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Evolution (EVN) v Ramelius (RMS)

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Question asked 31/05/2025

Evolution (EVN) v Ramelius (RMS)

I understand, that Evolution Mining (EVN) receives 25% of it's income from Cu and only the remainder from gold, whereas Ramelius (RMS) gets all it's income from gold. However, when you look at the numbers, RMS looks much more appealing. EVN RMS R/E 11.8 16.4 R/C 10 17 P/E 20.61 7.98 DIV% 1.3 2.8 D/E 48.7 0.8 Shouldn't we have at least part of our gold holdings in RMS? Best regards, John

Answer

Hi John,

There is a couple of quality gold names on the ASX that could come under the same umbrella but obviously we cannot own them all. We have held a preference for EVN over others due to their operational turnaround in recent years. Historically, they had underperformed, however, they started to produce a greater level of consistency in their operations, and as we got evidence of this, we became more positive on EVN versus others, originally buying in the mid $1 range. So far in 2025 Evolution (EVN) is up +84% whereas RMS has advanced +49%, both great results but obviously at this stage of the year there’s one clear winner, which is pertinent considering 2025:

Across the ASX the strong have got stronger through 2025 as the “Certainty Trade” remains in vogue

At this stage of the cycle, where MM is expecting some more choppy/volatile moves by the precious metal we would rather stick with the quality end of town but as we have discussed a few times of late if/when we get a correction in gold (a crowded trade) back towards $US3100/oz we will be considering higher Beta plays like Regis (RRL), or perhaps Ramelius (RMS).

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Evolution Mining (EVN) V Ramelius Resources (RMS)

LAST UPDATED 30/05/2025 13:32

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