We have liked RMS for more than a year, and it hasn’t disappointed us. On Thursday, it rallied over 7%, making it one of the best-performing gold stocks in a hot session for precious metals. The $2bn South Australian gold producer has been gaining momentum through March since they released their 10-year plan for the Mt Magnet mine. The company enjoys one of Australia’s highest-grade gold mines to fuel revenue over the years ahead, now production has begun. The company forecasts a 10-year mine life and $2.1bn of free cash flow, assuming a gold price of A$2,500/oz – Note that gold is trading above $A3,400 today.
- We can see RMS initially testing $2 this FY or another 15% higher.
MM is bullish toward RMS medium-term
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