cashed up but needs to secure growth options, page-14

Debarwa,

I respectfully disagree with your view.

Can you please explain in more detail how a buy back will help the SP and long term prospects of RMS? I do not believe that the differential between the DIO issue and current SP is justification enough.

Lets assume RMS buy back 50% of shares on issue. Your assumption is that after the cancellation that the SP will be worth more due to the limited number of shares on issue.

This works for companies that have **sustainable** immediate and long term cash flow. If I KNOW that my company will produce $100m in free cash for the next ten years then a buy back on SP weakness makes sense.

This is not the case with RMS (at this stage). A buy back here would simply dilute the cash on hand (which is NOT sustainable at this point in time) and significantly minimise the opportunity to acquire a QUALITY producer or near producer.

The current SP is supported by cash on hand and ounces in the ground and the belief that this cash will provide the opportunity to acquire cash generating businesses. Take away that cash and that opportunity and you will quickly see how low the RMS SP can go.

So I ask myself what would I rather see?

1. Less shares on issue.
2. Large and sustainable gold resource and 5,7, 10+ years of production.

Easy answer IMO.