Ann: Record Gold Production for Ramelius - March 2018 Quarter, page-26

@Glasto

Re my numbers I'll try to explain another way - RMS produced circa 60,000 ounces at around $500 margin per ounce which should have given them about $30 million in operating cash - we know 6.5 million went on exploration etc, 13.5 million stayed in the bank so about another $10 million must have been used on working capital - whether it was used to pay down creditors or more ounces were mined than milled I can't say (we'll get a better idea when the activities report comes out) - long story short I don't think the change in cash of 13.5 million reflected how well the company did this quarter.

The $100 million matters to me - first of all Mark forecast that figure last year at the Nevada conference (or was it the AGM) - it's important that he gets that call right for his credibility. Furthermore is there is ever going to be a quarter for RMS to knock it out of the park this quarter is it - Edna May has a low strip ratio, ASIC is going to be low, production is going to be high and the gold price is high - as explained in my previous post if RMS meet expectations this quarter then they will produce over 60,000 ounces at $700 per margin - operating cash of 42 million less forecast capex of 8.5 million should hopefully add over $30 million, maybe closer to $40 million.

That will effectively put RMS in a stronger cash position then before they bought Edna May 9 months earlier - which would be an excellent management performance and quite frankly should make fund managers looking at valuing RMS at a much higher premium. (Not forgetting the Edna May reserve upgrade that should also deliver RMS a re-rate)

Looking forward to seeing how much larger the Shannon resource becomes - to give some idea of how valuable a high grade open pit can be, the inferred Shannon resource is 448,000 tonnes @ 5g/t to give 72,000 ounces. The checkers mill can process 1.7 million tonnes per annum so in theory if RMS could crunch the Shannon ore in one quarter they could spit out 72,000 ounces of gold - if you assume that ASIC was around $750 (not unreasonable given the high grade) that would be around $72 million in operating cash flow just from Mt Magnet - I doubt the ore could be mined in one quarter however and recovery wouldn't be 100% but still it just goes to show how valuable Mt Magnets high grade pits are.



GLTA/IMHO