If you sold on that basis you didn't read the announcement carefully.
The hard rock that slowed the throughput at the plant was from KV not Vivien. We will be getting that high grade stope ore from Vivien soon that was grading 53.3 g/t. One tonne of this ore will be equivalent to 28 tonnes of ore from Percy so that's why I say RMS's production is "fire proofed".
I don't think you can assume from this announcement that Percy is underperforming. It could be just that the through put of ore from Percy was slowed because the KV ore took longer to grind and we don't even know the mix coming from KV. There are a number of pits and each will have its own ore characters.
The contribution from Vivien will be significantly higher in the June quarter according to the current mine plan and then rise from there on so I don't really understand how you can assert the next 2-3 quarters are going to be on the low side. We don't even know yet how badly the cost guidance was effected in this quarter. To extrapolate 2 and 3 quarters ahead from what happened in this quarter seems unfounded to me.
You say sentiment has definitely changed to a hold. My sentiment has been hold for a very long time on this stock and I'm not changing that. I might consider selling shares I bought recently in the mid thirty cent range but for the rest I'm not throwing away my future dividends. 7g/t UG gold mines are not easy to come by and walking away just after the company has finished spending the money developing it doesn't seem smart to me. I've got no doubt Vivien can grow and we will see high grades from it for longer than is forecast which will "fire proof" RMS's production profile for years to come.
Apparently there's plenty of good shopping to do out there in goldie land. Good luck with that.
Eshmun
RMS Price at posting:
42.5¢ Sentiment: Hold Disclosure: Held
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