RMS - Ramelius Resources

[finicky]

Can't guess - it'd be surprising if it doesn't add to supply but there are countervailing forces, such as higher grade entering the process stream from Penny and possibly some buying into a Ramelius that should be bigger in the future with a third hub. And a lot would have already received their RMS shares anyway. Maybe best to take a punt on the chart at some point. I doubt that I'll be adding - sick of mining companies and at least I have something of a stake if they do ever take off again.

 

[finicky]

Can that be right - Ramelius the top ASX200 performer of this week?

 

[finicky]

Ramelius had another week in which it took first place in the ASX 200 (source: Bloomberg)
Plus it broke through 6 months of resistance and made a higher high on modest volume.

DAILY

 

[Sean K]

Ramelius had another week in which it took first place in the ASX 200 (source: Bloomberg)
Plus it broke through 6 months of resistance and made a higher high on modest volume.

DAILY
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View attachment 163644

Nice BO. Going the opposite direction to just about all my stocks, less uranium.

 

[finicky]

Between the Lines Finance on Patreon commented on RMS in his Sunday vid. Sounds mystified by the recent price rise as he considers it overvalued and points to the gulf in value between RMS and the West African producers such as PRU. Don't disagree about RMS overvaluation but chartwise there is the clear level resistance breakout which he also mentioned. Very strange.

Held

 

[finicky]

December Quarterly reassuring despite a couple of untoward elements.
Production quite strong for the Qtr but AISC up. But strong underlying cashlow (best in almost 4 years)
Price received for sales in Dec Qtr was A$2,855/oz with almost half delivery to hedges.
Production guidance raised for FY24 but at a higher guided FY24 AISC - up A$1750 - $1850 from A$1550 - 1750. Higher costs due to an unplanned major conveyor belt repair and more ore being processed from higher cost Edna May hub.
They're still adding to hedges which is annoying. Summary says they are committed to a total 192,000 ozs @ avg A$2918/oz, which for perspective is roughly a bit less than 3 Quarters of current rate of production.

Held

 

[mullokintyre]

December Quarterly reassuring despite a couple of untoward elements.
Production quite strong for the Qtr but AISC up. But strong underlying cashlow (best in almost 4 years)
Price received for sales in Dec Qtr was A$2,855/oz with almost half delivery to hedges.
Production guidance raised for FY24 but at a higher guided FY24 AISC - up A$1750 - $1850 from A$1550 - 1750. Higher costs due to an unplanned major conveyor belt repair and more ore being processed from higher cost Edna May hub.
They're still adding to hedges which is annoying. Summary says they are committed to a total 192,000 ozs @ avg A$2918/oz, which for perspective is roughly a bit less than 3 Quarters of current rate of production.

Held

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Probably fully priced at this level.
If they cannot get great leverage from POG due to hedging, and their AISC keeps going up at the rate that it has, I don't see it as a great investment currently.
Mick

 

[finicky]

Probably fully priced at this level.

Apparently RMS was added to the ASX200 index in September which would pbly account for some of the irrational price appreciation?

Held

 

[finicky]

Reports H1 tomorrow. Market seems to be giving it a thumbs down with a nasty print today albeit on ordinary volume. As discussed, consensus has been it's at an elevated valuation. Short term chart is weak looking as it is struggling below the preceding breakout level of ~1 .50?

Held and Holding

DAILY

 

[finicky]

H1 Report.
No complaints on balance, looks like market has same reaction - price steady
Company tipping record production for full year FY24
Looks like PFS for third hub could conclude In H2? (combining Rebecca and Roe acquired gold projects).
All quite reassuring I thought.

Held

 

[Sean K]

RMS better quickly go into a TH.

 

[Dona Ferentes]

from Market Index.... some tech talk
.

Ramelius Resources (ASX: RMS)​

Today's best ASX gold sector candle?​

I wanted to highlight the ASX gold stock which I felt demonstrated the strongest demand-supply response to today's catalyst of higher gold prices.

RMS's Thursday candle is attractive due to the opening gap up – nothing speaks of highly motivated excess demand than a large opening gap up, but also due to the long white candle and close at the high of the session. Again, each is a great indicator of unquenched and motivated excess demand.

