope, 2nd half is looking like a circa $560m EBITDA / $430m free cash flow / $345m NPAT period. That is an exceptional prospective performance and will leave RMS with nearly $1.0bn of cash & gold (plus the value of Spartan) in just over 4 months' time.
And we today sit at a $3bn market cap where almost half of that is going to be represented by cash, gold and SPR. I think once Mr Market wakes up to this, we will see a quick re-rate.
RMS Price at posting:
$2.63 Sentiment: Hold Disclosure: Held
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