Wattle Dam is the group’s cash cow, producing solid amounts of high grade gold at a low cost.
With Wattle’s mine life potentially coming to an end, RMS also has its lucrative Mt Magnet project, which will come into production this year.
RMS is benefitting from its strong operations and boom times for gold. The group is a low-cost operator with no debt and in a strong financial position with $90 million in cash on hand.
RMS produced just over 100,000 ounces (oz) of gold from its Wattle Dam gold mine for the full year.
On the back of a solid June quarter, total gold production for the mine was over 200,000 oz, including production from the former open pit of 51,000 oz.
The Mt Magnet project north east of Perth is proceeding with the planned schedule for gold production to begin in January 2012.
RMS currently has $100 million in cash and gold on hand.
The stock will also benefit from a surging gold price.