valuation broker $2.40 -$2.90 per share

Hi everyone,

We shareholders are not the only one who realise how cheap RSG is right now.

Read the following broker report.

jojo

Today’s Top Picks

Resolute Mining Limited (RSG.ASX, $1.85/sh, Mkt Cap $1.2b) and Papillon Resources Limited (PIR.ASX, $1.08/sh) – Mali coup resolution in sight. - BUY RSG below $2.00/sh & PIR below $1.15/sh.
•Mali’s military junta yesterday ordered borders to be opened and for a curfew to be lifted including the re-opening of parts of Mali airport to allow business to resume. The representative of the coup group, has also acknowledged the importance of the mining industry to Mali's economy and has informed mining companies to operate as normal. As a result, we expect the situation to be under control and expect both RSG and PIR to recover from their recent weakness in share price.
•On Friday, RSG pushed the button on buying back stock for the first time since it initiated its buyback program in September 2011. The timing of the buyback co-insides with the recent weakness in share price as a result of the coup in Mali.
•RSG made an official announcement to the market on Friday that its Syama operations remain unaffected despite the recent political situation in Mali. RSG is aiming to achieve a 55% production profile from Syama ~250,000ozpa by 2013, with the remaining 200,000oz, coming from Ravenswood (130kozpa) and Tanzania (70kozpa
•Low EV/EBITDA Multiples: RSG is targeting 410kz of production in 2012 with cash margins ~$950-1000/oz that should generate significant cash flow for the company in the years to come. This puts the stock on a current EV/EBITDA multiple of 2.7-2.9x a significant discount to its existing peer group of ~4-5x, and implies a PT of $2.40-2.90/sh.
•We maintain our TRADING BUY and would expect the stock to trade above the $2.00/sh level now that the political situation is improving




http://www.fostock.com.au/announcements/resolute-mining-limited-rsg-asx-and-papillon-resources-limited-pir-asx