A good read. RMS is a well run mining company that does what it says. I do respect the decision regarding Edna May, particularly with hindsight, as if they had gone ahead, they potentially would not have taken their stake in SPR and... have a paper profit of $100m.
This is going to be a big quarter for RMS. Plus the Reb/Roe PFS.
I think they will go with the larger open pit and the plant upgrade... I think they have to. They clearly want to keep Mt Magnet producing at or above 200k p.a. Perhaps the larger plant will also justify mining more tonnes from Cue over the longer term.
As for what the market will think... much harder to know. Depends on the costs of the open pit and whether Reb/Roe stacks up enough to 'move the dial'.
RMS are going to generate some incredible FCF with the spot price so high. Will RMS keep it's discipline it has worked so hard to keep and adhere to? Or finally make a corporate move of substance (to date, every one of it's 7 deals have been relatively small)?
RMS Price at posting:
$2.40 Sentiment: Hold Disclosure: Held
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