I know you've never liked this project ...but having trouble to follow your reasoning .
Post-tax NPV5% @ A$4,000/oz A$M 610 Current GP around $4,200 .....I'd think $4,000 gp the most likely assumption of those listeed - how about you ?*
so they paid what ,$260 mill for the 2 projects , maybe spent $40 mil on it since ......so something that has cost them $300mill so far , they estimate to have a value of $600m ......and RMS has the habit of conservtive estimates . Then ther are going to be more oz's aadded over time as drilling continues - Roe is complex . This will be a money spinner for RMS with decent if unspectacular margin ....GP willing !
the availability of top shelf projects ....and the competition for them means you can't always get what you want ....but they have tried ....and got what they need . (some may see those words as familiar and plagiarised .)
* they say payback period at $3,500 is 4 years .....I estimate 2.5 - 3 years at current GP .
RMS Price at posting:
$2.29 Sentiment: Hold Disclosure: Held
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