I was chastised on here a while ago for suggesting RMS may have an interest in RXL.
The announcement by RMS today shows My Magnet running out of Penny ore in FY26 with a 6-year gap from FY27 to FY32 before accessing high payloads on the proposed Eridanus mine extension and ASIC shooting up from $1,600/oz to well over $2,000/oz (including up to over $3,100/oz) between FY27 and FY32 before reverting to an average $1,350/oz from FY33 to FY35 Page 3 of RMS ann.).
RMS also propose spending $350M on the Eridanus extension plus another $95M upgrading the Mt Magnet plant from 2Mtpa to 3Mtpa and have $500M in the kitty.
Youanmi is closer to Mt Magnet than Penny and similarly close to RMS' Edna May plant, which is slated to move into Care & Mtce this month! Looks like RMS need a lot of high-grade ore to replace the extremely high grade Penny ore, with only 140koz left.
RMS hold 20% of Spartan, located 65km from Mt Magnet (a little closer than Youanmi), however Spartan has its own 6yo process plant on C&M. Spartan EV approx $1.5B. Not sure whether any Spartan M&A for RMS would fill the big hole emanating at the Mt Magnet mill between FY27 and FY32. Surely RMS must be running the slide rule over RXL.
Clearly the market did not like today's RMS outlook with a 17% SP fall. For comparative purposes worth a look at the RMS production chart.
RXL Price at posting:
26.5¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)