Technical analysts look for exactly these signals to help them understand the probabilities around a rise/fall in a stock's price. Typically, the greater the showing of excess demand, the greater the probability the price will continue to reflect this going forward.

But, candles are only indicative of the next few periods at best. Longer term indicators such as the trend ribbons and price action help the technical analyst to understand longer term manifestations of excess demand or excess supply.

There are some encouraging signs here as well. The short term uptrend has re-established, and the price is bouncing strongly off the long term uptrend ribbon, confirming it is acting as dynamic support.

The price action is rising peaks and rising troughs, which indicates a buy the dip mentality among market participants.

It's unlikely to be all plain sailing for RMS though, as I note the major historical supply point of 1.785 is approaching. It's worth watching the price action and candles here closely. A continuance of the current price action as well as white candles would signal a higher probability of a break out of this key level.

Support moves to 1.635. The short term trend remains up as long as the price continues to close above this point

 

[divs4ever]

RECORD GOLD PRODUCTION OF 86,928 OUNCES & FREE CASH FLOW OF $125.3M IN MARCH 2024

QUARTER HIGHLIGHTS
• Record group Quarterly gold production of 86,928oz (Guidance 70,000 – 77,500oz)
• Previous record group gold production was 86,516oz in June 2020 Quarter
• Cash & gold of $407.1M (Dec. 2023 - $281.8M), with free cash flow of $125.3M • Previous record free cash flow was $69.4M in the June 2020 Quarter
• Q3 AISC to be materially lower than Guidance due to record gold production

Ramelius Resources Ltd (ASX: RMS) (“Ramelius”) is pleased to advise that it has achieved record gold production of 86,928 ounces in the March 2024 Quarter which is higher than the implied gold production Guidance for the Quarter of 70,000 – 77,500 ounces.

H2 FY24 production Guidance is currently 140,000 – 155,000 ounces at an AISC of A$1,700- 1,800/oz.
Further, the Company’s balance sheet strengthened considerably with net cash and gold of $407.1M following record free cash flow of $125.3M.
As a result, the AISC for the Quarter is expected to be well below Guidance (H2 FY24: A$1,700 – 1,800/oz) with an outcome in the range of A$1,375 – 1,475/oz.
A brief update on production performance follows.

OPERATIONS Group Quarterly gold production of 86,928oz (Guidance: 70,000 – 77,500oz):
• Mt Magnet (incl. Penny) – 45,927oz
• Edna May (incl. Tampia, Marda & Symes) – 41,001oz
In April 2021 (see RMS:ASX Release “March 2021 – Quarterly Activities Report, 21 April 2021) it was noted that Ramelius’ previous practice of releasing a Production Update as a pre-Quarterly Report would cease going forward.
Any material differences to Guidance (above or below) will be managed in accordance with the Company’s continuous disclosure obligations.
Today’s report is considered to meet this criteria, given that production is materially above Guidance and Company expectations.
Further details will be provided in the Quarterly Report later in the month, including a review of how this outperformance will positively impact full year FY24 gold production and AISC Guidance.

This ASX announcement was authorised for release by the Board of Directors.

i hold RMS

hmmm i might regret not adding more recently , but that is how it goes

 

[TimeISmoney]

Ooosh, straight to a 13 cent jump at the start of the day.

 

[Sean K]

RECORD GOLD PRODUCTION OF 86,928 OUNCES & FREE CASH FLOW OF $125.3M IN MARCH 2024

QUARTER HIGHLIGHTS
• Record group Quarterly gold production of 86,928oz (Guidance 70,000 – 77,500oz)
• Previous record group gold production was 86,516oz in June 2020 Quarter
• Cash & gold of $407.1M (Dec. 2023 - $281.8M), with free cash flow of $125.3M • Previous record free cash flow was $69.4M in the June 2020 Quarter
• Q3 AISC to be materially lower than Guidance due to record gold production

Ramelius Resources Ltd (ASX: RMS) (“Ramelius”) is pleased to advise that it has achieved record gold production of 86,928 ounces in the March 2024 Quarter which is higher than the implied gold production Guidance for the Quarter of 70,000 – 77,500 ounces.

