When companies lose the confidence of the shareholders they get valued close to cash reserves, depending on the long term value of the value of fixed assets they may or maynot be included.
A value of double cash reserves is a generous value that values the company just over scrap value.
If I gave rms a value including fixed assets, its probably aroud $230 million.
RMS have a reputation for making mistakes and incurring unexpected costs. This effects the market valuation. Furthermore its pointless to included fixed assets if the mine is uneconomical long term.
Mt Magnet in my view has become an experimental project with the potential to chew up all RMS cash reserves.
If this become a black hole for cash at what point will they scrap the project.
RMS Price at posting:
81.0¢ Sentiment: ST Sell Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)