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RMS, RAMELIUS RESOURCES LIMITED
flower
post Posted: May 27 2015, 11:03 AM
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Board approves mining commencement of the Vivien project.

This asset has the lowest group AISC of $A990, group AISC now comes down to $A1200, so with spot gold today trading at $A1532 RMS is very profitable.

This is academic in reality since the current gold sentiment is diabolical, with spot gold in USD likely to fall even further to test the 1150 area.

RMS seem adequately financed having sold forward 40% of production over the next 2 years @$A1570.
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Ramelius Approves Vivien Gold Mine:
http://www.asx.com.au/asx/statistics/displ...;idsId=01628557
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Combining Fundamental comments with Fundamental charts.
 
triage
post Posted: May 25 2015, 12:15 PM
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In Reply To: eshmun's post @ May 23 2015, 10:29 AM

I see Evolution has announced that they picked up the Cowal operation for US$550m using a mix of debt and equity to fund it. Cowal sounds an impressive set-up going on how Evolution write it up: producing better than 200k oz a year from a single open pit operation at an all in cost less than $1000 per oz, with a more than 3 million oz of resources at 1.1g and lots of prospective areas still to be investigated. Of course Ramelius has gone kicking rocks close to big gold finds in Qld and Nevada in the past but have come with nothing but I suppose these things come down to the laws of probability: maybe Condobolin will end up being a second Cowal?

As an aside I have watched the boss of Evolution, Jake Klein, a bit since his days at SinoGold. He started out as a banker not a miner and seems a very positive character - another South African expat not lacking in self-confidence and innerdrive it seems. He has successfully turned Evolution into the mid-tier player that Newcrest said it would become when they hived off some of their assets to form Evolution. My only concern is whether they are growing by over-relying on debt and the assumption that the gold price at least holds at around these levels. Anyway that is a discussion best kept for the Evolution thread.



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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
flower
post Posted: May 23 2015, 02:54 PM
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In Reply To: eshmun's post @ May 23 2015, 10:29 AM

QUOTE
I suppose the trick with RMS is not to lose sight of what is going on with their mines at Mt Magnet. Hopefully they can make all the tricky transitions between pits and get the new mines started without any major interruptions to their longer term mine plans. I can only see the future getting brighter for them once they've successfully made the transition to Vivien and start getting higher grade feed.


That's about the size of it IMO. If you believe Gold is due for a big run if the broader market collapses--then those ASX producers with an AISC of AUD1000 must be the ones to trade/invest in.

RMS is high on my watch list, tother with: EVN,SAR,DRM,SBM,NST, and PXG.

Enclose two charts, Gold in AUD and RMS, notice how they track each either beautifully.
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Combining Fundamental comments with Fundamental charts.

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eshmun
post Posted: May 23 2015, 10:29 AM
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In Reply To: triage's post @ May 22 2015, 08:01 PM

Hi Triage,

I did like the company's move to JV on Condobolin as I'm very much in favour of companies using surplus cash flow to fund exploration opportunities to be able to grow organically.

Independence Group is an classic example of a company that bought an exploration asset very very cheaply, built a mine and then went on growing organically through high quality exploration work. I'm actually a bit surprised to see their name in the list of bidders for Cowal. I don't know anything about the South Africans but I'd say if the Chinese want Cowal and there are not to many foreign ownership issues they will use their weight to get it.

I'm not sure that nearology works much anymore in the junior exploration/mining market as investors have become far more selective over time. Good results are what count in this market. Mind you, that doesn't seem to apply to investors in the Australian speculative tech market (I'd swear that aliens have come during the night and sucked their brains out with straws the way they are splashing their money around at the moment).

I like the Condobolin target because it has a polymetallic mining history (+free gold), it has a large 3km x3km geochemical and alteration footprint and so provides plenty of scope for exploration. Also they are saying the target is associated with a large gravity anomaly which may be associated with a deep intrusive unit at the intersection of large regional faults. Not to mention the significant Au+Ag drill results they've already obtained at the Meritilga and Phoenix prospects.

I suppose the trick with RMS is not to lose sight of what is going on with their mines at Mt Magnet. Hopefully they can make all the tricky transitions between pits and get the new mines started without any major interruptions to their longer term mine plans. I can only see the future getting brighter for them once they've successfully made the transition to Vivien and start getting higher grade feed.

Eshmun
























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triage
post Posted: May 22 2015, 08:01 PM
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Ya there eshmum?

I know you post fairly frequently on the hc RMS threads so guess that you keep an eye on what gets posted here as well (?).

Further to your volunteering the info about a couple of operating mines reasonably close to RMS's new exploration site at Condobolin in central NSW I see in today's Fin Review that the owner of the Cowal mine, Barrick, has set today (the article says "Friday" so I assume it means today not next Friday) for receiving final offers to acquire the operation. Regarding an indicative price, I found the article to be a tad confusing as initially it said the expected price for Cowal alone was A$700m-plus, then it said that Barrick had packaged Cowal in with another of their mining operations, the Porgera mine in PNG, and then it stated that Barrick had set a minimum of US$600m "windfall" or about A$759m for the two mines.

