Regarding RMS and RED, there are probably a couple of reasons for the differing market caps.
RED has a higher All In Sustaining Cost (AISC).
RMS has less debt, and more money in the bank.
RMS may be in the ASX300 where funds are able to invest.
And sometimes you get a market darling, which is liked more for no particular reason.
Some managements are thought of better than others.
There are many reasons feeding into a market cap - many!
Personally, I think RMS is overvalued, and RED is probably about right, given their recent excellent drilling results, the current gold price, and especially if they can sell their Philippines mines for a decent price.
So as you can see, there are many different reasons, with RED probably being a better buy at the moment, but who knows, the market is certainly a strange manipulated place, just like the international gold price.
If the gold price holds up, I'd still expect to see Emerald get past 12 cents in the next 18 months, but I'm hoping for 15 cents.
And beyond the Sprott $60 million funding that the Mining Licence should trigger, they also have available from Sprott, another $100 million should they find a good opportunity and want to buy another project. Sprott don't just throw this amount of money to anyone.
Gw
Expand
(20min delay)