sirdeanI know I'm probably not going to change your thinking,...

sirdean

I know I'm probably not going to change your thinking, but I'll comment anyway.

Re Mt Magnet project economics, in my view $250M free cash for a resource that big isn't exactly a great outcome for a company of RMS' size (nor is $350M either). It's a good project but nothing that will set its shareprice on fire as it would had it been a junior with a $30-$40M market cap.

Now my view is that it would be excellent if that was boosted by a high grade resource blend acquired at the right price, whether it be DRMs high grade resource or another as long as its big enough to justify the consideration given.

As for valuing a company based on its value per resource oz, imo it is a meaningless measure as it literally ignores everything, not least being the quality of the resource. There are companies out there with ridiculously low values per resource oz but it amounts to naught since that resource is never going to get developed because it is either low grade, marginal, in the middle of nowhere or a myriad of other factors.

It drives me insane when companies put in their presentations charts that compare themselves to their peers on a $ per oz basis. Completely useless infomation but unfortunately it sucks in the innocent mum and dad investors (and quite a few institutions).

Suggest if you can be bothered that you do MORE than a "quick read" on DRM too otherwise stating 'I'd know where I prefer to have my money' is an empty comment.

For starters, looking at the 'current' resource outlined area compared to likely total resource area (should be easy to locate - its in their recent presos)

That I hope suggests to you that the current resource is very early days (the company has flagged a signficant initial resource upgrade in December).

As for RMS' Wattle Dam, I personally am not putting it down...I realise having watched RMS for several years (and being a current investor in NST!) that there is never a long resource life outlined however generally at all times there has been significant indications that mining would continue further than what was at that stage outlined. At the moment I am not seeing those indications though I hope to soon.

Its also pointless outlining RMS' cash since you need to exclude the amount earmarked for Mt Magnet development (I am not sure we know the full story there as yet).

As far as DRM is concerned, cashwise they have around $14M with a $18M expenditure budget for 2012 so they will need to raise cash at some point.

DRM and RMS are in very similar positions imo. They both need a catalyst to send them to the next level.

For DRM, for the rest of this year and 2012 it will hopefully be a factor of resource upgrades and continuing exploration success as well as studies on Wilber development.

RMS, I expect it will have to come from improving the Mt Magnet economics (whether by acquisition of high grade resource or another path) and further exploration success at Wattle Dam.

Cdchi1