Part of my confusion may be due to my ignorance as to me "windfall" means unexpected or clear gain whereas to anyone in that line of business it may simply be revenue clear of transaction costs (??).

Anyway the article lists the likely bidders to be local mid-caps, Evolution Mining, Oz Minerals and Independence Group, South African maxi Goldfields and Chinese "giant" Zijin. I remember reading some time ago that Barrick was intending to liquidate a fair chunk of its sizeable portfolio of gold projects - I cannot remember quite why - and I suppose that Cowal is a perfectly good project which is simply no longer a suitable fit for Barrick. By the touted interest (which I guess has been leaked to the journo by the investment bankers handling the sale on behalf of Barrick) it seems that it is veiwed as such within the industry.

Of course this is all a serving of nearology for Ramelius and Clancy with regards finding anything and turning it into a revenue stream at Condobolin. But FWIW it does show that there is a bit of interest being shown for gold production in that neck of the woods.



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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog

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Mookie
post Posted: Apr 22 2015, 12:07 AM
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In Reply To: flower's post @ Apr 14 2015, 10:24 PM

Hi flower

I am still holding and expect to for at least a while. Lot's of price driving announcements coming up, low market cap and plenty of free cash flowing into the coffers. Quarterly report has previously been flagged as excellent. Been a gentle pullback so not concerned leading up to the quarterly report.

 

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wren
post Posted: Apr 14 2015, 11:23 PM
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In Reply To: flower's post @ Apr 14 2015, 10:24 PM

Sprott Asset a Management eh.
Hope Eric Sprott is not part of this outfit.Dear old Eric made a confident forecast to his devoted followers (in 2011) that Silver would be $100 per onz by 2012!Almost correct except for the decimal point.Today Silver is about $16.50.
As for RMS,let's hope it goes well despite the Sprott connection.

 
flower
post Posted: Apr 14 2015, 10:24 PM
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In Reply To: flower's post @ Apr 8 2015, 10:41 AM

QUOTE
think it might fall back soon, its had a good run over the last three weeks.


Mookie---are you still in this?

RMS certainly does look a whole lot healthier than it did, it now appears to be trading with the POG. They have an AISC target for FY15 of $A1150, so given the AUD POG is $1563, RMS is very profitable.

Announced some excellent relatively high grade RC hits from it's Blackman's site recently, it could fall to 13c---at which it looks tempting. Don't have any gold exposure currently.

Sprott Asset Management holds 7.2% of the stock,

Chart enclosed.
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Mookie
post Posted: Apr 9 2015, 11:38 AM
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In Reply To: triage's post @ Apr 9 2015, 07:39 AM

Hi Triage

Thanks for your comments and hopefully you have benefited from the rise of late.

Despite the share price gains the same scenario seems to remain - a low market capitalisation in regards to the cash they are generating. Plus the two new high grade projects in the works.

I feel RMS are going to have numerous price moving announcements this quarter including their high grade deposits Vivien (funding details and then the lead up to mining), commencement of mining at Kathleen Valley, resource estimation and plans for the Blackmans deposit, Quarterly Report and production guidance for the FY 15/16. Thus I won't be selling in the near future although I might have given it some consideration if it had of spiked vertically.



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triage
post Posted: Apr 9 2015, 07:39 AM
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Here's a bit of chatter from the boss of Ramelius, Mark Zeptner:

http://www.miningaustralia.com.au/news/ram...-up-45-per-cent

(hat tip to gloryssfc at hc)

Whilst the share price has had a good couple of sessions I don't think the current price is anywhere near puffy given that the company currently holds the equivalent of 7.5 cents per share in cash and gold. Seeing that the company also has two processing plants, about 300k of reserves, reasonable costs, and 2 small high grade mines being brought forward for production it has a solid base imo.

Another interesting aspect is Mr Zeptner's comments on the gold price in AUD vs USD:

“The fact that we’re at 77c exchange rate make a huge difference, compared to when it was at parity last year, so that’s been one of the big drivers with us for better performance, but also a much better Aussie dollar gold price, because all the gold we sell is all Aussie dollar based, there’s no US trade.”

I remember when the Aussie was better than parity with the greenback there was some heated "discussion" on ss in which one poster insisted that Australian gold producers only had eyes for the USD price of gold seeing that all gold traded was in USD. Of course Mr Zeptner is playing up the hand currently dealt him, with the Aussie on the way down against the USD, but he clearly thinks that it is a reasonable argument that companies that produce gold in Australia are more interested in the gold price in AUD rather than in USD.

As an aside, I don't pay much attention when gold company executives start to pontificate about where they think the gold price is headed: if they were any good at that caper then they would be extremely wealthy commodity traders, rather than fairly well-off mining executives (Mr Zeptner pulls a salary of about half a million a year).



--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
 


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