I agree with you Pulp, on first read, I could not find any real issues that would cause a 10% fall in the share price. Guidance has been refined (bottom range increased) to 275k-280k. To date, RMS have produced 210k for the 9 months. So... if they hit the bottom end of guidance, they need 65k. Unless they get hit with another breakdown, then RMS will hopefully more than achieve this.
AISC is slightly up, however, part of that needs to be attributed to the 7 days lost (man hours) at Enda May for the March Q (plus... pressures on costs, its happening across the sector frustratingly).
Perhaps the market wanted to see a bigger cash build for the June Q? As it would seem that it will be around $8-10m again, due to heavy non-sustaining capex being spent (only $1m more than the March Q though).
Perhaps this little mention of capex potentially being brought forward, scared a few off?
U/G at Mt Magnet going to plan. I note, they may try to extend the Hill 60 another sub level.
Vivien continues to produce with almost 10k ounces.... just keeps going. Though they note its becoming complex. Still, another round of extensional drilling is to be completed. Hopefully they can push out production into 2022.
Eridanus, what a monster. Closing in on the 1m ounce mark. Though I guess if you include Franks Tower/Orion, they are basically there (Erid-760k + FT/O-220k). That is the base load ore for Mt Magnet for at least 5-8 years (assuming a 60% conversion rate).
As others noted, the new U/G hits at FT/O will likely see them accessible if they decide to create access from Franks Tower to Eridanus U/G.
Nice to see a 50% increase in resource at Die Hardy (Marda), whilst not as big as Eridanus! Still going to end up being valuable ounces for Edna May. (from 66k to 96k).
Not much luck with Penny Drilling wise, so that is a likely negative, considering how little was written about it.
In the end, I think it was a solid quarterly. Considering the lost production at Edna May. Everything else seems to be tracking well. Sort of shrugging my shoulders,....
RMS Price at posting:
$1.63 Sentiment: Buy Disclosure: Held
(20min delay)