If you have time could you please evaluate Edna May mine as a standalone business, i.e if it was not under EVN or RMS. What would be a fair value of Edna May. The reason I ask is somehow I think the market has not at all appreciated this acquisition, at least it is not reflecting in the share price.
I always agree with your views except for one company which we disagree sometimes. So far you are right and I am wrong on that one. I think I will be right eventually one day on that one but I realise now it is no good to be eventually right but to be right rather on a short time frame.
My thinking was RMS would be re-rated after this acquisition since the market never appreciated the cash on hand, now they don't even appreciate this acquisition. What it will take the market to re-rate.
I compare Edna May as a similar business to Millenium minerals, just Edna May has longer LOM.
If Millenium is valued over $100 mil and we got Edna May for $40 mil, there is a clear disparity.
(Right now I am not worried about that upto 50 million royalty payments. RMS paid 40 million dollars for the first 200k ounces at a roughly 400-450 margin/ounce, which means 40 million profit can be generated in the first 12-14 months at this current gold price.)
You could also express you views on Millenium on the Millenium forum.
Your thoughts will be highly appreciated.
Thanks in advance.
RMS Price at posting:
39.5¢ Sentiment: Buy Disclosure: Held
(20min delay)