RMS is conservative by nature and I am in no way faulting their work, simply, they are working with two assets they acquired for basically script only, as both Roe/Reb had enough cash to pay the 'bonus' cash they paid holders out with. They were savvy acquisitions, albeit, as @jdpc35 post discusses, it was never going to move the dial in it's current form.
It's a solid asset, albeit long dated, but does give RMS the ability plan for capital spend etc ($300m+ at current rates... but who knows what sort of cost pressures they may face by then). The current rising gold price benefits those close to or in development, but not so much for assets like this, though that might be a very different discussion in 2 years time.
You right, my first thought was to compare it to Mt Gibson... which is perhaps a tough option, as Mt Gibson is about as good as an open pit project gets these days. RMS have given themselves a long time to alter/adjust the LOM plan, which I assume, is their way of hedging their bets, and I imagine they do have their eye on acquiring nearby assets or infrastructure to boost the value or production profile.
You correctly point out @jdpc35 that RMS have a large MRE to play with. Yet... they have had these assets for a while now, I am surprised they could not bring more into their LOM plan. Roe is complex...
RMS have a very busy period ahead... updated MRE for Eridanus, then incorporating that into the Mill expansion Study, to then be incorporated into a newly updated Mine Plan for Mt Magnet (interesting to note they only recently released the 10 LOM plan for Mt Magnet.... I wonder what possible motivation they would have to putting out another one so soon, though if I am being fair, with Edna May turning off... it's a logical time to do it. I am obviously dancing around the topic of RMS making a move on SPR.... MZ will want RMS looking as good as possible before making any attempt).
Might get an update on Cue ore before the end of the year.... if it's going well too.
Looking forward to seeing what plans RMS have for Eridanus.. not long to wait.
RMS Price at posting:
$2.41 Sentiment: Hold Disclosure: Held
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