Good post Patron, though I think at this point, Enda May Stage 3...

Good post Patron, though I think at this point, Enda May Stage 3 is simply not going to happen, especially when the company is clearly saying, it's going to go into C&M at the end of CY24. MZ has also openly explained that if Stage 3 were to actually go ahead, first ore would be 18+ months away, meaning the plant would have a 12+ month period of being mothballed. The costs of this would be substantial, let alone the operational challenges of letting staff go, then hiring them again (though now that I think about it, if RMS were to acquire Spartan.... many of the Edna May staff would be available to work at the SPR (Dalgaranga plant, which I think hypothetically, could come into production by June next year).

This from the most recent quarterly.


With the debt facility increasing by 75%, RMS is making sure that any offer they make to Spartan is not going to put any sort of pressure on their balance sheet, plus, they likely want to be ready for any competition and the need to outbid them.

If I can be blunt, RMS only have one 'development project', which is Rebecca/Bom - yet it's PFS is now late (see below), plus.... it's a PFS, not a DFS, RMS are in no hurry to actually develop the two assets, but I am confident that the PFS will be a nice addition to RMS to bolster their share price to balance out the script they are likely to offer Spartan shareholders. Plus it will be an attempt to show that RMS do actually have a pipeline of development projects.

This list of milestones comes from RMS latest presentation. I am being a little critical in some of them, but... I don't deny that MZ and his team are playing a good game (it's their job to).



I think later in the Sept Q, RMS will also be providing an update on the CUE asset's U/G ounces, to further enable RMS to show that Mt Magnet has more running room than the recent 10 year LOM plan.


I also think RMS have timed things well in regards to Eridanus and the potential for a larger open pit, with slightly higher grades, which could potentially further bolster the Mt Magnet 10 yr LOM plan.



Though of course, it's the cash build that is RMS greatest strength right now. With sector leading margins (even with the large amount of hedging).

I do agree that there are some serious synergies if a merged entity was to eventuate (though I also wonder if RMS needed the extra $$ to buy out the royalties held over SPRs major discovery). I also tip my hat to RMS for acquiring MGV.... being able to add 80k+ in FY25 to Mt Magnet's production was a masterful move (with the added bonus of some large potential open pits at Cue that could eventually feed the SPR mill).

RMS are doing a masterful job of showing the company off in the best light (recent quarterly mentions the non-sustaining capex is reducing further).
Production upgrades... AISC reductions.... 10 Yr LOM. Huge cash builds.

Not sure if you have delved too deeply into SPR, but they also have a greenfields project (Glenburgh) in the North West with 500k ounces (totally stand alone asset), which RMS gets for free if they get SPR.

Out of interest, do you think that if an offer comes for SPR, will the market look favourably upon RMS? To date, MZs team have been proven mostly correct in their acquisitions (Tampa & Marda ended up being mixed results due to some grade issues).