RMS - Ramelius Resources

[mr. jeff]

quarterly report out, 11.2M banked.
RMS continues to produce well with good margins.
They now have nearly 90M in cash. (86.8M at bank)
I would suspect that there will be another dividend coming in the not too distant future!
No major spends planned in the next quarter.

 

[VSntchr]

Massive jump today. Must be something in the air...I am yet to become aware of the reason...anyone else know?

RMS has been sold down over the last few months...

 

[Intrinsic Value]

Massive jump today. Must be something in the air...I am yet to become aware of the reason...anyone else know?

RMS has been sold down over the last few months...

Up 14 percent glad I held onto them.

My IV is over 2.50 for them based on the current gold price and that is with a very high RR.

 

[VSntchr]

Up 14 percent glad I held onto them.

My IV is over 2.50 for them based on the current gold price and that is with a very high RR.

I too think they are worth substantially more than what they are currently being offered for..in my forecasts ive assumed a gold price at $1100

 

[mr. jeff]

I Assume we'll have the answer soon. There are three obvious options, but I like the dividend one the best. Hopefully SBM is not planning on having a swipe at them! A 5c dividend would be quite possible with cash on hand, I'll take mine in gold bar thanks!

(the other reason being drill results but they would have released/announced them if that were the case)

good luck holders, this is a quality stock and someone somewhere knows more than we do, but already hold so take it away!

 

[skc]

Very surprised that they didn't get a speeding ticket with the hike today.

The smaller end of the gold space is rife for a bounce and corporate activities. Holders of CAH and SBM have certainly had a wild ride.

 

[mr. jeff]

Very surprised that they didn't get a speeding ticket with the hike today.

The smaller end of the gold space is rife for a bounce and corporate activities. Holders of CAH and SBM have certainly had a wild ride.

Dear Justin,
Response to Price Query
I refer to your letter dated 17 June 2011 regarding the change in price of
Ramelius’ shares from a close of $1.245 on 16 June 2011 to a high of
$1.465 today and increased volume in trading during this period.
Ramelius responds to the questions in your letter as follows.
1. No.
2. Not Applicable.
3. No.
4. Ramelius is in compliance with the listing rules.
Yours sincerely,
Dom Francese

12.5M traded (less than 2M average), someone really wanted a piece of the action today - this hopefully signals the next leg up, a good volume spike is exciting - but I hold already so let's see where this goes. Good luck.

 

[makybe04]

I've been in and out of this stock over the last 12 months and made a decent return from it. I really like this stock as a low cost low risk producer. As a beginner somewhat to the sharemarket I was wondering if I could bounce some ideas in this thread. I had a buy order in at $1.21 but unfortunately the order wasn't filled. Do people still the next few days as a good buying opportunity for RMS despite the huge price increase? Should one wait for a bit of a retracement in the next few days?

 

[mr. jeff]

I would check around and see what is happening in the gold arena in general, if you have a look at BDR, RMS, AUC and GRY, someone has decided that there is exceptional value to be had in the smaller gold miners, check the volumes for yourself.
You'll have to make your own mind up. There may be a retracement, the buying may continue, something good may be afoot, but don't get caught out!
lets see what happens tomorrow.

 

[VSntchr]

Takeover of a gold company announced by FML. Perhaps people thought the company was going to be RMS. Dissapointed speculators obviously clearing out today...

 

[Tyler]

Whats the total cost per ounce produced?

- Why is it so low (im assuming)? Is it sustainable?

 

[rustyheela]

Whats the total cost per ounce produced?

- Why is it so low (im assuming)? Is it sustainable?

its all here - www.rameliusresources.com.au/. Lowest cost producer per ounce in OZ
Dow up 160 odd points last night, gold down $20.00. not sure which way it will jump. dependent on US dollar

 

[rustyheela]

its all here - www.rameliusresources.com.au/. Lowest cost producer per ounce in OZ
Dow up 160 odd points last night, gold down $20.00. not sure which way it will jump. dependent on US dollar

P.S. One of the few resource stocks in an weekly UPTREND since August 2010.
The trend is your friend

 

[mr. jeff]

Takeover of a gold company announced by FML. Perhaps people thought the company was going to be RMS. Dissapointed speculators obviously clearing out today...

Sorry I should follow this up: there was a report in the media that there was a gold stock fund being built which required holdings in some of the small-med goldies on ASX. RMS and PRU were 2 of them. I know this is vague but that explains the volume spike recently; if anyone has the report then post it if you are able.

cheers

 

[Tyler]

RMS, according to this report https://www.belldirect.com.au/file.type?type=19&id=578
Has limted reserves (which means the current production & therefore profit is unsustainable in the next few years)

If i am correct, how could you say this company is cheap
If i am wrong please correct me

 

[oldblue]

You're probably correct, Tyler, in that current production from the lucrative Wattle Dam mine only has an expected life, at this stage, through to the end of 2013. Mt Magnet is targetted to commence production next year with an anticipated six year life span, but at a lower grade and higher cost than Wattle Dam.

Noted that BPT recently sold out of their 7% interest although too much shouldn't be read into that, IMO. As an energy company, BPT probably found their shareholding to be an unnecessary distraction, although a profitable investment for a period of time.

I don't hold although have often wished I did!

 

[VSntchr]

Announcement out today $90m NPBT which should give NPAT of ~$60m. Grossly undervalued IMHO, market must be concerned with the new mine to open next year.

Has opened up this morning, bucking the trend of the negative market.

 

[skc]

Announcement out today $90m NPBT which should give NPAT of ~$60m. Grossly undervalued IMHO, market must be concerned with the new mine to open next year.

Has opened up this morning, bucking the trend of the negative market.

Gold at record high and most gold stocks are up.

But don't go a PE on that NPAT... there's is not enough gold to last "forever" (which is what a PE implies).

 

[VSntchr]

Inflation adjusted gold price isnt really all that high as some media pundits like to make us think.

Valuation is conservatively produced through a ROE based model.

Good point about the gold not lasting forever, I do however see at least the next few years to be profitable for RMS.

 

[skc]

Inflation adjusted gold price isnt really all that high as some media pundits like to make us think.

Valuation is conservatively produced through a ROE based model.

Good point about the gold not lasting forever, I do however see at least the next few years to be profitable for RMS.

The ROE model has the same assumptions - ie they can achieve the same return on their equity FOREVER going forward. What that means in real life is that, after the existing mine runs out of gold and RMS is left with the cash profits, they will find a mine with the same grade and same low cost with that money... that's far from certain so a large discount is needed even if you want to back the skill/luck of the management team.

If they don't? You would have paid for their cash at 20% ROE when it is only capable of returning 3% (after paying the board and admin etc).