RMS - RAMELIUS RESOURCES

Discussion in 'Stocks & Derivatives' started by shano73, Jul 13, 2012.

  1. shano73

    shano73 Member

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    Hi Everyone,

    Ive just put RMS - RAMELIUS RESOURCES @ .47c share into my super portfolio, it is currently running two mines - WATTLE DAM & MT MAGNET - both are in WA and has exploration in AUS & US atm.

    Operating costs per oz of Gold for 2010/11 - $489

    Info below:-

    ASX Code: RMS
    Ordinary shares on issue: 336M
    Market capitalisation: ~A$150m
    12 month share price range: $0.425-1.695
    Cash and gold on hand: A$66m (Mar 12)

    Significant shareholders:

    Sprott: 15%
    Van Eck: 6%
    Top 20: 56%

    Investment Highlights:

    Two operating gold mines in Western Australia:
    Mt Magnet low risk open cut
    Wattle Dam high grade underground
    Targeting sustained increase in gold production by 2014*
    Debt free and able to fund operations from cash flow
    Recently agreed to acquire a new high grade mine (Vivien)
    Focussed portfolio of greenfields opportunities in QLD & US
    Significant upside at Mt Magnet & Vivien projects
    Profitable gold producer for the past 5 years

    Mt Magnet significant progress:
    FY 2013 - Production guidance of 70,000 oz
    Refurbished 1.7mtpa gold plant replacement value A$80-100m

    Wattle Dam Gold Mine (WA):
    Production guidance of 30-35,000 ounces in FY 2013

    Other exploration:

    Vivien Project* (WA) High grade gold opportunity:
    Existing Indicated Resource of 154,000 ounces Au @ 8.3 g/t Au
    Vein style mineralisation with multiple high grade zones
    Historic production of 110,000 oz Au (~1,000 oz per vertical metre)
    Significant true width intersections:
    10m @ 31.8 g/t Au
    5.5m @ 33 g/t Au
    2.5m @ 78 g/t Au
    2.1m @ 66 g/t Au
    4.5m @ 31.2 g/t Au
    4.7m @ 24.2 g/t Au

    Coogee Project (WA) High grade open pit:
    Mining study to be completed in Sept quarter 2012
    Significant Intersections* include:
    6m @ 37.8 g/t Au
    7m @ 31.4 g/t Au
    7m @ 19.7 g/t Au
    6m @ 13.59 g/t Au
    7m @ 12.1 g/t Au
    * True width approx. 85% of intersection

    Exploration:-

    North Queensland (earning 60%):
    Mt Windsor JV world class gold district
    Joint Venture with Liontown Resources Ltd (ASX: LTR)
    Exploring for breccia hosted gold drilling mid 2012

    Nevada (earning 70%*):
    Two JV's with Miranda Gold Corp in world class gold region
    Angel Wing targeting bonanza gold grade epithermal veins: DaVinci
    veins 2 km strike potential

    Any thoughts or feedback about this company appreciated :)

    Cheers,
     
  2. finicky

    finicky Well-Known Member Silver Stacker

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  3. shano73

    shano73 Member

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    Ahh soz Finicky, I did run a search before posting...great search tool .......not :(
     
  4. GoldenEgg

    GoldenEgg New Member

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    how much mine life on the wattle dam and mt magnet projects is remaining?
     
  5. Agauholic

    Agauholic New Member

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    WD: 1 year, the vein is not open at depth, unless more discoveries form the tenemant come, it's done.
    Magnet Mine: Multiyear 5+, but low grade (high cost). expect 70Koz for 5yr+

    With gold > $1500 they will be a producer for many years to come, but not super high margin, unless exploration comes in positive.

    They are sitting on plenty of cash..... so... then what they do with it becomes a Management Team investment, there are plenty of other management teams i would prefer at the helm.

