RMS - Ramelius Resources

[Miner]

Annual report out looks good.
Gold production up 18%
Revenue up 38%.
Net cash and bullion up 45%
2.5% FF divvy.
The down side is a 13% increase in AISC.
Lower production guidance for next year.
AISC forecast up from 1317 this year to between 1425 to 1525.
Will hold at this point, though not as bullish on gold as I once was.
Mick

Market did expect more - greed

 

[mullokintyre]

Don't think it was just an RMS thing.
All my goldies down, some more than others.
Mick

 

[Miner]

Don't think it was just an RMS thing.
All my goldies down, some more than others.
Mick

Don't think it was just an RMS thing.
All my goldies down, some more than others.
Mick

COMPARATIVE DATA GOLD INDEX AND RMS

ONE YEAR data comparison WAF and RMS

 

[mullokintyre]

RMS has released a 15% increase in Mineral reserves after analysing drilling and other exploration activities.
Up a bit after the announcement.
Still not kicking goals however.
The chances of picking up that 1.90 sale I mentioned in earlier posts look more and more remote.
Mick

 

[Sean K]

RMS now taking over Apollo... Thought they might have gone MGV next.

Where will this M&A activity go next?

 

[mullokintyre]

Quarterly report out.
Everything on track, no surprises here.
The gold price in AUD needs to rise a bit for RMS to move ahead.
The appolo takeover kinda surprised me.
Its a long way from RMS processing centres.
its not a big high grade ore body 29 mill tonnes at 1.2 gram per tonne is hardly earth shattering.
Not sure which way to go with this one.
Mick

 

[mullokintyre]

Decided I am out of RMS.
Can't see anything exciting happening in the short to medium term with this, and there are other short term things I need to play with.
Out at break even .
Mick

 

[finicky]

Yes, the bid for Apollo didn't inspire anyone, I think BtL Finance might be right that they want to set up another regional hub because standalone it doesn't have the mass and it is seems way too far from their existing plants. The exploration potential looks OK though since it on the same greenstone and edge of a plate or something that hosts big deposits to the north.

Held

 

[mullokintyre]

Yes, the bid for Apollo didn't inspire anyone, I think BtL Finance might be right that they want to set up another regional hub because standalone it doesn't have the mass and it is seems way too far from their existing plants. The exploration potential looks OK though since it on the same greenstone and edge of a plate or something that hosts big deposits to the north.

Held

Yep, I listened with intent to the BtL podcast, full of useful information, some of which tipped me over the edge.
That bloke does some very deep analysis, well worth the money i paid to be a patreon.
Thanks for the tip once again.
Mick

 

[divs4ever]

Ramelius Resources Limited (ASX:RMS) (“Ramelius”, “the Company”) is pleased to confirm that based on further acceptances received today in relation to its revised takeover offer for Apollo Consolidated Limited (ASX:AOP) (Apollo) announced on 1 November 2021 (Revised Offer), Ramelius now has a relevant interest in excess of 50% of Apollo’s issued share capital.
Ramelius intends to exercise the control it has now acquired in accordance with the intentions set out in the Bidders Statement issued by Ramelius on 1 November 2021, including by proposing representatives for appointment to the Apollo Board of Directors.
With control of Apollo now having passed to Ramelius, Ramelius strongly encourages all remaining Apollo shareholders to ACCEPT into Ramelius’ Revised Offer which is unconditional and recommended by Apollo’s Board of Directors.
Apollo shareholders that accept into the Revised Offer will be paid within five business days from receipt of your acceptance form. A toll-free information line has been established for the purposes of the Revised Offer and is in operation.
Shareholders can call 1300 396 032 or +61 3 9415 4100 outside of Australia. Ramelius has engaged Azure Capital as financial advisor, Allion Partners as legal advisor and Euroz Hartleys as corporate broker. This ASX announcement was authorised for release by the Managing Director of Ramelius Resources Limited.

DYOR


i hold RMS and am still unconvinced this was a good move ( unless AOP had some top-notch staff )

yes i could see SOME benefits of EVN playing the same style game , but then EVN has plenty of production , plant and staff to swap around

 

[finicky]

Pretty lame looking H1 report from RMS. I'm usually a fan but nothing to celebrate this time. We did make a profit but 10% less than H1FY21 and almost every metric is down from previous Half. Net assets are up but that's because of the Apollo acquisition and I doubt the net assets per share are up because of dilution for the equity part of the transaction.

AISC significantly up:
• AISC: A$1,473/oz up 17% (H1 FY21: A$1,261/oz)

And the cashflow waterfall looks anaemic. The bulk of the operating cashflow was eaten up by capital development and lease payments. What was left evaporated twice over with tax and dividend payments.
The EBT and cash figures benefited from a one-off $30m sale of the Kathleen Valley royalty.

Not a stock I could recommend currently on these results. Maybe new mines coming online (Penny in FY23) or ramping up (Tampia, Marda) up will improve results soon. Further down the track we will see how the 'Apollo Consolidated' acquisition will pan out as they seem to have paid up for it to get 1.1m resource ozs. And won't they have to build a mill for those deposits? They do have the aspiration to gain more from the Apollo tenements by exploration.

