RMS 3.05% $1.86 ramelius resources limited

It's past the end of February, no step-change with a third hub...

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    It's past the end of February, no step-change with a third hub for Ramelius and I am still holding RMS. My excuse is that as much as I think the Bob Vassie led company has lost the plot strategically I continue to think the Mark Zeptner led operations are as solid as, which is what I want in these bucked up times. Therefore, for the time being, I will hold the last vestige of my RMS holdings. So back onto their third hub options...

    I'd guess that Tembo did not just go into Gascoyne looking for only a quick double and I'd also guess that Delphi would be losing heaps if they were to agree to a take-over of Gascoyne in its current weakened state. If I assume I am close to the money with Delphi and Tembo then Gascoyne has removed itself from the dating scene. I'm not 100% won over by the Gascoyne MD, Simon Lawson - I still remember how hard he sold the Yalgoo land when he was with Firefly but then dropped them dead as soon as he got the bigger gig at Gascoyne - but I think the big shareholders will stick with him for a while at least. So I've concluded that Gascoyne seems not for Ramelius (which had been my third pick for the Ramelius third hub after Dacian and Rox [geez I can pick 'em!])

    Though to show how much the WA mining sector is like social life in a country town - at one time or another most everyone gets to pair up with one another - when I googled the Southern Cross mine being on the market I came up this: back in 2013 the current Chinese owners of the Southern Cross operation bought it from ... St Barbara. I checked and back in 2013 SBM was in the doldrums same as RMS (from memory I think the issue back then was that the gold price was shite). Funny how an operation that ten years ago was in care and maintenance and was flogged off by a down-and-out St Barbara to the Chinese for $22.5m could be the operation that might be the step-change that will take a robust mid-tier like Ramelius up into the next echelon of gold miners. Also notable that the Chinese had Macquarie try to sell Southern Cross in 2016 but apparently the donut got no bites.

    As others have pointed out, perhaps there are some synergies between a fading Edna May and an resuscitated Southern Cross which might get the deal over the line. I recall reading that the sale process for Southern Cross is not expected to be completed until June so it might be a wait before we hear anything one way or the other about the sale.

    PS Maybe Ora Banda could be in with a chance for Ramelius but personally I would not touch it ... memories of Michael Kiernan and Monarch Mining (as I said, geez I can pick 'em!).
 
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