    Sprott is down to 9% now... got out between $1.00 and 50c

    imo, it's all fairly well priced in now, considering the cash they are sitting on.... could be a good entry point for medium term, especially if you see gold going higher. So many PM stocks are sitting at 52week lows...

    The contrarian should be active at this point.... but it's hard to get excited.
     
  6. finicky

    finicky Well-Known Member Silver Stacker

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    That's mostly my sense of it.

    The previous M.D of Ramelius used to go on about the satellite prospects around Wattle Dam, and they came to nothing after a lot of drilling. He used to continually point out Ramelius' cash position, high grade resource, but went on to mount two capital raisings. He vacated the top role but stayed on in a non-executive board for a discreet period before quietly exiting. Ex directors can sell their shares without a market 3Y announcement.

    The current M.D got gifted 500,000 shares and turned around and sold half of them. To pay his tax bill he said. Then we get an 'update' that was designed to give the impression that W.D mine had turned the corner - month of January production of 6,000 ozs, with stockpiled ore, and grading of over 12g/t. Wait through 3 months of S.P decline for the Qtrly and it turns out that they only produced another 4,000 ozs from W.D over the two months after January, grade 8g/t - Block D pretty much crap like block C, and no gold found at depth drilling. Cash at December Quarter was $102m, cash at March Quarter $66m - that's how fast they can spend it.

    Head grade at Mt Magnet reported in March Quarter 0.8 g/t. Now a 2 week wait to see how badly they went in the June Quarter. Someone would buy now? Must be a real punter or someone with inside goss. that's one thing about Ramelius - since the pronouncements of management are only worthy of contempt, you can resort to the charts. There's been leakage about performance before I'm convinced, so watching the chart closely in the lead-up to the June Qtrly could be worthwhile. But with this company - always stop loss in mind.

    Oh, and Skaffold now reckons this company has an intrinsic value of 94c for FY13, rising from just 11c in the year just past, FY12. That's the trouble with Skaffold when considering dodgy resource stocks. Its all over the place, because a lot of it's just the opinion of an analyst or two on future earnings as well as past results, and good luck trying to divine what will happen with a gold mine in the year ahead. Don't look to this management for any help on that.
     
  7. shano73

    shano73 Member

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    <---- Punter lol

    It's my first foray into the stock market, chose this one and 4 other stocks for my Super, time will tell.

    I have'nt risked much, but did research before jumping in. You can only monitor ups and downs for so long and saw RMS price at good entry point so bit the bullet.
     
  8. finicky

    finicky Well-Known Member Silver Stacker

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    Fair enough, but my tip - set a stop-loss or have one precisely in mind with this stock. If you're at work in trading hours, make it an automatic stop-loss. Take the loss, and don't hang around for it to recover if the price breaks down if/when a disappointing Qtrly is announced in 2 weeks (which I think's more likely than not).
     
  9. Agauholic

    Agauholic New Member

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    To be fair, twas in a period of phasing in the production circuit of the plant.
     
  10. finicky

    finicky Well-Known Member Silver Stacker

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    10.5c these days and just when a chart punter might have been mulling the chances of a double bottom. Bad management. Management #1 consideration they always said.

    5 December 2013

    Ramelius Resources Limited

    TRADING HALT

    ".... immediate trading halt to the company's securities, ASX code: RMS,
    pending an announcement as soon as possible regarding a pit wall failure at
    Western Queen South.."

    [​IMG]
     
  11. bellinvest

    bellinvest New Member

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    I thought i would awaken the RMS thread after 2 years of sideways action!

    Price ~$0.215
    52 week High ~$0.24
    52 week Low ~$0.04
    PE ~6/14
    Market Cap ~$102m

    Report 26/11

    "At the end of the financial year the Company had cash and gold on hand of $36.3 million which
    increased to $39.2 million at the end of the September 2015 quarter. I believe Ramelius is in a
    strong financial position to forge ahead with its mining operations at Mt Magnet, Kathleen Valley
    and Vivien to increase gold production at the Checkers processing plant and become Australia's
    next 100,000 plus ounce gold producer."