Held
Sentiment: Hold

 

[Sean K]

Pretty lame looking H1 report from RMS. I'm usually a fan but nothing to celebrate this time. We did make a profit but 10% less than H1FY21 and almost every metric is down from previous Half. Net assets are up but that's because of the Apollo acquisition and I doubt the net assets per share are up because of dilution for the equity part of the transaction.

AISC significantly up:
• AISC: A$1,473/oz up 17% (H1 FY21: A$1,261/oz)

And the cashflow waterfall looks anaemic. The bulk of the operating cashflow was eaten up by capital development and lease payments. What was left evaporated twice over with tax and dividend payments.
The EBT and cash figures benefited from a one-off $30m sale of the Kathleen Valley royalty.

Not a stock I could recommend currently on these results. Maybe new mines coming online (Penny in FY23) or ramping up (Tampia, Marda) up will improve results soon. Further down the track we will see how the 'Apollo Consolidated' acquisition will pan out as they seem to have paid up for it to get 1.1m resource ozs. And won't they have to build a mill for those deposits? They do have the aspiration to gain more from the Apollo tenements by exploration.

Held
Sentiment: Hold

View attachment 137971

It doesn't say they have any hedging in place but they only received $2340 an ounce when the price was quite a bit higher over the last half of 21? $2340 was as low as it got...What did they do, sell into the dips?

 

[finicky]

It doesn't say they have any hedging in place but they only received $2340 an ounce

Yes, seems a bit remiss. However they did notify of it prominently in the Dec Qtrly published 28 Jan 2022:

CORPORATE
▪ Quarterly gold sales of 77,225 ounces for total revenue of A$182.0M from an average
gold price of A$2,357/oz
▪ Cash & gold on hand decreased to A$164.5M (Sep 2021 Qtr: A$273.9M) after the net
cash component of the Apollo transaction, income tax & dividends payments and further
investment, including A$6.7M on exploration and A$18.1M in project development costs
▪ As at the end of December 2021, forward gold sales consisted of 218,500 ounces of gold
at an average price of A$2,419/oz, for the period out to June 2024

Which is well under the low end of a year's guidance (FY22) and spread over 5 Half Years.

Group gold production Guidance for FY22 remains 260,000 – 300,000 ounces at an
AISC of A$1,425 – 1,525/oz,

 

[Sean K]

Yes, seems a bit remiss. However they did notify of it prominently in the Dec Qtrly published 28 Jan 2022:

CORPORATE
▪ Quarterly gold sales of 77,225 ounces for total revenue of A$182.0M from an average
gold price of A$2,357/oz
▪ Cash & gold on hand decreased to A$164.5M (Sep 2021 Qtr: A$273.9M) after the net
cash component of the Apollo transaction, income tax & dividends payments and further
investment, including A$6.7M on exploration and A$18.1M in project development costs
▪ As at the end of December 2021, forward gold sales consisted of 218,500 ounces of gold
at an average price of A$2,419/oz, for the period out to June 2024

Which is well under the low end of a year's guidance (FY22) and spread over 5 Half Years.

Group gold production Guidance for FY22 remains 260,000 – 300,000 ounces at an
AISC of A$1,425 – 1,525/oz,

So, they should be making $1000 an ounce. That's not bad!

 

[Miner]

I bought RMS at$1.615 on

28 Jul 2021 3:40PM But since then the stock value has been dwindling but never stable. Now $1.415

Ramelius Resources Limited RMS

 

[Telamelo]

I'm pleased to have "topped up" the other week with sp bottoming near 52 week lows - surely lowish risk/high reward potential given Gold at almost US $2,000 !!!

Can't envisage RMS getting much cheaper than it is at the moment imo

Cheers tela

 

[divs4ever]

I'm pleased to have "topped up" the other week with sp bottoming near 52 week lows - surely lowish risk/high reward potential given Gold at almost US $2,000 !!!

Can't envisage RMS getting much cheaper than it is at the moment imo

Cheers tela

ha , famous last words , have been trapped by other companies that seem to create a new reason to slide lower and lower ( sometimes annually )

good luck ( i hold RMS also )

 

[Miner]

I'm pleased to have "topped up" the other week with sp bottoming near 52 week lows - surely lowish risk/high reward potential given Gold at almost US $2,000 !!!

Can't envisage RMS getting much cheaper than it is at the moment imo

Cheers tela

Great work.
Just to understand 52 weeks low price of RMS which was $1.245 happened in Sept 21 from this graph. It is still a strong buy by many brokers but just checking if something i have missed to buy

 

[divs4ever]

well the recent acquisition didn't impress me ( but would be delighted to be proven wrong , and it is a ripper )

but am still circling active gold producers betting against the global currencies

now RMS over others rivals currently producing gold is very much a personal decision

i have a reasonable amount ( for me ) of RMS , but if it edges cheaper i am still interested ( as i am with the several rivals i also hold )

 

[Miner]

well the recent acquisition didn't impress me ( but would be delighted to be proven wrong , and it is a ripper )

but am still circling active gold producers betting against the global currencies

now RMS over others rivals currently producing gold is very much a personal decision

i have a reasonable amount ( for me ) of RMS , but if it edges cheaper i am still interested ( as i am with the several rivals i also hold )

RMS good but I felt SLR is better but that is a personal opinion.
I wished to have RSG but with political uncertainties there, I am leaving that alone.
I do not hold RMS but put a buy order at $1.25.