high gold prices a boon for ramelius , page-36

I think when Mt.Magnet starts Ramelius will be cheaper. This is because RMS will be churning out more profit. To me profitability compared to market cap or enterprise value is a more important metric than costs per ounce.

When Mt.M comes on line RMS may not remain one of the cheapest miners in terms of costs per ounce to extract gold, however they will still remain on the cheap side in terms of this metric. But costs per ounce are not the be all and end all. Number of ounces produced is another factor and in this sense RMS will be growing bigger, producing more ounces at profit.

If the gold price goes down to A$800 they may have to close Mt.M, however if it goes to $2800 the mine will be a money spinner. So it depends on you're appetite for risk (this is still nowhere near a risky company imo) and what you think the gold price will be doing. At current metrics provided by the company Mt.M will be profitable.

Also if the company only looked at sub A$600 cash cost operations they would be severely limiting there opportunities because there are not that many of those operations around. In fact they may well go absolutely nowhere but around in circles waiting around for another el cheapo mine.

I'm still luvin Mt.M in this gold price environment and when it's up and running hopefully management can start turning more focus to the next cab of the rank whether that be internal or external.