Ann: Trading Halt, page-18

Most RMS holders would agree that RMS is undervalued. Typically the mine life is relatively short at Mount Magnet but they keep on replenishing reserves and look like doing so for a considerable time. So I think mine life knocks us down a few pegs even though it isn't an issue for me.

Edna May concerns are around getting enough ore to fill the mill. Prior to the last flurry of announcements EM had enough ore from stockpiles and Greenfinch until early 2020. In the last months this issue should be resolved by:

1. EM u/g has been approved - not a huge reserve but very likely to be increased with exploration

2. Marda project bought and paid for and 

3. EXU likely taken over

This would seemingly keep EM mill running for multiple years if they indeed intend to truck all the ore from both projects.

So both MM and EM should be running at full pace and both (especially MM) have been spewing out cash as can be seen from the cash balance of over $100m which is roughly half the market cap.

RMS management is very good especially compared to some of the disasters you see in the gold space.

Personally I think EXU holders will do well from the premium they receive in the takeover and the likely re-rating of RMS shares when the market recognises the likely profitability of both MM and EM going forward.

The major concerns with RMS would be if they overpaid for EXU is Mace is smaller than expected, trucking costs eating into profitability (oil down at the moment though) and the bigger concern for me is Vivien (small but high grade mine) that trucks ore to MM - it has 2 years of reserves but if not extended will push up MM AISC in a couple of years.

The gold market is volatile though perhaps better to buy and sell given some of the spikes you outlined in you're first post.