RMS - Ramelius Resources

[Miner]

Hi guys, I don't follow this one, but just chart wise, still looks ordinary. Potentially a bottom at 40c I suppose, which is long term support back around late 06, early 07. Maybe a little double bottom there. Still goin down until a higher low and high is made. In the short term, those red lines need to be broken to indicate any potential upward movement.

Thanks a lot Kennas for your assistance and putting the chart for RMS.

Regards
PS: The world is a wonderful place for all of us to live and to add few words just to avoid the message is too short

 

[Johno]

Has anyone got any news on this one? I heard their latest meeting online and like what i heard. The charts are looking good for a rebound of the support of 56c. With gold up over the weekend and the dow looking like it could make a turn for the better, this price looks like a good entry point to me...

Any ideas?

 

[Johno]

Up 30% in two days with a what should be a great quarterly to come before friday. This one is worth a look.

 

[sinner]

Down 9% from yesterday even on a pretty optimistic ann today?

http://www.rameliusresources.com.au...Final cut back to yield higher grade gold.pdf

 

[Johno]

Sinner, id say the chart has simply taken over here. It hit its resistance and went straight back down just like the doctor orederd. Its already hit support at 63c or so and is on the way back up to 72c I beleive.

 

[sinner]

Hi guys, I don't follow this one, but just chart wise, still looks ordinary. Potentially a bottom at 40c I suppose, which is long term support back around late 06, early 07. Maybe a little double bottom there. Still goin down until a higher low and high is made. In the short term, those red lines need to be broken to indicate any potential upward movement.

Will try to fill kennas' shoes here.

I have moved kennas trendline up a few notches now the previous one was broken thanks to support from POG. As you can see, there is still massive technical damage to the chart from what (imo) is a cyclical low on gold miners. Have included a long term directional movement indicator to support this opinion.

The technical damage will need to be fought through with consistent support from POG, or continued downward strength on AUD and some good reporting on the part of the company.

I have also included the bollinger bands as they seem to fit rather consistently with S/R and trendlines (you can substitute the 20MA for the middle boll band). We are clearly at a crucial point on the chart here, having already hit the top of the boll band on low year-end volume, there will need to be steady interest in this stock to change the trend.

 

[Sean K]

Sinner, I'm not sure if I'd move the down trend line up just yet. It's more the horizontal resistance that stopped it, as was mentioned, around about 75-80c. It could have made a higher low now, but all relies on the 75-80 ish mark I think. Interesting to note a bit of a long term inverse H&S happening there, with a target of about $1.10 ish on the break through. Doesn't look so clear on a short term chart. That new support at 55 looks important now to continued upward momentum. kennas

 

[sinner]

Light volume, bearish price action. Still lower highs.

Looking for the price to hold here, after touching the 50MA at 0.56 with 100MA just underneath.

Break below 0.52 will be an exit signal at a small profit by my strategy. A shame because RMS is one of my favs!

Very surprised to see selling continue today.

Any opinions?

 

[sinner]

Unhappy with the continued selling today.

Decided to exit my RMS position at a +30% profit and returned the capital to another gold play I like.

Still holding a nice chunk of RMSOC (June 2010, strike price $1.50) bought on the cheap, happy to keep these as a long term exposure.

 

[Johno]

RMS had a great day today...up 10%. It just needed to hit the bottom of that channel a few times between 56 and 72c. Its broken out of a smaller channel its been trading in for the last week or so between 56 and 62c.

Its headed back up to 72c now IMO. I almost sold as well at a loss because it had a bit of a correction back that bottom band and stayed there. Its going up from here though I reckon. There is also an inverted head and shoulders pattern in the chart going back to around September. Also that announcement on production could be happening any time now as they must be getting close to finishing pulling out that high grade at Wattle Dam.

 

[Johno]

Also notice the massive volume today? The most recent high its had in volume was 1 million traded and when that happened it went from 56 to 72c in two days.

Yesterday the volume was a whopping 2.8 million. OBV has spiked up in a big way, and RSI is about halfway at 50 giving us plenty of room to move. A full candle on yesterday's trading indicates a strong buy which should carry on into today's trading. If ever it was going for a run it will be now. Its headed to at least 72c in the coming day or two IMO.

 

[sinner]

Also notice the massive volume today? The most recent high its had in volume was 1 million traded and when that happened it went from 56 to 72c in two days.

Yesterday the volume was a whopping 2.8 million. OBV has spiked up in a big way, and RSI is about halfway at 50 giving us plenty of room to move. A full candle on yesterday's trading indicates a strong buy which should carry on into today's trading. If ever it was going for a run it will be now. Its headed to at least 72c in the coming day or two IMO.

Hi guys,

Wow I have written a lot of posts today! This will be my last one probably so bear with me.

Just to mess with you a little Johno, didn't you already say 63c was support and on it's way back up to 72c from there a couple of weeks ago? :

Anyway, no chart from me on this one today. The technical situation remains pretty much unchanged.

