hedging, page-141

Hey Jim,
cheers for the link.
I tried hard to find anything noteworthy in the report other than the brief mention of Penny North but.... (not saying I don't appreciate you sharing the report). Perhaps Hartley's cannot think of anything to add right now. They don't seem overly excited about the new acquisition.

Yet, whilst I am still not excited about the premium they paid for SPX, the reality is, the project, once brought online, in conjunction with Eridanus, is going to push Mt Magnet into a new era of higher production (let alone combining it with the other deposits it has available).



One think I was going to ask other for commentary on, is the continuing distance in valuations between RMS and SLR.
I do think that SLR made a very savvy purchase of Deflector (DRM), which has basically enabled them to push past RMS.
I do think this is going to change, as RMS is getting very close to the end of their high capex spend to bring all their satellite deposits into production.
Its been a long time coming, but... I do feel that this goal is in sight, versus, always being pushed further out with more and more aquisitions.
That being said, I do think Penny North will require a decent amount of capital, but... most likely only a quarter's worth of 'profits' on current production rates.

Regarding your second post and Eridanus and the possibility of a much larger pit potentially including Lone Pine and O'mera, I wonder if RMS is already undertaking further drilling on the two old pits...? There is obviously some logic in incorporating the old pits, especially if it supports the economics of a larger pit.