0.60c net asset backed

A 0.60c net asset backing should be enough to tempt investors to look into the reasons why RMS could possibly be trading at 0.39c.

I am aware of the fundamental reasons that have dented investor sentiment but you cannot ignore this value proposition.

RMS are in a transition period and that is why profits are down and production costs have been unpredictable. Fact is the beloved Wattle Dam is winding down and other projects are kicking off.

Management have proven that they can turn a big profit (60m on the previous year - 2011) and run a successful operation. Mt Magnet production costs are being tamed nicely and you would certainly expect a profitable 2013.

On top of this there are some interesting side ventures and explorations which are all taking place with breaking the bank. Always nice to invest in a company which is profitable and has blue sky appeal.

Remember it was less than 12 months ago that North American institutional investors paid $1.15 for an RMS share. These guys don't usually spend money like that without doing some due diligence. Sure they are not happy how the SP has performed over the last 11 months but they were never in it to turn a quick buck. They believed in the projects and the management.

My take on the situation is that 2011 was an exceptional year and RMS had the privilege of mining one of the highest grade gold mines in Australia. This made the company and has given it every opportunity to build itself into a stable and established mid tier Australian producer. The company should be proud of their achievements and if not envied they will certainly be attractive to larger Gold Producers or investors both nationally and globally.