Ann: Ramelius Approves Vivien Gold Mine, page-35

Hi folks
I was thinking tonight why some are not appreciative of the margin RMS is acheiving and has locked in and I conclude many look at gold companies projections vs reality . If I look at PRU, RSG , BDR , TRY all of which I have held at some point and compare projections versus what was achieved then overtime one grows to appreciate a derisked operational mine , a relatively proven geology and most importantly cashflow and profits that materialise in cash. If I look at what one pays for cashflow vs EV I challenge anybody to find me any gold stock with a cheaper Metric in this regard . People also neglect to consider cashflow of a cashed up company vs that of an indebted company and how much of the margin needs to go to debt before shareholders. The fail to internalise the buffer cash provides when things go wrong or the danger when debt is high with companies often responding with dilution and SP destruction
In summary one needs to look at the company in totality to see the risk adjusted value RMS provides

Gold and the USD have a degree of negative correlation , therefore unlike USD gold, a fall in gold is often accompanied by a stronger USD meaning AUD gold ends up being stable