RMS Ramelius Resources - pure AUS gold miner

[JBmurc]

Shareholders in Ramelius Resources (RMS) have seen their holdings go from a 52-week high of 91c to 31.5c on Friday. Nevertheless, the company is persevering with attempts to keep output at its Mt Magnet operation above 100,000oz a year. Mining has now begun at the Western Queen South project 90km away where over 12 months it is intended to scrape out another 23,000oz.

This is part of the historic Western Queen deposit which was mined between 1926 and 1937 by Western Queen NL until the mine shaft collapsed and water inflows made mining impossible. The average grade was a handsome 17.23 grams/tonne. The former Western Mining Corp in 1990 thought about reopening the mine, estimating the resource to be 500,000 tonnes at 11g/t. But the gold price in the 1990s hardly encouraged thoughts of ploughing capital into brownfield projects.


----keen to BUY back in low 30's .....

[soulman]

Not yet JB. RMS at 22 represent a low EV. Whether gold production is cash positive is one thing. The market are saying no...and they are saying that cash will be depleted due to falling gold price and rising labour/capital cost.

Maybe some corporate activity is coming soon in this sector, with SLR and NST the biggest predator.

[JBmurc]

Not yet JB. RMS at 22 represent a low EV. Whether gold production is cash positive is one thing. The market are saying no...and they are saying that cash will be depleted due to falling gold price and rising labour/capital cost.

Maybe some corporate activity is coming soon in this sector, with SLR and NST the biggest predator.

Yeah crazy times just when I can't believe at what price holders are selling there shares at to then see it 50% lower weeks later !!?? WTF I'm glad I didn't get back on board RMS(must be close to cash backing) ....and instead brought back into PGI been much more steady of late ....Got to be a great time to start investing in the resource sector IMHO BUY when everyone is losing there heads >>>
The SKY IS FALLING THE SKY IS FALLING !!...

[macduffy]

I've been trawling through a few Aussie gold stocks to try to find one with:
- steady production
- several years' worth of reserves
- low operating costs

I thought I'd almost found one in RMS before reading that the latest quarterly production from Mt Magnet, which provides the bulk of the company's output, had a cash cost of AUD1396 per oz!

Conclusion - RMS isn't the one either. Any contenders out there for the "title"?

Disc: I hold a few SLR, a legacy from the takeover of IGR. SLR's not "it" either!

[tricha]

I've been trawling through a few Aussie gold stocks to try to find one with:
- steady production
- several years' worth of reserves
- low operating costs

I thought I'd almost found one in RMS before reading that the latest quarterly production from Mt Magnet, which provides the bulk of the company's output, had a cash cost of AUD1396 per oz!

Conclusion - RMS isn't the one either. Any contenders out there for the "title"?

Disc: I hold a few SLR, a legacy from the takeover of IGR. SLR's not "it" either!

nst with out a doubt

[macduffy]

Thanks, tricha.

NST onto my watchlist for the eventual, inevitable rebound in the PoG. No hurry.

[JBmurc]

Ramelius Resources (ASX:RMS) has agreed new terms for the acquisition of the advanced Vivien gold project in Western Australia from Agnew Gold Mining Company, a subsidiary of Gold Fields Limited.

Ramelius will still acquire the Vivien project for a total of A$10 million, of which A$500,000 has been paid.

Ramelius and Gold Fields have agreed that Ramelius will make two staged payments of A$5 million initially on or before 31 October 2013, and A$4.5 million on or before 30 June 2014, to complete the acquisition.

Ramelius will have access to the Vivien tenements for exploration purposes once it has completed the first payment, with infill and extensional drilling to commence shortly thereafter, expected in December.

The Vivien gold project is a high grade vein style deposit located near the Agnew gold mine in the northern goldfields of Western Australia, and carries a current Indicated Mineral Resource of 579,000 tonnes at 8.3 grams per tonne for 154,000 ounces of gold.

Ramelius has also agreed to place 25 million new ordinary shares at $0.20 to Sprott Asset Management to raise A$5 million, with the funds being directed towards finalising the acquisition.

The significant injection of funds by Sprott, a leading Canadian Fund Manager and substantial shareholder in Ramelius, demonstrates a high level of confidence in the new project.

Ramelius' strategy of adding a synergistic, low cost, high grade gold mine to its portfolio appears sound.

[JBmurc]

Aspect huntley report


http://www2.aspecthuntley.com.au/pdf...cedprofile.pdf

[JBmurc]

Well haven't had the best of relationships with RMS in the past last time paid 18.5c sold 16.5c before than much of the same ...At present trying to BUY @ 6.7c .....

At these levels RMS has a market value of 26-27mill
for that you get

- projected 80,000oz for this year (growing 150koz from new high grade projects 16/17+)
-1.28moz Gold resource (two new high grade project to drive this much higher)
-round 15mill in cash (trying to raise another 8mill)
-Higher total in all production Costs per oz 1200-1300oz AUD (current price 1410AUD =8-16mill EBIT)new higher grade project to lower production costs and increase EBIT ...
-Leverage on high Gold price at these levels think 800k increase EBIT for every $10 raise in gold AUD

[soulman]

Well haven't had the best of relationships with RMS in the past last time paid 18.5c sold 16.5c before than much of the same ...At present trying to BUY @ 6.7c .....

At these levels RMS has a market value of 26-27mill
for that you get

- projected 80,000oz for this year (growing 150koz from new high grade projects 16/17+)
-1.28moz Gold resource (two new high grade project to drive this much higher)
-round 15mill in cash (trying to raise another 8mill)
-Higher total in all production Costs per oz 1200-1300oz AUD (current price 1410AUD =8-16mill EBIT)new higher grade project to lower production costs and increase EBIT ...
-Leverage on high Gold price at these levels think 800k increase EBIT for every $10 raise in gold AUD

JB, don't forget their fully owned processing plant. Those were worth a lot when gold were reaching $2,000 an ounce.