H2 FY24 production Guidance is currently 140,000 – 155,000 ounces at an AISC of A$1,700- 1,800/oz.
Further, the Company’s balance sheet strengthened considerably with net cash and gold of $407.1M following record free cash flow of $125.3M.
As a result, the AISC for the Quarter is expected to be well below Guidance (H2 FY24: A$1,700 – 1,800/oz) with an outcome in the range of A$1,375 – 1,475/oz.
A brief update on production performance follows.

OPERATIONS Group Quarterly gold production of 86,928oz (Guidance: 70,000 – 77,500oz):
• Mt Magnet (incl. Penny) – 45,927oz
• Edna May (incl. Tampia, Marda & Symes) – 41,001oz
In April 2021 (see RMS:ASX Release “March 2021 – Quarterly Activities Report, 21 April 2021) it was noted that Ramelius’ previous practice of releasing a Production Update as a pre-Quarterly Report would cease going forward.
Any material differences to Guidance (above or below) will be managed in accordance with the Company’s continuous disclosure obligations.
Today’s report is considered to meet this criteria, given that production is materially above Guidance and Company expectations.
Further details will be provided in the Quarterly Report later in the month, including a review of how this outperformance will positively impact full year FY24 gold production and AISC Guidance.

This ASX announcement was authorised for release by the Board of Directors.

i hold RMS

hmmm i might regret not adding more recently , but that is how it goes

Good time to be bringing out results like this. Wasn't long ago that just about all reporting was doom and gloom due to inflationary costs, sagging gold price and rain events.

Tripled since the bottom in late 22.

 

[finicky]

Easily my best performing gold stock. Been quite a few record Quarterlies in its history. Not many beat AISC guidance these days. Record by a mile Qtrly free cash flow. Blunts the effect of the McPhillamy DFS update from the eternally wrong footed Regis Resources (RRL)

Held

 

[finicky]

RMS compared PMGOLD vs RRL compared PMGOLD over 1 DECADE.

RMS

RRL

 

[finicky]

According to the Tribeca smaller companies p/f manager RMS is undervalued.
IMO, while the Mar Qtr production, AISC and free cashflow was very good it would need a very significant whole FY24 year's performance to be worth the current price. Also a confident outlook beyond FY24.
ROEs for the last two actual years were only 5% - 6% and book value FY23 was 95c, so the current price is almost 2 x book value. Although there's always the animal spirits of a possible gold bull continuation to take account of I guess.

Held and Holding
Sentiment: Hold

AFR today:
Which stock in the portfolio do you think is the most undervalued?

Management at gold producer Ramelius Resources have done a great job curating a strategy that leverages their existing mill infrastructure by adding nearby deposits through bolt-on mergers and acquisitions.

The stock is cheap on traditional miner metrics. It has a price to net present value of 0.75 times and, with the recent multi-year breakout in gold prices, it provides further tailwinds to valuation. We see material upside from current share price levels.

What is your take on small-cap investing in the current economic environment?

After two full years of underperformance versus the broader S&P/ASX 200 Index, small caps have begun to outperform in 2024.

 

[finicky]

March Quarterly

Beat guidance that was revised upward recently.
Cash and bullion at $407m
Added 18kozs hedging but rolled off 30kozs.
High grade Penny mine seems good

Guidance for full FY24 production raised and AISC guidance lowered
Expected end of year cash and bullion to exceed $500m.
Debt neglible as far as I know.

Held and Holding

 

[noirua]

Ramelius bumps up Eridanus gold project mineral resource by 64%

Ramelius Resources has boosted its mineral resource estimate for the Eridanus project in WA up by 64 percent.

themarketonline.com.au

May 13, 2024, The updated resource sits at 21 million tonnes at 1.7 grams per tonne for 1,200,000 ounces, a rise of 64% since the previous MRE in June last year, with the previous estimate of 730,000 ounces and the company’s exploration target of between 125,000 and 225,003 ounces into a unified resource.

Central to the upgrade was drilling in high grade zones, which included intersections such as 14 metres at 6.26 grams per tonne from 113 metres, 20 metres at 14.51 grams per tonne from 65 metres, and 7 metres at 9.26 grams per tonne from 141 metres.