RMS 0.13% $1.86 ramelius resources limited

Ok let's have a look at your comments without the personal...

  1. 3,734 Posts.
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    Ok let's have a look at your comments without the personal attachs.

    "This is bad investor/funds don't are about the reasons why. the trajectory of the cost increases has been increasing Qtr on Qtr at an alarming rate"

    Every man and his dog knows we have a skills shortage and high inflation. Why would an investor or fund be surprised that costs have increased? It's obvious they were and have been flagged by RMS and every other mining company.

    "One more Bad Qtr and it'd be time to start thinking about cutting back in some production, conserving cash and focus on bringing Rebecca online".

    RMS generated cash whilst paying for significant CAPEX and exploration in a very difficult environment for miners. It wasn't a bad quarter. As previously stated even in this environment both centres were profitable.

    "Penny's contribution to the production schedule is small & less then 25%. No one knows how much the mining cost has increased from the FS. Even if Penny's AIC are less then $1200/aud/oz it'll do little to significantly improve the overall groups AIC if the cost for the other projects continues to increase".

    Wut? RMS know their costs and the likely cost from Penny and have stated future AISC which I'm sure factor in all the mining inputs. They've provided guidance and haven't changed it. Are you saying we shouldn't believe them?

    You've stated that the achieved gold price isn't increasing, but since the quarter ended AUD gold price has increased and hedging quantity and price received improves quarter on quarter. At the current gold price you might see an AUD $100+ increase in realised price.

    I think you're correct though in that funds might just look at the headline costs and assume that this will be the trend moving forward. Whereas people that follow the stock closely understand that the 2nd half will likely see reduced costs, increased grades and significant cash build.

    It's a challenging environment and I wouldn't think it's unwise if anyone sat out to see how it all pans out. 4th quarter might not be pretty, but past that the outlook improves significantly.
 
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