I think this announcement was largely expected due to the changing cost structure in the WA industry over the last year. Overall I consider this is a positive reflection on managment quality that they choose to shelve the stage 3 production for a later time. Even though at the current prices it would still make money and add to their production numbers. I am very happy for them to keep it in the ground as a gold reserve that can be tapped when conditions and margins will be better.

It also enables them to save the capex costs which were now up to $220m. They have also maintained there 3 year production guidance and the Edna May mill has ore until 2025. So it would seem likely that the stage 3 project will get revisited pretty quickly if either the industry cost pressures decrease or the gold price goes on a sustained run higher.

This defferal also gives them the space to aquire the 3rd production hub that they have been looking for. They have been talking about this since late 2020 I think, which is fine with me as one of the things I like about RMS is that they are careful at with what they buy. Given that the gold price is now recovering and interest in the sector is increasing again it is probably a much easier time to raise the capital for an aquisition.