rms + igr perfect!!!, page-3

A perfect example of the management style of RMS imo was demonstrated in the takeover saga for DIO.

AVO belittled themselves by talking down the prospects of RMS. Did RMS hit back? nope, now they're producing the sorts of results AVO could only dream of. It would of been so easy for them to retort with:

1) If we'd used the same cut-offs for our resource as AVO, our mine plan would be to produce 400Koz (on current trends 560Koz appears achievable).

2) On a market cap/resource basis AVO was valued at $293/oz, which is equivalent to the net margin AVO receives /oz of gold. On a market cap/resource basis using point 1) above RMS is valued at $240/oz of gold, which is nearly 4x below the net margin RMS receives /oz of gold. On this basis AVO appears to be fairly valued by the market, whereas RMS is undervalued by the market and trading 4x below fair value.

3) RMS may have a milling capacity 5x less than AVO, but RMS expect to output "up to" 50Koz per month (based on current trends) from that mill. Meanwhile the output from AVO's mill is 17Koz per month.

4) RMS have total cash costs of $420/oz. AVO have total cash costs of $870/oz.

5) Best of all, RMS could now turn around and say, you see this bank statement, you see that increase for the month of December? well it would take AVO 6 months to make that sort of profit, and they still have debts to pay off :)