    They have forward sold around 80,000oz at AUD$1576/oz which will help them through the recent price rout nicely. They had an AISC in FY2015 of $1178 have have seen some handsome margins. They Vivien project will be producing in Q1 2016 so i expect to see their AISC around that AU$1100 level herein.

    Report 2/12

    "Ramelius completed ten deep exploration RC drill holes and two RC re-entries at Milky Way, for an
    aggregate of 3,047m. The drilling was targeting along strike, plus up and down dip of the previously
    reported 6m at 11.64 g/t Au and 7m at 11.29 g/t Au intersections (refer ASX Releases dated 14
    September 2015 and 13 October 2015 respectively). The bonanza intersection from Ramelius' new
    drill hole GXRC1345 reports as:

    ~22m at 55.05 g/t Au from 112m, including 9m at 126.6 g/t Au"

    ~89m at 13.9 g/t Au from 108m in GXRC1345
    ~46m at 0.49 g/t Au from 140m in GXRC1337
    ~60m at 0.53 g/t Au from 34m in GXRC1338
    ~11m at 1.65 g/t Au from 175m in GXRC1341 and
    ~28m at 2.20 g/t Au from 38m in GXRC1342

    RMS went into a trading halt ~ $0.17 and when the market open they quickly rose to $0.225 before coming back down to the $0.21 level to close the day.

    Follow up drilling along the Milky Way fault will be very interesting in Q1 2016... the deeper they have drilled the higher grade/wider the system gets. Looks promising.

    Disclosure: Held

    DYOR
     
  12. finicky

    finicky Well-Known Member Silver Stacker

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    I seem to remember Ramelius reporting 'bonanza intersections' back in the latter days of the Wattle Dam mine. Didn't matter, gold wasn't there when it came to mining the later blocks. No regulator comes knocking and demands accountabilty for a rich intersection that is reported and leads to nothing in the end. They are cheap gooses to the share price with no liability attached.

    If I didnt know what company this is I'd be feeling ok about holding the stock with its current chart. Its looking very hopeful for a maturing shallow bottom of two and a half years with excellent monthly and weekly volume spikes over this current year. Lower monthly volume coming into the 4c bottom, higher volume coming out. Daily looking a bit messy, i wouldnt buy until a clear confirmed breakout beyond say 24c if it were me, which it wont be, jmo. This last weeks candle looks good as it is bullish engulfing, but on firm not exciting volume.

    Stopped watching it 2 years ago - too disgusted.
     
  13. finicky

    finicky Well-Known Member Silver Stacker

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    Nice impression of a chart making a base and threatening to break out. See the strong engulfing weekly candle for last week but volume unspectacular? Also the very strong last momentum peak on the RSI momentum indicator. Volume as mentioned spiking strongly since the 4c bottom in Nov 2014.

    Disclosure: None held
    sentiment: None. Nice chart imo

    RMS Weekly Chart
    [​IMG]
     
  14. bellinvest

    bellinvest New Member

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    Nice!

    I'm sitting on a rather solid profit for this stock, so should we see it drift back to $0.20 in the coming days/weeks i will offload and take the profits whilst ahead.

    I hope to see some nice final drill results published shortly from the Milky Way Deposit.

    I prefer the likes of EVN and DRM.

    Cheers!
     
  15. Silverthorn

    Silverthorn Well-Known Member

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    Beat guidance. Trying to break out. Nice move today.
     
  16. Silverthorn

    Silverthorn Well-Known Member

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    quarterly activities out. breaking out.

    [​IMG]
     
  17. finicky

    finicky Well-Known Member Silver Stacker

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    Looking pretty good for holders. How about summary of Qtrly?
     
  18. Silverthorn

    Silverthorn Well-Known Member

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  19. Silverthorn

    Silverthorn Well-Known Member

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  20. Silverthorn

    Silverthorn Well-Known Member

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    Went again
     

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