Where's The Pullback, page-89

and Tangs seeing as you are a good bloke and open to facts and a hardy discussion I'll let you into something that careful readers would have noticed in the last RMS company presentation.

On slide 8 the company says

"Tampia Hill and Marda Projects now being integrated – aiming to achieve Ore Reserve position in excess of 1,000,000oz*"

at the bottom of that slide the asterisk symbol (*) is followed by the words "Aspirational statement"

Given that RMS's reserves are 698,000ozs without Tampia have you wondered why they have put this disclaimer in about the 1Mozs of ore reserves? Surely with 698,000ozs of ore reserves already and 485,000ozs of ore reserves at Tampia they already have 1,183,000 ozs of ore reserves, ie more than 1Mozs (together from all their chook scratchings). Then why put in such a weird disclaimer?

My guess is that if the eventual plan is to truck Tampia ore to EM then those reserves may end up shrinking as EXU's reserves were based on a standalone mine.

Hooray at least the company is being honest and not including the Tampia reserves into their reserve statement yet due to the uncertainty around how they plan to exploit those reserves.

Remember RMS's reserves at Tampia don't come for free they have already been paid for by the $10 million cash and expansion of the share register and if a stand-alone mine is built the company will need to rustle up pre-production capital costs of about A$119 million. That might put a dent into any immediate dividend payouts based on the company's new dividend policy .......and do I see RMS making the $77 million in net profit in 2019 or 2020 to back its current sky high valuation if this scenerio or any other scenerio plays out. No.

Probably best to revist around 2020 once short positions have been delivered on IMO. Esh