52 week high, page-2

OMG! I missed all the excitement, or at least that little bit, when i got back on line and saw the price action i assumed that it was the assays from the pending holes from Wattle Dam underground. But great stuff to see the company finally hit the radars of the many people who are trying to find good places to invest in gold, I firmly believe this is one of the best. I really think we are seeing a re rating. You only have to do the numbers off the last quarterly. They lifted production to 15000 tonnes a month. If grades are holding (and for some stopes they might improve) at 24gpt gold, then Burbanks could be pouring as much as 10,000 oz a month. In the last quarter they made a margin of $830 an ounce at avg price of $1294, well its up to $1390 an oz now (AUD) so even if the golden Rams averages $850 an oz this qtr they are going to be producing $10million free cash every month. Now the local newsagent sold on a PE of 3. If you want to value RMS at a PE of 4 that gives it a total cap of say 360m or about $1.20 a share, so I say it has just begun.

Further hike in POG will help of course and the assays from Wattle Dam deeps will be very exciting but even so, just on whats coming out of WD this is still way below value and I cannot wait till they get the drill down deeper here and at Mt Magnet let alone the potential from the other exploration progress announced today. This is looking good for a long way yet in my humble opinion.