Instead I will link you this "Investor Presentation" which is a 3.5mb PDF file. Worth a read if you are looking to get in or just some bullish fundamental confirmation.

http://www.rameliusresources.com.au...X RELEASES/20090220 Investor Presentation.pdf

I have said it before and will say it again. I like RMS! They don't move up and down with gold as much as I'd like, but this is mostly due to their conservative nature when it comes to reporting.

As we can see the latest resource base upgrade for Wattle Dam is already 50% increase on what it was conservatively placed at in 2008.

Their cost estimates for Wattle Dam are less than 400USD/oz and the other numbers for this mine are also fundamentally bullish imho, but I will let interested parties read and make their own minds up.

 

[Johno]

Hahaha yea Sinner....my charting is a work in progress!!! I tend to jump the gun a bit before the trend has been set in stone (if thats even possible?)

But yea, read that report and liked what I read a lot. These guys are ON TRACK.

 

[inenigma]

I've only just found RMS (popped up in one of my scans last week) and they look very good to me..... 16mil cash, no debt...... Definite going concern.

 

[baja]

so ramelius are in the process of a takeover offer for Diro, does that mean they are in a trading halt? How do I find out when I can buy shares again? I got rejected this morning.

 

[SilverRanger]

will wait and see what the Dioro board say about the offer

baja you were most likely rejected for other reasons, all the stocks involved (RMS, DIO and AVO) were trading on Friday

 

[derty]

Well RMS have managed to mop up 33.78% of DIO and have again extended the offer. This time to 21st Dec. The uptake has slowed, but they have collected much more of DIO that I expected.

The first batch of ore from the Wattle Dam development has been processed. So far 4485 tonnes of ore has been processed from the 13000 tonne parcel. The milled grade was a very healthy 27.4g/t and yielded just 3495oz (just under $5M worth).

It should be noted that this is the development ore taken from setting up the mine. It will be interesting to see if these grades continue once they they start pulling out the bigger tonnages from the stopes.

The share price has rebounded well with the commencement of mining, nice volumes there too.

 

[Nicks]

I like RMS.

No Debt and continually increasing grades and strong actual gold sales.

All of this with Gold price continually going up.

I think that while the share price has had some modest gains recently, it has yet to make a strong move upward to reflect the improved position.

----------------------------------------------------------

6 January 2010
For Immediate Release
RECORD WATTLE DAM PRODUCTION
Ramelius Resources Limited (ASX Code: RMS) is pleased to provide the
following update in respect to its operating and corporate activities:
Highlights
• Record Wattle Dam production of 19,970 oz gold @ 40.88g/t
• Gold sales of A$19.9 million in the month of December 2009
• Stoping of high grade Wattle Dam underground ore has
commenced
• Cash and gold on hand of A$27.2 million ‐ with no debt
• Ramelius currently holds an interest in Dioro of 36.95%
Wattle Dam Production
Final results for milling of the initial Wattle Dam development ore parcel
are shown in the Table below:
Dry Tonnes Milled Head Grade g/t Au Est. Production in
Ounces Au*
15,632 40.88 19,970
*after recovery
The results from the development ore parcel are excellent with actual
grades more than three times that estimated from final underground
sampling of 12.62 g/t Au.
This grade overcall is similar to what was encountered during previous
mining campaigns at Wattle Dam and gives the Company a high degree
of confidence that the underground ore grades will continue to
outperform base case estimates.
Gold sales in December 2009 alone were A$19.9m which has exceeded
total gold sales by Ramelius in any previous full financial year. This result
underscores the potential of Wattle Dam underground ore to deliver
exceptional operating results.
6 January 2010
ISSUED CAPITAL
Ordinary Shares: 290M
Options: 18.45M
DIRECTORS
Chairman:
Robert Kennedy
Non Executive Directors:
Reg Nelson
Kevin Lines
Joe Houldsworth
Chief Executive Officer:
Ian Gordon
2
In line with the mine plan, Ramelius has commenced stoping high grade
underground ore at Wattle Dam and expects to commence milling this
material from late January 2010.
Dioro Offer
Ramelius currently has an interest in Dioro Exploration NL of 36.95%. Its
offer for Dioro, which was recently increased to 2.1 Ramelius shares per
Dioro share, will remain open until the 8th of February 2010.

 

[Nicks]

RMS released their quarterly cash flow statements and activities statements yesterday.

What do others think? I was impressed by their cash position, cash flow, revenues and their assets.

 

[Dugai]

Great results to date, low cost producer (operating costs of about $250/oz and total costs of $420/oz), 20Koz produced so far in the space of a month, ~$15mil net profit in the space of that month..

In the report they say they'll be milling up to 12kt of ore per month, with daily mill grades ranging up to 90g/t, we could see anywhere up to 40Koz produced every month. At margins of $800/oz equates to about $32million a month... this of course would be at the upper end of expectations but we can dream.

And now they're expecting the orebody to be twice as wide as initially modelled Everything about the company looks golden.