RMS 0.25% $2.03 ramelius resources limited

Hi the Vet, great question and happy to report it is done at...

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    Hi the Vet, great question and happy to report it is done at multiple mining operations in W.A.
    The closest being WGX (which I will discuss later).

    Firstly, I found the 10 Year LOM plan ore source table very interesting, as.... it totally excludes any processing of stockpiles.
    Why is this important? Because RMS has stated publically, that part of the reason they investigated upgrading the Checkers plant to 2.2-2.7mtpa, was to use up these valuable stockpiles.

    https://hotcopper.com.au/data/attachments/6291/6291859-67e7cb337d49a147440bb770b91157ec.jpg

    RMS has over 7mt of low grade ore, which, I am confident is likely sections into higher and lower grades, so... I believe it highly likely that it would be profitable to truck this ore to the Dalgaranga plant to enable it to operate at nameplate. As it will potentially have 1mt-1.3mt p.a of spare capacity (all very speculative at this point) as SPR does not currently have enough ore to fill (or to justify running the plant at nameplate) the plant over the long term). If we can assume that half of the stockpiles, are at 0.8g/t, with the rest at 0.4g/t, that might mean around 4mt is easily truckable, especially if RMS was to.... proceed with an expanded Eridanus open pit, which would potentially add a further 9-13mt, at perhaps 1.4g/t which if combined/averaged with the stockpiles, gives a grade just over 1g/t. which... will be very profitable when combined with the Never Never U/G ore.

    https://hotcopper.com.au/data/attachments/6291/6291877-53e3ab70dc0dcb70f1f9ec80e22d207e.jpg
    https://hotcopper.com.au/data/attachments/6291/6291866-833eafbf4a9dc6f83162197f4eac88fb.jpg

    I know that WGX trucks some of it's stockpiles from it's Tuckabianna plant up to it's Bluebird Mill due to two factors, dwindling stockpiles at the Bluebird Mill, and a huge amount of stockpiles at the Tuckabianna plant (the stockpiles are at 0.81g/t).

    https://hotcopper.com.au/data/attachments/6291/6291907-b281ef5458c9e882bf30104e5c2b851b.jpg

    Another example of multiple plants being fed by multiple ore sources is RRL and it's Duketon operations (been production for over a decade (off the top of my head).

    https://hotcopper.com.au/data/attachments/6291/6291926-18b36e23f26ec99b80925ff0dc4ce755.jpg

    Compare this with a potential RMS/SPR tie up.... interestingly, the distances are quite similar to Duketon. Which has always enabled them to be very efficient with their ore sources and mine plans (lot's of flexibility). To be clear, as I understand it, there is no direct road between Cue and Dalgaranga yet, but... a haul road seems entirely plausible and opens up the other 600k ounces at Cue (instead of having to truck them all the way down to Mt Magnet).
    There may well be the potential for trucking some of the ore from Dalgaranga back to Mt Magnet, if it would enhance the blend of ore and increase recoveries.

    https://hotcopper.com.au/data/attachments/6291/6291935-a6c358c4398aa1fc971ebf7eda771384.jpg

    Trucking costs, whilst increasing, are more than covered by the move in the gold price.

    @ozsurfer - Good post, Mt Magnet is not going to run out of ore (well... not low grade ore) which enables a very long LOM plan, but... not as profitable as FY25 & FY26 will be. All miners want to front load their production profile as much as possible (particularly with grade). As there is always the chance of finding more high grade to bolster the tail end of a mine plan.

    https://hotcopper.com.au/data/attachments/6291/6291951-5b28c2231208b68abaf046797316f449.jpg

    Just some pondering as we enter the weekend.
 
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