Ann: TOV:WGX Panel Receives Application, page-52

Interesting back and forth on WGX and RMS. I hold both but currently own far more RMS and have held for longer. MZ is a master of buying smaller deposits and extending mine life while building and mining reserves at Mt Magnet. RMS won't be producing 115k pa in 2028. They've been exploring and developing multiple deposits at MM and that likely will continue for years to come. They're also absolutely spewing out cash at the moment with the Penny mine hugely profitable and Edna May processing stockpiles. Operating cash flow of $144m might translate to near $175m this quarter with similar production and the higher gold price.

They do have a problem though. Edna May stockpiles will be used up at some stage and will go to care and maintenance unless the gold price improves significantly. Penny is flying but mine life is short - exploration success here would be very important.

WGX is the exact opposite. Earning profit but not nearly as much as RMS. However, they have growth projects burning up capital that will hit their straps in 2025. WGX I think is criminally undervalued if you factor in their profitability once their CAPEX spend is over and their new / expanded mines kick into gear at unhedged prices. The person who did the hedging at RMS should currently be in Guantanamo Bay.

I think WGX would have been the perfect acquisition for RMS. They would likely run the mines better. They would combine the massive current cash generation with the near term upside of WGX once their developments are finished.

Holding RMS at the moment as their short-term success should be near guaranteed but will need to look to switch into WGX and others at some stage unless MZ pulls a rabbit out of the hat.