upcoming good news.

What upcoming good news do we expect?

1. December quarter report. Mt Magnet gold production increase to 15000 ounces and cash cost decrease to $1000. Another 7000 ounces gold production from Wattle Dam with very low cash cost since underground mining at Wattle Dam was completed in October. The remaining Wattle Dam gold production could generate 10m plus free cash for RMS.

2. Further drilling results from high grade Water Tank Hill underground in December 2012 quarter

3. Resource and reserve increase from Water Tank Hill underground. A high grade Water Tank Hill underground resource has yet to be included into the reserve. Water Tank Hill drilling results:

• 18m at 4.66 g/t Au from 153m in GXRC1271
• 14m at 12.84 g/t Au from 197m in GXRC1271
• 12m at 5.11 g/t Au from 154m in GXRC1273
• 16m at 11.27 g/t Au from 170m in GXRC1273
• 5m at 6.29 g/t Au from 241m in GXRC1274
• 13m at 4.05 g/t Au from 67m in GXRC1275
• 14m at 5.56 g/t Au from 202m in GXRC1268
• 11m at 10.85 g/t Au from 254m in GXRC1269
• 12m @ 12.14 g/t Au from 240m in GXRC1270
• 11m at 5.39 g/t Au from 265m in GXRC1272


4. March quarter report next year. Mt Magnet gold production increase to 18700 ounces and cash cost decrease to $850.

5. Start of Coogee Project. The Coogee project is located 100km from Ramelius’ Burbanks processing plant which is currently finishing off Wattle Dam deposit.

By then, RMS should be very similar to SARACEN MINERALS(SAR) in terms of gold production, cash cost, resource and reserve, etc.

RMS has 55m cash and 5m investment in DRM and no debt. A net market cap of 100m whereas SAR has a market cap of 300m. Therefore, a re-rating is imminent over next 6 months. I expect RMS to be a $1 share next year.

Also, development of high grade Vivien Project. It is possible that RMS will relocate Burbanks processing plant to Vivien Project once it finish Coogee deposit.